Franklin Templeton launches new Social Bond Fund for European Investors
- Article 9 fund will invest in the fast-growing universe of social bonds
- Innovative strategy gives European investors greater choice in a developing market
Luxembourg, 20 September 2022 – Franklin Templeton1 is pleased to announce the launch of the Franklin European Social Leaders Bond Fund2, a sub-fund of the Luxembourg-domiciled Franklin Templeton Investment Funds (FTIF) 2 range. Following its launch, this new Article 93 fund will be registered in almost 20 European countries, including Germany, France, Italy, Spain, Switzerland and the UK. With this new fund, the European fixed income team has grown its sustainable offerings to six Article 8 and two Article 9 funds.
Social bonds support positive social outcomes in that the proceeds are exclusively applied to finance eligible social projects directly mitigating a social issue for a target population. This may include those living below the poverty line, people with disabilities, displaced persons, among others, and targets a wide range of social projects like affordable housing, employment generation, food security, socioeconomic advancement and access to essential services.
David Zahn, Head of European Fixed Income at Franklin Templeton, commented: “We are delighted to add this new fund to our growing portfolio of sustainable fixed income solutions. Couple this with the fact that Europe is the largest and most advanced social bond market globally and continues to experience rapid growth, this strategy will give investors access to a wide range of attractive social bonds and the opportunity to support investments geared towards creating societal benefits.”
The Franklin European Social Leaders Bond Fund’s investment objective is to deliver positive social outcomes by promoting social equality. The new fund aims to achieve a total return of income and capital growth by investing predominantly in a portfolio of social bonds. It principally invests in Euro-denominated investment grade bonds worldwide and targets entities mainly involved in socially sustainable activities, including those linked to the United Nations Sustainable Development Goals, including No Poverty, Zero Hunger, Clean Water and Sanitation, and Decent Work and Economic Growth. The portfolio management team believes the biggest source of alpha will come from active security selection, duration management and sector allocation.
Zahn added: “Given recent events and the growing emphasis on environmental aspects of sustainable investing, investors are increasingly interested in addressing the S in ESG. Launching this new fund now is a timely opportunity to bring a distinct strategy to the market and broaden our product offerings catering to societal wellbeing. In addition, a portfolio of actively managed social bonds can provide an attractive source of risk-adjusted returns while providing liquidity to new and existing projects contributing to positive social outcomes. This new fund also benefits from transparency in quantifiable reporting on social impact of fixed income investments.”
Jaspal Sagger, Head of Global Product Strategy at Franklin Templeton, commented: “We recognise that sustainable investing encapsulates a range of client motivations, and we will continue to build out solutions to meet these differing needs. The launch of this new social bond fund provides a solution for investors seeking positive social outcomes with real impact on individual lives.”
The fund will be co-managed by London-based David Zahn, senior vice president and head of European fixed income for Franklin Templeton Fixed Income – Global Sovereign and Emerging Market Debt, and Roderick MacPhee, vice president, portfolio manager and research analyst for Franklin Templeton Fixed Income. They will be supported by the wider Franklin Templeton Fixed Income investment team, which includes a dedicated ESG team of six investment analysts based in Europe. Franklin Templeton’s European fixed income group has managed ESG aligned strategies since 2017.
About Franklin Templeton Fixed Income
The Franklin European Social Leaders Bond Fund complements a wider array of fixed income strategies offered by Franklin Templeton Fixed Income. Drawing on Franklin Templeton’s 53 years of fixed income investment experience, and capitalising on its size and global presence, Franklin Templeton Fixed Income offers comprehensive coverage of potential alpha opportunities in all major fixed income sectors worldwide. The group links 147 investment professionals globally, forming a seamlessly integrated fixed income platform with approximately US$138 billion in assets under management as of 31 August 2022.
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For more information, please visit www.franklintempleton.lu.
Contacts:
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Saira Khan Senior Corporate Communications Manager Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8644 Email: [email protected] |
Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8538 Email: [email protected] |
This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions.
- Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 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 offers boutique specialization on a global scale, bringing 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 75 years of investment experience and approximately $1.4 trillion in assets under management as of 31 August, 2022. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, Twitter and Facebook.
- Franklin European Social Leaders Bond Fund is a sub-fund of Franklin Templeton Investments Funds (FTIF), a Luxembourg-domiciled SICAV.
Subscriptions to shares of FTIF can only be made on the basis of the current prospectus, and, where available, the relevant Key Information Document, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. The value of shares in FTIF and income received from it can go down as well as up, and investors may not get back the full amount invested.
The Fund's documents are available in English, Arabic, Czech, Danish, Dutch, Estonian, Finnish, French, German, Greek, Hungarian, Icelandic, Italian, Latvian, Lithuanian, Norwegian, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish. In addition, a summary of investor rights is available from franklintempleton.lu. The summary is available in English. The sub-funds of FTIF are notified for marketing in multiple EU Member States under the UCITS Directive. FTIF can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.
Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. In emerging markets, the risks can be greater than in developed markets.
An investment in FTIF entails risks, which are described in the FTIF’s prospectus and, where available, the relevant Key Information Document. Investments in derivative instruments entail specific risks that may increase the risk profile of the fund and are more fully described in FTIF’s prospectus and where available in the relevant Key Information Document. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a fund’s holding at any one time.
No shares of FTIF may be directly or indirectly offered or sold to nationals or residents of the United States of America. Shares of FTIF are not available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any plans to invest.
- This Fund has been classified as Article 9 under the Regulation on sustainability related disclosures in the financial services sector (EU) 2019/2088. These are funds which have an ESG integration approach, have binding environmental and/or social characteristics and a clear sustainable investment objective. Further information in relation to the sustainability-related aspects of the Fund can be found at franklinresources.com/countries. Please review all of the Fund's objectives and characteristics before investing.
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Please consult your financial advisor before deciding to invest. A copy of the latest prospectus, and, if available for this product, the relevant Key Information Document, the annual report and semi-annual report, if published thereafter can be found, on our website www.ftidocuments.com or can be obtained, free of charge, from Franklin Templeton International Services S.à.r.l. supervised by the Commission de Surveillance du Secteur Financier -8A, rue Albert Borschette L-1246 Luxembourg - Tel: +352-46 66 67-1 - Fax: +352-46 66 76.
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