Franklin has been closely monitoring global monetary policy, in particular the US Federal Reserve’s (Fed) tightening of monetary policy. McKeegan noted that the German 10-year rate is still negative, the Japanese 10-year is still hovering around zero, and China is moving in the opposite direction, therefore reducing its reserve ratio to aid its asset market. Has been doing. Franklin doesn’t believe the Fed will act in isolation, but does expect it to reduce its asset purchases earlier this year, with a possible hike in the discount rate by mid-year.
On how the offer to Franklin Templeton Canada affects the Franklin Global Growth Fund, he said, “We are aware of the macro environment in which our companies operate, but we do not take a bottom-up approach to portfolio management. We have 35 distinct growth engines across the portfolio of basically the entire global economy, so our risk management approach is to try to limit economic risk. In doing so, we are well-suited to many different macroeconomic environments. Let’s try to position, so we try not to call too strong.”
McKeegan said the fund continues to have significant investments in North America, but Franklin doesn’t try to tilt the portfolio to any particular geography. His group aims to capture global leaders in their place, particularly those who have business models that are more insulated in different economic environments and have pricing power to protect against inflation and certain external shocks.
“In terms of the product that we’re offering to investors in Canada,” he said, “I think the diversification concept is different.”
As a global growth manager, he said Franklin Templeton also weighs more than financial or industry and tries to find attractive ideas that are long-term growth benchmarks with strong business models. It also looks for companies that are less well known outside the mega cap.
