Alternative Investments/ESG: Franklin Templeton Debuts The First Paris-Aligned Chinese Equity ETF In Europe

The new Paris-Aligned ETF will invest in Chinese stocks across all major types of share classes.

Franklin Templeton has launched the Franklin MSCI China Paris Aligned Climate UCITS ETF on the London Stock Exchange in US dollars (PABC LN) and pound sterling (CHPA LN) as well as on Deutsche Börse Xetra (FVCH GY) and Borsa Italiana (FRCP IM) in euros.  (ETF Strategy)

Franklin MSCI China Paris Aligned Climate UCITS ETF

The first Paris-aligned Chinese equity ETF in Europe, obtains its exposure by tracking the MSCI China Climate Paris Aligned Net Total Return Index.

The index draws on the universe of the MSCI China stocks. This is then filtered to remove negative candidates such as companies embroiled in severe ESG-related controversies as well as firms with business operations linked to weapons, tobacco, thermal coal, oil & gas, or oil sands.

The remaining securities are then weighted based on the risks and opportunities associated with the climate transition.

The ETF is classified as an Article 9 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).

The expense ratio of the fund is just 0.22%.


Caroline Baron, Head of ETF Business Development, EMEA, at Franklin Templeton, said: “We are delighted to add this new MSCI China Paris-Aligned Climate ETF at a competitive fee to our suite of Paris-Aligned Climate ETFs. The ETF provides exciting growth opportunities in Chinese stock markets by investing in securities transitioning to a low-carbon economy. Aligned with the EU Climate Benchmark Regulation, it will additionally offer investors key standardization, transparency, and reporting benefits and should appeal to a wide range of European investors seeking more sustainable investment solutions.”

Related Story: State Street Global Advisors Introduces Paris Aligned Climate ETFs Supported By Early Investor UCLA

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