TORONTO, Jan. 29, 2018 /CNW/ - Franklin Templeton Investments Canada today announced the listings of two smart beta ETFs, Franklin LibertyQT Global Dividend Index ETF (FLGD) and Franklin LibertyQT Emerging Markets Index ETF (FLEM), and one actively managed ETF, Franklin Liberty Core Balanced ETF (FLBA). To mark this expansion of the Franklin LibertyShares ETF platform, Franklin Templeton employees are ringing the opening bell today when the ETFs are listed on the Toronto Stock Exchange (TSX).
"In building out our ETF platform, we are now offering advisors and investors smart beta ETFs that invest in global dividends and emerging market equities, providing a range of options to help diversify a Canadian-focused portfolio," said Duane Green, president and CEO, Franklin Templeton Investments Canada. "We are also adding an active ETF to our line-up that invests in North American equities and fixed income, offering Canadian investors access to sectors that are not as well represented in Canada, like health care, industrials and information technology."
Patrick O'Connor, head of Global ETFs, Franklin Templeton Investments, said, "Adding these new ETFs to our global ETF platform reflects our ongoing commitment to developing best-in-class offerings that can serve as essential building blocks for a diversified portfolio. As we expand our global ETF platform, we have focused on bringing a variety of options to advisors and investors in Canada, which is a key market for our global ETF business."
Franklin LibertyQT Smart Beta ETFs
Franklin LibertyQT Global Dividend Index ETF (FLGD) seeks to replicate the performance of LibertyQ Global Dividend Index, before fees and expenses. Using a two-step process to narrow down the dividend-paying universe, it invests in companies with favourable quality attributes that are looking to sustain or grow their dividend. Industry and sector allocations are driven by the MSCI ACWI ex-REITS Index. To ensure diversification and mitigate volatility, each security held in the ETF is capped at two per cent.
Franklin LibertyQT Emerging Markets Index ETF (FLEM) seeks to replicate the performance of LibertyQ Emerging Markets Index, before fees and expenses. Using a multi-factor approach with a strong focus on quality, it provides greater portfolio exposure to high-quality emerging market equities with reduced volatility. This ETF seeks to provide higher risk-adjusted performance, paired with a lower level of risk than the MSCI Emerging Markets Index.
These offerings complement the firm's existing smart beta ETFs – Franklin LibertyQT U.S. Equity Index ETF (FLUS) and Franklin LibertyQT International Equity Index ETF (FLDM).
Franklin LibertyQT smart beta ETFs are constructed based upon their respective indices that are grounded in both fundamental and quantitative analysis. FLEM, FLUS and FLDM seek to replicate a systematic, rules-based index that applies four custom factor weightings: quality (50 per cent), value (30 per cent), momentum (10 per cent) and low volatility (10 per cent). FLGD uses a quality factor overlay to provide additional risk management and capital appreciation potential. The smart beta ETFs are managed by Dina Ting, head of Global Index Portfolio Management and senior portfolio manager, Global ETFs, based in San Mateo, California.
Franklin Liberty Actively Managed ETFs
Franklin Liberty Core Balanced ETF (FLBA) seeks to provide a balance of long-term capital appreciation and current income by investing directly in North American equity and fixed income securities. The equity portion is selected through a proprietary rules-based model built on historical and projected financial stock market data to identify companies exhibiting attractive levels of quality, value, low volatility and momentum. The fixed income portion invests in a range of debt securities, including all varieties of fixed income and floating rate securities, government and corporate bonds, and bonds backed by mortgages and other securities. The equity and fixed income allocation will be balanced according to the portfolio managers' views of market valuations.
Franklin Liberty actively managed ETFs feature the specialized expertise of Franklin Templeton's investment teams. Franklin Liberty Core Balanced ETF will be co-managed by Calgary-based Franklin Bissett Investment Management's equity and fixed income experts, who currently manage Franklin Liberty Risk Managed Canadian Equity ETF (FLRM) and Franklin Liberty Canadian Investment Grade Corporate ETF (FLCI).
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 over US$753 billion (C$947 billion) in assets under management as of December 31, 2017. For more information, please visit franklintempleton.ca.
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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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SOURCE Franklin Templeton Investments Corp.
For further information: Media contact: Sarah Kingdon, Corporate Communications, Franklin Templeton Investments, 416.957.6191