Franklin Templeton Canada Adds Flagship Strategies from Brandywine Global and ClearBridge Investments

From Franklin Templeton
Contact Sarah Kingdon
Telephone 416-957-6191

Firm brings top performing1 U.S. strategies and decades
of sustainability expertise to Canadians

TORONTO, May 3, 2021 – Franklin Templeton Canada today announced the addition of top performing U.S. strategies and sustainability expertise of two of the firm’s specialist investment managers, Brandywine Global and ClearBridge Investments, to its Canadian fund line-up. Following the acquisition of Legg Mason, these additions will mark the broad availability of Brandywine Global and ClearBridge Investments funds for Canadian investors.

“The acquisition of Legg Mason – which established Franklin Templeton as one of the world’s largest independent asset managers, with deep investment capabilities across every asset class – is significantly transforming our Canadian business,” said Duane Green, president and CEO, Franklin Templeton Canada. “Many Canadian firms claim ESG capabilities, but ESG has been ingrained in our specialist investment managers’ DNA for decades, coupled with best-in-class performance1.”

The following funds will be repositioned as the firm introduces the capabilities of Brandywine Global and ClearBridge Investments:

  • Franklin Strategic Income Fund will be repositioned as Franklin Brandywine Global Sustainable Income Optimiser Fund, effective May 27, 2021. The fund’s U.S. equivalent is a 5-star Morningstar-rated fund2 in Morningstar’s Multisector Bond category. The fund will invest primarily in fixed income securities globally, which have been assessed by the portfolio manager as sustainable investments. The portfolio managers believe that the inclusion of factors related to sustainable and responsible investing, are necessary for a complete understanding of both risk and opportunity.
  • Templeton International Stock Fund and Templeton International Stock Fund II will be repositioned as Franklin ClearBridge Sustainable International Growth Fund and Franklin ClearBridge Sustainable International Growth Fund II, respectively, effective June 7, 2021. The funds’ U.S. equivalent is a 5-star Morningstar-rated fund2 in Morningstar’s Foreign Large Growth category. The funds will invest primarily in equity securities of international companies outside of North America, which have been assessed by the portfolio manager as sustainable investments. The portfolio managers are focused on sustainability through integration and engagement, where they invest to make an impact, by incorporating ESG factors into the stock selection process.

Leveraging their established ESG expertise, Brandywine Global and ClearBridge Investments have been meeting investors’ needs for responsible investment strategies for more than 30 years.

Green added, “We are evolving our product offerings to address and anticipate the needs and interests of investors, and this is only the beginning. We are looking to further draw upon our experienced specialist investment managers globally, to bring Canadians the broad choice of world-class1 investment expertise and solutions.”

Franklin Templeton is a signatory of the United Nations-supported Principles for Responsible Investment (PRI), a set of six investment principles that offer ways to incorporate ESG issues into investment practice. Each of its specialist investment organizations, including Brandywine Global and ClearBridge Investments, are PRI signatories independently as well.

Fee Reductions and Series Changes

In addition to the repositioning, fees for certain series of these funds will be reduced as noted below:

 

 

 

 

NEW FEES

 

New Fund Name

Series

 

Mgmt. Fee
%

Admin. Fee
%

Total
Fee
%

 

Fee Reduction %

 

Effective Date in

2021

Franklin Brandywine Global Sustainable Income Optimiser Fund

A

 

1.05

0.10

1.15

 

-0.26

 

May 27

F

 

0.55

0.10

0.65

 

-0.26

 

May 27

O3

 

0.65

-

0.65

 

-0.05

 

May 27

Franklin ClearBridge Sustainable International Growth Fund and Franklin ClearBridge Sustainable International Growth Fund II4

A and T

 

1.75

0.15

1.90

 

-0.35

 

June 7

F and FT

 

0.75

0.15

0.90

 

-0.35

 

June 7

O3

 

0.90

-

0.90

 

-0.05

 

June 7

3 This tier level is from C$200,000 up to C$2.5 million in investable assets
4
Franklin ClearBridge Sustainable International Growth Fund II is closed to all new investments

With these fee reductions, all investors will have access to the lowest fee in the respective series for which they meet the investment minimum.

