Templeton Global Currency Fund

Fund Description

The fund seeks total return by investing predominately in securities and instruments offering long or short exposure to currencies of any country, including developed and developing markets.

Strategy Statement

"The fund enables us to focus on our high conviction views with the flexibility to take positive and negative currency positions across the globe."

Michael Hasenstab, Ph.D

Management

Michael Hasenstab, Ph.D

Michael Hasenstab, Ph.D

  • Joined Franklin Templeton in 1995
  • Managed Fund Since 2001
Sonal Desai, Ph.D

Sonal Desai, Ph.D

  • Joined Franklin Templeton in 2009
  • Managed Fund Since 2011

Strategy, Benefits, Results

Strategy

  • Employs an actively managed, benchmark unconstrained investment approach.
  • Evaluates currencies by assessing fundamental long-term valuations, while also taking into account short-term dynamics.
  • Aims to capitalize on currency opportunities through long and short positions in developed and developing markets.

Benefits

  • Diversification Benefits. Currencies have the potential to provide diversification to an overall portfolio given their historically low to moderate correlations to traditional asset classes, such as stocks and bonds.
  • Active Currency Management. Offering flexibility to actively manage both long and short currency positions enabling the fund to pursue opportunities in various market environments regardless of the direction of the U.S. dollar.
  • Experienced Management. The Templeton Global Macro team, led by Michael Hasenstab, Ph.D., has been managing currencies for nearly three decades.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • The fund's assets are largely invested in foreign currencies, and therefore involve potential for significant gain or loss from currency exchange rate fluctuations.
  • Foreign securities involve special risks, including currency fluctuations and economic and political uncertainties.
  • Investments in emerging markets involve heightened risks related to the same factors, in addition to those associated with these markets' smaller size and lesser liquidity.
  • Sovereign debt securities are subject to various risks, including, but not limited to, the risk that a government entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due.
  • Changes in interest rates will affect the value of the fund's portfolio and its share price and yield.
  • Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline.
  • Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the fund to participate in losses on an amount that exceeds the fund's initial investment. The fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised.
  • The markets for particular securities or types of securities are or may become relatively illiquid, which will have an adverse impact on the security's value and on the fund's ability to sell such securities when necessary to meet liquidity needs or in response to a specific market event.
  • Changes in the financial strength of a bond issuer or in a bond's credit rating may affect its value.
  • Investments in lower-rated bonds include higher risk of default and loss of principal.
  • These and other risk considerations are discussed in the fund's prospectus.

Minimum Investment

See Prospectus

How Financial Advisors Help You

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