Franklin Templeton adds active currency management, reduces fees for fund

Franklin Templeton Investments Canada has added an active currency management strategy and reduced management fees for certain series of its Franklin High Income Fund.

The fund currently has a 100% passive currency hedge overlay. As of Jan. 1, 2019, the fund will reduce the hedge to a base ratio of 75% hedged, 25% unhedged, says a release.

From this base ratio, the fund will also have the ability to adjust the hedge plus- or minus-25%, based on the investment team’s outlook for the Canadian dollar relative to the U.S. dollar.

As detailed in the chart below, management fee reductions of five basis points will be made to Franklin High Income Fund’s Series PF and Series O, effective Jan. 1, 2019. Note that an administration fee of 10 basis points additionally applies for Series PF.

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