Franklin Templeton Launches New Catholic Principles ETF For European Investors

Franklin Templeton Launches New Catholic Principles ETF For European Investors

Article 8 ETF screens for securities meeting Roman Catholic principles and
 carbon reduction criteria

London, 27 June 2022 – Franklin Templeton¹ is pleased to announce the launch of its new Catholic Principles Emerging Markets Sovereign Debt UCITS ETF within its Franklin LibertyShares^TM range², the first of its kind in the European market. This launch brings the number of article 8 and 9 EU SFDR compliant strategies to seven in the range.

This new Article 8³ Smart Beta ETF is based on the ICE BofA Diversified Emerging Markets External Debt Sovereign Bond Index and invests in Euro- and US dollar-denominated sovereign debt issued by emerging market countries. It excludes bonds issued by countries that score poorly on the following criteria identified by the index provider as Roman Catholic principles: governments’ moral integrity, social justice, abolition of the death penalty and care for the planet based on environmental, social, governance ratings data. The new ETF additionally adjusts its security weightings to reduce its overall carbon footprint relative to the Index.

The Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF^4’ will list on the Deutsche Börse Xetra (XETRA) on 28 June, Borsa Italiana on 30 June and the London Stock Exchange (LSE) on 1 July. The ETF will be registered in the UK, Austria, France, Germany, Ireland, Italy, Spain and the Nordics.

Caroline Baron, Head of ETF Business Development, EMEA, Franklin Templeton commented: “We are delighted to introduce this new Sustainable Sovereign Debt ETF at the lowest fee to European investors. With this offering we have created a custom-made index and partnered with an ethical advisor to ensure clients have access to a distinct ETF backed by the scale and resources of Franklin Templeton. The combination of Catholic values-based exclusions and a screening process for decarbonisation opportunities from the ETF’s investable universe should subsequently appeal to a broad range of investors seeking to widen their portfolio of sustainable investments.”

Competitive fees

The ETF will provide European investors with cost-efficient, UCITS-compliant, emerging market sovereign debt exposure aligned with Roman Catholic principles and offers the lowest total expense ratios (TER⁵) at 0.35% in Europe (TER is on average 11% lower than other emerging market debt UCITS ETFs⁶) for its respective category.

Rafaelle Lennox, Vice President, Senior ETF Product Specialist, Franklin Templeton added: “This new ETF offers investors a broader opportunity set within emerging market debt. Despite lower yields among developed market bonds, many emerging market countries have low debt-to-GDP ratios whilst still providing higher yields than their developed market counterparts. Additionally, emerging market bonds have had relatively low correlations to equities when compared to traditional asset classes, so allocating to this ETF may help enhance overall portfolio diversification.”  

The new ETF will be managed by London-based John Beck, senior vice president and director of Global Fixed Income for Franklin Templeton Fixed Income. 

Franklin LibertyShares™, Franklin Templeton’s global ETF platform, enables investors to pursue their desired outcomes through a range of active, smart beta and passive ETFs. Supported by the strength and resources of one of the world’s largest asset managers, the global ETF platform has more than $12 billion in assets under management globally as of 31 May 2022.

For more information on the Franklin LibertyShares™ ETF range please visit: www.libertyshares.co.uk.

- ENDS –

		Stock Exchanges
		Xetra Ticker	LSE Tickers		Borsa Italiana Ticker
Fund Name	ISIN	EUR	GBP	USD	EUR
Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF	IE000YZIVX22	FLCV	CPRI	EMCV	CATHEM

 

Contacts:

Saira Khan Senior Corporate Communications Manager Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8644 Email: [email protected]

Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8538 Email: [email protected]

 

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately $1.45 trillion in assets under management as of 31 May, 2022. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, Twitter and Facebook.
2. Franklin LibertyShares^TM, the firm’s global ETF platform, enables investors to pursue their desired outcomes through a range of active, smart beta and passive ETFs. LibertyShares^TM has more than $12 billion in assets under management globally as of 31 May 2022 and is supported by the strength and resources of one of the world’s largest asset managers. For more information, please visit https://www.franklintempleton.co.uk
3. This fund has been classified as Article 8 under the Regulation on sustainability related disclosures in the financial services sector (EU) 2019/2088. These are Funds which promote, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices. Further information in relation to the sustainability-related aspects of the Fund can be found at franklinresources.com/countries. Please review all of the fund's objectives and characteristics before investing.
4. Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF is a sub-fund of the Franklin LibertyShares ICAV, an Irish Collective Asset-managed Vehicle, incorporated under the laws of Ireland.

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as of the publication date and may change without notice. The information provided in this material is not intended as complete analysis of every material fact regarding any country, region or market.

An investment in Franklin LibertyShares^TM UCITS ETF range entails risks, which are described in the prospectus, its supplements and in the relevant Key Investor Information Document. The Fund's documents are available in English, German and French from your local website. In addition, a Summary of Investor Rights is available from www.franklintempleton.lu/investor-rights. Franklin LibertyShares ICAV is notified for marketing in multiple EU Member States under the UCITS Directive. Franklin LibertyShares ICAV can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.

The value of shares in the fund and income received from it can go down as well as up and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments. There is no guarantee that the fund will meet its objective. For full details of all the risks applicable, please refer to the "Risk Considerations" section of the current prospectus of Franklin LibertyShares^TM ICAV.

Franklin LibertyShares^TM UCITS ETFs (domiciled outside of the U.S. or Canada) may not be directly or indirectly offered or sold to residents of the United States of America or Canada. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

5. The charges are the fees the fund charges to investors to cover the costs of running the Fund. Additional costs, including transaction fees, will also be incurred. These costs are paid out by the Fund, which will impact on the overall return of the Fund. Fund charges will be incurred in multiple currencies, meaning that payments may increase or decrease as a result of currency exchange fluctuations.
6. Source: Franklin Templeton data as of 31 May 2022.

This press release is intended to be of general interest only and does not constitute professional advice. Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes.

Issued by Franklin Templeton Investment Management Limited (FTIML). FTIML is authorised and regulated in the United Kingdom by the Financial Conduct Authority.

Copyright © 2022 Franklin Templeton. All rights reserved.

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