Franklin Templeton launches three new emerging markets solutions

London, 22 October 2024 – Franklin Templeton¹ is pleased to announce the launch of three new emerging markets solutions following demand from clients.  These include the actively-managed Luxembourg-registered Templeton Emerging Markets Ex-China fund², and two Ireland-domiciled passively managed UCITS ETFs, the Franklin FTSE Emerging ex-China UCITS ETF³ and the Franklin FTSE Emerging Markets UCITS ETF³.

Jaspal Sagger, Global Head of Product, Franklin Templeton, said: “Our market and client research has demonstrated that many clients are looking to customise their allocations to China.  We are delighted that clients are now able to manage their Chinese equity exposure separately through these two new ex-China funds alongside our dedicated China-only products. We also recognise that not all clients wish to manage their China allocation separately and prefer to simply seek broad emerging markets exposure.  In this regard, the new Franklin FTSE Emerging Markets UCITS ETF (an indexed ETF) complements the firm’s comprehensive offering of actively managed emerging market products.”

The Templeton Emerging Markets Ex-China fund, which is EU SFDR Article 8 compliant, will aim to invest in emerging markets companies across the world, excluding China, with attractive fundamental characteristics using a valuation aware approach. The fund will be actively managed and have a high conviction portfolio of 40-60 stocks constructed with a bottom-up approach and long-term outlook. It will be co-managed by Singapore-based Chetan Sehgal and Edinburgh-based Andrew Ness, Portfolio Managers at Franklin Templeton Emerging Markets Equity (FTEME) team. The fund is registered in France, Germany, Italy, Spain and United Kingdom. This new fund is for clients interested in an actively managed ex-China offering and is in addition to the team’s longstanding flagship emerging markets equity capability.

Andrew Ness, Portfolio Manager, Franklin Templeton Emerging Markets Equity, commented: “We’re currently at an interesting juncture for emerging markets. With China making up a large portion of the MSCI EM Index, we also see a large opportunity set in countries outside of China such as Brazil, India, South Korea and Taiwan, which are producing leading companies benefitting from rising domestic consumption and those that are powering the global economy. There are strong investment opportunities such as offline and online consumer companies, banking, rising healthcare players and technology to name a few. These opportunities are underpinned by structural growth drivers such as consumer penetration, demographics and digitalisation.”

Both the Franklin FTSE Emerging ex-China UCITS ETF and Franklin FTSE Emerging Markets UCITS ETF will be offer a cost-effective and flexible way to access broad and diversified exposure to large and mid-capitalisation stocks at a TER of 0.11% at launch⁴. These passive ETFs will respectively track the performance of FTSE Emerging ex China Index NR (net return) and FTSE Emerging Index NR. They will be managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager. The ETFs will list on the Deutsche Börse Xetra (XETRA) with tickers EMGM and EXCN on 23 October 2024, London Stock Exchange (LSE) and the Borsa Italiana on 24 October 2024. Furthermore, they are registered in France, Germany, Italy, Luxembourg, Spain and the United Kingdom. These new products will complement the Emerging Markets ETF suite we currently offer, especially on the single-country side, and will empower investors to custom build their portfolios at a cost-efficient price point.

Matt Harrison, Head of Americas (ex-US), Europe & UK, Franklin Templeton, commented: “Building on Franklin Templeton’s rich heritage in emerging markets, we are delighted to introduce these three new emerging markets solutions to investors. Our goal is to provide our clients with many different tools and precision exposures as they seek to construct diversified portfolios; these tools include the choice of approach, style, and vehicle that best suit their objective. These strategies are a significant addition to our range, enabling Investors to implement their allocation preference on the emerging markets side.”

A pioneer in emerging markets investing since 1987, Franklin Templeton is one of the largest asset managers with dedicated emerging markets expertise, with over $44 billion⁵ managed across the firm in emerging markets assets.

New funds	Investment Teams
Templeton Emerging Markets Ex-China fund	Chetan Sehgal and Andrew Ness, Portfolio Managers, FTEME
Franklin FTSE Emerging ex-China UCITS ETF	Dina Ting, Head of Global Index Portfolio Management Lorenzo Crosato, ETF Portfolio Manager
Franklin FTSE Emerging Markets UCITS ETF	Dina Ting, Head of Global Index Portfolio Management Lorenzo Crosato, ETF Portfolio Manager

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

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Contacts:

Shelly Durrant Corporate Communications Manager Franklin Templeton Tel: + 44 207 073 8521 Email: [email protected]

Elena Birjovanu Corporate Communications Manager Franklin Templeton Tel: + 40 725 301 189 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 September 2024. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, X, and Facebook.
2. Templeton Emerging Markets ex-China Fund is a sub-fund of Franklin Templeton Investments Funds (FTIF), a Luxembourg-domiciled SICAV. Subscriptions to shares of FTIF can only be made on the basis of the current prospectus, and, where available, KID/KIID (or any other relevant offering document), accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. The value of shares in FTIF and income received from it can go down as well as up, and investors may not get back the full amount invested.  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. The Fund invests mainly in equity and equity-related securities issued by companies located in emerging countries excluding China. Such securities have historically been subject to price movements, generally due to interest rates, market factors or movements in the equity markets. As a result, the performance of the Fund can fluctuate significantly over relatively short time periods. Other material risks include: Concentration risk: the risk that arises when a fund invests in relatively few holdings, few sectors or a restricted geographic area. Performance may be more volatile than a fund with a greater number of securities. Emerging markets risk: the risk related to investing in countries that have less developed political, economic, legal and regulatory systems, and that may be impacted by political/economic instability, lack of liquidity or transparency, or safekeeping issues. Foreign Currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations. Liquidity risk: the risk that arises when adverse market conditions affect the ability to sell assets when necessary. Such risk may be triggered by (but not limited to) unexpected events such as environmental disasters or pandemics. Reduced liquidity may have a negative impact on the price of the assets. 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 Investment Funds.
3. Franklin FTSE Emerging Markets Ex-China UCITS ETF and Franklin FTSE Emerging Markets UCITS ETF are sub-funds of the Franklin Templeton ICAV, an Irish Collective Asset-managed Vehicle, incorporated under the laws of Ireland. 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 value of shares in the funds and income received from them can go down as well as up and investors may not get back the full amount invested. 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. Other material risks include: 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.
4. TER includes a fee waiver of 0.05% until 31 October 2026. The TER waiver will expire from 1 November 2026. 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. Source: Franklin Templeton.  Data as of 30 September 2024.

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.

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