Firm taps global managers with established ESG expertise for new active equity and fixed-income ETFs
Following previously announced plans, Franklin Templeton Canada has launched three sustainable ETFs on the TSX.
The Franklin Brandywine Global Sustainable Income Optimiser Active ETF (FBGO), which invests primarily in units of Franklin Brandywine Global Income Optimiser Fund, is a global fixed-income strategy. Aside from integrating ESG, it seeks attractive income generation and total return while guarding against downside risks.
“As investors reach for yield in a low-rate environment, this fixed income solution provides upside potential of return-seeking fixed income, while maintaining defensive characteristics of core-like bond exposures to manage risk," said Tad Fetter, head of Global Sales & Client Services at Brandywine Global.
Meanwhile, the Franklin ClearBridge Sustainable Global Infrastructure Income Active ETF (FCII ) invests primarily in units of Franklin ClearBridge Sustainable Global Infrastructure Income Fund. With a focus on providing predictable income throughout the economic cycle, FCII concentrates on income-generating assets globally whose cash flows are underpinned by regulation or long-term contracts rather than by economic conditions.
Finally, the Franklin ClearBridge Sustainable International Growth Active ETF (FCSI) primarily invests in units of Franklin ClearBridge International Growth Fund. Investing in equity securities of sustainable issuers outside Canada and the U.S., FCSI invests in quality businesses across the spectrum of growth. With a bottom-up investment approach, it capitalizes in mispricing of stocks and promoting sustainability through shareholder action.
“Our managers are focused on steadfast active management and robust risk management, inclusive of ESG integration and company engagement,” said Vinay Nadkarni, managing director and head of Global Business Development, ClearBridge Investments.
“As we begin a new era for our firm in Canada following the acquisition of Legg Mason, we continue to bring top-performing strategies1 and decades of sustainability expertise from our boutique investment managers to Canadian investors,” said Franklin Templeton Canada President and CEO Duane Green. “We believe that sustainable investing can deliver long-term value, enable stronger investment performance and provide better outcomes for our clients.”