Franklin Templeton Canada Continues to Expand Investment Capabilities and Proven Sustainability Expertise with New Funds and ETFs
Firm brings its boutique expertise from Brandywine Global, ClearBridge Investments, Martin Currie and Royce Investment Partners to Canadian investors
TORONTO, June 17, 2021 /CNW/ - Franklin Templeton Canada today announced the expansion of its investment capabilities and sustainability line-up from its specialist investment managers Brandywine Global, ClearBridge Investments, Martin Currie and Royce Investment Partners, with the launch of five funds and five ETFs.
"As we continue to significantly transform our Canadian business following Franklin Templeton's acquisition of Legg Mason, we aim to deliver investors specialized investment expertise from our boutique investment managers," said Duane Green, president and CEO, Franklin Templeton Canada. "We are focused on providing a world-class1 fund line-up, which showcases our vast investment capabilities across asset classes and proven sustainability expertise, to help individual and institutional investors achieve their desired investment outcomes."
Brandywine Global: Global Fixed Income and Equity Manager
- Franklin Brandywine Global Sustainable Income Optimiser Active ETF (FBGO) will invest primarily in units of Franklin Brandywine Global Income Optimiser Fund, which invests in fixed income securities globally that have been assessed by the portfolio manager as sustainable investments. A global fixed income strategy that strives for attractive income generation and total return while guarding against downside risks, FBGO will be listed on the TSX on or around June 29, 2021. The underlying fund's U.S. equivalent is a 5-star Morningstar rated fund.1
ClearBridge Investments: Global Equity Manager
- Franklin ClearBridge Sustainable Global Infrastructure Income Fund, which is available today, June 17, 2021, seeks income and capital appreciation by investing primarily in equity securities of sustainable issuers supporting infrastructure assets. These businesses can provide a stable income for investors, in addition to downside protection and upside capture, and a low correlation to some traditional assets. The portfolio managers are focused on providing long-term inflation-linked capital growth over an economic cycle.
- Franklin ClearBridge Sustainable Global Infrastructure Income Active ETF (FCII), which will be listed on the TSX on or around June 29, 2021, invests primarily in Franklin ClearBridge Sustainable Global Infrastructure Income Fund and/or equity securities of sustainable issuers supporting infrastructure assets.
- Franklin ClearBridge Sustainable International Growth Active ETF (FCSI) seeks long-term capital appreciation through exposure to international equity securities by investing primarily in Franklin ClearBridge International Growth Fund and/or equity securities of sustainable issuers outside Canada and the U.S. FCSI will be listed on the TSX on or around June 29, 2021. The underlying fund's U.S. equivalent is a 5-star Morningstar rated fund.1
- Franklin ClearBridge U.S. Sustainability Leaders Fund, which is available to institutional investors today, June 17, 2021, seeks growth of capital and above market returns by investing in high-quality companies with attractive sustainability profiles. With more than 30 years of ESG expertise, the fund includes both established and emerging leaders in sustainability that address global challenges such as climate change, resource conservation, improving health and financial inclusion.
Martin Currie: Global Equity Specialist
- Franklin Mutual Global Discovery Fund will be repositioned as Franklin Martin Currie Global Equity Fund2 on or around July 19, 2021. The fund's U.S. equivalent is a 4-star Morningstar rated fund.1 The portfolio managers are focused on taking a high-conviction, flexible approach to investing across sectors, geographies and market capitalizations, while seeking to manage risk on an absolute basis. They focus on finding companies that have a strong history of offering high and sustainable returns on invested capital over time.
- Franklin Martin Currie Sustainable Emerging Markets Fund, which will be available on or around July 19, 2021, seeks long-term capital appreciation by investing primarily in equity securities of sustainable issuers in emerging markets. The fund's U.S. equivalent is a 5-star Morningstar rated fund.1
- Franklin Martin Currie Sustainable Emerging Markets Active ETF (FSEM) seeks long-term capital appreciation through exposure to equity securities by investing primarily in Franklin Martin Currie Sustainable Emerging Markets Fund and/or equity securities of sustainable issuers in emerging markets. FSEM will be listed on the TSX on or around July 26, 2021.
