Franklin Templetons Full ETF Range is Now Accessible to Investors in Luxembourg

21 competitively priced UCITS ETFs available to Luxembourg investors, of which one is classified as article 9 and seven are classified as article 8 under EU SFDR 

Luxembourg and London, 15 May 2023 – Franklin Templeton¹ has registered all 21 UCITS ETFs from its Franklin Templeton ICAV range² on 12 May for Luxembourg investors as part of the firm’s expansion plans in the European ETF market and in response to growing client demand for ETF solutions. These 21 UCITS ETFs span across a full spectrum of sustainable, passive, actively managed fixed income ETFs, smart beta and thematic products, including:

• ETFs that provide exposure to the de-carbonisation goals of the Paris Climate Agreement
• Emerging Markets access at a low cost
• Exposure to green bonds and active fixed income
• A smart beta suite composed of regional multi-factor and dividend ETFs
• Cost-efficient thematic exposure to the metaverse
• A unique Catholic Principles Fixed Income product.

Guillaume Dambrine, Senior ETF Sales Specialist for France, Belgium and Luxembourg, Franklin Templeton, commented: “Registering our UCITS ETF range in Luxembourg is an important step for us given the vast potential of its ETF market, which has been growing in line with the European ETF market at a CAGR 29% since 2008³. Luxembourg is one of the major European wealth and asset management markets with one of the biggest concentration of funds of funds in Europe. ETFs are particularly well suited for fund of fund vehicles as they enable tactical and precise allocations, among all asset classes and regions, at a competitive cost, thus making it appealing for us to expand in this market.”

Bérengère Blaszczyk, Head of Distribution - France, Benelux & Nordics, Franklin Templeton, added: “We are excited that our competitively priced and comprehensive UCITS ETF range has been registered in Luxembourg. Franklin Templeton has a strong and long-standing presence in Luxembourg in its mutual funds business, and this registration will enable our Luxembourg clients to utilise our ETF range as a component of a diversified portfolio, complementing our traditional active fund management solutions.”

Paris Aligned Climate ETFs

This product suite offers European investors sustainable, low cost and core diversified European, U.S., China and emerging markets 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. These four sustainable Paris Aligned climate ETFs are classified as Article 8⁴ under EU SFDR (Sustainable Finance Disclosure Regulation).

• Franklin S&P 500 Paris Aligned Climate UCITS ETF
• Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF
• Franklin MSCI China Paris Aligned Climate UCITS ETF
• Franklin MSCI Emerging Markets Paris Aligned Climate UCITS ETF

Passive ETFs: Emerging Markets focus

Building on Franklin Templeton’s strong and extensive emerging markets heritage, with over $114 billion⁵ managed across the firm in emerging markets assets, Franklin FTSE Brazil UCITS ETF, Franklin FTSE China UCITS ETF, Franklin FTSE Korea UCITS ETF, Franklin FTSE India UCITS ETF and Franklin FTSE Taiwan UCITS ETF are market-cap weighted, emerging markets country UCITS ETFs, offering the lowest total expense ratios (TER⁶) at 0.19% and 0.09% in Europe (TER is on average 57% lower than other emerging markets country UCITS ETFs⁾ for their respective categories⁷).

Active ETFs: focus on Green Bond

The Franklin Euro Green Bond UCITS ETF is Europe’s first actively managed Euro Green bond ETF with TER of 0.18%*, which provides exposure to bonds supporting low-carbon projects as well as to the broader European green bond market whilst maximising total returns. This active ETF, classified as article 9⁸ under EU SFDR, invests at least 75% of its net assets in green-labelled bonds, with the remaining balance made up of climate-aligned bonds.

