Risk Management

As stewards of our clients’ capital, portfolio managers follow a disciplined process and approach to find the best investment opportunities for their respective strategies. Regardless of asset class, objective or strategy, an integral part of each investment process is a formalised collaboration with Franklin Templeton’s Investment Risk Management Group – a team of specialised risk professionals aligned by asset class and strategy.

INTEGRATED

BEGINS WITH PORTFOLIO MANAGEMENT

Strong risk management begins with the portfolio management team’s research process and the assessment of market and active risk.

INDEPENDENT

STRENGTHENED BY AN INDEPENDENT RISK TEAM

The Investment Risk Management Group reports directly to the CEO and serves multiple stakeholders.

INSIGHTFUL

POWERED BY ACTIONABLE INSIGHTS

No single measure or methodology can reveal the “truth” about risk. It requires a mosaic of analytics, oversight protocols and consultation.

A CONTINUOUS AND DYNAMIC RESPONSE

OUR APPROACH

We are constantly searching for greater transparency into the drivers of investment risk in our strategies and ensuring alignment with investment team convictions and client expectations. We approach investment risk management with an independent, experienced and specialised team.

Independent

To help ensure appropriate objectivity, the Investment Risk Management Group does not have direct reporting lines to portfolio management but instead reports directly to the Chairman and Chief Executive Officer of Franklin Templeton.

Experienced

20+ senior risk consultants with an average of 10+ years each, often co-located with the investment management teams they support. An additional 75+ risk analysts are located around the globe.

Specialised

By strategy, by asset class and across asset classes.

POWERED BY ACTIONABLE INSIGHTS

No single measure or methodology can reveal the "truth" about risk. It requires a mosaic of analytics, oversight protocols and consultation. Our Investment Risk Management Group provides:

ANALYTICS

Using high quality data and rigorous methodologies, produce relevant analytics including performance attribution, weights and exposures, and ex-ante risk.

OVERSIGHT

Monitor, identify and escalate relevant risks in relation to strategy guidelines, company policies and Industry standards.

CONSULTING

Act as trusted advisor providing independent investment risk assessments and guidance to portfolio managers.

RISK MANAGEMENT VIDEO