UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04450
Franklin Templeton Global Trust
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrants telephone number, including area code: 650 312-2000
Date of fiscal year end: 12/31
Date of reporting period: 12/31/17
Item 1. Reports to Stockholders.
![]() |
Annual Report and Shareholder Letter
December 31, 2017 | |
|
Franklin Templeton Investments
Gain From Our Perspective®
At Franklin Templeton Investments, were dedicated to one goal: delivering exceptional asset management for our clients. By bringing together multiple, world-class investment teams in a single firm, were able to offer specialized expertise across styles and asset classes, all supported by the strength and resources of one of the worlds largest asset managers. This has helped us to become a trusted partner to individual and institutional investors across the globe.
Dear Shareholder:
CFA® is a trademark owned by CFA Institute.
Not FDIC Insured | | | May Lose Value | | | No Bank Guarantee |
franklintempleton.com | Not part of the annual report | 1 |
2 | Annual Report | franklintempleton.com |
Templeton Global Currency Fund
1. Source: J.P. Morgan.
The index is unmanaged and includes reinvested distributions. It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Funds portfolio.
2. Source: Federal Reserve H.10 Report.
3. Source: FactSet.
See www.franklintempletondatasources.com for additional data provider information.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Funds Statement of Investments (SOI).
The SOI begins on page 14.
franklintempleton.com | Annual Report | 3 |
TEMPLETON GLOBAL CURRENCY FUND
4 | Annual Report | franklintempleton.com |
TEMPLETON GLOBAL CURRENCY FUND
franklintempleton.com | Annual Report | 5 |
TEMPLETON GLOBAL CURRENCY FUND
6 | Annual Report | franklintempleton.com |
TEMPLETON GLOBAL CURRENCY FUND
Performance Summary as of December 31, 2017
The performance table and graphs do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Funds dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Funds portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 12/31/171
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 2.25% and the minimum is 0%. Class A: 2.25% maximum initial sales charge; Advisor Class: no sales charges. For other share classes, visit franklintempleton.com.
Share Class | Cumulative Total Return2 |
Average Annual Total Return3 |
||||||
A | ||||||||
2-Month |
-1.29% | -3.46% | ||||||
1-Year |
+0.47% | -1.78% | ||||||
5-Year |
-18.08% | -4.34% | ||||||
10-Year |
-5.04% | -0.74% | ||||||
Advisor | ||||||||
2-Month |
-1.21% | -1.21% | ||||||
1-Year |
+0.78% | +0.78% | ||||||
5-Year |
-16.94% | -3.64% | ||||||
10-Year |
-2.29% | -0.23% |
|
30-Day Standardized Yield4 | |||||||
Share Class | (with waiver) | (without waiver) | ||||||
A | 2.18% | 0.87% | ||||||
Advisor | 2.49% | 1.14% |
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 9 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 7 |
TEMPLETON GLOBAL CURRENCY FUND
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment1
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.
See page 9 for Performance Summary footnotes.
8 | Annual Report | franklintempleton.com |
TEMPLETON GLOBAL CURRENCY FUND
PERFORMANCE SUMMARY
Distributions (11/1/1712/31/17)
Share Class |
|
Net Investment Income |
| |
A |
$0.3614 | |||
R6 |
$0.4079 | |||
Advisor |
$0.3868 |
Total Annual Operating Expenses6
Share Class | With Waiver | Without Waiver | ||||||
A |
1.26% | 1.56% | ||||||
Advisor |
1.01% | 1.31% |
Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.
All investments involve risks, including possible loss of principal. The Funds asset are largely invested in foreign currencies, and therefore involve potential for significant gain or loss from currency exchange rate fluctuations. Foreign securities involve special risks, including currency fluctuations and economic and political uncertainties. Investments in emerging markets involve heightened risks related to the same factors, in addition to those associated with these markets smaller size and lesser liquidity. Sovereign debt securities are subject to various risks, including, but not limited to, the risk that a government entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due. Changes in interest rates will affect the value of the Funds portfolio and its share price and yield. 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 Funds share price may decline. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio, which may result in significant volatility and cause the Fund to participate in losses on an amount that exceeds the Funds initial investment. The Fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the securitys value and on the Funds ability to sell such securities when necessary to meet the Funds liquidity needs or in response to a specific market event. Changes in the financial strength of a bond issuer or in a bonds credit rating may affect its value. Investment in lower rated bonds include higher risk of default and loss of principal. The Fund is actively managed but there is no guarantee that the managers investment decisions will produce the desired results. The Funds prospectus also includes a description of the main investment risks.
1. The Fund has an expense reduction and a fee waiver associated with any investments it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through 7/31/18. Fund investment results reflect the expense reduction and fee waiver; without these reductions, the results would have been lower. 2. Cumulative total return represents the change in value of an investment over the periods indicated. 3. Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized. 4. The Funds 30-day standardized yield is calculated over a trailing 30-day period using the yield to maturity on bonds and/or the dividends accrued on stocks. It may not equal the Funds actual income distribution rate, which reflects the Funds past dividends paid to shareholders. 5. Source: J.P. Morgan. The JPM 3 Month Global Cash Index tracks total returns of 3-month constant maturity euro-currency deposits, the only short-term securities consistent across all markets in terms of liquidity, maturity and credit quality. 6. Figures are as stated in the Funds current prospectus and may differ from the expense ratios disclosed in the Your Funds Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown. |
See www.franklintempletondatasources.com for additional data provider information. |
franklintempleton.com | Annual Report | 9 |
TEMPLETON GLOBAL CURRENCY FUND
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading Actual. In these columns the Funds actual return, which includes the effect of Fund expenses, is used to calculate the Ending Account Value for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings Actual and Expenses Paid During Period (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading Hypothetical in the table, information is provided about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading Hypothetical is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
Actual (actual return after expenses) |
Hypothetical (5% annual return before expenses) |
|||||||||||||||||||
Share Class |
Beginning Account Value1 |
Ending Account Value 12/31/17 |
Expenses Paid During Period 11/1/1712/31/172,3 |
Ending Account Value 12/31/17 |
Expenses Paid During Period 7/1/1712/31/172,3 |
Net Annualized Expense Ratio3 | ||||||||||||||
A |
$1,000 |
$987.10 | $1.81 | $1,019.56 | $5.70 | 1.09% | ||||||||||||||
R6 |
$1,000 | $986.80 | $1.15 | $1,021.58 | $3.67 | 0.69% | ||||||||||||||
Advisor |
$1,000 | $987.90 | $1.40 | $1,020.82 | $4.43 | 0.84% |
1. 11/1/17 for Actual; 7/1/17 for Hypothetical. 2. Expenses are equal to the annualized expense ratio for the six-month period as indicated abovein the far right columnmultiplied by the simple average account value over the period indicated, and then multiplied by 184/365 to reflect the one-half year period. Non-recurring expenses are not annualized. For Actual expenses, the multiplier is 61/365 to reflect the number of days during the period. 3. Reflects expenses after fee waivers and expense reimbursements for actual expenses. For Hypothetical expenses ratios were 1.12%, 0.72% and 0.87% for Class A, Class R6 and Advisor Class, respectively. Does not include acquired fund fees and expenses. |
10 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
Templeton Global Currency Fund
|
Year Ended December 31, 2017a |
|
Year Ended October 31, | |||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||
(for a share outstanding throughout the year) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ 8.00 | $ 7.79 | $ 7.98 | $ 8.97 | $ 9.41 | $ 9.54 | ||||||||||||||||||
Income from investment operationsb:
|
||||||||||||||||||||||||
Net investment income (loss)c
|
0.04 | 0.26 | (0.04 | ) | (0.07 | ) | (0.07 | ) | (0.06 | ) | ||||||||||||||
Net realized and unrealized gains (losses) |
(0.14 | ) | (0.05 | ) | (0.15 | ) | (0.92 | ) | (0.37 | ) | (0.07 | ) | ||||||||||||
Total from investment operations | (0.10 | ) | 0.21 | (0.19 | ) | (0.99 | ) | (0.44 | ) | (0.13 | ) | |||||||||||||
Less distributions from net investment income and net foreign currency gains |
(0.36 | ) | | | | | ( | )d | ||||||||||||||||
Net asset value, end of year | $ 7.54 | $ 8.00 | $ 7.79 | $ 7.98 | $ 8.97 | $ 9.41 | ||||||||||||||||||
Total returne | (1.29)% | 2.70% | (2.38)% | (11.04)% | (4.68)% | (1.36)% | ||||||||||||||||||
Ratios to average net assetsf | ||||||||||||||||||||||||
Expenses before waiver and payments by affiliates and expense reduction |
1.90% | 1.55% | 1.47% | 1.20% | 1.15% | 1.07% | ||||||||||||||||||
Expenses before waiver and payments by affiliates | 1.90% | 1.53% | 1.47% | 1.20% | 1.15% | 1.07% | g | |||||||||||||||||
Expenses net of waiver and payments by affiliates and expense reduction |
1.09% | 1.15% | 1.19% | 1.14% | 1.11% | 1.07% | g | |||||||||||||||||
Net investment income (loss) | 2.74% | 3.31% | (0.47)% | (0.86)% | (0.73)% | (0.61)% | ||||||||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of year (000s) | $33,237 | $35,190 | $47,290 | $81,638 | $173,792 | $265,152 | ||||||||||||||||||
Portfolio turnover rateh | % | % | % | % | % | % |
aFor the period November 1, 2017 to December 31, 2017.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Funds shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
c Based on average daily shares outstanding.
dAmount rounds to less than $0.01 per share.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
hFor the period there were no sales of investments (other than short-term securities).
franklintempleton.com The accompanying notes are an integral part of these financial statements. | | Annual Report | 11 |
FRANKLIN TEMPLETON GLOBAL TRUST
FINANCIAL HIGHLIGHTS
Templeton Global Currency Fund (continued)
Year Ended December 31, 2017a |
Year Ended October 31, 2017b |
|||||||
Class R6 | ||||||||
Per share operating performance | ||||||||
(for a share outstanding throughout the year) | ||||||||
Net asset value, beginning of year | $ 8.14 | $ 8.08 | ||||||
Income from investment operationsc: | ||||||||
Net investment incomed |
0.04 | 0.07 | ||||||
Net realized and unrealized gains (losses) |
(0.14 | ) | (0.01 | ) | ||||
Total from investment operations | (0.10 | ) | 0.06 | |||||
Less distributions from net investment income | (0.41 | ) | | |||||
Net asset value, end of year | $ 7.63 | $ 8.14 | ||||||
Total returne | (1.32)% | 0.74% | ||||||
Ratios to average net assetsf | ||||||||
Expenses before waiver and payments by affiliates and expense reduction | 1.73% | 1.50% | ||||||
Expenses before waiver and payments by affiliates | 1.73% | 1.48% | ||||||
Expenses net of waiver and payments by affiliates and expense reduction | 0.69% | 0.67% | ||||||
Net investment income | 3.14% | 3.79% | ||||||
Supplemental data | ||||||||
Net assets, end of year (000s) | $212 | $212 | ||||||
Portfolio turnover rateg | % | % |
aFor the period November 1, 2017 to December 31, 2017.
bFor the period August 1, 2017 (effective date) to October 31, 2017.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Funds shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year, except for non-recurring expenses, if any.
gFor the period there were no sales of investments (other than short-term securities).