- Franklin Martin Currie Sustainable Global Equity Active ETF (FGSG) seeks long-term capital appreciation through exposure to global equity securities by investing primarily in Franklin Martin Currie Global Equity Fund and/or equity securities of sustainable issuers anywhere in the world. FGSG will be listed on the TSX on or around July 26, 2021.
Royce Investment Partners: Small Cap Specialist
- Templeton Global Smaller Companies Fund will be repositioned as Franklin Royce Global Small Cap Premier Fund on or around August 9, 2021. This global small cap core equity solution invests in high quality small cap companies that have high returns on invested capital, a discernible competitive advantage and a sustainable franchise.
Series changes
Preceding the repositioning of Franklin Mutual Global Discovery Fund, Series PA, PF, PT and PT-USD of the fund will be consolidated into Series A, F, T and T-USD, respectively, on or around July 15, 2021.3 Additionally, Series PFT of Franklin Mutual Global Discovery Fund will be redesignated as Series FT, on or around July 15, 2021.
In addition, Series A, T, F, FT, I and O of Franklin Mutual Global Discovery Fund will be redesignated as hedged series on or around July 16, 2021, in order to preserve the currency-hedged position of investors in these series. For investors interested in an unhedged investment, new Series A, T, F, FT and O of the fund will be introduced on or around July 19, 2021.
Fee reductions
Effective July 15, 2021, Franklin Mutual Global Discovery Fund, which will be repositioned as Franklin Martin Currie Global Equity Fund on or around July 19, 2021,2 will have fee reductions as shown in the table below.4 In addition, Templeton Global Smaller Companies Fund, which will be repositioned as Franklin Royce Global Small Cap Premier Fund on or around August 9, 2021, will have fee reductions on that date, as shown in the table below.
NEW FEES |
|||||||
New Fund Name |
Series |
Mgmt. |
Admin. |
Total |
Fee |
||
Franklin Martin
|
A-Hedged |
1.75 |
0.15 |
1.90 |
0.43 |
||
T-Hedged |
1.75 |
0.15 |
1.90 |
0.41 |
|||
T-USD |
1.75 |
0.15 |
1.90 |
0.25 |
|||
F-Hedged |
0.75 |
0.15 |
0.90 |
0.40 |
|||
FT-Hedged |
0.75 |
0.15 |
0.90 |
0.05 |
|||
O-Hedged* |
0.90 |
-- |
0.90 |
0.05 |
|||
Franklin Royce |
A |
2.00 |
0.15 |
2.15 |
0.23 |
||
F |
1.00 |
0.15 |
1.15 |
0.21 |
|||
*This tier level is from C$200,000 up to C$2.5 million in investable assets. |
With these fee reductions, all investors will have access to the lowest fee in the respective series for which they meet the investment minimum.
Proposed changes to investment objectives for certain funds
On or around August 27, 2021, Franklin Templeton will host special meetings of investors to vote on modifying the investment objective for certain funds as listed below:
- Franklin Brandywine Global Income Optimiser Fund – proposed modified investment objective: The fund seeks high income and preservation of capital by investing primarily in debt instruments of sustainable issuers anywhere in the world.
- Franklin ClearBridge International Growth Fund5 – proposed modified investment objective: The fund seeks long-term capital appreciation by investing primarily in equity securities of sustainable issuers outside Canada and the U.S.
- Franklin Martin Currie Global Equity Fund6 – proposed modified investment objective: The fund seeks long-term capital appreciation by investing primarily in equity securities of sustainable issuers anywhere in the world.
Investors of record as of July 5, 2021, will receive a notice and access document detailing the proposed changes. Investors are strongly encouraged to vote in advance of the proxy voting deadline via any of the methods described in the notice and access document. If approved by investors, the modified investment objective for each fund will take effect on or around September 17, 2021.
About Brandywine Global
Brandywine Global Investment Management, LLC ("Brandywine Global") believes in the power of value investing. Acting with conviction and discipline, Brandywine Global looks beyond short-term, conventional thinking to rigorously pursue long-term value. Since 1986, the firm has provided a range of differentiated fixed income, equity and alternative solutions to clients worldwide. Brandywine Global, a specialist investment manager of Franklin Templeton, manages approximately US$62 billion in assets under management as of March 31, 2021, with headquarters in Philadelphia and offices in Montreal, Singapore and London.
