Franklin Templeton Initiates IPO for New Franklin Responsible Income 2028 Fund

New EU SFDR Article 8 strategy gives investors access to a consistent level of income annually while targeting capital preservation and promoting sustainability characteristics

London, 23 January 2023 - Franklin Templeton¹ announces the initial public offering (IPO) of a new five-year fixed maturity bond fund, the Franklin Responsible Income 2028 Fund², launching today. The IPO period will run from 23^rd January to 23^rd July 2023. The Franklin Responsible Income 2028 Fund is a sub-fund of the Irish-registered Legg Mason Global Funds plc (LMGF) range and has been registered for sale in Germany, Austria, Italy, Spain, Belgium, Ireland, Greece and Cyprus.

This new Article 8³ fund, which is designed to be held until maturity in January 2028, aims to generate income and preserve capital by investing primarily in euro denominated investment grade government and corporate bonds with strong sustainability characteristics. Bonds may be issued in developed or emerging markets.

The fund employs a proprietary environmental, social and governance (ESG) investment process that promotes investment into issuers considered to be environmental leaders, while avoiding investment into issuers involved in harmful or controversial activities. Security selection will be focused on minimising default risk, targeting consistent income payments and the return of 100% of the initial capital at the end of the maturity period⁴.

The fund will be managed by London-based David Zahn, Head of Sustainable Investing and European Fixed Income and Rod MacPhee, Vice President and Portfolio Manager from Franklin Templeton Fixed Income Group.  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.

“The market environment for European fixed income is arguably the most compelling it has been for over a decade. Investment grade yields are at 14-year highs and given that we expect the European Central Bank to pause its interest rate hikes in the first half of 2023, this fund launch provides a timely way to access attractive income potential while supporting the transition to a low-carbon economy. This new Euro denominated strategy will also likely shield European investors from currency risk,” said Zahn.

Julian Ide, Head of EMEA distribution, Franklin Templeton commented: “We are pleased to offer this new Article 8 fixed maturity fund to European investors. 2022 was a challenging year and many of our clients are looking for new products and solutions that provide an attractive income and capital preservation. Managed by an experienced team with a track record in fixed maturity products, this new fund should appeal to those looking for investment solutions that aim to deliver regular income while positively impacting the environment.” 

About Franklin Templeton Fixed Income

The Franklin Responsible Income 2028 Fund complements a wider array of fixed income strategies offered by the Franklin Templeton Fixed Income group. Drawing on Franklin Templeton’s 53 years of fixed income investment experience, and capitalising on its size and global presence, the group links 147 investment professionals globally, forming a seamlessly integrated fixed income platform with over US$133 billion in assets under management as of 31 December 2022.

–  ENDS –

Contacts:

Oliver Trenk Senior Regional Corporate Communications Manager Franklin Templeton Mainzer Landstraße 16 60325 Frankfurt Tel: +49 (69) 27223-718 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 KID before making any final investment decisions.

1. 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 specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of December 31, 2022. For more information, please visit franklintempleton.de and follow us on LinkedIn, Twitter and Facebook.
2. The Franklin Responsible Income 2028 Fund is a sub-fund of the Irish domiciled Legg Mason Global Funds PLC range. LMGF is an open-ended investment company with variable capital, organised as an undertaking for collective investment in transferable securities ('UCITS'). LMGF is authorised in Ireland by the Central Bank of Ireland. Information has been prepared from sources believed reliable. It is not guaranteed in any way by any Franklin Resources, Inc. company or affiliate (together 'Franklin Templeton'). Before investing you should read the application form Prospectus and KID. The fund documents may be obtained free of charge in English, German and Italian from LMGF's registered office at Riverside Two, Sir John Rogerson's Quay, Grand Canal Dock, Dublin 2, Ireland, from LMGF's administrator, BNY Mellon Fund Services (Ireland) Limited, or please visit franklintempleton.co.uk to be directed to your local Franklin Templeton website.

   The sub-funds of LMGF are notified for marketing in multiple EU Member States under the UCITS Directive. LMGF 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.

3. This fund has been classified as Article 8 under the Regulation on sustainability related disclosures in the financial services sector (EU) 2019/2088. These are Funds which promote, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices. 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.

   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.

4. The Fund seeks to return 100% of the initial capital at the end of the maturity period. There is no guarantee that the Fund will achieve its objective. The level of the distributed income (or periodic dividend) is to be considered only a target. The distributed Income (or periodic dividend) is not guaranteed, is not determined and it can vary along that time.

Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes and is provided to you only incidentally.

Please consult your financial advisor before deciding to invest. A copy of the latest prospectus, and, if available for this product, the relevant Key Investor Information Document, the annual report and semi-annual report, if published thereafter can be found, on our website. Austria/Germany: Issued by Franklin Templeton International Services S.à r.l.,Niederlassung Deutschland , Frankfurt, Mainzer Landstr. 16, 60325 Frankfurt/Main, Tel. 08 00/0 73 80 01 (Germany), 08 00/29 59 11 (Austria), Fax: +49(0)69/2 72 23-120, [email protected], [email protected]  

 

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