CONTACT
Franklin Templeton
Saira Khan
+44 20 7073 8538
New Article 9 ETF aligns with the Paris Climate Agreement and invests in Chinese securities offering exciting decarbonisation opportunities
London, 14 June 2022 – Franklin Templeton1 is pleased to announce the launch of its new smart beta MSCI China Paris-Aligned Climate UCITS ETF within its Franklin LibertySharesTM range2. This is the third EU SFDR Article 93 compliant Paris-Aligned Climate strategy in the range.
The new ETF will track the EU Climate Benchmark PAB and MSCI China Climate Paris-Aligned Indices and includes large and mid-cap Chinese equity securities. Designed to support investors seeking to reduce their exposure to transition and physical climate risks, the index will overweight Chinese companies transitioning to a lower-carbon economy whilst ensuring full alignment with the decarbonisation goals of the Paris Climate Agreement.
The Franklin MSCI China Paris Aligned Climate UCITS ETF4’ will list on the Deutsche Börse Xetra (XETRA) on 15 June and the Borsa Italiana and London Stock Exchange (LSE) on 17 June. The fund will be registered in Austria, France, Germany, Ireland, Italy, Spain, the UK and Nordics.
Caroline Baron, Head of ETF Business Development, EMEA, Franklin Templeton commented: “We are delighted to add this new MSCI China Paris-Aligned Climate ETF at a competitive fee to our suite of Paris-Aligned Climate ETFs. The ETF is a natural extension of the Paris-Aligned Climate ETF product range we launched two years ago and provides exciting growth opportunities in Chinese stock markets by investing in securities transitioning to a low carbon economy. Aligned with the EU Climate Benchmark Regulation, it will additionally offer investors key standardisation, transparency and reporting benefits and should appeal to a wide range of European investors seeking more sustainable investment solutions.”
Competitive fees
With a total expense ratio (TER5) of 0.22%, a competitive fee for its respective category in the Europe, the new ETF will provide European investors with cost-efficient, UCITS-compliant, equity exposure to large and mid-capitalisation stocks in China pursuing decarbonisation opportunities.
Rafaelle Lennox, Vice President, Senior ETF Product Specialist, Franklin Templeton added: “By starting with a key benchmark like MSCI China, investors can align their core China equity holdings to the Paris Climate Agreement and reduce their exposure to climate change risks and capture opportunities in the low carbon transition. Additionally, the Paris-Aligned indices have a broader environmental, social, and governance (ESG) component with the exclusion of multiple factors like tobacco, fossil fuel producers, and violators of the UN Global Compact principles, amongst other factors, thus creating a core sustainable solution.”
This smart beta fund will be managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager at Franklin Templeton who have more than three decades of combined experience in the asset management industry and extensive track records in managing ETF strategies.
Julian Ide, Head of EMEA distribution, Franklin Templeton said: “We are very pleased to add this MSCI China Paris-Aligned Climate ETF to our LibertyShares™ product suite. Franklin Templeton has been an early provider of smart beta Paris-Aligned Climate UCITS ETFs in Europe and this sustainable, competitively priced Article 9 ETF should enable European investors to align their portfolios with the decarbonisation goals of the Paris Climate Agreement whilst tapping Chinese equity markets. China remains a key emerging market equity holding for our clients and an important player in the broader global green transition.”
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.
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Xetra Ticker |
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Borsa Italiana |
Total Expense Ratio (TER) % |
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Fund Name (Paris Aligned Climate ETFs) |
ISIN |
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Franklin MSCI China Paris Aligned Climate UCITS ETF |
IE000EBPC0Z7
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FVCH |
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PABC |
FRCP |
.22% |
Contacts:
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Saira Khan |
Dorine Johnson |
Notes to Editors:
This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.
- 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.
- Franklin LibertySharesTM, the firm’s global ETF platform, enables investors to pursue their desired outcomes through a range of active, smart beta and passive ETFs. LibertySharesTM has more than $12 billion in assets under management globally as of 30 April 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
- This fund has been classified as Article 9 under the Regulation on sustainability related disclosures in the financial services sector (EU) 2019/2088. These are Funds which have an ESG integration approach, have binding environmental and/or social characteristics and a clear sustainable investment objective. 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.
- Franklin MSCI China Paris Aligned Climate UCITS ETF is a sub-fund of the Franklin LibertyShares ICAV, an Irish Collective Asset-managed Vehicle, incorporated under the laws of Ireland.
<`br /> 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.
<`br /> 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 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.
<`br /> 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 LibertySharesTM ICAV.
<`br /> 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. - 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.
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