Franklin Templeton has launched two actively managed exchange-traded funds (ETF) on the Australian Securities Exchange (ASX) aimed at delivering above market returns with transparency and liquidity as their main features.
The Franklin Global Systematic Equity Fund – Active ETF will trade under the ASX ticker FGSE
“FGSE suits investors who want broad global equity exposure and are seeking an approach that goes beyond tracking an index” Franklin Templeton Investment Solutions portfolio manager Chris Floyd explained.
“Our systematic process analyses thousands of companies daily across quality, valuation, sentiment and other factors, seeking to identify those with the strongest return potential.
“The result is a style-neutral, diversified portfolio that aims to deliver consistent outperformance over time, one which we think is a compelling proposition for growth investors.”
The new offering has been designed to outperform the MSCI World ex-Australia Index, after fees, over rolling three-year periods.
The Western Asset Enhanced Income Fund – Active ETF will trade under the FEIF ticker on the ASX.
Western Asset Management head of Asia Pacific investment management Anthony Kirkham noted FEIF has been made available for individuals looking for stronger performance from the fixed income segment of their investment portfolios.
“It offers a short-duration, high-quality credit strategy that seeks to generate meaningful income above the cash rate, while actively managing risk across sectors and individual securities. For investors looking for yield without taking on significant interest rate sensitivity, this fund offers a genuinely differentiated option as an active ETF,” Kirkham indicated.
The goal of this product is to generate returns above the Bloomberg AusBond Bank Bill Index by 1.5 to 2 per cent per annum measured over rolling three-year periods from a portfolio consisting of both Australians and global fixed income securities.
Commenting on the dual launch Franklin Templeton Australia and New Zealand managing director Felicity Walsh said the two new ETFs are leveraging the expertise of the organisation’s investment groups and the strength of its platform.
The two new funds bring the total number of active ETFs Franklin Templeton has in the market to nine.