Franklin Templeton Investments[see profile] has launched the Franklin Templeton Global Allocation Fund, which will bet on a diversified portfolio of equity and fixed income securities.
Brent Smith and Samer Habl are the co-PMs for the fund, which sports a net expense ratio of 130 basis points.
"We look to identify attractive investment opportunities on a relative basis among asset classes, countries and currencies," Habl stated.
SAN MATEO, CA, Sep 06, 2011 (MARKETWIRE via COMTEX) -- Franklin Templeton Investments today announced the launch of Franklin Templeton Global Allocation Fund for U.S. investors, combining the expertise of various Franklin Templeton investment management teams with the multi-asset management expertise of the Franklin Templeton Multi-Asset Strategies ("FTMAS") group.
"With increasingly complex global markets posing new challenges daily, it's our view that a systematic approach to monitoring and adjusting portfolio allocations across asset classes with a forward-looking view on market and economic conditions is no longer an option, it's a necessity," said Brent Smith, chief investment officer for FTMAS and co-portfolio manager of the Fund. "Combining our tactical asset allocation approach with underlying investment strategies leveraging the expertise of the Franklin, Templeton and Mutual Series investment teams presents investors with an attractive core allocation option for their portfolios."
Franklin Templeton Global Allocation Fund seeks total return by investing in a diversified portfolio of equity and fixed income securities supplemented by a tactical investment strategy, which may include cash and financial derivative instruments designed to allow the Fund to adjust its exposure to asset classes, geographic regions, currencies and market sectors. The Fund's management team implements these tactical investment opportunities using a disciplined approach to portfolio construction that emphasizes the importance of managing risk in seeking to improve the Fund's overall risk/return profile.
The Fund's management team utilizes the fund's multi-manager structure in pursuing multiple sources of returns. The Fund's core portfolio allocation is structured to provide broad global diversification utilizing complementary investment strategies managed by portfolio managers across the Franklin, Templeton and Mutual Series investment teams. Franklin is a leader in fixed income investments, and also offers expertise in growth- and value-style U.S. equity investing. Templeton is a pioneer in global and emerging markets investing, and Mutual Series is a well-regarded deep value manager.
These strategies driving the core allocation are in turn paired with FTMAS' systematic, fundamentally driven tactical asset allocation process that seeks to provide an additional, uncorrelated return source while at the same time providing a mechanism to potentially hedge the portfolio during market downturns and lower overall portfolio volatility.
"Our approach to tactical asset allocation combines bottom-up and top-down fundamentals," said Samer Habl, the Fund's co-portfolio manager and director of portfolio strategy for FTMAS. "We look to identify attractive investment opportunities on a relative basis among asset classes, countries and currencies. For those who appreciate Franklin Templeton's strong focus on bottom-up analysis in individual security selection, the complementary nature of our approach to tactical asset allocation offers a potential added benefit."
Smith and Habl will be supported by the broader FTMAS organization, which includes more than 20 investment professionals worldwide with a range of multi-asset expertise.
All investments involve some degree of risk. Generally, investors should be comfortable with fluctuation in the value of their investments, especially over the short term. Stocks have historically outperformed other asset classes over the long term, but they tend to fluctuate more dramatically over the shorter term. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline. Foreign investing carries additional risks such as currency and market volatility and political or social instability; risks which are heightened in developing countries. Because the fund allocates assets to a variety of investment strategies involving certain risks, Franklin Templeton Global Allocation Fund may be subject to those same risks. These risks are described more fully in the fund's prospectus.
Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN /(800)342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.
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