Glossary
Alpha Sources: investing strategies that contribute to the excess return of an investment relative to the return of a benchmark index is the investment’s alpha.
Attribution:
Credit Default Swaps: a financial derivative that allows an investor to swap or offset their credit risk with that of another investor.
Currency Forwards: a customized, written contract between two parties that sets a fixed foreign currency exchange rate for a transaction, set for a specified future date.
Credit Risk: the probability of a financial loss resulting from a borrower's failure to repay a loan.
Dispersion Reports: report on statistical measures of the range of potential outcomes for an investment based on its historical volatility or returns.
Duration Management: adjusting a portfolio's sensitivity to changes in interest rates and yield.
High-Yield Credit: bond that offers a higher rate of interest because of its higher risk of default.
Interest Rate Futures: a futures contract with an underlying instrument that pays interest.
Portfolio Duration Range: average life of the assets in the investment portfolio of a Fund
Short-Duration Exposure: fixed income investments with low duration
Structured Credit: involves pooling similar debt obligations and selling off the resulting cash flows
Systematic Macro Risk: risk that is inherent to the entire market, rather than a particular stock or industry sector.
Tracking Error: difference between the returns of the index fund and the target index.
Value-at-Risk: statistic that quantifies the extent of possible financial losses within a firm, portfolio, or position over a specific time frame.
FTGF Brandywine Global Income Optimiser Fund
Fund Risks
Bonds: There is a risk that issuers of bonds held by the fund may not be able to repay the investment or pay the interest due on it, leading to losses for the fund. Bond values are affected by the market's view of the above risk, and by changes in interest rates and inflation.
Liquidity: In certain circumstances it may be difficult to sell the fund's investments because there may not be enough demand for them in the markets, in which case the fund may not be able to minimise a loss on such investments.
Low rated bonds: The fund may invest in lower rated or unrated bonds of similar quality, which carry a higher degree of risk than higher rated bonds.
Emerging markets investment: The fund may invest in the markets of countries which are smaller, less developed and regulated, and more volatile than the markets of more developed countries.
Asset-backed securities: The timing and size of the cash-flow from asset-backed securities is not fully assured and could result in loss for the fund. These types of investments may also be difficult for the fund to sell quickly.
Fund currency: Changes in exchange rates between the currencies of investments held by the fund and the fund's base currency may negatively affect the value of an investment and any income received from it.
Interest rates: Changes in interest rates may negatively affect the value of the fund. Typically as interest rates rise, bond values fall.
Derivatives: The use of derivatives can result in greater fluctuations of the fund's value and may cause the fund to lose as much as or more than the amount invested.
Sustainability: The fund's integration of sustainability risks in the investment decision process may have the effect of excluding profitable investments from the investment universe of the fund and may also cause the fund to sell investments that will continue to perform well. A sustainability risk could materialise due to an environmental, social or governance event or condition which may impact the fund's investments and negatively affect the returns of the fund.
Fund counterparties: The fund may suffer losses if the parties that it trades with cannot meet their financial obligations.
Fund operations: The fund is subject to the risk of loss resulting from inadequate or failed internal processes, people or systems or those of third parties such as those responsible for the custody of its assets, especially to the extent that it invests in developing countries.
Complete information on the risks of investing in the Fund are set out in the Fund’s prospectus.
Important Information
This fund has been classified as Article 8 under the Regulation on sustainability related disclosures in the financial services sector (EU) 2019/2088. These are Funds which have an ESG integration approach and, in addition, have binding environmental and/or social characteristics in their investment process. Further information in relation to the sustainability-related aspects of the fund can be found at franklinresources.com/countries. Please review all of the fund's objectives and characteristics before investing.
This marketing material is intended to be of general interest only and should not be construed as investment advice. It does not constitute legal or tax advice and it is not an offer for shares or an invitation to apply for shares of the Irish-domiciled Franklin Templeton Global Funds plc (the "Fund" or "FTGF"). For the avoidance of doubt, if you decide to invest, you will be buying units in the Fund and will not be investing directly in the underlying assets of the Fund.
