Bringing you live news and features since 2006 

Franklin Templeton launches multi-asset real return fund for US investors

RELATED TOPICS​

Franklin Templeton Investments has launched Franklin Templeton Multi-Asset Real Return Fund for US investors. The new fund combines the distinct investment expertise of several Franklin Templeton investment management teams with the multi-asset management expertise of the Franklin Templeton Multi-Asset Strategies (FTMAS) group.

"Franklin Templeton Multi-Asset Real Return Fund’s approach can be an attractive solution for investors seeking the benefits of diversification within a single portfolio that taps the investment expertise across Franklin Templeton’s investment platforms," says Thomas A Nelson, director of quantitative research and portfolio manager for FTMAS, who is the co-lead manager of the Fund with Tony Coffey, vice president and portfolio manager. "The Fund’s active adjustment of portfolio allocations to address current inflationary environments also can make it an attractive option for investors who are concerned about inflation."

The Fund seeks total return that exceeds US inflation over a full inflation cycle (real return), typically five years, by using a flexible allocation strategy that is diversified across a broad spectrum of asset classes, including global equities, global fixed income (including Treasury Inflation-Protected Securities or "TIPS"), and commodities. To help protect against inflation risk, the Fund pairs a diversified multi-asset class portfolio with an analysis of the current inflationary environments. The portfolio will be adjusted to overweight asset classes that have historically performed well under inflation conditions similar to the existing environment. To help achieve its strategy, the Fund invests primarily in other mutual funds (underlying funds), predominantly other Franklin, Templeton and Mutual Series funds; it also invests a portion of its assets directly in TIPS.

The Fund also includes allocations to Franklin Pelagos Commodities Strategy Fund and Franklin Pelagos Managed Futures Strategy Fund, providing additional diversification through two asset classes that traditionally have exhibited lower correlations to equities and fixed income. Both Pelagos funds are US-registered mutual funds, currently available only through Franklin Templeton mutual funds (not direct to the public). Franklin Templeton purchased a 20 per cent stake in Boston-based alternatives specialist Pelagos Capital Management in November 2010.

"Franklin Templeton Multi-Asset Real Return Fund is an important addition to FTMAS’ diverse range of outcome-oriented investment solutions, including the Franklin Templeton Global Allocation Fund launched late last year, and our long-established target date and target risk funds," says FTMAS chief investment officer Brent Smith.
 

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by