Franklin Templeton launches Franklin OnChain U.S. Government Money Fund

Luxembourg, 19 February 2025 – Franklin Templeton¹ one of the world’s largest global investment managers and a pioneer in digital assets technology is delighted to announce that it has launched the new Franklin OnChain U.S. Government Money Fund² a Luxembourg-registered UCITS SICAV under its newly established Franklin Templeton OnChain Funds (FTOCF) umbrella following regulatory approval last October. The new Fund will be available to institutional investors in Austria, France, Germany, Italy, Liechtenstein, Netherlands, Spain and Switzerland.

Franklin OnChain U.S. Government Money Fund represents the first Luxembourg domiciled fully tokenised UCITS product. It is launched on public blockchain Stellar, using the firm’s proprietary inhouse blockchain-enabled transfer agency platform, giving investors the benefits of enhanced transparency, security, accuracy and immediacy made possible by blockchain technology.

The new Fund’s objective is to provide investors with a high level of current income as is consistent with the preservation of capital and liquidity while seeking to maintain a constant Net Asset Value of USD 1.  It will seek to achieve this by investing in U.S. government securities, which may include fixed, floating and variable rate securities, as well as repurchase agreements collateralized fully by U.S. government securities or cash.

Franklin OnChain U.S. Government Money Fund will be co-managed by San Mateo-based Shawn Lyons, CFA and Boston-based Joanne Driscoll, CFA and Michael Lima, CFA. The investment team also manage the US-registered Franklin OnChain U.S. Government Money Fund³, launched in April 2021, which represents the first U.S. registered mutual fund to use a public blockchain to process transactions and record share ownership.

For more information, please visit our Luxembourg website here.

-ENDS-

Contacts:

Shelly Durrant Corporate Communications Manager Franklin Templeton Tel +44 207 073 8521 Email: [email protected]

Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Tel: + 44 207 073 8538 Email: [email protected]

Notes to Editors:

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 organisation with subsidiaries operating as Franklin Templeton and serving clients in over 150 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 specialisation on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and approximately $1.6 trillion in assets under management as of 31 January 2025. For more information, please visit www.franklintempleton.lu and follow us on LinkedIn, X, and Facebook.
2. The Franklin OnChain U.S. Government Money Fund is a sub-fund of the Luxembourg-registered Franklin Templeton OnChain Funds (FTOCF). The fund is actively managed and qualifies as a short-term Public Debt Constant Net Asset Value Money Market Fund. The Fund has been duly authorised by the CSSF in accordance with the provisions of the MMFR. This Fund has not been rated by external credit rating agencies. The value of an investment in the Fund, in contrast to a deposit, may fluctuate. The Fund does not offer any capital guarantee or protection and you may not get back the amount invested. The Fund is subject to the following investment risks which are materially relevant.  Credit risk: the risk of loss arising from default that may occur if an issuer fails to make principal or interest payments when due. This risk is higher if the Fund holds low-rated, sub-investment-grade securities. Debt securities risk: as interest rates rise debt securities will fall in value. Issuers of debt securities may fail to meet their regular interest and/or capital repayment obligations. All credit instruments therefore have potential for default. Higher yielding securities are more likely to default. Government securities: Government-issued debt securities are sensitive to changes in macro policy and associated interest rate trends, political and economic instability, social unrest and potentially default. Interest rates: Changes in interest rates may negatively affect the value of the fund. Typically, as interest rates rise, bond values fall. Liquidity risk: the risk that arises when adverse market conditions affect the ability to sell assets when necessary. Such risk may be triggered by (but not limited to) unexpected events such as environmental disasters or pandemics. Reduced liquidity may have a negative impact on the price of the assets. Market risk: the risk of loss in value of securities traded on markets as prices of securities may be affected by factors such as economic, political, market, and issuer-specific changes. Money market instruments: There is a risk that issuers of money market instruments held by the fund may not be able to repay the investment or pay the interest due on it, leading to losses for the fund. Complete information on the risks of investing in the Fund are set out in the Fund’s prospectus. 
3. The US-registered Franklin OnChain U.S. Government Fund launched in April 2021 for the US market, is not approved for distribution outside of the US. 

This marketing material is intended to be of general interest only and should not be construed as investment advice nor does it constitute legal or tax advice and it is not an offer for shares or an invitation to apply for shares of the Luxembourg-domiciled SICAV Franklin Templeton OnChain Funds (the "Fund”). For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the Fund and will not be investing directly in the underlying assets of the Fund.

The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance does not predict future returns. 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.

Franklin Templeton ("FT") shall not be liable to any user of this document or to any other person or entity for the inaccuracy of information or any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission. Any opinions expressed are the author's at publication date and they are subject to change without prior notice. Any research and analysis contained in this marketing material has been procured by FT for its own purposes and is provided to you only incidentally. Data from third party sources may have been used in the preparation of this document and FT has not independently verified, validated or audited such data. References to particular industries, sectors or companies are for general information and are not necessarily indicative of the Fund's holding at any one time.

No shares of the Fund may be directly or indirectly offered or sold to residents of the United States of America. Shares of the Fund are not available for public distribution in all jurisdictions and prospective investors should consult their financial advisor before deciding to invest. The Fund may invest in shares of other short-term MMFs which may entail specific risks more fully described in the Fund's Prospectus and, where available, in the relevant KID or any other relevant offering document.

Subscriptions to shares of the Fund can only be made on the basis of the current Prospectus of the Fund, and, where available, the relevant KID (or any other relevant offering document), accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. These documents can be found on our website at www.ftidocuments.com, obtained, free of charge, from your local FT representative or can be requested via FT's European Facilities Service which is available at https://www.eifs.lu/franklintempleton. The Fund's documents are available in English.

In addition, a summary of investor rights is available from franklintempleton.lu. The summary is available in English.

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

Issued in Europe by: Franklin Templeton International Services S.à r.l. – Supervised by the Commission de Surveillance du Secteur Financier - 8A, rue Albert Borschette, L-1246 Luxembourg.

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