Franklin Templeton Launches FTSE Japan ETF for European Investors

• At 9 basis points, the new passive ETF gives investors access to more than 500 Japanese companies across a diverse range of industries
• With $6 trillion in market capitalisation, Japanese equities can be used as a core building block within an investor’s portfolio

London, 29 July 2024 – Franklin Templeton¹ is pleased to announce the launch of its new Franklin FTSE Japan UCITS ETF². This offering is the first Japan index tracking ETF in the Franklin Templeton ETF range and brings the total number of its indexed ETFs to 22.

The Franklin FTSE Japan UCITS ETF invests in large and mid-capitalisation stocks in Japan. It is passively managed and tracks the performance of the FTSE Japan Index – NR (Net Return), a market-capitalisation weighted index representing the performance of large and mid-cap companies in Japan aiming to capture 90%³ of the investable Japanese equity market universe.

Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton, said: “We are pleased to offer this new, single country index tracking Japan equity UCITS ETF to European investors. Investors can now gain diversified exposure to more than 500 Japanese companies across a wide range of industries.”

“The Japanese equity market is the second largest equity market in Asia-Pacific and the largest developed market in the region. Following decades of deflationary tendencies, Japan’s central bank recently stated it sees a virtuous cycle between wages and prices intensifying, which should further help to bolster consumption and investments. The country’s strong position on the global technology supply chain, including semiconductors, along with a renewed focus on corporate governance and shareholder value should also bode well for the domestic equity market.”

The Franklin FTSE Japan UCITS ETF² will list on the Deutsche Börse Xetra (XETRA) on 30 July 2024, London Stock Exchange (LSE) and Euronext Amsterdam on 31 July 2024, and the Borsa Italiana on 4 September 2024. It is registered in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Spain, Sweden and the United Kingdom.

Competitive fees and tenured managers

The new ETF will provide European investors with cost-efficient, UCITS-compliant, Japanese equity exposure at one of the lowest total expense ratios (TER⁴) of 0.09% in Europe for its respective category. It will be managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager, Franklin Templeton, who have more than three decades of combined experience in the asset management industry and extensive track records in managing ETF strategies.

Matthew Harrison, Head of Americas (ex-US), Europe & UK, Franklin Templeton, said: “Following the launch of the Franklin FTSE Developed World UCITS ETF a few weeks ago, we are delighted to expand our offering of core equity index tracking products with the launch of this new, low-cost FTSE Japan ETF. With $6 trillion⁵ in market capitalisation and Japanese market returns expected to recover, Japanese equities can be a core equity building block option within an investor’s portfolio.”

Franklin Templeton’s global ETF platform enables investors to pursue their desired outcomes through a range of indexed and active ETFs. Supported by the strength and resources of one of the world’s largest asset managers, the global ETF platform has approximately $27 billion in assets under management globally as of 30 June 2024.

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

Stock Exchanges
		Xetra Ticker	LSE Tickers		Borsa Italiana Ticker	Euronext Amsterdam Ticker
Fund Name	ISIN	EUR	USD	GBP	EUR	EUR
Franklin FTSE Japan UCITS ETF	IE000D0T0BO1	FLXJ	FLXJ	JAPN	JAPAN	FLXJ

- ENDS –

Alina Ulkina  Corporate Communications Manager Franklin Templeton Tel: +44 790 090 0184 Email: [email protected]

Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Tel: + 44 207 073 8538 Email: [email protected]

Notes to Editors:

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID/KID before making any final investment decisions.

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 150 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 specialisation on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.6 trillion in assets under management as of 30 June 2024. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, X, and Facebook.
2. Franklin FTSE Japan UCITS ETF is a sub-fund of the Franklin Templeton ICAV, an Irish Collective Asset-managed Vehicle, incorporated under the laws of Ireland.
3. FTSE, June 2024.
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. Bloomberg, May 2024.

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 ICAV 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. Significant fund risks include: Index License Risk: To utilise an Index, the Fund may need to have a licence agreement signed with the Index Provider. If, at any time in respect of an Index, the licence granted terminates or disputed, impaired or ceases to exist ,the Directors may be forced to replace the Index with another Index. Such a substitution or any delay in such a substitution may have an adverse impact on the Sub-Fund. Index related risk: the risk that quantitative techniques used in creating the Index the Fund seeks to track do not generate the intended result, or that the portfolio of the Fund deviates from its Index composition or performance. Index Tracking Risk: No financial instrument or set of investment techniques enables the returns of any Index to be reproduced or tracked exactly. Changes in the investments of any Sub-Fund and re-weightings of the relevant Index may give rise to various transaction costs, operating expenses or inefficiencies which may adversely impact a Sub-Fund's tracking of an Index. Passive Investment Risk: An Index Tracking Sub-Fund will be negatively affected by general declines in the securities and asset classes represented in its Index. Because Index Tracking Sub-Funds are not “actively” managed, Market disruptions and regulatory restrictions could have an adverse effect on an Index Tracking Sub-Fund's ability to adjust its exposure to the required levels. Foreign Exchange Hedging Risk: Hedging transactions are designed to reduce, as much as possible, the currency risk for investors. No intentional leveraging should result from currency hedging transactions. There is no guarantee that attempts to hedge currency risk will be successful and no hedging strategy can eliminate currency risk entirely. Should a hedging strategy be incomplete or unsuccessful, the value of that Sub-Fund's assets and income can remain vulnerable to fluctuations in currency exchange rate movements. For a full discussion of all the risks applicable to this Fund, please refer to the “Risk Considerations” section of the current prospectus of Franklin Templeton ICAV.

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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.

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