Franklin Templeton Investments Canada Adds Active Currency Management Strategy and Reduces Fees for Franklin High Income Fund

From Franklin Templeton Investments
Contact Sarah Kingdon, Corporate Communications
Telephone 416.957.6191

TORONTO, November 19, 2018 – Franklin Templeton Investments Canada today announced the addition of an active currency management strategy and management fee reductions for certain series of Franklin High Income Fund.

“Many Canadians are looking for yield in their fixed income portfolios but also want to have flexible currency management to help navigate currency risks and opportunities,” said Duane Green, president and CEO, Franklin Templeton Investments Canada. “By having our Franklin Bissett Fixed Income team actively manage the currency hedging strategy for Franklin High Income Fund, the fund now provides Canadian investors currency exposure managed from a Canadian perspective.”

Franklin High Income Fund currently has a 100 per cent passive currency hedge overlay. As of January 1, 2019, the fund will implement a more active approach to currency management, conducted by the Franklin Bissett Fixed Income team, by reducing the hedge to a base ratio that will be 75 per cent hedged and 25 per cent unhedged. From this base, the fund will also have the ability to adjust the hedge +/- 25 per cent, based on the investment team’s outlook for the Canadian dollar relative to the US dollar.

Management Fee Reductions

As detailed in the chart below, management fee reductions of five basis points will be made to Franklin High Income Fund’s Series PF and Series O, effective January 1, 2019:

CURRENTPROPOSED
Series Mgmt. Fee Admin Fee Total Mgmt. Fee Admin Fee Total
PF 0.70 0.10 0.80 0.65 0.10 0.75
O*
O**
O***
0.80
0.70
0.65
-
-
-
0.80
0.70
0.65
0.75
0.65
0.60
-
-
-
0.75
0.65
0.60

* This tier level is from C$200,000 up to C$2.5 million in investable assets.
** This tier level is from C$2.5 million up to C$5 million in investable assets.
***This tier level is for over C$5 million in investable assets.

Glenn Voyles, SVP, director of portfolio management and portfolio manager, Franklin Templeton Fixed Income Group, will continue to manage Franklin High Income Fund. He has been with the firm for 25 years. Darcy Briggs, SVP and portfolio manager, Franklin Bissett, will be managing the active currency management strategy for the fund. He has been with the firm for 13 years

Franklin High Income Fund seeks to provide investors with high current income and the potential for capital appreciation by investing primarily in higher yielding, lower rated debt securities.

About Franklin Templeton Investments

Franklin Templeton Investments Corp. (known as Franklin Templeton Investments Canada) is a subsidiary of Franklin Resources, Inc. [NYSE:BEN]. Franklin Resources, Inc. is a global investment management organization operating as Franklin Templeton Investments, which provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes – including equity, fixed income, alternative and custom solutions. The company’s more than 650 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in over 30 countries, the California-based company has 70 years of investment experience and over US$682 billion (C$898 billion) in assets under management as of October 31, 2018. For more information, please visit franklintempleton.ca.

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