Franklin Templeton Introduces Franklin Global Allocation Fund for US Investors
Franklin Templeton has renamed its Founding Funds Allocation Fund to the Franklin Global Allocation Fund, effective immediately. The fund is transitioning from a static fund-of-fund structure to a direct investment fund, utilizing an actively managed global multi-asset strategy.
Managed by Franklin Templeton Investment Solutions, the redesigned fund aims to enhance investment performance through diversification and dynamic asset allocation. Portfolio management will be led by Ed Perks and a dedicated team, leveraging their expertise for long-term total return.
- Transition to an actively managed global multi-asset strategy may improve investment performance.
- Enhanced flexibility to invest across a broad range of US and foreign securities, including emerging markets.
- Switching to a direct investment fund may pose initial execution risks during the transition period.
- Increased exposure to foreign market volatility and financial risks could impact fund performance.
Franklin Templeton announced today the repositioning and renaming of its Founding Funds Allocation Fund effective immediately. Now named Franklin Global Allocation Fund, the fund will transition from a fund-of-fund structure with a static allocation strategy to a direct investment fund with an actively managed global multi-asset strategy.
Managed by Franklin Templeton Investment Solutions (FTIS), the repositioned fund will seek to improve investment performance and client outcomes by adding flexibility to diversify and dynamically shift across and within asset classes.
“The redesigned fund allows us to combine three sources of investment research – macro thematic, asset class, and fundamental – with deep expertise on region and security selection,” said Ed Perks, CIO, FTIS. “The asset allocation and tactical positioning will be guided by and aligned with the views of our Investment Strategy and Research Committee, aiming to offer investors a dynamic, global allocation strategy that delivers total return from capital appreciation and income.”
In coordination with the repositioning, portfolio management responsibilities for the fund will be performed by Perks, along with Todd Brighton, Head of Direct Securities Portfolio Management, FTIS, and Gene Podkaminer, Head of Research, FTIS, effective February 1, 2021.
The Fund’s objective of seeking the highest level of long-term total return that is consistent with an acceptable level of risk via multiple asset classes will allow its managers to take greater advantage of Franklin Templeton’s global resources and enhance its flexibility to invest across a broad range of US and foreign securities and other investments, including those of emerging markets.
The portfolio managers draw upon insights from across FTIS, which includes over 100 investment professionals focused on portfolio management, macro thematic, top-down asset class research, manager research, quantitative research and portfolio construction, factor modeling, and client solutions. The investment team is also supported by an independent risk analysis group and dedicated team of global traders.
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Foreign investing carries additional risks such as currency and market volatility and political or social instability, risks which are heightened in developing countries and emerging markets. Bonds are affected by changes in interest rates and the credit worthiness of their issuers. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds adjust to a rise in interest rates, the fund's share prices may decline. Higher-yielding, lower-rated corporate bonds entail a greater degree of credit risk compared to investment grade securities. Value securities may not increase in price as anticipated or may decline further in value. These and other risks are discussed in the fund's prospectus.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN / (800) 342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN], is 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
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