Franklin Templeton Investments has renamed and shifted the strategy of its global euro fund to include climate change criteria, Citywire Selector can reveal.
The Templeton Global (Euro) fund, which is co-managed by Toronto-based Maarten Bloemen and London-based Dylan Ball, has been renamed the Templeton Global Climate Change fund, as of 5 March.
The newly re-positioned fund invests in attractively valued companies preparing for the transition to a lower carbon economy.
Franklin Templeton said the change reflects its belief that the world must transition to a lower carbon future and the most resilient and sustainable companies over time will be those to successfully transition.
In doing so, the €703 million fund will combine Templeton’s fundamental value investing and the group’s in-house climate change research, integrating environmental, social and governance criteria (ESG) into the stock selection process.
The new focus on climate change has been adopted as Franklin Templeton has seen growing interest from both retail and institutional clients in sustainable investing.
Commenting on the fund’s new positioning, co-lead portfolio manager Bloemen said: ‘We believe companies exhibiting superior practices in identifying and preparing for the consequences of climate change should have a long-term competitive advantage over industry peers.’
The fund will look to invest in companies representing three climate change themes, according to Bloemen.
These include those that are trying to remediate the impacts of climate change through lower carbon solutions, transition-resilient companies whose business models are well prepared for a transition as well as transitional companies that are operating in higher carbon industries but are actively moving their businesses into lower carbon intensity areas.
Heather Arnold, director of research and portfolio manager, serves as a back-up manager for the fund.