Franklin Templeton Investments – Franklin Templeton Global Total Return Fund Review
Fund objective
Franklin Templeton Investments – Franklin Templeton Global Total Return Fund aims to maximise total investment return consisting of a combination of interest income, capital appreciation, and currency gains by investing principally in a portfolio of fixed and/or floating rate debt securities and debt obligations issued by government and government-related issuers or corporate entities worldwide. The fixed and/or floating-rate debt securities and debt obligations in which the Fund may invest include investment grade and non-investment grade securities. On an ancillary basis, the Fund may gain exposure to debt market indexes by investing in index-based financial derivatives and credit default swaps.
Investment Strategy
Franklin Templeton Investments – Franklin Templeton Global Total Return Fund will invest principally in debt securities and debt obligations issued by governments, government-related issuers or corporate entities worldwide. It may also invest, amongst others, in (i) debt obligations issued by supranational entities, such as
the European Investment Bank, or (ii) mortgage and asset-backed securities, or (iii) securities in default (limited to 10% of its net assets) (securities are said to be in default when the issuers are not currently making interest payments).
Franklin Templeton Investments – Franklin Templeton Global Total Return Fund can use derivatives for hedging, efficient portfolio management and/or investment purposes. The Fund may invest up to 25% of its net assets in debt securities issued and/or guaranteed by a single sovereign issuer (including its government, public or local authority) with a credit rating below investment grade at the time of purchase.
Who is Franklin Templeton Investments – Franklin Templeton Global Total Return Fund suitable for?
Franklin Templeton Investments – Franklin Templeton Global Total Return Fund is only suitable for investors who:
- seek to maximise total investment return consisting of a combination of interest income, capital appreciation and currency gains
- plan to hold their investment for the medium to long-term.
Dividend or Income payout frequency: Monthly
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of Franklin Templeton Investments – Franklin Templeton Global Total Return Fund?
The value of Franklin Templeton Investments – Franklin Templeton Global Total Return Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.
Some of the key risks associated with Franklin Templeton Investments – Franklin Templeton Global Total Return Fund are described below:
Market and Credit Risks
- You are exposed to economic, political and regulatory risks
- Your investments are subject to interest rate risk
- You are exposed to credit risks of issuers
- Your investments are subject to currency movement risks
Liquidity Risks
- Fund liquidity may be affected during exceptional circumstances
- The Fund is not listed
Product-Specific Risks
- You are exposed to derivative risk
Investment Fees and Charges
For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.
Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.
Where can I get more details about Franklin Templeton Investments – Franklin Templeton Global Total Return Fund
- Franklin Templeton Investments – Franklin Templeton Global Total Return Fund Fact Sheet (Open in New Window)
- Franklin Templeton Investments – Franklin Templeton Global Total Return Fund Product Highlight Sheet (Open in New Window)
- Speak to a licensed licensed financial adviser
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