12 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
FINANCIAL HIGHLIGHTS
Templeton Global Currency Fund (continued)
Year Ended December 31, |
Year Ended October 31, | |||||||||||||||||||||||
2017a | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Advisor Class |
||||||||||||||||||||||||
Per share operating performance |
||||||||||||||||||||||||
(for a share outstanding throughout the year) |
||||||||||||||||||||||||
Net asset value, beginning of year |
$ 8.13 | $ 7.90 | $ 8.07 | $ 9.05 | $ 9.47 | $ 9.56 | ||||||||||||||||||
Income from investment operationsb: |
||||||||||||||||||||||||
Net investment income (loss)c |
0.04 | 0.29 | (0.01 | ) | (0.05 | ) | (0.04 | ) | (0.03 | ) | ||||||||||||||
Net realized and unrealized gains (losses) |
(0.13 | ) | (0.06 | ) | (0.16 | ) | (0.93 | ) | (0.38 | ) | (0.06 | ) | ||||||||||||
Total from investment operations |
(0.09 | ) | 0.23 | (0.17 | ) | (0.98 | ) | (0.42 | ) | (0.09 | ) | |||||||||||||
Less distributions from net investment income and |
(0.39 | ) | | | | | ( | )d | ||||||||||||||||
Net asset value, end of year |
$ 7.65 | $ 8.13 | $ 7.90 | $ 8.07 | $ 9.05 | $ 9.47 | ||||||||||||||||||
Total returne |
(1.21)% | 2.91% | (2.11)% | (10.83)% | (4.44)% | (0.94)% | ||||||||||||||||||
Ratios to average net assetsf |
||||||||||||||||||||||||
Expenses before waiver and payments by affiliates |
1.65% | 1.30% | 1.20% | 0.94% | 0.87% | 0.79% | ||||||||||||||||||
Expenses before waiver and payments by affiliates |
1.65% | 1.28% | 1.20% | 0.94% | 0.87% | 0.79% | g | |||||||||||||||||
Expenses net of waiver and payments by affiliates |
0.84% | 0.90% | 0.92% | 0.88% | 0.83% | 0.79% | g | |||||||||||||||||
Net investment income (loss) |
2.99% | 3.56% | (0.20)% | (0.60)% | (0.45)% | (0.33)% | ||||||||||||||||||
Supplemental data |
||||||||||||||||||||||||
Net assets, end of year (000s) |
$11,705 | $12,772 | $15,696 | $25,629 | $59,660 | $104,673 | ||||||||||||||||||
Portfolio turnover rateh |
% | % | % | % | % | % |
aFor the period November 1, 2017 to December 31, 2017.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Funds shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dAmount rounds to less than $0.01 per share.
eTotal return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
hFor the period there were no sales of investments (other than short-term securities).
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | I Annual Report | |
13 |
|
FRANKLIN TEMPLETON GLOBAL TRUST
Statement of Investments, December 31, 2017
Templeton Global Currency Fund
Principal Amount |
Value | |||||||||||
Foreign Government and Agency Securities (Cost $1,185,489) 2.6% |
||||||||||||
Government of Ghana, 24.50%, 4/22/19 |
4,910,000 | GHS | $ | 1,174,311 | ||||||||
|
|
|||||||||||
Short Term Investments 96.6% |
||||||||||||
Foreign Government and Agency Securities 47.4% |
||||||||||||
Colombian Tes Corto Plazo, Strip, 3/13/18 |
7,500,000,000 | COP | 2,487,394 | |||||||||
Government of Ghana, 23.23%, 2/19/18 |
5,330,000 | GHS | 1,183,509 | |||||||||
Government of Indonesia, senior note, FR66, 5.25%, 5/15/18 |
64,360,000,000 | IDR | 4,752,349 | |||||||||
Government of Mexico, M, 4.75%, 6/14/18 |
200 | a | MXN | 1,005 | ||||||||
Government of Thailand, senior bond, 5.125%, 3/13/18 |
75,700,000 | THB | 2,342,237 | |||||||||
Letra Tesouro Nacional, Strip, 1/01/18 |
13,710 | b | BRL | 4,137,832 | ||||||||
cMexico Treasury Bill, 1/04/18 - 8/16/18 |
12,836,470 | d | MXN | 6,487,588 | ||||||||
|
|
|||||||||||
Total Foreign Government and Agency Securities (Cost $22,260,078) |
21,391,914 | |||||||||||
Shares | ||||||||||||
Money Market Funds (Cost $22,228,484) 49.2% |
||||||||||||
e,f Institutional Fiduciary Trust Money Market Portfolio, 0.89% |
22,228,484 | 22,228,484 | ||||||||||
|
|
|||||||||||
Total Investments (Cost $45,674,051) 99.2% |
44,794,709 | |||||||||||
Other Assets, less Liabilities 0.8% |
359,384 | |||||||||||
|
|
|||||||||||
Net Assets 100.0% |
$ | 45,154,093 | ||||||||||
|
|
aPrincipal amount is stated in 100 Mexican Peso Units.
bPrincipal amount is stated in 1,000 Brazilian Real Units.
cThe security was issued on a discount basis with no stated coupon rate.
dPrincipal amount is stated in 10 Mexican Peso Units.
eSee Note 3(f) regarding investments in affiliated management investment companies.
fThe rate shown is the annualized seven-day yield at period end.
14 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
STATEMENT OF INVESTMENTS
Templeton Global Currency Fund (continued)
At December 31, 2017, the Fund had the following forward exchange contracts outstanding. See Note 1(c).
Forward Exchange Contracts
Currency | Counterpartya | Type | Quantity |
Contract Amount* |
Settlement Date |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||||||||||||||
OTC Forward Exchange Contracts |
| |||||||||||||||||||||||||||||||||||
Euro |
JPHQ | Sell | 1,390,001 | 1,643,433 | 1/11/18 | $ | | $ | (25,658 | ) | ||||||||||||||||||||||||||
Australian Dollar |
CITI | Sell | 829,605 | 623,201 | 1/31/18 | | (24,061 | ) | ||||||||||||||||||||||||||||
Brazilian Real |
JPHQ | Buy | 4,750,287 | 1,464,104 | 1/31/18 | | (34,965 | ) | ||||||||||||||||||||||||||||
Euro |
CITI | Sell | 2,412,932 | 2,809,377 | 1/31/18 | | (91,620 | ) | ||||||||||||||||||||||||||||
Japanese Yen |
CITI | Buy | 93,000,000 | 830,061 | 1/31/18 | | (3,394 | ) | ||||||||||||||||||||||||||||
Japanese Yen |
CITI | Buy | 93,650,000 | 830,658 | 1/31/18 | 1,787 | | |||||||||||||||||||||||||||||
Japanese Yen |
CITI | Sell | 283,693,787 | 2,570,808 | 1/31/18 | 49,084 | | |||||||||||||||||||||||||||||
Mexican Peso |
CITI | Buy | 73,028,700 | 3,319,486 | EUR | 2/06/18 | | (306,415 | ) | |||||||||||||||||||||||||||
Euro |
JPHQ | Sell | 1,390,000 | 1,646,531 | 2/12/18 | | (25,724 | ) | ||||||||||||||||||||||||||||
Australian Dollar |
JPHQ | Sell | 2,070,549 | 1,531,792 | 2/22/18 | | (83,517 | ) | ||||||||||||||||||||||||||||
Indian Rupee |
JPHQ | Buy | 199,000,000 | 3,044,210 | 2/22/18 | 57,814 | | |||||||||||||||||||||||||||||
Euro |
JPHQ | Sell | 577,345 | 680,666 | 2/26/18 | | (14,448 | ) | ||||||||||||||||||||||||||||
Australian Dollar |
CITI | Sell | 2,940,390 | 2,196,795 | 2/28/18 | | (97,054 | ) | ||||||||||||||||||||||||||||
Japanese Yen |
JPHQ | Sell | 488,755,890 | 4,434,004 | 2/28/18 | 83,887 | | |||||||||||||||||||||||||||||
Euro |
CITI | Sell | 5,392,631 | 6,421,626 | 3/01/18 | | (72,237 | ) | ||||||||||||||||||||||||||||
Japanese Yen |
CITI | Sell | 715,868,800 | 6,550,626 | 3/01/18 | 178,713 | | |||||||||||||||||||||||||||||
Indian Rupee |
BOFA | Buy | 185,000,000 | 2,839,383 | 3/08/18 | 40,219 | | |||||||||||||||||||||||||||||
Euro |
JPHQ | Sell | 1,389,999 | 1,649,220 | 3/12/18 | | (25,852 | ) | ||||||||||||||||||||||||||||
Brazilian Real |
CITI | Buy | 3,168,000 | 820,046 | EUR | 4/03/18 | | (43,051 | ) | |||||||||||||||||||||||||||
Japanese Yen |
JPHQ | Sell | 317,900,000 | 2,837,190 | 7/12/18 | | (15,862 | ) | ||||||||||||||||||||||||||||
Total Forward Exchange Contracts |
|
$ | 411,504 | $ | (863,858 | ) | ||||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) |
|
$ | (452,354 | ) |
*In U.S. dollars unless otherwise indicated.
aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.
