Franklin Templeton Investments is repositioning the Templeton Global (Euro) Fund to the Templeton Global Climate Change Fund, a sub-Fund of the Luxembourg-registered Franklin Templeton Investment Funds (FTIF) range effective 5 March 2018.
The repositioned fund seeks to maximise long-term returns by investing in attractively valued companies preparing for the transition to a lower carbon economy. Investors in the Fund will have access to an actively-managed, globally-diversified value portfolio aligned with global climate change goals.
”We believe companies exhibiting superior practices in identifying and preparing for the consequences of climate change should have a long-term competitive advantage over industry peers,” said Maarten Bloemen, co-lead portfolio manager, Templeton Global Equity Group (TGEG). “We are looking for companies representing three key climate change themes: 1) companies that are trying to remediate the impacts of climate change through lower carbon solutions, such as renewable energy; 2) transition-resilient companies, which we see as companies whose business models are well prepared for a transition to a lower carbon future, and 3) transitional companies, who are operating in higher carbon industries but are actively moving their businesses into lower carbon intensity areas.”
The Fund combines Templeton’s fundamental value investing with robust, in-house climate change research. This approach is rooted in Templeton’s belief that buying undervalued stocks is the best strategy for maximising long-term returns and the belief that world must transition to a lower carbon future and the most resilient and sustainable companies over time will be those able to successfully transition. Environmental, Social and Governance (ESG) analysis is integrated into the stock selection process and only TGEG approved stocks are eligible for inclusion in the Fund.
The Fund’s co-lead portfolio managers are Toronto-based Maarten Bloemen, an executive vice president, portfolio manager and research analyst with 32 years of industry experience, and London-based Dylan Ball, an executive vice president and head of European equity strategies with 18 years of industry experience. Heather Arnold, director of research and a portfolio manager with 34 years of industry experience will serve as a back-up manager for the Fund. The portfolio team also includes a dedicated climate change analyst, and an ESG specialist. The team is additionally supported by the full breadth and depth of the Templeton Global Equity Group.
Vivek Kudva, managing director, EMEA and India, says: “Sustainable investing is a growing trend borne out of greater appreciation and awareness of Environmental, Social and Governance factors. Demand for proprietary focused solutions is evolving via regulations, demographics, environmental risk management, technology and social appreciation, and many investors have demonstrated commitment to transitioning to a low-carbon economy. As signatories on UN-supported Principles for Responsible Investing (PRI), we promote acceptance and implementation of the principles within the industry. This repositioned Fund seeks to address the growing interest from both retail and institutional clients.”