Series PA and PF for Franklin Brandywine Global Sustainable Income Optimiser Fund will be consolidated into Series A and F, respectively, effective May 27, 2021. Series I will also be consolidated into Series A, effective May 27, 2021.

Series PA, PF and PT for Franklin ClearBridge Sustainable International Growth Fund will be consolidated into Series A, F and T, respectively, effective June 7, 2021. Series PFT will be renamed series FT, effective June 7, 2021. The above series consolidations will also occur for Franklin ClearBridge Sustainable International Growth Fund II.

About Brandywine Global
Brandywine Global Investment Management, LLC (“Brandywine Global”) believes in the power of value investing. Acting with conviction and discipline, Brandywine Global looks beyond short-term, conventional thinking to rigorously pursue long-term value. Since 1986, the firm has provided a range of differentiated fixed income, equity and alternative solutions to clients worldwide. Brandywine Global, a specialist investment manager of Franklin Resources, Inc., manages approximately US$62 billion in assets under management as of March 31, 2021, with headquarters in Philadelphia and offices in Montreal, Singapore and London.

About ClearBridge Investments
ClearBridge Investments, LLC (“ClearBridge Investments”) is a leading global equity manager with US$184 billion in in assets under management as of March 31, 2021. It is committed to delivering long-term results through active management, as it has for more than 50 years, and offering investment solutions that emphasize differentiated, bottom-up stock selection to move clients forward. Owned by Franklin Templeton, ClearBridge Investments operates with investment independence from headquarters in New York and offices in Baltimore, London, San Francisco, Sydney and Wilmington.

About Franklin Templeton
Franklin Templeton Investments Corp. (also known as Franklin Templeton Canada) is a subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment management organization 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 and approximately US$1.5 trillion (approximately CAN$1.9 trillion) in assets under management as of March 31, 2021. For more information, please visit franklintempleton.ca and connect with Franklin Templeton on Twitter, Facebook and LinkedIn, and read the Beyond Bulls & Bears blog.

1 Based on Morningstar quartile rankings in the peer group. Legg Mason Brandywine Global Flexible Bond Fund - Class A (the U.S. fund equivalent of Franklin Brandywine Global Sustainable Income Optimiser Fund) was a top quartile performer in the Morningstar Multisector Bond category over the most recent 3-year period. Legg Mason ClearBridge International Growth Fund – Class A (the U.S. fund equivalent of Franklin ClearBridge Sustainable International Growth Fund/Franklin ClearBridge Sustainable International Growth Fund II) was a top quartile performer in the Morningstar Foreign Large Growth category over the most recent 5-year and 10-year periods. Source: Morningstar Research Inc., as of March 31, 2021. All rights reserved.  The information contained herein is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For each of the 1-, 3- and 5-year performance periods, there were in total 340, 291 and 260 funds in the Multisector Bond category. Legg Mason Brandywine Global Flexible Bond Fund ranked in the third quartile in the 1-year period and first quartile in the 3-year period. For each of the 1-, 3-, 5- and 10-year performance periods, there were in total 442, 382, 319 and 224 funds in the Foreign Large Growth category. Legg Mason ClearBridge International Growth Fund ranked in the fourth quartile in the 1-year period, second quartile in the 3-year period, and first quartile in both the 5-year and 10-year periods.  All ranking data refers to Class A shares and is subject to change every month.


2 Source: Morningstar®. For each mutual fund and exchange traded fund with at least a 3-year history, Morningstar calculates a Morningstar RatingTM based on how a fund ranks on a Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance and does not take into account the effects of sales charges and loads, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The weights are: 100% 3-year rating for 36-59 months of total returns, 60% 5-year rating/40% 3-year rating for 60-119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. Morningstar Rating is for the named share class only; other classes may have different performance characteristics. Past performance is not an indicator or a guarantee of future performance.

©2020 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

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