See Abbreviations on page 29.
See Note 8 regarding other derivative information.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 15 |
FRANKLIN TEMPLETON GLOBAL TRUST
Statement of Assets and Liabilities
December 31, 2017
Templeton Global Currency Fund
Assets: |
||||
Investments in securities: |
||||
Cost - Unaffiliated issuers |
$ | 23,445,567 | ||
Cost - Non-controlled affiliates (Note 3f) |
22,228,484 | |||
Value - Unaffiliated issuers |
$ | 22,566,225 | ||
Value - Non-controlled affiliates (Note 3f) |
22,228,484 | |||
Foreign currency, at value (cost $16) |
16 | |||
Receivables: |
||||
Investment securities sold |
499,444 | |||
Capital shares sold |
33,168 | |||
Interest |
216,322 | |||
Affiliates |
42,636 | |||
Deposits with brokers for: |
||||
OTC derivative contracts |
280,000 | |||
Unrealized appreciation on OTC forward exchange contracts |
411,504 | |||
Other assets |
7 | |||
Total assets |
46,277,806 | |||
Liabilities: |
||||
Payables: |
||||
Capital shares redeemed |
142,576 | |||
Distribution fees |
14,438 | |||
Transfer agent fees |
20,662 | |||
Unrealized depreciation on OTC forward exchange contracts |
863,858 | |||
Deferred tax |
12,956 | |||
Accrued expenses and other liabilities |
69,223 | |||
Total liabilities |
1,123,713 | |||
Net assets, at value |
$ | 45,154,093 | ||
Net assets consist of: |
||||
Paid-in capital |
$ | 54,548,512 | ||
Undistributed net investment income |
362,091 | |||
Net unrealized appreciation (depreciation) |
(1,346,832 | ) | ||
Accumulated net realized gain (loss) |
(8,409,678 | ) | ||
Net assets, at value |
$ | 45,154,093 |
16 | Annual Report | | The accompanying notes are an integral part of these financial satements. | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
FINANCIAL STATEMENTS
Statement of Assets and Liabilities (continued)
December 31, 2017
Templeton Global Currency Fund
Class A: |
||||
Net assets, at value |
$ | 33,236,989 | ||
Shares outstanding |
4,407,054 | |||
Net asset value per sharea |
$7.54 | |||
Maximum offering price per share (net asset value per share ÷ 97.75%) |
$7.71 | |||
Class R6: |
||||
Net assets, at value |
$ | 211,664 | ||
Shares outstanding |
27,723 | |||
Net asset value and maximum offering price per share |
$7.63 | |||
Advisor Class: |
||||
Net assets, at value |
$ | 11,705,440 | ||
Shares outstanding |
1,530,511 | |||
Net asset value and maximum offering price per share |
$7.65 |
aRedemption price is equal to net asset value less contingent deferred sales charges, if applicable.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | I Annual Report | 17 |
FRANKLIN TEMPLETON GLOBAL TRUST
FINANCIAL STATEMENTS
Statements of Operations
Templeton Global Currency Fund
Year Ended December 31, 2017a |
Year Ended October 31, 2017 |
|||||||
Investment income: |
||||||||
Dividends: |
||||||||
Non-controlled affiliates (Note 3f) |
$ 30,533 | $ 87,622 | ||||||
Interest: (net of foreign taxes)~ |
||||||||
Unaffiliated issuers |
271,457 | 2,332,079 | ||||||
Total investment income |
301,990 | 2,419,701 | ||||||
Expenses: |
||||||||
Management fees (Note 3a) |
51,273 | 353,028 | ||||||
Distribution fees: (Note 3c) |
||||||||
Class A |
14,438 | 101,974 | ||||||
Transfer agent fees: (Note 3e) |
||||||||
Class A |
10,185 | 99,095 | ||||||
Class R6 |
91 | 82 | ||||||
Advisor Class |
3,670 | 32,657 | ||||||
Custodian fees (Note 4) |
3,664 | 22,970 | ||||||
Reports to shareholders |
12,059 | 24,816 | ||||||
Registration and filing fees |
24,285 | 78,447 | ||||||
Professional fees |
24,430 | 85,434 | ||||||
Trustees fees and expenses |
| 1,031 | ||||||
Other |
412 | 5,188 | ||||||
Total expenses |
144,507 | 804,722 | ||||||
Expense reductions (Note 4) |
| (8,713 | ) | |||||
Expenses waived/paid by affiliates (Note 3f and 3g) |
(64,102 | ) | (205,591 | ) | ||||
Net expenses |
80,405 | 590,418 | ||||||
Net investment income |
221,585 | 1,829,283 | ||||||
Realized and unrealized gains (losses): |
||||||||
Net realized gain (loss) from: |
||||||||
Investments: |
||||||||
Unaffiliated issuers |
(11,143 | ) | (915,885 | ) | ||||
Foreign currency transactions |
(15,672 | ) | 642,346 | |||||
Forward Exchange Contracts |
113,997 | 1,111,123 | ||||||
Net realized gain (loss) |
87,182 | 837,584 | ||||||
Net change in unrealized appreciation (depreciation) on: |
||||||||
Investments: |
||||||||
Unaffiliated issuers |
(176,590 | ) | (500,677 | ) | ||||
Translation of other assets and liabilities |
2,161 | (4,553 | ) | |||||
Forward exchange contracts |
(732,266 | ) | (575,695 | ) | ||||
Change in deferred taxes on unrealized appreciation |
(3,318 | ) | (9,638 | ) | ||||
Net change in unrealized appreciation (depreciation) |
(910,013 | ) | (1,090,563 | ) | ||||
Net realized and unrealized gain (loss) |
(822,831 | ) | (252,979 | ) | ||||
Net increase (decrease) in net assets resulting from operations |
$(601,246 | ) | $ 1,576,304 | |||||
~Foreign taxes withheld on interest |
$ 9,980 | $ 64,773 |
aFor the period November 1, 2017 to December 31, 2017.
18 | Annual Report | | | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
FINANCIAL STATEMENTS
Statements of Changes in Net Assets
Templeton Global Currency Fund
Year Ended | Year Ended October 31, | |||||||||||
December 31, 2017a |
2017 |
2016 |
||||||||||
Increase (decrease) in net assets: |
||||||||||||
Operations: |
||||||||||||
Net investment income (loss) |
$ 221,585 | $ 1,829,283 | $ (345,214 | ) | ||||||||
Net realized gain (loss) |
87,182 | 837,584 | (4,256,200 | ) | ||||||||
Net change in unrealized appreciation (depreciation) |
(910,013 | ) | (1,090,563 | ) | 1,710,520 | |||||||
Net increase (decrease) in net assets resulting from operations |
(601,246 | ) | 1,576,304 | (2,890,894 | ) | |||||||
Distributions to shareholders from: |
||||||||||||
Net investment income: |
||||||||||||
Class A |
(1,554,807 | ) | | | ||||||||
Class R6 |
(11,031 | ) | | | ||||||||
Advisor Class |
(593,373 | ) | | | ||||||||
Total distributions to shareholders |
(2,159,211 | ) | | | ||||||||
Capital share transactions: (Note 2) |
||||||||||||
Class A |
47,090 | (13,283,941 | ) | (32,091,151 | ) | |||||||
Class R6 |
13,659 | 211,282 | | |||||||||
Advisor Class |
(319,846 | ) | (3,315,998 | ) | (9,298,772 | ) | ||||||
Total capital share transactions |
(259,097 | ) | (16,388,657 | ) | (41,389,923 | ) | ||||||
Net increase (decrease) in net assets |
(3,019,554 | ) | (14,812,353 | ) | (44,280,817 | ) | ||||||
Net assets: |
||||||||||||
Beginning of year |
48,173,647 | 62,986,000 | 107,266,817 | |||||||||
End of year |
$45,154,093 | $ 48,173,647 | $ 62,986,000 | |||||||||
Undistributed net investment income included in net assets: |
||||||||||||
End of year |
$ 362,091 | $ 1,817,347 | $ | |||||||||
Accumulated net investment loss included in net assets: |
||||||||||||
End of year |
$ | $ | $ (1,032,715 | ) |
aFor the period November 1, 2017 to December 31, 2017.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | | Annual Report | 19 |
FRANKLIN TEMPLETON GLOBAL TRUST
20 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
franklintempleton.com | Annual Report | 21 |
FRANKLIN TEMPLETON GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
22 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
Templeton Global Currency Fund (continued)
2. Shares of Beneficial Interest
At December 31, 2017, there were an unlimited number of shares authorized (without par value). Transactions in the Funds shares were as follows:
Year Ended December 31, 2017a |
||||||||
Shares | Amount | |||||||
Class A Shares: |
||||||||
Shares sold |
58,218 | $ | 454,607 | |||||
Shares issued in reinvestment of distributions |
188,809 | 1,442,500 | ||||||
Shares redeemed |
(236,878 | ) | (1,850,017 | ) | ||||
Net increase (decrease) |
10,149 | $ | 47,090 | |||||
Class R6 Shares: |
||||||||
Shares sold |
1,449 | $ | 11,645 | |||||
Shares issued in reinvestment of distributions |
1,394 | 10,779 | ||||||
Shares redeemed |
(1,141 | ) | (8,765 | ) | ||||
Net increase (decrease) |
1,702 | $ | 13,659 | |||||
Advisor Class Shares: |
||||||||
Shares sold |
22,753 | $ | 181,359 | |||||
Shares issued in reinvestment of distributions |
68,884 | 533,848 | ||||||
Shares redeemed |
(131,454 | ) | (1,035,053 | ) | ||||
Net increase (decrease) |
(39,817 | ) | $ | (319,846 | ) | |||
aFor the period November 1, 2017 to December 31, 2017. |
|
Year Ended October 31, |
| ||||||||||||||
2017a | 2016 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A Shares: |
||||||||||||||||
Shares sold |
265,802 | $ | 2,103,138 | 1,197,952 | $ | 9,298,741 | ||||||||||
Shares redeemed |
(1,938,171 | ) | (15,387,079 | ) | (5,359,919 | ) | (41,389,892 | ) | ||||||||
Net increase (decrease) |
(1,672,369 | ) | $ | (13,283,941 | ) | (4,161,967 | ) | $ | (32,091,151 | ) | ||||||
Class R6 Shares: |
||||||||||||||||
Shares sold |
26,023 | $ | 211,299 | |||||||||||||
Shares redeemed |
(2 | ) | (17 | ) | ||||||||||||
Net increase (decrease) |
26,021 | $ | 211,282 | |||||||||||||
Advisor Class Shares: |
||||||||||||||||
Shares sold |
389,538 | $ | 3,137,232 | 714,338 | $ | 5,561,765 | ||||||||||
Shares redeemed |
(806,558 | ) | (6,453,230 | ) | (1,904,266 | ) | (14,860,537 | ) | ||||||||
Net increase (decrease) |
(417,020 | ) | $ | (3,315,998 | ) | (1,189,928 | ) | $ | (9,298,772 | ) |
aFor the period August 1, 2017 (effective date) to October 31, 2017, for Class R6.
