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SYDNEY, 18 March 2021 – Franklin Templeton Australia’s flagship Franklin Global Growth Fund has been upgraded to ‘Recommended’ status by ratings agency Lonsec.
The Fund is an actively managed, long only international equities product that invests in a concentrated portfolio of approximately 35-40 stocks and aims to outperform the MSCI World ex-Australia Index (the ‘Benchmark’, after fees) over the medium to longer term.*
In its rating report, Lonsec highlighted among the Fund’s strengths its portfolio management team and the flexibility to invest down the market cap spectrum.
“Lonsec has strong regard for the Manager’s growth investment philosophy and intensive research process,” the report stated.
The report also recognised the “experienced portfolio management team with long co-tenure” who operate with a “differentiated growth equity investment style that has been consistently applied through time.”
Deep research and flexible approach
The Franklin Global Growth team was also named a finalist for Morningstar Australia's 2021 fund manager of
the year in global equities, off the back of a 2020 win in the same category. Finalists for the 2021 award were all recognised for their oversight of funds which delivered outstanding outcomes to investors through the
pandemic.
Sydney-based Portfolio Manager Francyne Mu said the team’s bottom-up stock analysis aims to identify quality, sustainable growth companies with robust balance sheets and healthy free cash flows that can remain resilient in challenging economic circumstances.
“The Franklin Global Growth Fund has allowed Australian investors to achieve strong risk-adjusted returns along with diversification and access to innovation,” Ms. Mu said.
“The Fund’s emphasis on in-depth research and its flexibility to move down the market cap spectrum allows the Fund to identify opportunities that may be under researched and overlooked by the market.”
Ms. Mu said this approach enables diversification and access to companies that may be earlier in their growth cycle.
“Our differentiated, research-intensive approach has seen the Fund significantly outperform over the last year without holding any of the well-known FAANG (Facebook, Apple, Amazon, Netflix and Google’s Alphabet) growth stocks.”
Beating the benchmark
The Franklin Global Growth Fund has outperformed the Benchmark over the last several years on a foundation of strong research and investment insights.
Over five years to February 2021, the Fund delivered a return of 18.9% p.a. (after fees), outperforming the Benchmark by 6.6% p.a. The Fund returned 30.6% in the 2020 calendar year, outperforming the Benchmark by 24.8%.
Information technology, industrials and consumer discretionary were the biggest contributors to the outperformance in 2020. While its growth style provided tailwinds over the period, stock selection provided the bulk of the positive contribution, reflecting the depth of research and differentiated investment approach.
Matthew Harrison, Managing Director of Franklin Templeton Australia and New Zealand, said the Fund’s recent recognitions are a testament to the caliber of the investment management team.
“The Franklin Global Growth Fund has an exceptional team with Don Huber and John Remmert in the United States and Francyne Mu on the ground here in Australia. They continue to demonstrate their ability to identify international stocks with compelling long-term growth prospects and deliver strong risk-adjusted returns for our investors,” Mr. Harrison said.
Media inquiries:
Susie Bell
Honner – Public Relations
+61 420 949 852
[email protected]
About Franklin Templeton
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, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience. In July 2020, Franklin Templeton completed the acquisition of Legg Mason, Inc. [NYSE:LM] and its specialist investment managers. The newly-combined organisation establishes Franklin Templeton as one of the world’s largest
independent, specialised global investment managers with a combined approximately US$1.5 trillion in assets under management (AUM) across one of the broadest ranges of high-quality investment teams in the industry
as of 28 February 2021. For more information, please visit www.franklintempleton.com.au.
*The investment objective of the Fund is to outperform the MSCI World ex Australia Index-NR, in Australian dollar terms after fees and expenses (but before taxes). Net Returns (NR) include income net of tax withholding when dividends are paid.
Disclaimers
Franklin Templeton Investments Australia Limited (ABN 87 006 972 247) (Australian Financial Services Licence Holder No. 225328) issues this publication for information purposes only and not investment or financial product advice. It expresses no views as to the suitability of the services or other matters described herein to the individual circumstances, objectives, financial situation, or needs of any recipient. You should assess whether the information is appropriate for you and consider obtaining independent taxation, legal, financial or other professional advice before making an investment decision. A Product Disclosure Statement (PDS) for any Franklin Templeton funds referred to in this document is available from Franklin Templeton at Level 19, 101 Collins Street, Melbourne, Victoria, 3000 or www.franklintempleton.com.au or by calling 1800 673 776. The PDS should be considered before making an investment decision.
Past performance does not guarantee future results and results may differ over future time periods. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.
The rating issued 02/2021 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek
independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2021 Lonsec. All rights reserved.
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