Franklin Templeton Investments has introduced its Franklin LibertyShares range to UK investors with the launch of its first suite of smart beta ETFs.
The four equity smart beta ETFs listed today on the London Stock Exchange, and the Franklin LibertyQ UCITS ETF range will offer investor access to the Franklin LibertyQ indices. The indices are constructed by weighting four factors – quality; value; momentum and volatility. The four funds are designed to seek higher risk adjusted returns and lower volatility than their investment universes.
The range includes two multi-factor equity funds which have a specific focus on quality stocks. The Franklin LibertyQ Global Equity SRI UCITS ETF invests in stocks globally that are considered to be environmentally/socially responsible, and tracks the performance of the LibertyQ Global Equity SRI Index. Meanwhile, the Franklin LibertyQ US Equity UCITS ETF invests in large and mid-capitalisation stocks in the US, tracking the performance of the LibertyQ US Large Cap Equity Index.
The two income focused funds in the range which invest in stocks demonstrating high and persistent dividend income are the Franklin LibertyQ Global Dividend UCITS ETF, and the Franklin LibertyQ European Dividend UCITS ETF. The global fund invests in high quality stocks globally and tracks the performance of the LibertyQ Global Dividend Index, and the European fund invests in high quality stocks in developed countries in Europe. It tracks the performance of the LibertyQ European Dividend index.
Head of global ETFs at Franklin Templeton, Patrick O’Connor, said: “Our strategic goal, three years in the making, has been to build a world class global ETF platform. Following successful launches in the US and Canada, we are very excited to bring our Franklin LibertyShares™ ETF platform to Europe.
“Our first European offerings aim to help investors achieve specific investment outcomes such as strong risk-adjusted returns, lower volatility and downside protection.”
The portfolio management team will be made up of vice president, senior portfolio manager of the global ETFs group, Dina Ting, and vice president, ETF portfolio manager Lorenzo Crosato, who are based in San Mateo and London respectively.
UK country head, Martyn Gilbey, added: “Many investors have already embraced the ETF wrapper for its benefits, including low cost, liquidity, tax efficiency, and transparency. We are therefore pleased to offer UK investors access to these new smart beta ETFs which complement our existing product range.”
The new Smart Beta ETFs begin trading on the London Stock Exchange today (8 September 2017), denominated in GDP and their base fund currency respectively.
Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in more than 150 countries.