New active ultra-short bond strategy managed by Franklin Bissett offers yield similar to GICs
To help investors struggling with the current rising-rate environment, Franklin Templeton Canada has added an ultra-short duration bond strategy to its lineup of active fixed income ETFs.
The Franklin Bissett Ultra Short Bond Active ETF (FHIS) has been listed on the Toronto Stock Exchange.
Aside from offering Canadian investors high liquidity, FHIS offers Canadian investors active allocation at a modest cost.
"With the recent market volatility and rising interest rates, many investors are looking to enhance their cash position while preserving capital," said Duane Green, president and CEO, Franklin Templeton Canada.
"FHIS provides a shorter duration strategy with a comparable yield to GICs, providing Canadians access to stable income with downside protection and limited sensitivity to interest rate movements."
By investing primarily in debt securities issued by Canadian issuers, Franklin Bissett Ultra Short Bond Active ETF seeks to generate income while protecting capital.
Ahmed Farooq, SVP and head of Retail ETF Distribution, Franklin Templeton Canada, added: "For investors looking for more than a money market fund and not wanting to lock in GIC rates at a time when interest rates are expected to rise, FHIS provides the flexibility they desire.”
Co-managing FHIS are the Franklin Bissett Investment Management team, which includes Brian Calder, VP, portfolio manager and senior trader, who has 23 years of industry experience; Sevrika Galipeau, portfolio manager and research analyst, who has 15 years of experience; and Darius Taheri, portfolio manager and trader, with 8 years of experience.
The fixed income team at Franklin Bissett offers investors Canadian fixed income expertise rooted in a global perspective, managing approximately $5 billion in assets. With a focus on Canada, the team manages multi-sector, credit, and duration-targeted strategies with the potential for improved returns through global diversification.
“The active management of this ETF allows our seasoned Canadian fixed income team to seize investment opportunities arising in the bond market, with the benefit of a low management fee of only 15 bps," Farooq says.