franklintempleton.com | Annual Report | 23 |
FRANKLIN TEMPLETON GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
Templeton Global Currency Fund (continued)
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton Investments. Certain officers and trustees of the Trust are also officers and/or directors of the following subsidiaries:
Subsidiary | Affiliation | |||
Franklin Advisers, Inc. (Advisers) | Investment manager | |||
Franklin Templeton Services, LLC (FT Services) | Administrative manager | |||
Franklin Templeton Distributors, Inc. (Distributors) | Principal underwriter | |||
Franklin Templeton Investor Services, LLC (Investor Services) | Transfer agent |
a. Management Fees
The Fund pays an investment management fee to Advisers based on the average daily net assets of the Fund as follows:
Annualized Fee Rate | Net Assets | |||
0.650% |
Up to and including $500 million | |||
0.600% |
In excess of $500 million |
For the year ended December 31, 2017 and October 31, 2017, the annualized gross effective investment management fee rate was 0.650% of the Funds average daily net assets.
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Fund. The fee is paid by Advisers based on the Funds average daily net assets, and is not an additional expense of the Fund.
c. Distribution Fees
The Board has adopted a reimbursement distribution plan for Class A pursuant to Rule 12b-1 under the 1940 Act, under which the Fund reimburses Distributors for costs incurred in connection with the servicing, sale and distribution of the Funds shares up to 0.45% per year of its average daily net assets. The Board has set the current rate at 0.25% per year for Class A shares until further notice and approval by the Board. Costs exceeding the maximum for the current plan year cannot be reimbursed in subsequent periods.
d. Sales Charges/Underwriting Agreements
Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. These charges are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. Distributors has advised the Fund of the following commission transactions related to the sales and redemptions of the Funds shares for the years ended December 31, 2017 and October 31, 2017:
Year Ended December 31, 2017a |
Year Ended October 31, 2017 |
|||||||
Sales charges retained net of commissions paid to unaffiliated brokers/dealers |
$115 | $646 | ||||||
CDSC retained |
$ | $ 38 |
aFor the period November 1, 2017 to December 31, 2017.
24 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
Templeton Global Currency Fund (continued)
e. Transfer Agent Fees
Each class of shares pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. Effective November 1, 2017, the fees are based on an annualized asset based fee of 0.02% plus a transaction based fee. Prior to November 1, 2017, the fees were account based fees that varied based on fund or account type. In addition, each class reimburses Investor Services for out of pocket expenses incurred and, except for Class R6, reimburses shareholder servicing fees paid to third parties. These fees are allocated daily based upon their relative proportion of such classes aggregate net assets. Class R6 pays Investor Services transfer agent fees specific to that class.
For the years ended December 31, 2017a and October 31, 2017, the Fund paid transfer agent fees of $13,946 and $131,834, respectively of which $4,912 and $53,887, respectively was retained by Investor Services.
aFor the period November 1, 2017 to December 31, 2017.
f. Investments in Affiliated Management Investment Companies
The Fund invests in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. Management fees paid by the Fund are waived on assets invested in the affiliated management investment companies, as noted in the Statement of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. Prior to November 1, 2013, the waiver was accounted for as a reduction to management fees. During the years ended December 31, 2017 and October 31, 2017, the Fund held investments in affiliated management investment companies as follows:
Number of Shares Held at Beginning of Year |
Gross Additions |
Gross Reductions |
Number of Shares Held at End of Year |
Value at End of Year |
Dividend Income |
Realized Gain (Loss) |
Net Change in Unrealized Appreciation (Depreciation) |
|||||||||||||||||||||||||
Year ended December 31, 2017a |
||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
||||||||||||||||||||||||||||||||
Institutional Fiduciary Trust Money Market Portfolio, 0.89% |
24,353,375 | 495,168 | (2,620,059) | 22,228,484 | $22,228,484 | $30,533 | $ | $ | ||||||||||||||||||||||||
Number of Shares Held at Beginning of Year |
Gross Additions |
Gross Reductions |
Number of Shares Held at End of Year |
Value at End of Year |
Dividend Income |
Realized Gain (Loss) |
Net Change in Unrealized Appreciation (Depreciation) |
|||||||||||||||||||||||||
Year ended October 31, 2017 |
||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
||||||||||||||||||||||||||||||||
Institutional Fiduciary Trust Money Market Portfolio, 0.69% |
16,280,822 | 31,308,603 | (23,236,050 | ) | 24,353,375 | $24,353,375 | $87,622 | $ | $ |
aFor the period November 1, 2017 to December 31, 2017.
g. Waiver and Expense Reimbursements
Advisers has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by the Fund so that the expenses (excluding distribution fees and acquired fund fees and expenses) for Class A and Advisor Class of the Fund do not exceed 0.90% based on the average net assets of each class (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2018. Total expenses waived or paid are not subject to recapture subsequent to the Funds fiscal year end.
Additionally, effective November 1, 2017 Investor Services has voluntarily agreed in advance to waive or limit its fees so that the Class R6 transfer agent fees do not exceed 0.03%. Prior to this date Investor Services had voluntarily agreed to waive or limit its fees so that the class R6 transfer agent fees did not exceed 0.01%. Investor Services may discontinue this waiver in the future.
franklintempleton.com | Annual Report | 25 |
FRANKLIN TEMPLETON GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
Templeton Global Currency Fund (continued)
4. Expense Offset Arrangement
The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds custodian expenses. During the years ended December 31, 2017 and October 31, 2017, the custodian fees were reduced as noted in the Statements of Operations.
5. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains. Capital loss carryforwards with no expiration, if any, must be fully utilized before those losses with expiration dates.
At December 31, 2017, capital loss carryforwards were as follows:
Capital loss carryforwards subject to expiration: 2018 |
$ | 63,831 | ||
Capital loss carryforwards not subject to expiration: |
||||
Short term |
6,882,894 | |||
Long term |
1,462,951 | |||
Total capital loss carryforwards |
$ | 8,409,676 |
The tax character of distributions paid during the year ended December 31, 2017 was as follows:
2017 | ||||
Ordinary income |
$ | 2,158,951 |
At December 31, 2017, the cost of investments and net unrealized appreciation (depreciation), for income tax purposes were as follows:
Cost of investments |
$ | 45,310,346 | ||
Unrealized appreciation |
$ | 511,702 | ||
Unrealized depreciation |
(1,479,693 | ) | ||
Net unrealized appreciation (depreciation) |
$ | (967,991 | ) |
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of foreign currency transactions.
6. Investment Transactions
Purchases and sales of investments (excluding short term securities) for the year ended December 31, 2017a, aggregated $ and $, respectively.
aFor the period November 1, 2017 to December 31, 2017.
7. Concentration of Risk
Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local and regional economic, political and social conditions, which may result in greater market volatility. In addition, certain foreign securities may not be as liquid as U.S. securities.
26 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
Templeton Global Currency Fund (continued)
8. Other Derivative Information
At December 31, 2017, the Funds investments in derivative contracts are reflected in the Statement of Assets and Liabilities as follows:
Asset Derivatives | Liability Derivatives | |||||||||||||
Derivative Contracts Not Accounted for as Hedging Instruments |
Statement of Assets and Liabilities Location |
Fair Value |
Statement of Assets and Liabilities Location |
Fair Value |
||||||||||
Foreign exchange contracts |
Unrealized appreciation on OTC forward exchange contracts |
$411,504 | Unrealized depreciation on OTC forward exchange contracts |
$863,858 |
For the year ended December 31, 2017a, the effect of derivative contracts in the Funds Statement of Operations was as follows:
Derivative Contracts Not Accounted for as Hedging Instruments |
Statement of Operations Location |
Net Realized Gain (Loss) for the Year |
Statement of Operations Location |
Net Change in Unrealized Appreciation (Depreciation) for the Year |
||||||||
Net realized gain (loss) from: | Net change in unrealized appreciation (depreciation) on: |
|||||||||||
Foreign exchange contracts | Forward exchange contracts | $113,997 | Forward exchange contracts | $(732,266) |
For the year ended October 31, 2017, the effect of derivative contracts in the Funds Statement of Operations was as follows:
Derivative Contracts Not Accounted for as Hedging Instruments |
Statement of Operations Location |
Net Realized Gain (Loss) for the Year |
Statement of Operations Location |
Net Change in Unrealized Appreciation (Depreciation) for the Year |
||||||||
Net realized gain (loss) from: | Net change in unrealized appreciation (depreciation) on: |
|||||||||||
Foreign exchange contracts | Foreign exchange contracts | $1,111,123 | Foreign exchange contracts | $(575,695) |
For the years ended December 31, 2017a and October 31, 2017, the average month end notional amount of forward exchange contracts was $53,257,356 and $61,614,162, respectively.
aFor the period November 1, 2017 to December 31, 2017.
