Franklin Templeton launches new Franklin Responsible Income 2029 Fund

Fixed maturity bond fund with strong income potential has initiated an IPO until December 2024

Frankfurt, 27 March 2024 - Franklin Templeton¹ is pleased to announce the launch of its new five-year fixed maturity bond fund, the Franklin Responsible Income 2029 Fund, and its initial public offering (IPO) which will run from 27 March to 13 December 2024. A sub-fund of the Irish-domiciled Franklin Templeton Global Funds plc (FTGF) range, the Franklin Responsible Income 2029 Fund has been registered for sale in Austria, Germany, Greece, Italy, Ireland, Portugal and Spain.

Designed to be held until maturity in March 2029, this new Article 8³ compliant fund seeks to generate income and reduce risk of capital loss by investing primarily in euro-denominated investment grade government and corporate bonds with strong sustainability characteristics issued from developed and emerging markets. An investment grade quality portfolio, the fund will hold a minimum of 60% invested in investment grade bonds and aims to achieve an average credit rating of investment grade.

The portfolio management team includes David Zahn, Head of European Fixed Income and Rod MacPhee from Franklin Templeton Fixed Income (FTFI). Zahn is also Head of Sustainable Investing for the wider FTFI group.

Article 8 compliant fund with strong income potential

Zahn commented: “We believe interest rates will likely fall at some point this year and that this fund launch is subsequently a great opportunity for investors who wish to get ahead of expected rate cuts by locking in higher yields now.”

“The fund employs a proprietary ESG investment process that focuses on issuers considered to be environmental leaders. We engage directly with issuers to improve their transition towards supporting a low-carbon economy, while avoiding those involved in harmful or controversial activities.”

Zahn and MacPhee have deep experience in managing fixed maturity products and ESG strategies and are supported by a dedicated ESG team of six investment analysts. Franklin Templeton’s European fixed income group has been managing ESG-aligned strategies since 2017.

Active risk management approach

Security selection will be focused on minimising default risk, targeting consistent income payments and reducing risk of capital loss⁴. The portfolio will be monitored continuously for any significant increase in default risk and positions adjusted accordingly.

Matthew Harrison, Head of Europe and UK, Franklin Templeton commented: “We are delighted to expand Franklin Templeton’s lineup of sustainable fixed income solutions and to bring to market a fixed maturity product offering European investors what we believe will be an attractive yield over the next five years. This fund will also offer an additional choice to investors seeking regular income while aiming to protect their capital.”

Deep expertise and on the ground research in one global platform

The Franklin Responsible Income 2029 Fund complements a wider array of fixed income strategies offered by the Franklin Templeton Fixed Income group, which takes a disciplined and systemic approach to active fixed income management integrating top-down macroeconomic views, bottom-up fundamental research, and quantitative science. Drawing on Franklin Templeton’s 53 years of fixed income investment experience, and capitalising on its size and global presence, the group links over 130 investment professionals globally, forming a seamlessly integrated fixed income platform with more than US$200 billion in assets under management as of 29 February 2024.

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For more information please visit www.franklintempleton.lu

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]

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 organization 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 specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,400 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 29 February 2024. For more information, please visit www.franklintempleton.lu and follow us on LinkedIn, Twitter and Facebook.
2. The Franklin Responsible Income 2029 Fund is a sub-fund of the Irish domiciled Franklin Templeton Global Funds PLC range. FTGF is an open-ended investment company with variable capital, organised as an undertaking for collective investment in transferable securities ('UCITS'). FTGF 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, French, German, Italian and Spanish from FTGF's registered office at Riverside Two, Sir John Rogerson's Quay, Grand Canal Dock, Dublin 2, Ireland, from FTGF's administrator, BNY Mellon Fund Services (Ireland) Limited, or can be requested via FT's European Facilities Service which is available at https://www.eifs.lu/franklintempleton, or please visit www.franklintempleton.lu to be directed to your local Franklin Templeton website.                                                      The sub-funds of FTGF are notified for marketing in multiple EU Member States under the UCITS Directive. FTGF 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 have an ESG integration approach and, in addition, have binding environmental and/or social characteristics in their investment process. 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.
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.

This press release is intended for the general interest only and does not constitute professional advice. 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 Information Document, the annual report and semi-annual report, if published thereafter can be found, on our website.

In Europe (excluding UK & Switzerland) this press release is issued 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 - Tel: +352-46 66 67-1 - Fax: +352-46 66 76.

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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