| From | Franklin Templeton |
|---|---|
| Contact | Alina Ulkina and Dorine Johnson |
| Telephone | +44 (0)790 090 0184 M |
London, 14 September 2020 – Franklin Templeton1 today announced the launch of the Franklin UK Equity Income Fund – a sub-fund of the Luxembourg-domiciled Franklin Templeton Investments Funds (FTIF)2 range. The fund will be managed by Leeds-based Portfolio Managers Colin Morton, Ben Russon, Will Bradwell and Mark Hall from the Franklin UK Equity team and follow the same time-tested approach as the successful Franklin UK Equity Income strategy.
The fund’s investment objective is to generate an income in excess of the FTSE All-Share Index, together with investment growth, over a three- to five-year period. It will seek to achieve this by investing primarily in equity securities of large-cap companies incorporated, domiciled or having their principal business activities in the United Kingdom and invest in companies across a wide range of sectors. The fund will be available to qualifying European investors3 at very competitive management fee of 45 basis points.
Colin Morton said: “Investors are facing an increasing challenge of generating income as many companies adjust their dividend policies. However, there remains scope for investors to take advantage of long-term opportunities in the UK equity market. With the dividend yield of the FTSE All-Shares Index currently superior to globally-comparable markets and valuations remaining attractive relative to UK bonds, we believe that UK equities offer European investors access to a sustainable, steadily rising and consistent dividend story in the United Kingdom.
“The pandemic has highlighted the importance of resilient income investing and, as the world adapts, we believe our disciplined and time-tested investment approach will enable us to deliver returns for our clients.”
The actively managed Franklin UK Equity Income strategy has followed the same fundamental approach of investing in robust, dividend paying UK companies with attractive valuations and solid balance sheets since 1995. Since inception the strategy has returned 1161% compared to its benchmark’s total return of 1076%4 to 31 August 2020.
Julian Ide, Head of EMEA distribution, Franklin Templeton, commented: “We are pleased to offer European investors access to this core UK equity strategy, which will be particularly relevant in a post-Brexit environment as some market participants look beyond traditional Pan-European exposure, seeking separate allocations to the UK and Europe ex-UK regions. We are also seeing an increasing demand from UK offshore clients for pure strategies, which can be used as building blocks for investor portfolios.
“The Franklin UK Equity team has a very strong track record and is well placed to meet the needs of European investors looking for diversified sources of income.”
The Franklin UK Equity Team is a highly dedicated and disciplined group of investors, acting as custodians for clients’ capital and focused on serving client investment needs. Based in Leeds and headed by Colin Morton, the team manages a number of investment strategies across the depth and breadth of the UK equity market, following an active, long-term and fundamental bottom-up approach.
The core of the Franklin UK Equity Team has worked together for decades and at its heart is a close-knit team culture. Over 140 years of combined investment experience has allowed the team to develop an extensive knowledge of UK markets and companies, and to seek attractive investment opportunities.
The Franklin UK Equity teams manages €3.81 billion as of 31 July 2020.
For more information on the Franklin LibertyShares™ ETF range please visit: www.franklintempleton.co.uk .
Notes to Editors:
- Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. 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, alternatives and custom multi-asset solutions. With offices in over 30 countries and 1,300 investment professionals, the California-based company has more than 70 years of investment experience and approximately $1.4 trillion in assets under management as of August 31, 2020. For more information, please visit www.franklintempleton.lu and follow us on LinkedIn, Twitter and Facebook
- Franklin UK Equity Income Fund is a sub-fund of Franklin Templeton Investments Funds (FTIF), a Luxembourg-domiciled SICAV. Subscriptions to shares of FTIF can only be made on the basis of the current prospectus, and, where available, the relevant Key Investor Information Document, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. The value of shares in FTIF and income received from it can go down as well as up, and investors may not get back the full amount invested.
Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. In emerging markets, the risks can be greater than in developed markets.
An investment in FTIF entails risks, which are described in the FTIF’s prospectus and, where available, the relevant Key Investor Information Document. Investments in derivative instruments entail specific risks that may increase the risk profile of the fund and are more fully described in FTIF’s prospectus and where available in the relevant Key Investor Information Document. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a fund’s holding at any one time.
No shares of FTIF may be directly or indirectly offered or sold to nationals or residents of the United States of America. Shares of FTIF are not available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any plans to invest. - The fund will be registered in the following countries: Austria, Belgium, Cyprus, Czech Rep, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Italy, Jersey, Latvia, Lithuania, Luxembourg, Macau, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, United Kingdom.
- Source: Morningstar. The strategy performance shown reflects the performance of the Franklin UK Equity Income OEIC Fund rather than the Franklin UK Equity Income SICAV. Fund performance data from 29/04/1988 to 30/09/2011 on the mid-price of the Rensburg UK Equity Income Trust. Subsequent performance is based on the asset value of the Franklin UK Equity Income Fund W(acc) share class shares thereafter.
The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as of the publication date and may change without notice. The information provided in this material is not intended as complete analysis of every material fact regarding any country, region or market.
Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes. For more information, UK investors should contact: Franklin Templeton, Cannon Place, 78 Cannon Street, London EC4N 6HL. United Kingdom. Phone: 0800 305 306, Email [email protected].
Issued by Franklin Templeton Investment Management Limited (FTIML). FTIML is authorised and regulated in the United Kingdom by the Financial Conduct Authority.