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Published on 1/11/2012 in the Prospect News Fund Daily.

Franklin Templeton Multi-Asset Real Return Fund aims to beat inflation

By Toni Weeks

San Diego, Jan. 11 - Franklin Templeton Investments announced the launch of a new fund for U.S. investors that seeks total return exceeding U.S. inflation over a full inflation cycle.

The Franklin Templeton Multi-Asset Real Return Fund strives for real return over a five-year inflation cycle by diversifying its investments across a broad spectrum of asset classes, including global equities, commodities and Treasury Inflation-Protected Securities. The portfolio management team will analyze current inflationary environments and over-weight asset classes that have historically performed well under inflation conditions similar to the existing environment.

The fund will invest primarily in other mutual funds, predominantly other Franklin Templeton and Mutual Series funds, and will also invest a portion of its assets directly in TIPS. Some of its assets will also be allocated to the Franklin Pelagos Commodities Strategy Fund and the Franklin Pelagos Managed Futures Strategy Fund, which both have traditionally exhibited lower correlations to equities and fixed income. These two U.S.-registered mutual funds are available only through Franklin Templeton.

Thomas A. Nelson and Tony Coffey will co-lead the portfolio management team, which will also tap into the expertise of several Franklin Templeton investment management teams and the Franklin Templeton Multi-Asset Strategies group.

Nelson is a chartered financial analyst and director of quantitative research for FTMAS. Coffey is a chartered financial analyst and a vice president of the firm.

Franklin Templeton is an investment manager based in San Mateo, Calif.


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