Two fixed income focused funds, which invest primarily in U.S. dollar-denominated corporate debt securities issued by U.S. and foreign companies and Euro-denominated short-term debt securities and investments, respectively, are part of the offering:

• Franklin USD Investment Grade Corporate Bond UCITS ETF 
• Franklin Euro Short Maturity UCITS ETF (article 8 under EU SFDR)

Other products in the range include a suite of seven smart beta ETFs covering emerging markets, U.S., European, Asian and global equity multi-factor strategies, two of which have a dividend focus. In addition, there is also a Catholic Principles Fixed Income ETF (Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF), and a thematic ETF (Franklin Metaverse UCITS ETF) which provides equity exposure to listed companies around the world that are involved in the metaverse and has the lowest TER of 0.30% in Europe in its respective category.

Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton, said: “Guillaume Dambrine joined Franklin Templeton in May 2022 to expand our ETF business in France and other Francophone areas within EMEA. Our ambition is to become a top 10 European ETF provider by continuing the build-up of our ETF platform focusing on fixed income, sustainability and thematics. We are strongly positioned for the future and believe that entering the Luxembourg market now will help us grow further. This region has traditionally been using ETFs for a long time and professional investors tend to be knowledgeable and keen to use ETFs. We are excited to increase our regional coverage and look forward to working with investors in Luxembourg.”

The ETFs are listed on the Deutsche Börse, the London Stock Exchange, Borsa Italiana, Swiss Stock Exchange SIX, and eight are currently listed on Euronext Amsterdam, thus making them available for both Euro and Sterling denominated trading but also in U.S. dollars where relevant.

Franklin Templeton’s global ETF platform enables investors to pursue their desired outcomes through a range of active, factor-based and passive ETFs. Supported by the strength and resources of one of the world’s largest asset managers, the global ETF platform has approximately $15 billion in assets under management globally as of 30 April 2023.

For more information on the Franklin Templeton ETF ICAV range please visit: www.franklintempleton.lu.

Fund Name	ISIN	Primary Ticker	Total Expense Ratio (TER6) %	SFDR
Fund Name (smart beta/ multi-factor/smart ETFs)
Franklin AC Asia ex Japan UCITS ETF	IE00BFWXDV39	FVSJ	0.40%
Franklin Emerging Markets UCITS ETF	IE00BF2B0K52	FLXE	0.45%
Franklin European Dividend UCITS ETF	IE00BF2B0L69	FLXD	0.25%
Franklin European Equity UCITS ETF	IE00BFWXDW46	FVUE	0.25%
Franklin Global Dividend UCITS ETF	IE00BF2B0M76	FLXX	0.45%
Franklin Global Equity SRI UCITS ETF	IE00BF2B0N83	FLXG	0.40%	Article 8
Franklin U.S. Equity UCITS ETF	IE00BF2B0P08	FLXU	0.25%
Fund Name (active fixed income ETFs)
Franklin Euro Green Bond UCITS ETF	IE00BHZRR253	FLRG	0.18%*	Article 9
Franklin USD Investment Grade Corporate Bond UCITS ETF	IE00BFWXDX52	FVUI	0.35%
Franklin Euro Short Maturity UCITS ETF	IE00BFWXDY69	FVSH	0.05%**	Article 8
Fund Name (passive ETFs)
Franklin FTSE Brazil UCITS ETF	IE00BHZRQY00	FLXB	0.19%
Franklin FTSE China UCITS ETF	IE00BHZRR147	FLXC	0.19%
Franklin FTSE India UCITS ETF	IE00BHZRQZ17	FLXI	0.19%
Franklin FTSE Korea UCITS ETF	IE00BHZRR030	FLXK	0.09%
Franklin FTSE Taiwan UCITS ETF	IE000CM02H85	FRXT	0.19%
Fund Name (Paris Aligned Climate ETFs)
Franklin S&P 500 Paris Aligned Climate UCITS ETF	IE00BMDPBZ72	USPA	0.07%***	Article 8
Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF	IE00BMDPBY65	PARI	0.15%	Article 8
Franklin MSCI China Paris Aligned Climate UCITS ETF	IE000EBPC0Z7	CHPA	0.22%	Article 8
Franklin MSCI Emerging Markets Paris Aligned Climate UCITS ETF	IE000QLV3SY5	EMPR	0.18%	Article 8
Fund Name (Thematic ETF)
Franklin Metaverse UCITS ETF	IE000IM4K4K2	METU	0.30%
Fund Name (Catholic Principles Fixed Income ETF)
Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF	IE000YZIVX22	CPRI	0.35%	Article 8