About ClearBridge Investments
ClearBridge Investments, LLC ("ClearBridge Investments") is a leading global equity manager with US$184 billion in in assets under management as of March 31, 2021. It is committed to delivering long-term results through active management, as it has for more than 50 years, and offering investment solutions that emphasize differentiated, bottom-up stock selection to move clients forward. A specialist investment manager of Franklin Templeton, ClearBridge Investments operates with investment independence from headquarters in New York and offices in Baltimore, London, San Francisco, Sydney and Wilmington.
About Martin Currie
Martin Currie, LLC ("Martin Currie") is a global active equity specialist with leading credentials in sustainable investing, crafting high-conviction portfolios for client-focused solutions. With approximately US$21 billion in assets under management as of March 31, 2021, investment excellence is at the heart of its business. Central to its philosophy is a stock-driven approach, based on in-depth fundamental research, active ownership and engagement and skilled portfolio construction. Martin Currie is rated A+ in all three categories under the Principles for Responsible Investment (PRI) 2020. As a specialist investment manager of Franklin Templeton, it also has the backing of one of the world's largest asset management firms.
About Royce Investment Partners
Royce Investment Partners, LLC ("Royce Investment Partners") is a small cap equity specialist offering distinct investment strategies with unique risk/return profiles designed to meet a variety of investors' needs. For more than 45 years, their strategies have focused on active, risk-conscious investing driven by deep, fundamental company research. Chuck Royce, the firm's founder and a pioneer of small cap investing, enjoys one of the longest tenures in the industry. Royce & Associates, LP, primarily conducts its business under the name Royce Investment Partners and manages approximately US$18 billion in assets under management as of March 31, 2021. Royce & Associates, LP is a specialist investment manager of Franklin Templeton.
About Franklin Templeton
Franklin Templeton Investments Corp. (also known as Franklin Templeton Canada) is a subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience and approximately US$1.5 trillion (approximately CAN$1.9 trillion) in assets under management as of May 31, 2021. For more information, please visit franklintempleton.ca and connect with Franklin Templeton on Twitter, Facebook and LinkedIn, and read the Beyond Bulls & Bears blog.
1. Franklin Brandywine Global Income Optimiser Fund shares the same investment strategy and management as Legg Mason Brandywine Global Flexible Bond Fund - Class A, a 5-star Morningstar rated fund in the Multisector Bond category with a 5-year track record in the U.S.
Franklin ClearBridge International Growth Fund and Franklin ClearBridge International Growth Fund II share the same investment strategy and management as Legg Mason ClearBridge International Growth Fund – Class A, a 5-star Morningstar rated fund in the Foreign Large Growth category with a 5-year track record in the U.S.
Franklin Martin Currie Global Equity Fund and Franklin Martin Currie Global Equity Fund II share the same investment strategy and management as the Legg Mason Martin Currie International Unconstrained Fund, a 4-star Morningstar rated fund in the International Unconstrained Equity category with a 5-year track record in the U.S.
Franklin Martin Currie Sustainable Emerging Markets Fund shares the same investment strategy and management as the Martin Currie Emerging Markets Fund, a 5-star Morningstar rated fund in the Diversified Emerging Markets category with a 5-year track record in the U.S.
Source: Morningstar®. For each mutual fund and exchange traded fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on how a fund ranks on a Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance, and does not take into account the effects of sales charges and loads, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The weights are: 100% 3-year rating for 36-59 months of total returns, 60% 5-year rating/40% 3-year rating for 60-119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. Morningstar Rating is for the named share class only; other classes may have different performance characteristics. Past performance is not an indicator or a guarantee of future performance.
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2. Franklin Mutual Global Discovery Fund II is also being repositioned as Franklin Martin Currie Global Equity Fund II, which will continue to be closed to new investments.
3.The same changes will apply for Franklin Mutual Global Discovery Fund II.
4. New fees for Franklin Martin Currie Global Equity Fund II for the remaining series after the consolidation will be effective July 15, 2021.
5.The same changes will apply to Franklin ClearBridge International Growth Fund II.
6.The same changes will apply to Franklin Martin Currie Global Equity Fund II.
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the prospectus and fund fact/ETF facts document before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently. Past performance may not be repeated.
SOURCE Franklin Templeton Investments Corp.
Media Contact: Sarah Kingdon, Corporate Communications, Franklin Templeton, 416-957-6191, [email protected]
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