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CONTRIBUTORS

David Zahn, CFA, FRM

Head of European Fixed Income,
Portfolio Manager
United Kingdom

Kasper Hanus, Ph.D

Senior Sustainability Manager,
Franklin Templeton Fixed Income

We are pleased to share our second iteration of the Franklin Templeton Fixed Income (FTFI) Fifteen, a video series designed to cover relevant market topics in approximately 15 minutes. In this segment, join FTFI’s Head of Sustainable Investments, David Zahn, and Senior Sustainability Manager Kasper Hanus as they discuss green, social and even blue bonds, and share their views on biodiversity, the potential challenges facing sustainable finance, FTFI’s issuer engagement and more.

A few of the topics covered include:

  1. The significance of environmental, social and governance (ESG) considerations has undoubtably risen and will very likely continue to increase over the coming years. David discusses the growing investor interest in—as well as regulatory requirement for—responsible investing, and the potential benefits of green and social bonds over other instruments.
  2. At FTFI, we believe that protecting biodiversity needs to go hand in hand with fighting climate change, since one cannot happen without the other as we move toward a net zero economy. Kasper describes FTFI’s commitment with certain products to avoid financing to any issuers that have a negative impact on biodiversity sensitive areas.
  3. Can investors hold compelling investments while still benefiting the environment or social causes? David explains why sustainable bonds performed poorly in 2022 as yields rose, and why he is confident in the asset class going forward.
  4. Direct engagement with issuers is a key part of FTFI’s sustainability strategy. Kasper talks about the role that FTFI wants to play in the protection of biodiversity; in order to deploy capital most effectively, the investment manager uses its global reach to understand how financing biodiversity will be approached and implemented at the sovereign level, as well as which corporates are cognizant of their potential impact on biodiversity sensitive areas.

To listen to the entire conversation as well as hear a few surprise insights, click the link to watch the next iteration of the FTFI Fifteen.

To learn more about FTFI’s Investment team, click here: FTFI Investment Team

FTFI investment team has certain environmental, sustainability and governance (ESG) goals or capabilities; however, not all strategies are managed to “ESG” oriented objectives.

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in an investment portfolio adjust to a rise in interest rates, the portfolio’s value may decline. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value.

IMPORTANT LEGAL INFORMATION

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. This material may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is not necessarily indicative nor a guarantee of future performance. All investments involve risks, including possible loss of principal.

Any research and analysis contained in this material has been procured by Franklin Templeton for its own purposes and may be acted upon in that connection and, as such, is provided to you incidentally. Data from third party sources may have been used in the preparation of this material and Franklin Templeton ("FT") has not independently verified, validated or audited such data.  Although information has been obtained from sources that Franklin Templeton believes to be reliable, no guarantee can be given as to its accuracy and such information may be incomplete or condensed and may be subject to change at any time without notice. The mention of any individual securities should neither constitute nor be construed as a recommendation to purchase, hold or sell any securities, and the information provided regarding such individual securities (if any) is not a sufficient basis upon which to make an investment decision. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.

Franklin Templeton has environmental, social and governance (ESG) capabilities; however, not all strategies or products for a strategy consider “ESG” as part of their investment process.

Products, services and information may not be available in all jurisdictions and are offered outside the U.S. by other FT affiliates and/or their distributors as local laws and regulation permits. Please consult your own financial professional or Franklin Templeton institutional contact for further information on availability of products and services in your jurisdiction.

Issued in the U.S. by Franklin Templeton, One Franklin Parkway, San Mateo, California 94403-1906, (800) DIAL BEN/342-5236, franklintempleton.com. Investments are not FDIC insured; may lose value; and are not bank guaranteed.

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