At December 31, 2017, the Funds OTC derivative assets and liabilities are as follows:
Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities |
||||||||
Assetsa | Liabilitiesa | |||||||
Derivatives | ||||||||
Forward exchange contracts |
$411,504 | $863,858 |
aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.
franklintempleton.com | Annual Report | 27 |
FRANKLIN TEMPLETON GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
Templeton Global Currency Fund (continued)
8. Other Derivative Information (continued)
At December 31, 2017, the Funds OTC derivative assets, which may be offset against the Funds OTC derivative liabilities and collateral received from the counterparty, are as follows:
|
Amounts Not Offset in the Statement of Assets and Liabilities |
|
||||||||||||||||||
Gross Amounts of |
Financial Instruments Available for |
Financial Instruments Collateral |
Cash Collateral |
Net Amount (Not less |
||||||||||||||||
Counterparty | ||||||||||||||||||||
BOFA |
$ 40,219 | $ | $ | $ | $40,219 | |||||||||||||||
CITI |
229,584 | (229,584 | ) | | | | ||||||||||||||
JPHQ |
141,701 | (141,701 | ) | | | | ||||||||||||||
Total |
$411,504 | $(371,285 | ) | $ | $ | $40,219 |
At December 31, 2017, the Funds OTC derivative liabilities, which may be offset against the Funds OTC derivative assets and collateral pledged to the counterparty, are as follows:
Amounts Not Offset in the Statement of Assets and Liabilities |
||||||||||||||||||||
|
Gross Amounts of Liabilities Presented in the Statement of Assets and Liabilities |
|
|
Financial Instruments Available for Offset |
|
|
Financial Instruments Collateral Pledged |
|
|
Cash Collateral |
|
|
Net Amount (Not less |
| ||||||
Counterparty | ||||||||||||||||||||
BOFA |
$ | $ | $ | $ | $ | |||||||||||||||
CITI |
637,832 | (229,584 | ) | | (280,000 | ) | 128,248 | |||||||||||||
JPHQ |
226,026 | (141,701 | ) | | | 84,325 | ||||||||||||||
Total |
$863,858 | $(371,285 | ) | $ | $(280,000 | ) | $212,573 |
See Note 1(c) regarding derivative financial instruments.
See Abbreviations on page 29.
9. Credit Facility
The Fund together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton Investments, are borrowers in a joint syndicated senior unsecured credit facility totaling $2 billion (Global Credit Facility) which matured on February 9, 2018. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. Effective February 9, 2018, the Borrowers renewed the Global Credit Facility for a one year term, maturing February 8, 2019, for a total of $2 billion.
Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Fund and other costs incurred by the Fund, pay its share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Statement of Operations. During the year ended December 31, 2017, the Fund did not use the Global Credit Facility.
28 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
Templeton Global Currency Fund (continued)
10. Fair Value Measurements
The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds financial instruments and are summarized in the following fair value hierarchy:
| Level 1 quoted prices in active markets for identical financial instruments |
| Level 2 other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| Level 3 significant unobservable inputs (including the Funds own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement.
A summary of inputs used as of December 31, 2017, in valuing the Funds assets and liabilities carried at fair value, is as follows:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Investments in Securities: |
||||||||||||||||
Foreign Government and Agency Securities |
$ | | $ | 1,174,311 | $ | | $ | 1,174,311 | ||||||||
Short Term Investments |
22,228,484 | 21,391,914 | | 43,620,398 | ||||||||||||
Total Investments in Securities |
$ | 22,228,484 | $ | 22,566,225 | $ | | $ | 44,794,709 | ||||||||
Other Financial Instruments: |
||||||||||||||||
Forward Exchange Contracts |
$ | | $ | 411,504 | $ | | $ | 411,504 | ||||||||
Liabilities: |
||||||||||||||||
Other Financial Instruments: |
||||||||||||||||
Forward Exchange Contracts |
$ | | $ | 863,858 | $ | | $ | 863,858 |
11. Subsequent Events
The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure other than those already disclosed in the financial statements.
Abbreviations
Counterparty | Currency | |||||
BOFA |
Bank of America Corp. | BRL | Brazilian Real | |||
CITI |
Citigroup Inc. | COP | Colombian Peso | |||
JPHQ |
JP Morgan Chase & Co. | EUR | Euro | |||
GHS |
Ghanaian Cedi | |||||
IDR |
Indonesian Rupiah | |||||
MXN |
Mexican Peso | |||||
THB |
Thailand Baht |
franklintempleton.com | Annual Report | 29 |
FRANKLIN TEMPLETON GLOBAL TRUST
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Franklin Templeton Global Trust and Shareholders of Templeton Global Currency Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Templeton Global Currency Fund (the Fund) as of December 31, 2017, the related statements of operations for the period November 1, 2017 through December 31, 2017 and year ended October 31, 2017, the statements of changes in net assets for the period November 1, 2017 through December 31, 2017 and for each of the two years in the period ended October 31, 2017, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2017, the results of its operations for the period November 1, 2017 through December 31, 2017 and year ended October 31, 2017, the changes in its net assets for the period November 1, 2017 through December 31, 2017 and for each of the two years in the period ended October 31, 2017, and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Funds management. Our responsibility is to express an opinion on the Funds financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
February 20, 2018
We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.
30 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
Special Meeting of Shareholders
MEETING OF SHAREHOLDERS: OCTOBER 30, 2017 AND RECONVENED ON DECEMBER 15, 2017 AND DECEMBER 29, 2017
(UNAUDITED)
A Special Meeting of Shareholders of Franklin Templeton Global Trust was held at the offices of Franklin Templeton Investments, One Franklin Parkway, San Mateo, California on October 30, 2017 and reconvened on December 15, 2017 and December 29, 2017. The purpose of the meeting was to elect Trustees of Franklin Templeton Global Trust and to vote to approve an amended fundamental investment restriction regarding investments in commodities for the Fund. At the meeting, (i) the following persons were elected by the shareholders to serve as Trustees of Franklin Templeton Global Trust: Harris J. Ashton, Ann Torre Bates, Mary C. Choksi, Edith E. Holiday, Gregory E. Johnson, Rupert H. Johnson, Jr., J. Michael Luttig, David W. Niemiec, Larry D. Thompson, Constantine D. Tseretopoulos and Robert E. Wade and (ii) the proposal to approve the amended fundamental investment restriction regarding investments in commodities was approved by shareholders. No other business was transacted at the meeting.
The results of the voting at the meeting are as follows:
Proposal 1. To elect a Board of Trustees:
Name | For | Withheld | ||||||
Harris J. Ashton |
|
3,652,667 |
|
|
145,949 |
| ||
Ann Torre Bates |
3,646,200 | 152,415 | ||||||
Mary C. Choksi |
3,646,606 | 152,009 | ||||||
Edith E. Holiday |
3,646,606 | 152,009 | ||||||
Gregory E. Johnson |
3,646,606 | 152,009 | ||||||
Rupert H. Johnson, Jr. |
3,646,606 | 152,009 | ||||||
J. Michael Luttig |
3,646,606 | 152,009 | ||||||
David W. Niemiec |
3,646,606 | 152,009 | ||||||
Larry D. Thompson |
3,652,667 | 145,949 | ||||||
Constantine D. Tseretopoulos |
3,652,667 | 145,949 | ||||||
Robert E. Wade |
3,646,503 | 152,112 |
Total Trust Shares Outstanding*: 6,151,300
Proposal 2. To approve an amended fundamental investment restriction regarding investments in commodities:
Shares | ||||
For |
|
2,561,321 |
| |
Against |
193,777 | |||
Abstain |
233,487 | |||
Broker Non-Votes |
810,031 | |||
Total Fund Shares Voted |
3,798,615 | |||
Total Fund Shares Outstanding* |
6,151,300 |
* As of the record date.
franklintempleton.com | Annual Report | 31 |
FRANKLIN TEMPLETON GLOBAL TRUST
The name, year of birth and address of the officers and board members, as well as their affiliations, positions held with the Trust, principal occupations during at least the past five years and number of US registered portfolios overseen in the Franklin Templeton Investments fund complex, are shown below. Generally, each board member serves until that persons successor is elected and qualified.
Independent Board Members
Name, Year of Birth and Address |
Position | Length of Time Served |
Number of Portfolios in by Board Member* |
Other Directorships Held During at Least the Past 5 Years | ||||
| ||||||||
Harris J. Ashton (1932) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Trustee | Since 1993 | 139 | Bar-S Foods (meat packing company) (1981-2010). | ||||
Principal Occupation During at Least the Past 5 Years: Director of various companies; and formerly, Director, RBC Holdings, Inc. (bank holding company) (until 2002); and President, Chief Executive Officer and Chairman of the Board, General Host Corporation (nursery and craft centers) (until 1998).
| ||||||||
Ann Torre Bates (1958) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Trustee |
Since 2016 |
40 |
Ares Capital Corporation (specialty finance company) (2010-present), United Natural Foods, Inc. (distributor of natural, organic and specialty foods) (2013-present), Allied Capital Corporation (financial services) (2003-2010), SLM Corporation (Sallie Mae) (1997-2014) and Navient Corporation (loan management, servicing and asset recovery) (2014-2016). | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Director of various companies; and formerly, Executive Vice President and Chief Financial Officer, NHP Incorporated (manager of multifamily housing) (1995-1997); and Vice President and Treasurer, US Airways, Inc. (until 1995).
| ||||||||
Mary C. Choksi (1950) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Trustee |
Since 2016 |
139 |
Avis Budget Group Inc. (car rental) (2007-present), Omnicom Group Inc. (advertising and marketing communications services) (2011-present) and White Mountains Insurance Group, Ltd. (holding company) (2017-present). | ||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Director of various companies; and formerly, Founder and Senior Advisor, Strategic Investment Group (investment management group) (2015-2017); Founding Partner and Senior Managing Director, Strategic Investment Group (19872015); Founding Partner and Managing Director, Emerging Markets Management LLC (investment management firm) (1987-2011); and Loan Officer/Senior Loan Officer/Senior Pension Investment Officer, World Bank Group (international financial institution) (1977-1987).
