Franklin Templeton launches new UCITS China A-shares Fund for Investors

• Fund is managed by firm’s dedicated China-based equity manager and gives access to higher growth opportunities in the China A-shares market

Luxembourg, 13 April 2023 – Franklin Templeton¹ is pleased to announce the launch of the Franklin Sealand China A-Shares Fund², a sub-fund of the Luxembourg-domiciled Franklin Templeton Investment Funds (FTIF) ² range. The fund is initially registered for sale in Austria, Germany, Norway, Spain and Sweden.

Managed by Franklin Templeton Sealand Fund Management Co., Ltd., a Shanghai-based joint venture with Franklin Templeton, the fund’s investment team has a deep onshore presence in China and a strong track record in managing China A-shares, the equity securities of mainland China-based companies trading on the two Chinese stock exchanges - the Shanghai Stock Exchange and the Shenzhen Stock Exchange. Their extensive knowledge of the local economy, policies and other non-economic factors enables the team to identify early trends, opportunities and risks.

The Franklin Sealand China A-Shares Fund’s investment objective is long-term capital appreciation by investing primarily in China A-shares. This includes China A-shares available through Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, Undertakings for Collective Investment (UCIs) and/or any permissible means available to the fund under prevailing laws and regulations. The fund may also invest up to 20% of its portfolio in equity securities of Chinese companies listed on the Hong Kong Stock Exchange.

Julian Ide, Head of EMEA distribution at Franklin Templeton, commented: “We are delighted to offer this new China A-shares fund to our clients. The China A-shares market offers many quality companies with growth potential, liquidity and market depth. In addition, access to the Chinese market has improved, with enhanced investor protection and market structure driven by continued reforms and the opening up of China’s capital markets. We believe this strategy should appeal to those who are looking for additional choice to diversify their portfolios through high growth opportunities in onshore Chinese equities.”

With more than 600 names in Franklin Templeton Sealand Fund Management Co., Ltd.’s core equity pool, this new fund focuses on approximately 35-50 stocks for its portfolio. These companies are diversified across industries, sectors and market capitalisations, with a focus on mid and large capitalisation stocks. The fund’s top ten holdings are expected to account for approximately 50% of the portfolio.

Lirong Xu, General Manager and Chief Investment Officer of Franklin Templeton Sealand Fund Management Co., Ltd., commented: “Our investment approach balances high conviction with diversification by employing a bottom-up and fundamentally research-driven process focusing on corporate quality and a rigorous valuation process. We generate alpha, or above-market returns, by investing in companies with sustainable competitive advantages, superior growth potential and outstanding management, whilst still trading at a reasonable price.

With inflows into China equities on index inclusions and growth opportunities, supported by a shift in the country’s domestic money flows from household savings to equity assets, a large opportunity exists for active investors in the China A-shares market.”

About Franklin Templeton Sealand Fund Management Co., Ltd.

Franklin Templeton Sealand Fund Management Co., Ltd. was established in 2004 as a Shanghai-based joint venture with Franklin Templeton and has over 18 years of experience navigating different market cycles and policy environments and more than 10 years managing China A-shares mandates for international investors. Deeply integrated with the global Franklin Templeton platform, its on-the-ground, strong and experienced investment team comprises of 44 professionals dedicated to research and investing in China’s markets, nine of which are equity portfolio managers with an average of 17 years industry experience and 15 of which are equity analysts with an average of eight years industry experience, making them one of the most stable teams in China’s domestic market. With approximately $13.06 billion in assets under management as of March 31 2023*, it offers a full suite of products, fully-fledged corporate governance and process-disciplined risk management and compliance monitoring.

For more information, please visit www.franklintempleton.lu.

* AUM including mutual funds, separately managed accounts and advisory portfolios.

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Contacts:

Constanze Ullmann Senior Corporate Communications Manager Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 070 7438 Email: [email protected]

Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8538 Email: [email protected]

Notes to Editors:

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of February 28, 2022.  For more information, please visit www.franklintempleton.de and follow us on LinkedIn, Twitter and Facebook.
2. Franklin Sealand China A-Shares Fund is a sub-fund of Franklin Templeton Investments Funds (FTIF), a Luxembourg-domiciled SICAV.

Subscriptions to shares of FTIF can only be made on the basis of the current prospectus, and, where available, the relevant Key Investor Information Document, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. The value of shares in FTIF and income received from it can go down as well as up, and investors may not get back the full amount invested.

The Fund's documents are available in English, Arabic, Czech, Danish, Dutch, Estonian, Finnish, French, German, Greek, Hungarian, Icelandic, Italian, Latvian, Lithuanian, Norwegian, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish. In addition, a summary of investor rights is available from franklintempleton.lu​. The summary is available in English. The sub-funds of FTIF are notified for marketing in multiple EU Member States under the UCITS Directive. FTIF can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.

Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. In emerging markets, the risks can be greater than in developed markets.

An investment in FTIF entails risks, which are described in the FTIF’s prospectus and, where available, the relevant Key Investor Information Document. Investments in derivative instruments entail specific risks that may increase the risk profile of the fund and are more fully described in FTIF’s prospectus and where available in the relevant Key Investor Information Document. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a fund’s holding at any one time.

No shares of FTIF may be directly or indirectly offered or sold to nationals or residents of the United States of America. Shares of FTIF are not available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any plans to invest.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes and is provided to you only incidentally.

Please consult your financial advisor before deciding to invest. A copy of the latest prospectus, and, if available for this product, the relevant Key Investor Information Document, the annual report and semi-annual report, if published thereafter can be found, on our website www.ftidocuments.com or can be obtained, free of charge, from Franklin Templeton International Services S.à.r.l. supervised by the Commission de Surveillance du Secteur Financier -8A, rue Albert Borschette L-1246 Luxembourg - Tel: +352-46 66 67-1 - Fax: +352-46 66 76.

Issued by Franklin Templeton International Services S.à r.l.

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