Franklin Templeton Investments has announced the repositioning of the Templeton Global (Euro) fund to the Templeton Global Climate Change fund, effective 5 March.
Changes on the fund – sheltered by the firm’s Luxembourg Franklin Templeton Investment Funds (FTIF) range – will be implemented over the coming weeks.
Franklin Templeton stated the repositioned fund seeks to maximise long-term returns by investing in attractively valued companies preparing for the transition to a lower carbon economy.
The fund will provide access to an active globally-diversified value portfolio aligned with global climate change goals. It blends Templeton’s fundamental value investing approach and in-house climate change research.
The manager believes that buying undervalued stocks remains the best strategy for maximising long-term returns and that the most resilient and sustainable companies over time will be those able to successfully transition to a lower carbon future. ESG criteria are taken into account into the stock selection process.
Franklin Templeton’s climate change fund will be run by co-lead portfolio managers Maarten Bloemen, executive vice president, portfolio manager and research analyst, based in Toronto, and Dylan Ball, executive vice president and head of European Equity Strategies, based in London.
Heather Arnold, director of research and portfolio manager, will operate as a back-up manager for the fund. The portfolio team also includes a dedicated climate change analyst and an ESG specialist.
”We believe companies exhibiting superior practices in identifying and preparing for the consequences of climate change should have a long-term competitive advantage over industry peers,” said Bloemen, co-lead portfolio manager, Templeton Global Equity Group (TGEG).
“We are looking for companies representing three key climate change themes: 1) companies that are trying to remediate the impacts of climate change through lower carbon solutions, such as renewable energy; 2) transition-resilient companies, which we see as companies whose business models are well prepared for a transition to a lower carbon future, and 3) transitional companies, who are operating in higher carbon industries but are actively moving their businesses into lower carbon intensity areas,” he explained.
Vivek Kudva, managing director, EMEA and India commented: “Sustainable investing is a growing trend borne out of greater appreciation and awareness of Environmental, Social and Governance factors. Demand for proprietary focused solutions is evolving via regulations, demographics, environmental risk management, technology and social appreciation, and many investors have demonstrated commitment to transitioning to a low-carbon economy.
“As signatories on UN-supported Principles for Responsible Investing (PRI), we promote acceptance and implementation of the principles within the industry. This repositioned Fund seeks to address the growing interest from both retail and institutional clients.”
The Templeton Global Equity Group had assets under management of over $100bn (€80.58bn) as of 31 December 2017.