Franklin Templeton ("FT") shall not be liable to any user of this document or to any other person or entity for the inaccuracy of information or any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission. Any opinions expressed are the author's at publication date and they are subject to change without prior notice. Any research and analysis contained in this marketing material has been procured by FT for its own purposes and is provided to you only incidentally. Data from third party sources may have been used in the preparation of this document and FT has not independently verified, validated or audited such data. References to industries, sectors or companies are for general information and are not necessarily indicative of the Fund's holding at any one time.
No shares of the Fund may be directly or indirectly offered or sold to residents of the United States of America. Shares of the Fund are not available for public distribution in all jurisdictions and prospective investors should consult their financial advisor before deciding to invest. The Fund may use financial derivatives or other instruments which may entail specific risks more fully described in the Fund's Documents.
Subscriptions to shares of the Fund can only be made based on the Fund's current Prospectus and, where available, the relevant Key Information Document ("KID") accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. These documents can be found on our website at https://www.franklinresources.com/all-sites, obtained from FTGF's registered office at Riverside Two, Sir John Rogerson's Quay, Grand Canal Dock, Dublin 2, Ireland, from FTGF's administrator, or can be requested via FT's European Facilities Service which is available at https://www.eifs.lu/franklintempleton.
The Fund's documents are available in English, French, German, Italian and Spanish. A summary of investor rights is available here: summary-of-investor-rights.pdf (widen.net). The summary is available in English. The sub-funds of FTGF are notified for marketing in multiple EU Member States under the UCITS Directive. FTGF 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.
Important information for South African Investors only: Franklin Templeton International Services S.à r.l. ("FTIS”) is a registered manager of FTGF, which is an approved foreign collective investment scheme in terms of section 65 of the Collective Investments Schemes Control Act, 45 of 2002 ("CISCA”). Several of the sub-fund of FTGF are currently approved by the Financial Sector Conduct Authority for distribution in South Africa.
Please note, however, that not all of the sub-funds of FTGF are approved for distribution in South Africa in terms of section 65 of CISCA (“Unapproved Funds”) and any information contained herein in relation to Unapproved Funds must be disregarded by South African investors. The FTGF prospectus is not an invitation to South African investors to invest in Unapproved Funds and must not be considered by South African investors to constitute, in any way whatsoever, a solicitation for investment in Unapproved Funds or a promotion of Unapproved Funds to South African investors.
Franklin Templeton Investments SA Proprietary Limited is an authorised financial services provider (registration number 2012/220219/07 and FSP number 44475).
Investments in collective investment schemes in securities and hedge funds (“CIS”) are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future performance. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. CIS are traded at ruling prices and can engage in borrowing and scrip lending.
A schedule of fees and charges and maximum commissions is available on request from FTIS at 8A rue Albert Borschette, L-1246 Luxembourg and the Effective Annual Costs are available at the following link: https://www.franklintempleton.co.za/investor/products/effective-annual-costs.
Commission and incentives may be paid and if so, would be included in the overall costs. Where a performance fee is charged, for a full description of how performance fees are calculated and applied, please refer to the MDD.
Investments in foreign securities may expose the fund to risks such as potential constraints on liquidity and repatriation of funds, macroeconomic, political, foreign exchange, tax, settlement and potential limitations on the availability of market information. For full information on all the risks applicable to this fund, please refer to the FTGF prospectus.
A portfolio of FTGF, or a share class within such portfolios, may be closed to new investors or to all new subscriptions or “switches in” (but not to redemptions, “switches out” or transfers) if, in the opinion of the FTIS, closing is necessary to protect the interests of existing shareholders or is necessary to manage the portfolio more efficiently in according with FTIS’s mandate.
Performance is calculated as a lump-sum and is quoted in USD or in the base currency of the fund and its respective share classes currencies. Performance is calculated for the portfolio, individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. Annualised performance is the fund’s total return expressed as an annual equivalent percentage rate over the time period listed. 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. Investments in derivative instruments entail specific risks that may increase the risk profile of the fund.
Any investment entails risks in buying or selling any financial product, which risks are described in the relevant offering documents. Investors should take cognisance that they may not regain the full amount invested. Neither Franklin Templeton, FTGF, nor any of their affiliates provide any guarantee in respect of either the capital or the return of a portfolio.
This information is only for use by professional clients. It is not aimed at retail clients. Not for onward distribution. © 2025. Franklin Templeton. All rights reserved.
