Franklin Templeton Investments has brought together fund managers from across the high yield bond universe in order to launch a dedicated global high income fund.

The Luxembourg-domiciled Templeton Global High Income Bond fund, which will operate on an unconstrained basis, will be co-managed by Eric Takaha, Betsy Hofman and Patricia O'Connor.

The fund can invest in bonds, mortgage or asset-backed securities, convertibles, real estate investment trusts, collateralised loan obligations and structured notes and will also include emerging market issued bonds.

At present, Betsy Hofman runs the firm's $3.85 billion US high yield product, the Franklin High Yield fund. Patricia O'Connor represents the European high yield market, where she currently co-manages the $660 million Templeton Euro High Yield fund with Piero Del Monte.

Meanwhile, Takaha operates in both the global bonds and global high yield sectors.

He currently co-manages the Templeton Global High Yield fund alongside Michael Hasenstab, as well as the Franklin Strategic Income fund with Citywire A-rated duo Chris Molumphy and Kent Burns.

Commenting on the fund launch, Takaha said: 'We believe that superior high-yielding returns are best captured through a research-driven approach that capitalizes on inefficiencies across the global high yield markets.'

'The best return opportunities can sometimes be found in those companies or sectors that are out-of-favour or are under-followed in the market place.'

In addition to the three lead managers, the fund will also draw on the expertise of the 20 members of the dedicated high-yield fixed income team of managers, research analysts, research associates and traders

David Fuller's view This fund sounds like a good idea, provided the fees are reasonable.