ESG analysis is not just about identifying and measuring risk, it is also about identifying investment opportunities. We consider ESG factors alongside traditional financial measurements to provide a comprehensive view of an investment and help identify those investments that have the potential to deliver sustainable returns.
Our landmark acquisition of Legg Mason will unlock new opportunities for our clients, driven by greater scale, diversity and balance. Our Specialist Investment Managers embrace ESG incorporation as it best fits their investment process and enables us to offer a full complement of Responsible Investing strategies to our clients.
To find out more about our Specialist Investment Managers’ ESG approach please click here.
“Understanding the economic impact from material ESG considerations helps us to make more informed investment decisions on behalf of our clients.”
“Our embedded ESG approach is led by our portfolio teams, who work in partnership with a team of ESG specialists to integrate ESG considerations across our global platform.”
We embed ESG best practices and analytics in our investment processes, enhancing our traditional financial analysis – to open new investment opportunities, help manage risk and seek to enhance returns over the long term.
include ESG considerations in research and stewardship activities
incorporate ESG in portfolio risk models and analytics
provide independent analysis, insights and education
Diligent stewardship helps us to safeguard clients’ investments and unlock value. Our portfolio managers and analysts engage with executives and board members of the organisations we invest in to review issues we believe are material to their firms’ long-term prospects.
We also meet and collaborate with industry bodies, non-governmental organisations, academics and other specialists that could provide valuable insights.
We take our proxy voting responsibility seriously and are committed to voting in the best interests of our clients.
Including or excluding certain investments to meet specific criteria to suit clients' beliefs, such as religious or ethical values.
Positioning towards issuers with leading ESG practices or actively engaging with underperformers by these standards.
Targeting issuers that address social/environmental challenges via their products and services.
Investing with the explicit intention to generate positive and measurable social and environmental outcomes.
Our commitment to Responsible Investment is supported by collaborating with organisations that promote and establish best practice.
Franklin Resources has been a signatory of the Principles for Responsible Investment (PRI) since April 2013, ranking ahead of the peer median score in all categories in 2020.
Corporate citizenship and ESG considerations are embedded in our corporate values. This helps to both positively position Franklin Templeton for the future and help protect our clients. We take our fiduciary responsibility seriously and this underpins everything we do as a firm.
Learn more about our responsible investment approach and relevant guidelines adopted in various jurisdictions worldwide.
What Are the Risks?
All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds adjust to a rise in interest rates, the share price may decline. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging market countries involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Such investments could experience significant price volatility in any given year. High yields reflect the higher credit risk associated with these lower-rated securities and, in some cases, the lower market prices for these instruments. Interest rate movements may affect the share price and yield. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Treasuries, if held to maturity, offer a fixed rate of return and fixed principal value; their interest payments and principal are guaranteed.
IMPORTANT LEGAL INFORMATION
It is intended to be of general interest only and not construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.
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