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- New thematic ETFs invest in companies involved in sustainable practices across the healthcare and food network
- Classified as Article 8 under EU SFDR with stock selection aligned to UN Sustainable Development Goals (SDGs)
- Strategies are the latest addition to the firm’s wide range of sustainable ETFs and offer access to key secular growth stories
London, 5 July 2023 – Franklin Templeton1 is pleased to announce the launch of two new sustainable, thematic ETFs, the Franklin Future of Food UCITS ETF and Franklin Future of Health and Wellness UCITS ETF. These new offerings bring the total number of thematic ETFs to three and Article 82 SFDR compliant ETFs to ten in the Franklin Templeton ETF range.
Global population growth and the subsequent need to increase food production is a key challenge for humanity in the future, driving innovation and investment in new and more efficient technologies. As populations live longer, demand for more frequent medical care and wellness activities is also on the rise, creating significant potential to engage in healthcare innovation.
Dina Ting, Head of Global Index Portfolio Management, Franklin Templeton, said: “These new Article 8 ETFs take a multi-dimensional investment approach to stock selection in that they leverage long-term societal shifts resulting from macroeconomic, geopolitical and technological developments. By 2050, the global population will have increased by two billion to almost 10 billion, meaning that food production will need to increase by around 60%3. The wellness market is also projected to grow from $4.4 trillion in 2020, or 5% of global economic output, to $6.8 trillion by 20304.”
The Franklin Future of Food UCITS ETF and Franklin Future of Health and Wellness UCITS ETF5 track the performance of the Solactive Sustainable Food Index6 and Solactive Sustainable Health and Wellness Index6 respectively.
The Solactive Sustainable Food Index is designed to provide exposure to companies related to the food industry that utilise technology, efficient production and supply practices, and/or demonstrate innovation with the aim of creating a sustainable food ecosystem. Companies included represent industries such as agriculture machinery, smart farming, aquaculture and sustainable and healthy food, amongst others, and must be deemed by Institutional Shareholder Services (ISS), the world’s leading provider of corporate governance and responsible investment solutions, to be contributing to SDG 2 (Zero Hunger), SDG 9 (Industry, Innovation & Infrastructure), SDG 12 (Responsible Consumption & Production), SDG 13 (Climate Action), SDG 14 (Life Below Water) or SDG 15 (Life On Land).
Meanwhile, the Solactive Sustainable Health and Wellness Index is designed to provide exposure to those companies utilising technology and demonstrating innovation within the healthcare industry as well as companies that are enabling access to care, healthcare or wellness provision for a wide range of consumers including the elderly. This includes companies from areas such as genomics, medical imaging, e-healthcare, mind and body wellness, senior diseases and independent aging recognized by ISS to be contributing to SDG 3 (Good Health and Well-being).
Any stock deemed to be significantly obstructing any of the 17 SDGs will not be eligible to join the indices. Companies are additionally screened for specific ESG criteria, including, amongst others, board gender diversity and impact on biodiversity-sensitive areas.
Rafaelle Lennox, Head of UCITS ETF Product Strategy, Franklin Templeton, said: “We are delighted to have partnered with Solactive and ISS in the creation of these forward-looking solutions aligned to UN SDGs, providing investors with exposure to companies globally involved in innovative and sustainable practices across food and healthcare.”
The new ETFs will list on the Deutsche Börse Xetra (XETRA) on 6th July, the London Stock Exchange (LSE) on 7th July and the Borsa Italiana on 18th July. They are registered in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Spain, Sweden and the UK. The ETFs will be managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager at Franklin Templeton.
Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton,added: “These two new sustainable ETFs offer access to secular growth stories and by investing in innovative companies and potential disruptors have the potential to outperform traditional indices. Franklin Templeton is a leader in thematic and technology investing and allocating to these ETFs is an attractive means of portfolio diversification for investors, given their unique exposure.”
Competitive fees
With a total expense ratio (TER7) of 0.30%, the new ETFs will provide European investors with competitive fees amongst the lowest levels for sustainable solutions within their respective categories in Europe.
