TORONTO, May 3, 2017 /CNW/ - Franklin Templeton Investments Corp. today introduced its Franklin LibertyShares platform in Canada, with plans to launch an initial suite of two actively managed ETFs and two strategic beta ETFs in the coming weeks. These new ETFs are designed to provide Canadian investors with simple and efficient options to help them pursue their desired investment outcomes.
"Many Canadian investors have embraced ETFs for the benefits of intra-day trading, liquidity, tax-efficiency and transparency. We believe the future of ETF investing is in continuing to provide these foundational benefits while innovating beyond the limitations of passive investments," said Duane Green, president and CEO of Franklin Templeton Investments Canada. "These new ETFs are built on a rigorous investment approach, as they are designed by investment professionals with decades of active management and quantitative experience."
"Building on the success of the US$623 million1 Franklin LibertyShares ETF platform in the U.S., Canada will be the second country to roll-out Franklin designed ETFs, reinforcing the firm's global commitment to this investment vehicle," Green added.
Franklin Liberty actively managed ETFs will feature the specialized expertise of Franklin Templeton investment teams.
"We combine robust investment research from an active manager's perspective, while maintaining the attractive benefits of an ETF structure, to provide Canadians with core and complementary portfolio holdings to meet their investment needs," said Patrick O'Connor, global head of ETFs for Franklin Templeton Investments.
The portfolio managers of these actively managed ETFs have the opportunity to:
- Respond with discretion to market events and operate outside of the confines of traditional benchmark indices.
- Navigate through various market environments when valuations, fundamentals and prices can vary significantly.
- Invest in attractive equity and fixed income opportunities that they believe can outperform the market, including those not included in their respective benchmark indices.
The firm's first two actively managed ETFs, Franklin Liberty Risk Managed Canadian Equity ETF and Franklin Liberty Canadian Investment Grade Corporate ETF, are expected to be listed on the Toronto Stock Exchange (TSX) at market open on May 30, 2017.
Franklin LibertyQT strategic beta ETFs are uniquely constructed as their indices are grounded in both fundamental and quantitative analysis. Each LibertyQT ETF seeks to replicate a systematic, rules-based index that applies four custom factor weightings to its underlying index: quality (50 per cent), value (30 per cent), momentum (10 per cent) and low volatility (10 per cent).
Franklin LibertyQT indices overweight the two greatest indicators of long-term performance: quality and value. With an emphasis on quality, each index seeks to identify securities that have potential for long-term performance and balance sheet strength. Also, two technical factors that have been incorporated are: momentum and low volatility. Momentum may help identify investment trends, while low volatility may help provide a defensive measure against market downturns.
"Franklin LibertyQT strategic beta ETFs seek to track indices that use custom-weighted factors that pursue lower volatility and higher risk-adjusted returns over the long term relative to corresponding cap-weighted benchmarks," said O'Connor.
The firm's first two strategic beta ETFs, Franklin LibertyQT U.S. Equity Index ETF and Franklin LibertyQT International Equity Index ETF, are expected to be listed on the TSX at market open on June 5, 2017.
The Franklin LibertyShares platform of actively managed and strategic beta ETFs leverages the investment expertise, management insights and deep resources of Franklin Templeton Investments, a recognized global leader in asset management with 70 years of experience.
O'Connor will be providing insight on the evolution of index investing at the Exchange Traded Forum 2017 in Toronto on May 4 and 5, 2017.
About Franklin Templeton Investments
Franklin Templeton Investments Corp. (known as Franklin Templeton Investments Canada) is a subsidiary of Franklin Resources, Inc. [NYSE:BEN]. Franklin Resources, Inc. is a global investment management organization operating as Franklin Templeton Investments, which provides 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, alternative and custom solutions. The company's more than 650 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in over 30 countries, the California-based company has 70 years of investment experience and approximately US$740 billion (C$984 billion) in assets under management as of March 31, 2017.
For more information, please visit franklintempleton.ca or connect with Franklin Templeton on Twitter (@FTI_Canada) and read the Beyond Bulls & Bears blog featuring perspectives from Franklin Templeton investment professionals around the world.
Commissions, management fees and expenses may all be associated with investments in ETFs. Investors should carefully considering 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.
Copyright © 2017. Franklin Templeton Investments. All rights reserved.
1 The AUM is approximate as of March 31, 2017
SOURCE Franklin Templeton Investments Corp.
For further information: Media contact: Sarah Kingdon, Corporate Communications, Franklin Templeton Investments, 416.957.6191