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Highlights
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Launch of FTIF - Templeton Global Total Return Fund A(mdis) SGD-H1 share class on 14 October 2009
- Suitable for investors who would like to reduce the effect of currency movements on their Singapore dollar returns in the Fund
- Alternative solution for investors in the Fund who are more positive on the Singapore dollar relative to the U.S. dollar
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14 October 2009 - Franklin Templeton Investments is pleased to introduce the SGD-H1 share class of the popular FTIF - Templeton Global Total Return Fund (the "Fund") today for subscription by the Singapore retail public.
The new H1 share class provides an alternative solution to Singaporean investors who would like to reduce the impact of currency movements on their Singapore dollar (SGD) returns in the Fund.
Why Invest in SGD-H1 Share Class?
A Singaporean investor who invests in SGD in the above Fund that uses the U.S. dollar (USD) as its base currency may risk having an investment gains reduced or losses increased if the USD exchange rate falls against SGD. For example, if the Fund returns 2% in USD terms but the USD weakens 2% against SGD over this same time period, the investor's net return in SGD for this period would be 0%.
However if the same investor had invested in the SGD-H1 share class, he/she would have obtained a net return of 2% in SGD (assuming no hedging cost, timing or coverage issues). This is as the SGD-H1 share class attempts to provide SGD investors with similar returns as USD investors1.
Does the Share Class Affect the Fund's Generation of Excess Returns Through Currencies?
The SGD-H1 share class will not affect the Fund's generation of returns through currencies. It is only intended to limit currency risks for SGD investors relative to the USD.
Contacts for Information on the Fund's SGD-H1 Share Class.
Please contact one of our distributors listed
here.
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(i) Returns will not be the same due to the cost of hedging (primarily interest rate difference between the primary and share class currencies) and short term over- and under-hedging due to subscription and redemption activities;
(ii) While the SGD-H1 share class will help reduce the impact on performance in SGD due to its strengthening against USD, investors will also not benefit from possible forex gain due to a weakening SGD (against USD).
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