Franklin Templeton Investments Introduces Franklin Balanced Fund.
"As its name implies, Franklin Balanced Fund takes a balanced approach to investing," said Ed Perks, CFA, the fund's lead manager. "The fund's assets will be spread across multiple asset classes, including corporate, foreign and government bonds, as well as dividend-paying stocks and convertible securities."
In addition to employing a bottom-up approach to select the securities the fund will invest in, the fund's managers will seek to determine an optimal mix of equity and fixed income investments for the portfolio by assessing changing economic, market and industry conditions.
"Under normal market conditions, we will strive to position the fund with a weighting of 60% equity and 40% fixed income," said Perks. "We believe this balance allows investors to participate in the growth potential of stocks while maintaining the cushion that bonds can provide in stock market downturns."
At a minimum, Franklin Balanced Fund's mandate requires its managers to invest at least 25 percent of its total assets in equity securities and at least 25 percent of its total assets in fixed income securities, including money market securities and the value of convertible and preferred securities that can be attributed to their debt characteristics.
Income is derived from the fund's investments in corporate, agency and government bonds issued in the United States and other countries, as well as from convertible securities and the dividends paid on stocks. The fund's benchmarks are the S&P 500 and the Lehman Brothers U.S. Aggregate Index.
In addition to Perks, the fund's management team also includes Alan Muschott, CFA, and Shawn Lyons, CFA. Perks has 14 years of experience in the investment management industry, while Muschott has 8 years and Lyons has 10 years. The management team is also supported by the expertise of the Franklin Templeton Fixed Income Group, which covers a full range of fixed income securities, as well as the Franklin equity group's 40 investment professionals, who are organized by sector. The depth and breadth of these research teams will help the fund's managers maintain its highly diversified approach.
Special risks are associated with investing in fixed income and equity securities. The fund's share price and yield will be affected by interest rate movements. Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline. While stocks have historically outperformed other asset classes over the long term, they tend to fluctuate dramatically over the short term as a result of factors affecting individual companies, industries or the securities market as a whole. These and other risk considerations are described more fully in the prospectus.
Investors interested in Franklin Balanced Fund should carefully consider the fund's investment goals, risks, charges and expenses before investing. To obtain a prospectus, which contains this and other information, talk to your financial advisor, call 1-800/DIAL BEN (1-800/342-5236) or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money.
Franklin Resources, Inc. (NYSE:BEN) is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series and Fiduciary Trust investment teams. The San Mateo, CA-based company has more than 50 years of investment experience and over $492 billion in assets under management as of May 31, 2006. For more information, please call 1-800/DIAL BEN(R) or visit franklintempleton.com.
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 10, 2006|
|Previous Article:||Innovative Card Technologies CEO/Founder to Present at the C.E. Unterberg Towbin Emerging Growth Conference (Live Webcast Available).|
|Next Article:||Fitch Assigns 'B+' Issuer Default Rating to DaVita Inc.|