Franklin goes short on bonds

Franklin Templeton is favouring the short end of the bond market as low rates lead many homeowners to pay off their mortgages early, resulting in decreasing bond yields. Its US Government fund, run by Roger Bayston, invests exclusively in US Government National Mortgage Association (GNMA) issuance, mortgage-backed bonds fully guaranteed by the US government. The fund has more than doubled in size over the past 12 months as investors continue to take flight to safer asset classes. The Luxembourg-listed Sicav's assets under management reached $2.5bn as of 31 October, up from just over $...