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Stockholm 2 July 2020 – Franklin Templeton1 is delighted to announce the launch of two Paris Aligned Climate UCITS ETFs within its Franklin LibertySharesTM range, thus being an early provider in the European market to launch cutting-edge smart beta ETFs compliant with the EU’s new Paris Aligned Benchmark (PAB).
The Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF and Franklin S&P 500 Paris Aligned Climate UCITS ETF2 will provide European investors with sustainable, low cost and core diversified European and US equity exposure, consistent with the transition to a low carbon economy, while ensuring portfolios are fully aligned with the de-carbonisation goals of the Paris Climate Agreement.
The funds will list on the Deutsche Börse (DB) on 30th July and on the London Stock Exchange (LSE) and Borsa Italiana on the 31st July. They will also be registered in Austria, Denmark, Finland, Sweden and Switzerland thereafter.
Forward-looking approach
Julie Moret, Global Head of ESG, Franklin Templeton, explained: “The ascent of climate change on the EU’s regulatory agenda has resulted in the creation of two new EU climate benchmarks, which provide clear rules that ensure the indices are comparable and transparent. PAB’s philosophy is unique and forward looking as it aims to not only reduce climate change risks but also contribute to the transition to a low carbon economy and capture its benefits and opportunities.”
Caroline Baron, Head of ETF Sales EMEA, Franklin Templeton, commented: “We are delighted that our new Paris Aligned Climate ETFs will provide access to this ‘forward-looking’ investment solution at a very competitive cost of 15 basis points and will be the cheapest climate ETFs in the European market. These new launches are an extension of our current sustainable investment offering within our strong line up of 16 smart beta, active and passive ETF strategies for European investors. We believe these new solutions will appeal to a wide range of investors—specifically insurance companies, discretionary wealth managers and family offices—and will be used as either a replacement for traditional non-compliant indices or a complement to existing compliant holdings.”
Climate-aligned investing to become “core” within European investors’ portfolios
Julie Moret said: “The EU Climate Benchmark regulation suggests we will see a significant uplift in the adoption of climate-aligned investments across European markets, with investors moving away from the notion that they are niche products to building portfolios with sustainable finance at their core.”
Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF and Franklin S&P 500 Paris Aligned Climate UCITS ETF are smart beta ETFs managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager at Franklin Templeton. These ETFs provide exposure to European and US large- and mid-capitalisation stocks, respectively, with the aim of reducing climate change risk but of also accessing opportunities in the low carbon transition in a broad diversified equity strategy. Both smart beta ETFs will track a new Paris-Aligned version of the STOXX Europe 600 and S&P 500 benchmarks, which will seek EU Climate Benchmark certification. The indices aim to align with the climate disclosure recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).
Rafaelle Lennox, Senior ETF Product Specialist, Franklin Templeton, concluded: “We have collaborated with established index providers, S&P Dow Jones Indices and Qontigo on these new ETFs and selected the key parent benchmarks that we believe are most relevant to our clients, S&P 500 & STOXX Europe. Both index providers have partnered with carbon data specialists in the assessment of companies’ climate change risk profiles, policies, targets and decarbonisation trajectory in the development of these technical and ground-breaking climate benchmarks. These Paris-Aligned indices have ambitious carbon reduction targets but also meaningful broader environmental, social, and governance (ESG) components, thus, creating a core sustainable solution.”
- Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF will aim track the STOXX® Europe 600 Paris-Aligned Benchmark Index.
- Franklin S&P 500 Paris Aligned Climate UCITS ETF will aim to track the S&P 500 Paris-Aligned Climate Index.
Franklin LibertySharesTM 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 US $8 billion in assets under management globally as of 30 June 2020.
For more information on the Franklin LibertySharesTM ETF range please visit: www.libertyshares.co.uk.
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| STOCK EXCHANGES | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Xetra Ticker | LSE Tickers | Borsa Italiana Ticker | SIX Ticker | Total Expense Ratio (TER) % | |||||
| Fund Name (Paris Aligned Climate ETFs) | ISIN | EUR | GBP | EUR | USD | EUR | EUR | USD | |
| Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF | IE00BMDPBY65 | FLXP | EUPA | PARI | - | EUPA | PARI | - | 0.15% |
| Franklin S&P 500 Paris Aligned Climate UCITS ETF | IE00BMDPBZ72 | FLX5 | 500P | - | USPA | USPA | - | USPA | 0.15% |
Notes to Editors:
- Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation operating, together with its subsidiaries, as Franklin Templeton. Franklin Templeton’s goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes, including equity, fixed income, alternatives and custom multi-asset solutions. The company’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With employees in over 30 countries, the California-based company has more than 70 years of investment experience and over $622 billion at in assets under management as of June 30, 2020. For more information, please visit www.franklintempletonnordic.com.
- Franklin S&P 500 Paris Aligned Climate UCITS ETF and Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF are sub-funds 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 LibertySharesTM UCITS ETF range entails risks which are described in the prospectus, its supplements and in the relevant Key Investor Information Document. The value of investments 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.
Franklin LibertySharesTM 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.
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 International Services S.à r.l. FTIS is authorised and regulated in the Luxembourg by the Commission de Surveillance du Secteur Financier and is authorized to conduct certain financial services in the European Economic Area including Denmark, Sweden and Finland. The ETF is only registered in Denmark, Sweden and Finland. Swedish, Finnish and Danish investors should contact Franklin Templeton International Services S. à r.l., Swedish Branch, filial: Nybrokajen 5, SE-111 48 Stockholm, Sweden. Phone: +46 (0) 8 545 01230 , Fax: +46 (0) 8 545 01239 , E-mail: [email protected]. Franklin Templeton International Services S.à r.l. Swedish Branch, filial is authorized to conduct certain financial activities in Sweden under supervision of the Finansinspektionen.
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