Franklin Templeton’s global ETF platform enables investors to pursue their desired outcomes through a range of active, factor-based and passive ETFs. Supported by the strength and resources of one of the world’s largest asset managers, the global ETF platform has approximately $15 billion in assets under management globally as of 31 May 2023.
For more information on the Franklin Templeton ETF range please visit: www.franklintempleton.co.uk.
Ticker Information:
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Xetra Ticker |
LSE Tickers |
Borsa Italiana |
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Ticker |
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Fund Name |
ISIN |
EUR |
GBP |
USD |
EUR |
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Franklin Future of Food UCITS ETF |
IE000ZOKLHY7 |
FOFD |
FRFD |
FOFD |
FOFD |
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Franklin Future of Health and Wellness UCITS ETF |
IE0003WEWAX4 |
FOHW |
FRHW |
FOHW |
FOHW |
Contacts:
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Alina Ulkina Corporate Communications Manager Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8541 Email: [email protected] |
Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8538 Email: [email protected] |
Notes to Editors:
This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.
- Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of May 31, 2023. For more information, please visit www.franklintempleton.de and follow us on LinkedIn, Twitter and Facebook.
- This fund has been classified as Article 8 under the Regulation on sustainability related disclosures in the financial services sector (EU) 2019/2088. These are Funds which promote, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices. Further information in relation to the sustainability-related aspects of the Fund can be found at franklinresources.com/countries. Please review all of the fund's objectives and characteristics before investing.
- Source: EIT Food - Sustainably feeding the world in 2050: Are efficiency and equity the answer? August 2019.
- Source: Global Wellness Institute and Biospace.
- Franklin Future of Food UCITS ETF and Franklin Future of Health and Wellness UCITS ETF are sub-funds of the Franklin Templeton ICAV, an Irish Collective Asset-managed Vehicle, incorporated under the laws of Ireland.
The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as of the publication date and may change without notice. The information provided in this material is not intended as complete analysis of every material fact regarding any country, region or market.
An investment in Franklin Templeton ICAV range entails risks, which are described in the prospectus, its supplements and in the relevant Key Information Document. The Fund's documents are available in English, German and French from your local website. The Fund’s documents can also be requested via FT’s European Facilities Service which is available at https://www.eifs.lu/franklintempleton. In addition, a Summary of Investor Rights is available from www.franklintempleton.lu/investor-rights. The summary is available in English. Franklin Templeton ICAV is notified for marketing in multiple EU Member States under the UCITS Directive. Franklin Templeton ICAV can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.
The value of shares in the fund and income received from it can go down as well as up and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments. There is no guarantee that the fund will meet its objective. For full details of all the risks applicable, please refer to the "Risk Considerations" section of the current prospectus of Franklin Templeton ICAV.
Franklin Templeton ICAV UCITS ETFs (domiciled outside of the U.S. or Canada) may not be directly or indirectly offered or sold to residents of the United States of America or Canada. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.
- Solactive AG ("Solactive") is the licensor of Solactive Sustainable Food Index and the Solactive Sustainable Health and Wellness Index (the “Indexes”). The financial instruments that are based on the Indexes are not sponsored, endorsed, promoted or sold by Solactive in any way and Solactive makes no express or implied representation, guarantee or assurance with regard to: (a) the advisability in investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Index; and/or (c) the results obtained or to be obtained by any person or entity from the use of the Indexes. Solactive reserves the right to change the methods of calculation or publication with respect to the Indexes. Solactive shall not be liable for any damages suffered or incurred as a result of the use (or inability to use) of the Indexes.
- The charges are the fees the fund charges to investors to cover the costs of running the Fund. Additional costs, including transaction fees, will also be incurred. These costs are paid out by the Fund, which will impact on the overall return of the Fund. Fund charges will be incurred in multiple currencies, meaning that payments may increase or decrease as a result of currency exchange fluctuations.
This press release is intended to be of general interest only and does not constitute professional advice. Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.
Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes.
Please consult your financial advisor before deciding to invest.
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