Franklin Templeton enters ETF portfolio fray

Franklin Templeton enters ETF portfolio fray

Franklin Templeton enters ETF portfolio fray

Multi-asset portfolios have been a hit among many Canadian advisors and investors who want a simple solution to invest in ETFs. And with the arrival of three new multi-asset ETF portfolios from Franklin Templeton, such consumers will be even more spoiled for choice.

Managed by Franklin Templeton Multi-Asset Solutions, each portfolio is an actively managed mutual fund that offers access to active, smart-beta, and passive ETFs that span multiple asset classes and geographies.

“Many investors are overwhelmed by the choice of ETFs available in the Canadian market," said Duane Green, president and CEO, Franklin Templeton Investments Canada.

“We are making it simple by offering multi-asset ETF portfolios to help advisors and investors avoid having to make asset allocation and rebalancing decisions, in addition to managing the complexities of trading ETFs and currency hedging.”

The three diversified portfolios are:

  • Franklin Conservative Income ETF Portfolio - seeking high current income with some long-term capital appreciation, it invests primarily in ETFs that hold Canadian, US and international equity and fixed income securities;
  • Franklin Core ETF Portfolio – aiming for a balance between long-term capital appreciation and income with a focus on long-term capital appreciation, the portfolio invests mainly in ETFs that hold Canadian, U.S. and international equity and fixed income securities; and
  • Franklin Growth ETF Portfolio - offers long-term capital appreciation with additional stability derived from income. It invests primarily in a diversified mix of ETFs whose holdings include Canadian, US, and international equity and fixed- income securities.

Each portfolio will include active, smart-beta, and passive products from the Franklin LibertyShares ETFs line-up, as well as third-party ETFs. They are managed through a dynamic asset-allocation and ETF selection process, with an additional focus on risk and currency-exposure management.

"These portfolios are designed to make ETFs accessible to all Canadian advisors and investors, while being offered at an attractive fee of 40bps for series F," Green said.

The Franklin Multi-Asset Portfolios well be co-managed by Ian Riach, SVP and portfolio manager, and Michael Greenberg, VP and portfolio manager of Franklin Templeton Multi-Asset Solutions. Riach has 33 years of industry experience under his belt, 19 of which was spent with the firm; Greenberg has 16 years of experience and has been with the firm for 12.

Franklin Templeton’s Canadian rollout of ETF portfolios comes roughly a week after the firm launched its first passive ETFs for the Canadian market.

 

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