Following its acquisition of Balanced Equity Management (BEM) in July, Franklin Templeton Investments has announced the launch of Australian Equity Fund for institutional and retail investors.
Franklin Templeton stated that the new fund aims to outperform the Standard & Poor's/Australian Securities Exchanges (S&P/ASX) 100 Accumulation Index over the medium- to long-term after fees and taxes. Environment, social and governance (ESG) factors and after-tax outcomes for investors were also a consideration in launching the fund.
The key approach of the fund is to invest in Australian companies with sustainable earnings, and to go overweight on a stock in its benchmark when the fund believes the market is pricing the stock below its long-term fundamental value, Balanced Equity Fund said.
BEM managing director Andrew Sisson said the new fund will be run by the BEM team. He said the success of the partnership between BEM and Franklin Templeton will be a result of the investment culture shared by the two entities.
"This is the first time Australian investors will be able to access BEM's expertise via a unit trust," said Franklin Templeton managing director Maria Wilton.
"We will work with research houses and consultants to gain ratings and seek platform additions for the fund."
The Australian Equity Fund will add to Franklin Templeton's global fixed income, global equity and private equity real estate offerings.
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A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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