– New suite includes first Japan passive ETF and Europe (ex. U.K.) passive ETF available on a Canadian exchange –
TORONTO, Feb. 20, 2019 /CNW/ - Franklin Templeton today announced the expansion of its Franklin LibertyShares ETF offerings in Canada with its first suite of passive ETFs, providing investors exposure to a specific region or country at a low fee. The management fees for these new Canada, United States, Japan and Europe (excluding U.K.) passive ETFs are amongst the lowest in the industry, ranging between 5 to 9 bps.
Franklin Templeton's employees will gather to ring the Toronto Stock Exchange's opening bell today to celebrate the expansion of the firm's ETF offerings – and the first Japan passive ETF and Europe (excluding U.K.) passive ETF available on a Canadian exchange.
"With market-moving events like trade tensions and Brexit, investors and their advisors as well as institutional investors are looking to precisely act upon specific country and regional market views," said Duane Green, president and CEO, Franklin Templeton Investments Canada. "These new passive ETFs provide Canadian investors with individual country and regional exposure options – including the first Japan ETF and Europe ETF that excludes the U.K. – at a very low cost."
Franklin FTSE Canada All Cap Index ETF (FLCD) invests primarily in equity securities of Canadian issuers, seeking to replicate the performance of FTSE Canada All Cap Domestic Index. The management fee is 5 bps.
Franklin FTSE U.S. Index ETF (FLAM) invests primarily in equity securities of mid- and large-capitalization U.S. issuers, seeking to replicate the performance of FTSE USA Index. The management fee is 7 bps.
Franklin FTSE Japan Index ETF (FLJA) invests directly or indirectly, primarily in equity securities of mid- and large-capitalization Japanese issuers, seeking to replicate the performance of FTSE Japan Index. The management fee is 9 bps.
Franklin FTSE Europe ex U.K. Index ETF (FLUR) invests primarily in equity securities of mid- and large-capitalization issuers in developed markets in Europe excluding the United Kingdom, seeking to replicate the performance of FTSE Developed Europe ex U.K. Index. The management fee is 9 bps.
"Following the popularity of our competitively-priced passive ETFs listed in the U.S. on the NYSE, we are now offering similar passive ETFs in Canada on the TSX – with some of the lowest pricing across the board," said Patrick O'Connor, head of global ETFs, Franklin Templeton. "The addition of passive ETFs to our active and smart beta ETF suites, provides Canadians with a broader array of investment options to help them construct portfolios designed to reach their desired outcomes."
Franklin LibertyShares' passive ETFs are market cap-weighted and benchmarked to country and regional indices from FTSE Russell, leveraging the global index provider's capabilities and expertise across developed markets. FTSE Russell is one of the largest index providers in the marketplace globally, with approximately US$16.2 trillion in assets currently benchmarked to its indexes.
The new passive ETF line-up will be managed by Dina Ting, VP, head of Global Index Portfolio Management and senior portfolio manager, based in San Mateo, California, who also manages the firm's smart beta ETFs.
Franklin LibertyShares, Franklin Templeton's global ETF platform, enables investors to build portfolios aligned to their goals with a range of active, smart beta and passive ETFs. Franklin LibertyShares has more than US$2.4 billion in assets under management globally as of January 31, 2019 and is supported by the strength and resources of one of the world's largest asset managers. For more information, please visit franklintempleton.ca/etf.
About Franklin Templeton
Franklin Templeton Investments Corp. (known as Franklin Templeton Investments Canada) is a subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment management organization operating as Franklin Templeton. Franklin Templeton's goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes, including equity, fixed income, alternatives and custom multi-asset solutions. The company's more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With employees in over 30 countries, the California-based company has more than 70 years of investment experience and over US$678 billion (over C$890 billion) in assets under management as of January 31, 2019.
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Commissions, management fees and expenses may all be associated with investments in ETFs. Investors should carefully consider an ETF's investment objectives and strategies, risks, fees and expenses before investing. The prospectus and ETF facts contain this and other information. Please read the prospectus and ETF facts carefully before investing. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF's net asset value. Brokerage commissions and ETF expenses will reduce returns. Performance of an ETF may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors. ETFs are not guaranteed; their values change frequently and past performance may not be repeated.
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For further information: Media Contact: Sarah Kingdon, Corporate Communications, Franklin Templeton, 416.957.6191, [email protected]