Franklin Templeton Investments Reduces Management Fees for Canadian and Global Fixed Income Funds in Canada Français
-- New Series V and W introduced and existing Series M added to two mandates--
TORONTO, March 2, 2015 /CNW/ - Franklin Templeton Investments Corp. today announced management fee reductions for its domestic and global fixed income funds to provide Canadians diversification and investment expertise at a lower cost.
The management fees for Series A of Templeton Global Bond Fund and Templeton Global Bond Fund (Hedged) will be reduced to 1.25 per cent – a reduction of 29 per cent.
In addition, the management fees for Series A of Franklin High Income Fund, Franklin Strategic Income Fund and Franklin Bissett Corporate Bond Fund will be reduced to 1.25 per cent, and Series A of Franklin Bissett Bond Fund will be reduced to 1.20 per cent. The management fee for Series F for Franklin Bissett Corporate Bond Fund will be reduced to 0.75 per cent to align it with the Series F management fees within Franklin Templeton's global fixed income fund line-up. These management fee reductions will in turn provide investors with lower management expense ratios (MERs).
"Many Canadians are looking for yield in this low interest rate environment," said Dennis Tew, head of Sales Compliance and Business Operations for Franklin Templeton Investments. "Franklin Templeton's fixed income line-up provides Canadians with diversification across multiple geographic regions, offering them access to market opportunities while reducing their risk exposure at a lower cost."
Templeton Global Bond Fund and Templeton Global Bond Fund (Hedged) are managed by lead portfolio manager Dr. Michael Hasenstab and portfolio manager Dr. Sonal Desai based in San Mateo, California. Hasenstab is CIO of Templeton Global Macro, comprised of 18 investment professionals managing Templeton's global bond strategies, including unconstrained fixed income, currency and global macro.
Franklin High Income Fund and Franklin Strategic Income Fund are managed by portfolio managers Christopher Molumphy and Eric Takaha. Molumphy is CIO of Franklin Templeton Fixed Income Group, with over 140 investment professionals worldwide. The managers take a global multi-sector approach for Franklin High Income Fund and a global high-yield approach for Franklin Strategic Income Fund to fixed income.
Franklin Bissett Bond Fund is co-managed by portfolio managers Tom O'Gorman and Heather McOuatt, and Franklin Bissett Corporate Bond Fund is co-managed by portfolio managers Heather McOuatt and Darcy Briggs of Franklin Bissett Investment Management. The Calgary-based group provides investors with Canadian fixed income expertise, grounded in global perspective. The team focuses on Canada with potential for enhanced returns through global diversification, managing multi-sector, credit and duration-targeted strategies.
Series A units are available to all investors, subject to certain minimum investment requirements. Series F units are offered on a fee-for-service basis to investors who meet the minimum requirements. For a full list of investment requirements, please visit franklintempleton.ca.
New Series V and W offer ROC Distributions
In addition to implementing lower management fees, Franklin Templeton Investments launched a new Series V and W with preferred pricing for high net worth investors who are seeking tax-efficient income in the form of Return of Capital (ROC) distributions. Unlike income or dividend income, ROC distributions are not immediately taxable because they are treated as return of an investor's original investment and reduce the adjusted cost base of the investment for tax purposes.
With a minimum investment threshold of $100,000 per household, Series V is offered in an embedded compensation model, whereas Series W can be purchased on a fee-for-service basis.
Series V is available in:
- Franklin Quotential Diversified Income Corporate Class Portfolio
- Franklin Quotential Balanced Growth Corporate Class Portfolio
- Franklin Quotential Balanced Income Corporate Class Portfolio
- Templeton Global Balanced Fund
Series W is available in:
- Franklin Quotential Diversified Corporate Class Portfolio
- Templeton Global Balanced Fund
Series M added to two mandates
Series M provides investors with preferred pricing in a fee-based model, and is now offered in 15 funds, including funds which are part of the tax-efficient Corporate Class structure. The series has a minimum investment threshold of $100,000 based on total household assets.
Series M has been added to:
- Franklin Quotential Balanced Income Corporate Class Portfolio
- Franklin U.S. Monthly Income Corporate Class
Franklin Templeton's Corporate Class structure allows investors to switch between funds and portfolios while deferring any taxable dispositions until they redeem from the structure.
About Franklin Templeton Investments
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 150 countries. Through specialized teams, the company has expertise across all asset classes—including equity, fixed income, alternative and custom solutions. The company's more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in 35 countries, the California–based company has more than 65 years of investment experience and over US$871 billion (more than C$1,107 billion) in assets under management as of January 31, 2015.
For more information, please visit franklintempleton.ca or connect with Franklin Templeton on Twitter (@FTI_Global). Read the Beyond Bulls & Bears blog featuring perspectives from Franklin Templeton investment professionals around the world and the Investment Adventures in Emerging Markets blog from Mark Mobius (@MarkMobius), executive chairman of Templeton Emerging Markets Group.
Copyright © 2015. Franklin Templeton Investments Corp. All rights reserved.
SOURCE Franklin Templeton Investments Corp.
Media contacts: Sarah Kingdon, Corporate Communications, Franklin Templeton Investments, 416.957.6191; Amie Lauder, Corporate Communications, Franklin Templeton Investments, 416.957.6560
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