* The total expense ratio (TER) for the Franklin Euro Green Bond UCITS ETF was lowered by 12 basis points to 18 basis points effective until 30 April 2024.
** The total expense ratio (TER) for the Franklin Euro Short Maturity UCITS ETF was lowered by 25 basis points to 5 basis points effective until 30 June 2023.
*** The total expense ratio (TER) for the Franklin S&P 500 Paris Aligned Climate UCITS ETF was lowered by 8 basis points to 7 basis points effective until 31 May 2023.

Contacts:

Sandra Berggren Senior Marketing Specialist, Nordic Region & Benelux Email: [email protected]

Alina Ulkina Corporate Communications Manager Email: [email protected]

Notes to Editors:

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 specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of 30 April 2023. For more information, please visit franklintempleton.lu.  
2. Franklin FTSE Brazil UCITS ETF, Franklin FTSE China UCITS ETF, Franklin FTSE Korea UCITS ETF, Franklin FTSE India UCITS ETF, Franklin FTSE Taiwan UCITS ET, Franklin Euro Green Bond UCITS ETF, Franklin USD Investment Grade Corporate Bond UCITS ETF, Franklin Euro Short Maturity UCITS ETF, Franklin AC Asia ex Japan UCITS ETF, Franklin Emerging Markets UCITS ETF, Franklin European Dividend UCITS ETF, Franklin European Equity UCITS ETF, Franklin Global Dividend UCITS ETF, Franklin Global Equity SRI UCITS ETF, Franklin U.S. Equity UCITS ETF, Franklin S&P 500 Paris Aligned Climate UCITS ETF, Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF, Franklin MSCI Emerging Markets Paris-Aligned Climate UCITS ETF, Franklin MSCI China Paris Aligned Climate UCITS ETF, Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF and Franklin Metaverse UCITS ETF are sub-funds of the Franklin Templeton 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 Templeton UCITS ETF range entails risks, which are described in the prospectus, its supplements and in the relevant Key Information Document (KID)/Key Investor Information Document (KIID). Please refer to the prospectus of the UCITS and to the KID/KIID before making any final investment decisions.The Fund's documents are available in English, German and French from your local website or can be requested via FT's European Facilities Service which is available at https://www.eifs.lu/franklintempleton.. In addition, a Summary of Investor Rights is available from www.franklintempleton.lu/investor-rights. The summary is available in English. Franklin Templeton ICAV is notified for marketing in multiple EU Member States under the UCITS Directive. Franklin Templeton 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 Templeton ICAV. For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the fund and will not be investing directly in the underlying assets of the fund.

   Franklin Templeton 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.

3. Source: Morningstar data as of 31 December 2022.
4. These funds have been classified as Article 8 under the Regulation on sustainability related disclosures in the financial services sector (EU) 2019/2088. These are Funds which have an ESG integration approach, and, in addition, have binding environmental and/or social characteristics in their investment process. 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.
5. Source: Franklin Templeton as of February 28, 2023.
6. 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.
7. Source: Franklin Templeton analysis of Morningstar’s emerging markets country UCITS ETFs as of 28 February 2023.
8. The Franklin Euro Green Bond UCITS ETF 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.

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.

Please consult your financial advisor before deciding to invest. A copy of the latest prospectus, and, if available for this product, the relevant Key Information Document/Key Investor Information Document, the annual report and semi-annual report, if published thereafter can be found, on our website www.ftidocuments.com or can be obtained, free of charge, from Franklin Templeton International Services S.à.r.l. supervised by the Commission de Surveillance du Secteur Financier -8A, rue Albert Borschette L-1246 Luxembourg - Tel: +352-46 66 67-1 - Fax: +352-46 66 76..

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