Franklin Templeton Investments has launched the Templeton Global Currency Fund which is a sub-fund of the Luxembourg-registered Franklin Templeton Investment Funds (FTIF) range.
The benchmark-unconstrained strategy seeks to maximise return by investing in securities and instruments offering long or short exposure to currencies of any country, including developed and developing markets.
Michael Hasenstab, executive vice president and CIO, and Sonal Desai, senior vice president and director of research from Templeton Global Macro, are the portfolio managers of the fund.
The team relies on a multi-tiered approach, combining in-depth macroeconomic and country-specific research with fundamentals-based valuation analysis to capitalise on short-term market inefficiencies and capture long-term potential.
The managers determine fundamental long-term currency valuations while analysing short-term dynamics to assess what will drive currencies either toward or away from their long-term equilibrium value.
“We consider the new Templeton Global Currency Fund an all-weather strategy, given its ability to go long or short in any currency, which enables us to capitalise on opportunities around the globe and in any market environment,” said Hasenstab.
Vivek Kudva, managing director, EMEA and India at Franklin Templeton Investments, commented: “Currency markets are often inefficient and can provide compelling opportunities to generate excess returns relative to many other asset classes. In addition, global currencies are often less-correlated with both equity and fixed income markets and as a result, can help diversify the risk in a portfolio.
“We believe that this new fund will be appealing to investors seeking absolute return strategies that aim to deliver a positive return regardless of market environment.”
Templeton Global Macro has assets under management of over $130bn (€116.3bn) as of 30 June 2016.