Franklin Templeton to Launch Two New Fixed Income ETFs

From Franklin Templeton Investments
Contact Mel Shelley
Telephone (0)20 70738541

New funds: Franklin Liberty Euro Short Maturity UCITS ETF & Franklin Liberty USD Investment Grade Corporate Bond UCITS ETF

London – 20 June 2018 – Franklin Templeton Investments is introducing two actively managed fixed income ETFs to its Franklin LibertySharesTM UCITS ETF2 range in the UK. The funds are registered and will be listed on the London Stock Exchange (LSE) on 27th June 2018.

The new active fixed income ETFs have a focus on income generation:

  • Franklin Liberty Euro Short Maturity UCITS ETF aims to provide income whilst maximising total returns in the Euro-denominated short term fixed income market primarily by investing in European short-term debt securities and investments. The fund will be managed by London based David Zahn, Head of European Fixed Income and Rod Macphee, Portfolio Manager.
  • Franklin Liberty USD Investment Grade Corporate Bond UCITS ETF aims to provide income from the USD fixed income market whilst seeking to preserve capital through investing primarily in U.S. dollar denominated corporate debt securities issued by U.S. and foreign companies. Assets are allocated among a range of market sectors with at least 80% being invested in fixed and floating rate investment grade corporate debt securities and investments. The fund will be managed by New York based Marc Kremer, Portfolio Manager and San Mateo based Shawn Lyons, Portfolio Manager.

Caroline Baron, Head of ETF Sales EMEA, said:
“In a persistently low-yield environment and with several inefficiencies present in the bond market, investors are faced with seeking new ways to generate income and diversify their portfolios.

Traditional debt-issuance weighted ETFs continue to grow in popularity but often face the challenge of being biased towards the biggest debtors or potentially suffering from the effects of ‘crowded trades’ as constituents of an index change. As a result, many investors are turning to actively managed fixed income ETFs with the ultimate objective of achieving true diversification.

The Franklin Liberty Euro Short Maturity UCITS ETF & Franklin Liberty USD Investment Grade Corporate Bond UCITS ETF combine access to Franklin Templeton Fixed Income Group’s time-tested investment expertise with key ETF features, such as liquidity, competitive pricing and transparency.”

David Zahn, Head of European Fixed Income, added:
“I am excited to be launching the Franklin Liberty Euro Short Maturity UCITS ETF, an actively managed short-term European fixed income ETF that offers exposure to high quality European short maturity bonds with a yield and return advantage over cash equivalent investments. As active managers, we have the flexibility to pursue investment opportunities that are beyond the fund’s benchmark index to help identify the most attractive securities to invest in.”

The Franklin LibertySharesTM UCITS ETF range offers investors access to a suite of five actively managed smart beta equity ETFs and now two active fixed income funds.

The two new actively managed fixed income ETFs will trade on the LSE from 27th June 2018 and will be denominated in GBP as well as their respective base fund currency.

LSE Tickers
Fund NameISINGBPUSDEUR
Franklin Liberty USD Investment Grade Corporate Bond UCITS ETF IE00BFWXDX52 FRUC FLUC n/a
Franklin Liberty Euro Short Maturity UCITS ETF IE00BFWXDY69 FRXE n/a FLES

Franklin LibertySharesTM ETFs has more than $1.5 billion in assets under management globally as of April 30, 2018. For more information, please visit our Franklin LibertySharesTM page.

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Franklin Templeton to Launch Two Fixed Income ETFs (PDF)

Notes to Editors:

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides 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, alternative and custom solutions. The company’s more than 650 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in over 30 countries, the California-based company has 70 years of investment experience and over $732 billion in assets under management as of 31 May 2018. 

2. The Franklin LibertySharesTM UCITS ETF funds 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 ETFs entails risks which are described in the prospectus, its supplements and in the relevant Key Investor Information Document. The value of investments and income received from them 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 Investments and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton Investments makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton Investments 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 Investments 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.