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Franklin Templeton chases advisers with fee cuts

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Franklin Templeton has slashed management fees across a number of its retail and institutional funds, with the investment firm saying it is targeting financial advisers.

The fee reductions to be implemented from Wednesday include bringing the Franklin Australian Absolute Return Bond Fund (W Class) down to 0.5 per cent from 0.65 per cent, and the Franklin Global Growth Fund to 0.9 per cent from 1.13 per cent.

The reductions across funds such as the Franklin Global Aggregate Bond Fund, the Multisector Bond Fund, Global Equity Fund and Australian Core Plus Bond Fund range from 0.05 per cent to 0.23 per cent. 

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Matthew Harrison managing director, Franklin Templeton Australia and New Zealand, said in addition to the focus on fees, during the last year Australian advisers have faced “mounting cost pressures” in an increasingly complex environment.

“We are continually looking at ways to strengthen our partnerships with financial advisers and by reducing our management fees on these funds we will better enable advice practices to form deeper relationships with their clients,” Mr Harrison said.

He added the reductions in management fees will give additional value to clients in a challenging time.

Franklin Templeton has also made a number of institutional funds available to managed account structures through a product disclosure statement. 

It stated the move was due to increasing demand, with the funds including Franklin Global Growth Fund (I Class) and Franklin Australian Absolute Return Bond Fund (I Class).

“We remain focused on providing investors with affordable access to our strategies,” Mr Harrison said. 

“As the market evolves and the industry continues to tackle costs, it is critical for our strategies to remain competitive.”

 

Franklin Templeton chases advisers with fee cuts
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

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