Franklin Templeton Canada Continues Expansion of Investment Capabilities and Proven Global Fixed Income Expertise with New ETF and Fund Managed by Western Asset Français

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Franklin Templeton Investments Corp.

Jan 11, 2022, 10:45 ET

Fund uses a similar global fixed income strategy as a 5-star Morningstar-rated fund1 in the US managed by Western Asset, the firm's US$483 billion,2 a specialist investment manager of Franklin Templeton with over 50 years of fixed-income experience

TORONTO, Jan. 11, 2022 /CNW/ - Franklin Templeton Canada today announced the continued expansion of its investment capabilities and fixed-income offerings with the introduction of the Franklin Western Asset Core Plus Bond strategy to Canadians, which uses multiple diversified strategies that benefit returns and dampen volatility in different market environments.

"Expanding on the 2021 ETF and fund launches from our firm's in-house specialist investment managers – Brandywine Global, ClearBridge Investments, Martin Currie and Royce Investment Partners – we are bringing the flagship fund to Canadians from our global fixed-income specialist, Western Asset, which has a distinguished 20+ year performance record3," said Duane Green, president and CEO, Franklin Templeton Canada. "The portfolio managers for this Core Plus Bond fund are focused on investing in high-quality fixed-income securities by adding value through multiple drivers."

Franklin Western Asset Core Plus Bond Fund is available today, January 11, 2022, and Franklin Western Asset Core Plus Bond Active ETF (FWCP), which invests primarily in units of the aforementioned Core Plus Bond fund, will be listed on the TSX on or around January 24, 2022.

"By looking to identify inefficiencies in the fixed income markets, we can capitalize on undervalued securities and sectors, which has delivered superior long-term risk-adjusted returns3 over the past few decades," said Ken Leech, chief investment officer, Western Asset. "The key component of our portfolio construction is our reliance on a substantial yield advantage over our benchmarks or targets. This strategy is designed to benefit from the long but, we believe, successful slog toward a less Covid-ridden and more 'normal' economic environment. In this vein, the benefit of thoughtfully selected higher-yielding fixed-income securities should outperform US Treasury and DM sovereign bonds."

As active managers, Western Asset portfolio managers employ a top-down macro view to drive decisions on value, credit sectors, credit quality and duration, in addition to using their deep research experience and bottom-up analysis to make security selections, while using a rigorous risk management process.

Franklin Western Asset Core Plus Bond Fund and FWCP ETF will expand Franklin Templeton's wide range of Canadian, US and global fixed income strategies to meet Canadian investors' needs, including:

About Western Asset
Western Asset is one of the world's leading fixed-income managers with 50 years of experience and US$483.5 billion in assets under management (AUM) as of September 30, 2021. With a focus on long-term fundamental value investing that employs a top-down and bottom-up approach, the firm has nine offices around the globe and deep experience across the range of fixed-income sectors. Founded in 1971, Western Asset has been recognized for delivering superior levels of client service alongside its approach emphasizing team management and intensive proprietary research, supported by robust risk management. To learn more about Western Asset, please visit westernasset.com.

About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. In Canada, the company's subsidiary is Franklin Templeton Investments Corp., which operates as Franklin Templeton Canada. 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 brings 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 over 70 years of investment experience and over US$1.5 trillion (over CAN$1.9 trillion) in assets under management as of November 30, 2021. For more information, please visit franklintempleton.ca and connect with Franklin Templeton on Twitter, Facebook and LinkedIn, and read the Beyond Bulls & Bears blog.

1. Franklin Western Asset Core Plus Bond Fund shares a similar investment strategy and the same portfolio management team as Western Asset Core Plus Bond Fund - Class I, a 5-star Morningstar-rated fund in the Intermediate Core-Plus Bond category with a 10-year track record in the US.
 

Source: Morningstar®. For each mutual fund and exchange traded fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on how a fund ranks on a Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance, and does not take into account the effects of sales charges and loads, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The weights are: 100% 3-year rating for 36-59 months of total returns, 60% 5-year rating/40% 3-year rating for 60-119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. Morningstar Rating is for the named share class only; other classes may have different performance characteristics. Past performance is not an indicator or a guarantee of future performance.
 

©2022 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
 

2. As of September 31, 2021
 

3. The indicated returns and holdings are those of the US version of Western Asset Core Plus Bond Fund - Class I (a retail share class available through fee-based programs in the US, similar to retail mutual fund units that are available through fee-based programs in Canada), which is not available for sale in Canada. While the Canadian version of the fund uses a similar investment process to that of the US version, the returns and holdings of Franklin Western Asset Core Plus Bond Fund may differ from that of the US version of the fund. This may be due to a variety of reasons including portfolio size, regulatory requirements and differences in fees and expenses. The returns of Western Asset Core Plus Bond Fund - Class I available in the US, include changes in unit value and reinvestment of all distributions but do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder, which may have reduced returns.

 

Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the prospectus and fund facts/ETF facts document before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently. Past performance may not be repeated.

Copyright © 2022. Franklin Templeton. All rights reserved.

SOURCE Franklin Templeton Investments Corp.

Media Contact: Sarah Kingdon, Corporate Communications, Franklin Templeton, 416-957-6191, [email protected]

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