Franklin Templeton Investments is launching two actively managed fixed income ETFs to its Franklin LibertyShares Ucits ETF range in Europe. The funds are registered in Germany and the UK and are listed on Deutsche Börse on 26 June 2018 and London Stock Exchange on 27 June 2018.
The new active fixed income ETFs have a focus on income generation. Franklin Liberty Euro Short Maturity Ucits ETF will be managed by David Zahn, head of European Fixed Income and Rod MacPhee, portfolio manager. The fund aims to provide income whilst maximising total returns in the Euro-dominated short term fixed income market primarily by investing in European short-tern debt securities and investments. It has a total expense ratio of 0.30%.
Franklin Liberty USD Investment Grade Corporate Bond Ucits ETF is managed by New York based Marc Kremer, portfolio manager and San Mateo based Shawn Lyons, portfolio manager. The fund aims to provide income from the USD fixed income market whilst seeking to preserve capital through investing primarily in US dollar denominated corporate debt securities issued by US and foreign companies.
David Zahn, head of European Fixed Income, commented: “Franklin Liberty Euro Short Maturity Ucits ETF offers exposure to high quality European short maturity bonds with a yield and return advantage over cash equivalent investments. As active managers, we have the flexibility to pursue investment opportunities that are beyond the fund’s benchmark index to help identify the most attractive securities to invest in.”
The Franklin Liberty Shares Ucits ETF range offers investors access to a suite of five smart beta equity ETFs and now two active fixed income funds.