| ||||||||
Edith E. Holiday (1952) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Lead Independent Trustee |
Trustee since 2005 and Lead Independent Trustee since 2016 |
139 |
Hess Corporation (exploration of oil and gas) (1993-present), Canadian National Railway (railroad) (2001-present), White Mountains Insurance Group, Ltd. (holding company) (2004-present), Santander Consumer USA Holdings, Inc. (consumer finance) (2016-present), RTI International Metals, Inc. (manufacture and distribution of titanium) (1999-2015) and H.J. Heinz Company (processed foods and allied products) (1994-2013). | ||||
Principal Occupation During at Least the Past 5 Years: Director or Trustee of various companies and trusts; and formerly, Assistant to the President of the United States and Secretary of the Cabinet (1990-1993); General Counsel to the United States Treasury Department (1989-1990); and Counselor to the Secretary and Assistant Secretary for Public Affairs and Public Liaison-United States Treasury Department (1988-1989).
|
32 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
Independent Board Members (continued)
Name, Year of Birth and Address |
Position | Length of Time Served |
Number of Portfolios in Fund Complex Overseen by Board Member* |
Other Directorships Held During at Least the Past 5 Years | ||||
J. Michael Luttig (1954) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Trustee | Since 2009 | 139 | Boeing Capital Corporation (aircraft financing) (2006-2013). | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Executive Vice President, General Counsel and member of the Executive Council, The Boeing Company (aerospace company) (2006-present); and formerly, Federal Appeals Court Judge, U.S. Court of Appeals for the Fourth Circuit (1991-2006). | ||||||||
David W. Niemiec (1949) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Trustee | Since 2016 | 40 | Hess Midstream Partners LP (oil and gas midstream infrastructure) (2017-present). | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Advisor, Saratoga Partners (private equity fund); and formerly, Managing Director, Saratoga Partners (1998-2001) and SBC Warburg Dillon Read (investment banking) (1997-1998); Vice Chairman, Dillon, Read & Co. Inc. (investment banking) (1991-1997); and Chief Financial Officer, Dillon, Read & Co. Inc. (1982-1997). | ||||||||
Larry D. Thompson (1945) Fort Lauderdale, FL 33301-1923 |
Trustee | Since 2007 | 139 | The Southern Company (energy company) (2014-present; previously 2010-2012), Graham Holdings Company (education and media organization) (2011-present) and Cbeyond, Inc. (business communications provider) (2010-2012). | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Director of various companies; Counsel, Finch McCranie, LLP (law firm) (2015-present); Independent Compliance Monitor and Auditor, Volkswagen AG (manufacturer of automobiles and commercial vehicles) (2017 - present); John A. Sibley Professor of Corporate and Business Law, University of Georgia School of Law (2015-present; previously 2011-2012); and formerly, Executive Vice President - Government Affairs, General Counsel and Corporate Secretary, PepsiCo, Inc. (consumer products) (2012-2014); Senior Vice President - Government Affairs, General Counsel and Secretary, PepsiCo, Inc. (2004-2011); Senior Fellow of The Brookings Institution (2003-2004); Visiting Professor, University of Georgia School of Law (2004); and Deputy Attorney General, U.S. Department of Justice (2001-2003). | ||||||||
Constantine D. Tseretopoulos (1954) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Trustee | Since 2016 | 26 | None | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Physician, Chief of Staff, owner and operator of the Lyford Cay Hospital (1987-present); director of various nonprofit organizations; and formerly, Cardiology Fellow, University of Maryland (1985-1987); and Internal Medicine Resident, Greater Baltimore Medical Center (1982-1985). | ||||||||
Robert E. Wade (1946) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Trustee | Since 2016 | 40 | El Oro Ltd (investments) (2003-present). | ||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Attorney at law engaged in private practice (1972-2008) and member of various boards. |
franklintempleton.com | Annual Report | 33 |
FRANKLIN TEMPLETON GLOBAL TRUST
Interested Board Members and Officers
Name, Year of Birth and Address
|
Position
|
Length of Time Served
|
Number of Portfolios in Fund Complex Overseen by Board Member*
|
Other Directorships Held
| ||||
**Gregory E. Johnson (1961) |
Trustee |
Since 2007 |
153 |
None | ||||
One Franklin Parkway |
||||||||
San Mateo, CA94403-1906 |
||||||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Chairman of the Board, Member - Office of the Chairman, Director and Chief Executive Officer, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 43 of the investment companies in Franklin Templeton Investments; Vice Chairman, Investment Company Institute; and formerly, President, Franklin Resources, Inc. (1994-2015).
| ||||||||
**Rupert H. Johnson, Jr. (1940) One Franklin Parkway San Mateo, CA 94403-1906 |
Chairman of the Board and Trustee |
Since 2013 |
139 |
None | ||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Vice Chairman, Member - Office of the Chairman and Director, Franklin Resources, Inc.; Director, Franklin Advisers, Inc.; Senior Vice President, Franklin Advisory Services, LLC; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 42 of the investment companies in Franklin Templeton Investments.
| ||||||||
Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906 |
Vice President |
Since 2012 |
Not Applicable |
Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Deputy General Counsel, Franklin Templeton Investments; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 45 of the investment companies in Franklin Templeton Investments.
| ||||||||
Aliya S. Gordon (1973) One Franklin Parkway San Mateo, CA 94403-1906 |
Vice President |
Since 2009 |
Not Applicable |
Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Senior Associate General Counsel, Franklin Templeton Investments; and officer of 45 of the investment companies in Franklin Templeton Investments.
| ||||||||
Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906 |
Vice President |
Since 2009 |
Not Applicable |
Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Senior Associate General Counsel, Franklin Templeton Investments; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 45 of the investment companies in Franklin Templeton Investments.
| ||||||||
Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906 |
Chief Executive Officer Finance and Administration |
Since June 2017 |
Not Applicable |
Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Senior Vice President, Franklin Templeton Services, LLC; officer of 45 of the investment companies in Franklin Templeton Investments; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton Investments (2009-2017).
| ||||||||
Robert G. Kubilis (1973) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Chief Financial Officer, Chief Accounting Officer and Treasurer |
Since June 2017 |
Not Applicable |
Not Applicable | ||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Treasurer, U.S. Fund Administration & Reporting, Franklin Templeton Investments; and officer of 17 of the investment companies in Franklin Templeton Investments.
|
34 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
Interested Board Members and Officers (continued)
Name, Year of Birth and Address |
Position | Length of Time Served |
Number of Portfolios in Fund Complex Overseen |
Other Directorships Held During at Least the Past 5 Years | ||||
Robert Lim (1948) | Vice President | Since 2016 | Not Applicable | Not Applicable | ||||
One Franklin Parkway San Mateo, CA 94403-1906 |
AML Compliance |
|||||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 45 of the investment companies in Franklin Templeton Investments. | ||||||||
Christopher J. Molumphy (1962) |
President and Chief |
Since 2010 | Not Applicable | Not Applicable | ||||
One Franklin Parkway San Mateo, CA 94403-1906 |
Executive Officer Investment Management |
|||||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Director and Executive Vice President, Franklin Advisers, Inc.; Executive Vice President, Franklin Templeton Institutional, LLC; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 21 of the investment companies in Franklin Templeton Investments. | ||||||||
Kimberly H. Novotny (1972) | Vice President | Since 2013 | Not Applicable | Not Applicable | ||||
300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
||||||||
Principal Occupation During at Least the Past 5 Years: |
||||||||
Associate General Counsel, Franklin Templeton Investments; Vice President and Corporate Secretary, Fiduciary Trust International of the South; Vice President, Templeton Investment Counsel, LLC; Assistant Secretary, Franklin Resources, Inc.; and officer of 45 of the investment companies in Franklin Templeton Investments. | ||||||||
Robert C. Rosselot (1960) | Chief | Since 2013 | Not Applicable | Not Applicable | ||||
300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Compliance Officer |
|||||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Director, Global Compliance, Franklin Templeton Investments; Vice President, Franklin Templeton Companies, LLC; officer of 45 of the investment companies in Franklin Templeton Investments; and formerly, Senior Associate General Counsel, Franklin Templeton Investments (2007-2013); and Secretary and Vice President, Templeton Group of Funds (2004-2013). | ||||||||
Karen L. Skidmore (1952) | Vice President | Since 2006 | Not Applicable | Not Applicable | ||||
One Franklin Parkway San Mateo, CA 94403-1906 |
||||||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Senior Associate General Counsel, Franklin Templeton Investments; and officer of 45 of the investment companies in Franklin Templeton Investments. | ||||||||
Navid J. Tofigh (1972) | Vice President | Since 2015 | Not Applicable | Not Applicable | ||||
One Franklin Parkway San Mateo, CA 94403-1906 |
||||||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
Associate General Counsel, Franklin Templeton Investments; and officer of 45 of the investment companies in Franklin Templeton Investments. | ||||||||
Craig S. Tyle (1960) | Vice President | Since 2005 | Not Applicable | Not Applicable | ||||
One Franklin Parkway San Mateo, CA 94403-1906 |
||||||||
Principal Occupation During at Least the Past 5 Years: | ||||||||
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 45 of the investment companies in Franklin Templeton Investments. |
franklintempleton.com | Annual Report | 35 |
FRANKLIN TEMPLETON GLOBAL TRUST
Interested Board Members and Officers (continued)
Name, Year of Birth and Address
|
Position
|
Length of Time Served
|
Number of Portfolios in
|
Other Directorships Held During at Least the Past 5 Years
| ||||
Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923 |
Vice President and Secretary |
Vice President since 2011 and Secretary since 2016 |
Not Applicable |
Not Applicable |
Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton Investments; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 45 of the investment companies in Franklin Templeton Investments.
|
*We base the number of portfolios on each separate series of the US registered investment companies within the Franklin Templeton Investments fund complex. These portfolios have a common investment manager or affiliated investment managers.
**Gregory E. Johnson is considered to be an interested person of the Fund under the federal securities laws due to his position as an officer and director of Franklin Resources, Inc. (Resources), which is the parent company of the Funds investment manager and distributor. Rupert H. Johnson, Jr. is considered to be an interested person of the Fund under the federal securities laws due to his position as officer and director and major shareholder of Resources.
Note 1: Rupert H. Johnson, Jr. is the uncle of Gregory E. Johnson.
Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.
