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What’s New In Investments, Funds? – Franklin Templeton, Schroders

Editorial Staff

2 November 2023

Franklin Templeton
has launched three exchange-traded funds (ETFs). 

The ETFs are called Franklin Sustainable Euro Green Sovereign UCITS ETF, Franklin Sustainable Euro Green Corp 1-5 Year UCITS ETF and Franklin Euro IG Corporate UCITS ETF for European Investors.

These funds extend the total number of active ETFs to six, while 13 ETFs are now classified under the European Union’s Sustainable Finance Disclosure Regulation (SFDR) as Article 8 or 9. They now represent more than half of the overall Franklin Templeton ETF range, the firm said. 

The ETFs will be managed by Franklin Templeton’s European fixed income team.

“The launch of the Franklin Sustainable Euro Green Sovereign UCITS ETF and the Franklin Sustainable Euro Green Corp 1-5 Year UCITS ETF continue to expand our Green bond offering to better address client needs. Our new green bond strategies seek to generate attractive risk-adjusted returns while providing liquidity to projects with environmental benefits,” David Zahn, head of European fixed income, Franklin Templeton, said.

Lotfi Ladjemi at Franklin Templeton is optimistic about the outlook for ETFs, saying that there has been a lot of growth in the industry recently: “ETFs worked well last year in a volatile market and we see continued demand going forward.” In particular, there has been increased demand for ESG focused funds from our clients, he added. See more here. 

Schroders 
has expanded its global transformation range of thematic funds, launching two global equity funds: Schroder ISF Circular Economy, and Schroder ISF Sustainable Infrastructure. 

These funds aim to help navigate sustainability challenges. SISF Circular Economy, which will be managed by Jack Dempsey, targets capital growth via companies that contribute towards a “circular economy.” (That term relates to economic growth no longer being linked to depleting the Earth’s resources.)  

“The global economy currently consumes close to two planet Earths’ worth of resources a year. The imbalance between demand for resources and their supply is unsustainable and change is urgently needed,” Dempsey said. 

SISF Sustainable Infrastructure will be managed by Ashley Thomas. As its name implies, the fund aims to provide capital growth by investing sustainable infrastructure assets, such as in renewable energy, water and waste utilities, rail, and communications. The fund’s investments will align with several UN Sustainable Development Goals (UN SDGs) including Affordable and Clean Energy, Clean Water and Sanitation and contribute towards environmental objectives such as Climate Change Mitigation and Adaptation.  

Both funds are recognised under Article 9 of the Sustainable Finance Disclosure Regulation and form part of Schroders’ Global Transformation Range.