Franklin Templeton Group, San Mateo, Calif., which sells mutual funds through banks, has introduced the Franklin Bond Fund.
The intermediate-term bond fund will invest primarily in a mix of investment-grade government, corporate, mortgage-backed, and asset-backed securities, the company said.
The fund is designed provide investors with a high level of income, while preserving capital. Its goals include long-term capital appreciation. Up to 35% of the fund's total assets may be invested in more risky non- investment-grade, fixed-income securities.
The fund's minimum initial investment for non-retirement-plan investors is $1,000.
The minimum on subsequent purchases is $50. Roger A. Bayston, who manages several Franklin Templeton funds, will also manage the Franklin Bond Fund.
Franklin Templeton, which has $236.6 billion of assets under management, has 121 U.S.-based open-ended funds and sells through about 200 banks, a spokeswoman said.