The Sarbanes-Oxley Act of 2002 and Rules adopted by the US Securities and Exchange Commission require the Fund to disclose whether the Funds Audit Committee includes at least one member who is an audit committee financial expert within the meaning of such Act and Rules. The Funds Board has determined that there is at least one such financial expert on the Audit Committee and has designated each of Ann Torre Bates and David W. Niemiec as an audit committee financial expert. The Board believes that Ms. Bates and Mr. Niemiec qualify as such an expert in view of their extensive business background and experience. Ms. Bates has served as a member of the Fund Audit Committee since August 2016. She currently serves as a director of Ares Capital Corporation (2010-present) and United Natural Foods, Inc. (2013-present) and was formerly a director of Navient Corporation from 2014 to 2016, SLM Corporation from 1997 to 2014 and Allied Capital Corporation from 2003 to 2010, Executive Vice President and Chief Financial Officer of NHP Incorporated from 1995 to 1997 and Vice President and Treasurer of US Airways, Inc. until 1995. Mr. Niemiec has served as a member of the Fund Audit Committee since August 2016, currently serves as an Advisor to Saratoga Partners and was formerly its Managing Director from 1998 to 2001 and serves as a director of Hess Midstream Partners LP (April 2017). Mr. Niemiec was formerly a director of Emeritus Corporation from 1999 to 2010 and OSI Pharmaceuticals, Inc. from 2006 to 2010, Managing Director of SBC Warburg Dillon Read from 1997 to 1998, and was Vice Chairman from 1991 to 1997 and Chief Financial Officer from 1982 to 1997 of Dillon, Read & Co. Inc. As a result of such background and experience, the Board believes that Ms. Bates and Mr. Niemiec have each acquired an understanding of generally accepted accounting principles and financial statements, the general application of such principles in connection with the accounting estimates, accruals and reserves, and analyzing and evaluating financial statements that present a breadth and level of complexity of accounting issues generally comparable to those of the Fund, as well as an understanding of internal controls and procedures for financial reporting and an understanding of audit committee functions. Ms. Bates and Mr. Niemiec are independent Board members as that term is defined under the applicable US Securities and Exchange Commission Rules and Releases.
The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request. Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.
36 | Annual Report | franklintempleton.com |
FRANKLIN TEMPLETON GLOBAL TRUST
TEMPLETON GLOBAL CURRENCY FUND
franklintempleton.com | Annual Report | 37 |
This page intentionally left blank.
This page intentionally left blank.
This page intentionally left blank.
Authorized for distribution only when accompanied or preceded by a summary prospectus and/or prospectus. Investors should carefully consider a funds investment goals, risks, charges and expenses before investing. A prospectus contains this and other information; please read it carefully before investing.
To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.
© 2018 Franklin Templeton Investments. All rights reserved. | 412 A 02/18 |
Item 2. | Code of Ethics. |
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. | Audit Committee Financial Expert. |
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is John B. Wilson and he is independent as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4. | Principal Accountant Fees and Services. |
(a) Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrants annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $25,600 for the fiscal year ended December 31, 2017 and $42,814 for the fiscal year ended October 31, 2017.
(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrants financial statements and are not reported under paragraph (a) of Item 4.
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrants investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.
(c) Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrants investment adviser and any entity controlling, controlled by or under
common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning.
(d) All Other Fees
There were no fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4.
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrants investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended December 31, 2017 and $14,000 for the fiscal year ended October 31, 2017. The services for which these fees were paid included benchmarking services in connection with the 2015 ICI TA Survey.
(e) (1) The registrants audit committee is directly responsible for approving the services to be provided by the auditors, including:
(i) pre-approval of all audit and audit related services;
(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;
(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrants investment adviser or to any entity that controls, is controlled by or is under common control with the registrants investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal
accountant to the registrant and the registrants investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $0 for the fiscal year ended December 31, 2017 and $14,000 for the fiscal year ended October 31, 2017.
(h) The registrants audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrants investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence.
Item 5. | Audit Committee of Listed Registrants. N/A |
Item 6. | Schedule of Investments. N/A |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A |
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. N/A |
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A |
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrants Board of Trustees that would require disclosure herein.
Item 11. | Controls and Procedures. |
(a) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrants filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrants management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrants management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrants management, including the Registrants principal executive officer and the Registrants principal financial officer, of the effectiveness of the design and operation of the Registrants disclosure controls and procedures. Based on such evaluation, the Registrants principal executive officer and principal financial officer concluded that the Registrants disclosure controls and procedures are effective.
(b) Changes in Internal Controls. There have been no changes in the Registrants internal controls or in other factors that could materially affect the internal controls over financial reporting subsequent to the date of their evaluation in connection with the preparation of this Shareholder Report on Form N-CSR.
Item 12. | Exhibits. |
(a) (1) Code of Ethics
(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN TEMPLETON GLOBAL TRUST
By | /s/ MATTHEW T. HINKLE | |
Matthew T. Hinkle | ||
Chief Executive Officer Finance and Administration | ||
Date February 26, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By |
/s/ MATTHEW T. HINKLE | |
Matthew T. Hinkle | ||
Chief Executive Officer Finance and Administration | ||
Date February 26, 2018 |
By |
/s/ ROBERT G. KUBILIS | |
Robert G. Kubilis | ||
Chief Financal Officer and Chief Accounting Officer | ||
Date February 26, 2018 |
Exhibit 12(a)(1)
CODE OF ETHICS FOR PRINCIPAL EXECUTIVES & SENIOR FINANCIAL OFFICERS
PROCEDURES Revised December 18, 2009
FRANKLIN TEMPLETON FUNDS
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
I. Covered Officers and Purpose of the Code
This code of ethics (the Code) applies to the Principal Executive Officers, Principal Financial Officer and Principal Accounting Officer (the Covered Officers, each of whom is set forth in Exhibit A) of each investment company advised by a Franklin Resources subsidiary and that is registered with the United States Securities & Exchange Commission (SEC) (collectively, FT Funds) for the purpose of promoting:
| Honest and ethical conduct, including the ethical resolution of actual or apparent conflicts of interest between personal and professional relationships; |
| Full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the SEC and in other public communications made by or on behalf of the FT Funds; |
| Compliance with applicable laws and governmental rules and regulations; |
| The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and |
| Accountability for adherence to the Code. |
Each Covered Officer will be expected to adhere to a high standard of business ethics and must be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.
II. Other Policies and Procedures
This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.
Franklin Resources, Inc. has separately adopted the CODE OF ETHICS ANDBUSINESS CONDUCT (Business Conduct), which is applicable to all officers, directors and employees of Franklin Resources, Inc., including Covered Officers. It summarizes the values, principles and business practices that guide the employees business conduct and also provides a set of basic principles to guide officers, directors and employees regarding the minimum ethical requirements expected of them. It supplements the values, principles and business conduct identified in the Code and other existing employee policies.
Additionally, the Franklin Templeton Funds have separately adopted the CODE OF ETHICS AND POLICY STATEMENT ON INSIDER TRADING governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.
Page 1
Insofar as other policies or procedures of Franklin Resources, Inc., the Funds, the Funds adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superceded by this Code to the extent that they overlap or conflict with the provisions of this Code. Please review these other documents or consult with the Legal Department if have questions regarding the applicability of these policies to you.
III. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest
OVERVIEW. A conflict of interest occurs when a Covered Officers private interest interferes with the interests of, or his or her service to, the FT Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of apposition with the FT Funds.
Certain conflicts of interest arise out of the relationships between Covered Officers and the FT Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (Investment Company Act) and the Investment Advisers Act of 1940 (Investment Advisers Act). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the FT Funds because of their status as affiliated persons of the FT Funds. The FT Funds and the investment advisers compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.
Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the FT Funds, the investment advisers and the fund administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the FT Funds, for the adviser, the administrator, or for all three), be involved in establishing policies and implementing decisions that will have different effects on the adviser, administrator and the FT Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the FT Funds, the adviser, and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the FT Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the FT Funds Boards of Directors (Boards) that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.
Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the FT Funds.
Each Covered Officer must:
| Not use his or her personal influence or personal relationships improperly to influence investment decisions orfinancial reporting by the FT Funds whereby the Covered Officer would benefit personally to the detriment of the FT Funds; |
Page 2
| Not cause the FT Funds to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the FT Funds; |
| Not retaliate against any other Covered Officer or any employee of the FT Funds or their affiliated persons for reports of potential violations that are made in good faith; |
| Report at least annually the following affiliations or other relationships:/1 |
| all directorships for public companies and all companies that are required to file reports with the SEC; |
| any direct or indirect business relationship with any independent directors of the FT Funds; |
| any direct or indirect business relationship with any independent public accounting firm (which are not related to the routine issues related to the firms service as the Covered Persons accountant); and |
| any direct or indirect interest in any transaction with any FT Fund that will benefit the officer (not including benefits derived from the advisory, sub-advisory, distribution or service agreements with affiliates of Franklin Resources). |
These reports will be reviewed by the Legal Department for compliance with the Code.
There are some conflict of interest situations that should always be approved in writing by Franklin Resources General Counsel or Deputy General Counsel, if material. Examples of these include/2:
| Service as a director on the board of any public or private Company; |
| The receipt of any gifts in excess of $100 from any person, from any corporation or association |
| The receipt of any entertainment from any Company with which the FT Funds has current or prospective business dealings unless such entertainment is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety. Notwithstanding the foregoing, the Covered Officers must obtain prior approval from the Franklin Resources General Counsel for any entertainment with a value in excess of $1000. |
| Any ownership interest in, or any consulting or employment relationship with, any of the FT Funds service providers, other than an investment adviser, principal underwriter, administrator or any affiliated person thereof; |
| A direct or indirect financial interest in commissions, transaction charges or spreads paid by the FT Funds for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officers employment, such as compensation or equity ownership. |
Franklin Resources General Counsel or Deputy General Counsel will provide a report to the FT Funds Audit Committee of any approvals granted at the next regularly scheduled meeting.
