Franklin Templeton Launches New Emerging Markets Paris Aligned Climate ETF For European Investors

Franklin Templeton Launches New Emerging Markets Paris Aligned Climate ETF For European Investors

• Fourth in the climate ETF range, new strategy offers a core sustainable solution to meet de-carbonisation goals
• New Article 8 ETF aligns with the Paris Climate Agreement and invests in emerging market securities transitioning to low carbon

London, 9^th March 2023 – Franklin Templeton¹ is pleased to announce the launch of its new Franklin MSCI Emerging Markets Paris Aligned Climate UCITS ETF within its Franklin Templeton ETF range. This sustainable ETF is classified as Article 8² under EU SFDR (Sustainable Finance Disclosure Regulation) and is the fourth Paris Aligned Climate ETF in the firm’s range, joining its China, Europe and US funds.

The new ETF will track the MSCI Emerging Markets Climate Paris Aligned Index, an EU Climate Benchmark Index, and will include large and mid-cap stocks across 24 emerging markets that are transitioning to a low carbon economy. It is designed to support investors seeking to reduce exposure to physical climate risks whilst pursuing opportunities arising from the Paris Climate Agreement decarbonisation goals. 

The Franklin MSCI Emerging Markets Paris Aligned Climate UCITS ETF³ will list on the Deutsche Börse Xetra (XETRA) on 10^th March and Borsa Italiana and London Stock Exchange (LSE) on 14^th March. The fund will also be registered in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Spain, Sweden and the UK.

Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton, commented: “We are delighted to add this new ETF to our comprehensive suite of Paris Aligned Climate ETFs, which will help investors across Europe transition their assets in line with the Paris Accord. Providing access to distinct opportunities in emerging markets at a competitive fee, this ETF reduces climate risk exposure by investing in companies providing solutions to mitigate climate change as well as those improving their resilience to its consequences, giving them a long-term competitive advantage.”

“With global temperatures on the rise and massive investment needed to reduce carbon emissions amid today’s rising energy needs, emerging markets play an important role in achieving net zero. We believe this new ETF can be a core sustainable investment solution for those looking to tap into this exciting growth story.”  

Competitive fees

With a total expense ratio (TER⁴) of 0.18%, a competitive fee for its respective category in Europe, the new ETF will provide European investors with a cost-efficient, UCITS-compliant, equity exposure to large and mid-capitalisation stocks in emerging markets pursuing decarbonisation opportunities.

Rafaelle Lennox, Head of UCITS ETF Product Strategy, Franklin Templeton, added: “Just like our first Paris Aligned ETFs that we launched in 2020, we have selected a key EM benchmark utilised by our clients, MSCI Emerging Markets Index. With this ETF tracking the MSCI Emerging Market Climate Paris Aligned Index, our investors will be able to align their core Emerging Market equity holdings to the Paris Climate Agreement, and thus reduce their exposure to climate change risks as well as capture opportunities related to low carbon transition. Furthermore, by partnering with MSCI’s leading carbon data specialists, this sustainable ETF leverages the latest scientific research to provide a more insightful and robust assessment of climate-related risks and opportunities, both today and in the future.”

This ETF 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.

Ting added: “The EU Action Plan has three main objectives to drive the EU transition to a green economy, namely - reorienting capital flows towards sustainable investment, mainstreaming sustainability into risk management and fostering transparency and long-termism. This will require significant investment in infrastructure, energy and technology. An estimated €180 billion⁵ of additional investment will be needed each year to achieve 1.5ºC scenario. Our Article 8 ETF enables European investors to take part in this significant opportunity and further deepens Franklin Templeton’s wide range of sustainable products.”

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 over $14 billion in assets under management globally as of 31 January 2023.

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

Ticker Information:

Stock Exchanges
		Xetra Ticker	LSE Tickers		Borsa Italiana Ticker
Fund Name	ISIN	EUR	GBP	USD	EUR
Franklin MSCI Emerging Markets Paris-Aligned Climate UCITS ETF	IE000QLV3SY5	FVEM	EMPR	PABE	FREP

 

Contacts:

Alina Ulkina Corporate Communications Manager Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 07900900184 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]

Notes to Editors:

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID 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 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 31 January 2023. For more information, please visit www.franklintempleton.co.uk.

2. 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 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.

3. Franklin MSCI Emerging Markets Paris-Aligned Climate UCITS ETF is a sub-fund 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 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 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.

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.

4. 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.
5. European Commission Action Plan.

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.              

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