IV. Disclosure and Compliance
| Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the FT Funds; |
Page 3
| Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the FT Funds to others, whether within or outside the FT Funds, including to the FT Funds directors and auditors, and to governmental regulators and self-regulatory organizations; |
| Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the FT Funds, the FT Funds adviser and the administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the FT Funds file with, or submit to, the SEC and in other public communications made by the FT Funds; and |
| It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. |
V. Reporting and Accountability
Each Covered Officer must:
| Upon becoming a covered officer affirm in writing to the Board that he or she has received, read, and understands the Code (see Exhibit B); |
| Annually thereafter affirm to the Board that he has complied with the requirements of the Code; and |
| Notify Franklin Resources General Counsel or Deputy General Counsel promptly if he or she knows of any violation of this Code. Failure to do so is itself is a violation of this Code. |
Franklin Resources General Counsel and Deputy General Counsel are responsible for applying this Code to specific situations in which questions are presented under it and have the authority to interpret this Code in any particular situation./3 However, the Independent Directors of the respective FT Funds will consider any approvals or waivers/4 sought by any Chief Executive Officers of the Funds.
The FT Funds will follow these procedures in investigating and enforcing this Code:
| Franklin Resources General Counsel or Deputy General Counsel will take all appropriate action to investigate any potential violations reported to the Legal Department; |
| If, after such investigation, the General Counsel or Deputy General Counsel believes that no violation has occurred, The General Counsel is not required to take any further action; |
| Any matter that the General Counsel or Deputy General Counsel believes is a violation will be reported to the Independent Directors of the appropriate FT Fund; |
| If the Independent Directors concur that a violation has occurred, it will inform and make a recommendation to the Board of the appropriate FT Fund or Funds, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer; |
| The Independent Directors will be responsible for granting waivers, as appropriate; and |
Page 4
| Any changes to or waivers of this Code will, to the extent required, are disclosed as provided by SEC rules./5 |
VI. Other Policies and Procedures
This Code shall be the sole code of ethics adopted by the FT Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the FT Funds, the FT Funds advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The FT Code of Ethics and Policy Statement On Insider Trading, adopted by the FT Funds, FT investment advisers and FT Funds principal underwriter pursuant to Rule 17j-1 under the Investment Company Act, the Code of Ethics and Business Conduct and more detailed policies and procedures set forth in FTs Employee Handbook are separate requirements applying to the Covered Officers and others, and are not part of this Code.
VII. Amendments
Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the FT Funds Board including a majority of independent directors.
VIII. Confidentiality
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the FT Funds Board and their counsel.
IX. Internal Use
The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.
X. Disclosure on Form N-CSR
Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.
The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrants annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this intention.
Page 5
The Legal Department shall be responsible for ensuring that:
| a copy of the Code is filed with the SEC as an exhibit to each Funds annual report; and |
| any amendments to, or waivers (including implicit waivers) from, a provision of the Code is disclosed in the registrants annual report on Form N-CSR. |
In the event that the foregoing disclosure is omitted or is determined to be incorrect, the Legal Department shall promptly file such information with the SEC as an amendment to Form N-CSR.
In such an event, the Fund Chief Compliance Officer shall review the Code and propose such changes to the Code as are necessary or appropriate to prevent reoccurrences.
EXHIBIT A
Persons Covered by the Franklin Templeton Funds
Code of Ethics
December 2013
FRANKLIN GROUP OF FUNDS | ||
Edward B. Jamieson | President and Chief Executive Officer - Investment Management | |
Rupert H. Johnson, Jr. | President and Chief Executive Officer - Investment Management | |
William J. Lippman | President and Chief Executive Officer - Investment Management | |
Christopher Molumphy | President and Chief Executive Officer - Investment Management | |
Laura Fergerson | Chief Executive Officer - Finance and Administration | |
Gaston R. Gardey | Chief Financial Officer and Chief Accounting Officer |
FRANKLIN MUTUAL SERIES FUNDS | ||
Peter Langerman | Chief Executive Officer-Investment Management | |
Laura Fergerson | Chief Executive Officer - Finance and Administration | |
Robert G. Kubilis | Chief Financial Officer and Chief Accounting Officer |
FRANKLIN ALTERNATIVE STRTEGIES FUNDS | ||
William Yun | Chief Executive Officer-Investment Management | |
Laura Fergerson | Chief Executive Officer - Finance and Administration | |
Robert G. Kubilis | Chief Financial Officer and Chief Accounting Officer |
TEMPLETON GROUP OF FUNDS | ||
Mark Mobius | President and Chief Executive Officer - Investment Management | |
Christopher J. Molumphy | President and Chief Executive Officer - Investment Management | |
Norman Boersma | President and Chief Executive Officer - Investment Management | |
Donald F. Reed | President and Chief Executive Officer - Investment Management | |
Laura Fergerson | Chief Executive Officer - Finance and Administration | |
Mark H. Otani | Chief Financial Officer and Chief Accounting Officer |
Page 6
EXHIBIT B
ACKNOWLEDGMENT FORM
DECEMBER
FRANKLIN TEMPLETON FUNDS CODE OF ETHICS
FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS
INSTRUCTIONS:
1. | Complete all sections of this form. |
2. | Print the completed form, sign, and date. |
3. | Submit completed form to FTs General Counsel c/o Code of Ethics Administration within 10 days of becoming a Covered Officer and by February 15th of each subsequent year. |
INTER-OFFICE MAIL: | Code of Ethics Administration, Global Compliance SM-920/2 | |
Fax: | (650) 312-5646 | |
E-MAIL: | Preclear-Code of Ethics (internal address); | |
lpreclear@frk.com (external address) |
COVERED OFFICERS NAME:
TITLE:
DEPARTMENT:
LOCATION:
CERTIFICATION FOR YEAR ENDING:
TO: Franklin Resources General Counsel, Legal Department
I acknowledge receiving, reading and understanding the Franklin Templeton Funds Code of Ethics for Principal Executive Officers and Senior Financial Officers (the Code). I will comply fully with all provisions of the Code to the extent they apply to me during the period of my employment. I further understand and acknowledge that any violation of the Code may subject me to disciplinary action, including termination of employment.
|
|
|||||||
Signature |
Date signed |
1. | Reporting of these affiliations or other relationships shall be made by completing the annual Directors and Officers Questionnaire and returning the questionnaire to Franklin Resources Inc, General Counsel or Deputy General Counsel. |
Page 7
2. Any activity or relationship that would present a conflict for a Covered Officer may also present a conflict for the Covered Officer if a member of the Covered Officers immediate family engages in such an activity or has such a relationship. The Cover Person should also obtain written approval by FTs General Counsel in such situations.
3. Franklin Resources General Counsel and Deputy General Counsel are authorized to consult, as appropriate, with members of the Audit Committee, counsel to the FT Funds and counsel to the Independent Directors, and are encouraged to do so.
4. Item 2 of Form N-CSR defines waiver as the approval by the registrant of a material departure from a provision of the code of ethics and implicit waiver, which must also be disclosed, as the registrants failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer of the registrant. See Part X.
5. See Part X.
Page 8
Exhibit 12(a)(2)
I, Matthew T. Hinkle, certify that:
1. I have reviewed this report on Form N-CSR of Franklin Templeton Global Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
2/23/2018
/S/ MATTHEW T. HINKLE |
Matthew T. Hinkle |
Chief Executive Officer - Finance and Administration |
Exhibit 12(a)(2)
I, Robert G. Kubilis, certify that:
1. I have reviewed this report on Form N-CSR of Franklin Templeton Global Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
2/23/2018
/S/ ROBERT G. KUBILIS |
Robert G. Kubilis |
Chief Financial Officer and Chief Accounting Officer |
Exhibit 12(b)
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
I, Matthew T. Hinkle, Chief Executive Officer of the Franklin Templeton Global Trust (the Registrant), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
1. | The periodic report on Form N-CSR of the Registrant for the period ended 12/31/2017 (the Form N-CSR) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Dated: 2/23/2018
/S/ MATTHEW T. HINKLE |
Matthew T. Hinkle |
Chief Executive Officer - Finance and Administration |
Exhibit 12(b)
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002
I, Robert G. Kubilis, Chief Financial Officer of the Franklin Templeton Global Trust (the Registrant), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
1. | The periodic report on Form N-CSR of the Registrant for the period ended 12/31/2017 (the Form N-CSR) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Dated: 2/23/2018
/S/ ROBERT G. KUBILIS |
Robert G. Kubilis |
Chief Financial Officer and Chief Accounting Officer |
:
MFK37LE.24>;E=[R4FE;E/#'[.WP8\&^(+?Q-X<\"6&G:I8/J,FD1&_UJ]T7P
M[+K F75I?"WAG4-3GT?PK->I<7"7$FD6%DTRS.LA96(*IMTJ-3#Q?-3JT?JT
M^?\ >3>&7);#>TJ .UN5(+-?(U/A=XW^*OA[XIS> ?C3?6<]YXZT&/Q-X
M3^PBW73=*O;1KDW_ (;LY(H4WNMI'(70RW&QM.C9'D^UF60:5O=Z M#ZBU_1
M-.\3:#K7AO5X%N=)\0:1J6B:G;.JLEQIVJV 368H-/O1H+U_(\Q_:0L[K
M7+[X4?"S^W=3OSXZ\ SE[..$J8G$3=6KC(?5M:-.G'^RL#B)J.#Q;RVIF-9?O)<
ME+$4IX?!^ZI3IQP\Z.'Q>*JV]QTZ%!2ITZ.,C/L]'^&J>%?%WP N;;0!/J>A
M>#M;\.^*O%-OIADN6%CX5MHK*'6-7C@+1P2:M ?9WE]'-#YEO-#*F]!N25&&5
M8$NS[!MY6-'0/%_A/Q5]K_X1?Q1X=\2?8/(^W?V!K6FZQ]B^U>=]F^U_V=)M1L(Q*7O;#09;M;Z[M%$,Q,T4#H/*?+?*<337MI5X4?WL\*
ME*M&'O.C%VLZJC=TT^:-G*R]Y=T*;5*G1JU'[.EB)IB*-!Q=.A"OAL?6P25*$5!T
M:=6DXXI3JR^O/@3K>K>(/A=X=O=:N[J_U"UN?$FAOJ5](9KW5+;PSXIUKP[8
M:G>3DDW%W=V&EVUQ+,>9'F9S]^N* #J4*=;DYO83KTX^TH0K^SE6@X3IJ49P$O$OAV+Q?X<\4
M>'=?\)3PWMS!XHT36],U7P[-;Z9/&?#,:S>)/$6A>'H6MM1O4EUS5]/
MTF-K/1K-]1U>[5[^XB4VUCI\4EU