Alternative Investments/ESG: Franklin Templeton Launches ETF Focused On Emerging Market Debt, Catholic Principles, And Sustainability
The ETF will form part of the firm’s $12 billion LibertyShares ETF range.
Franklin Templeton has launched the Catholic Principles Emerging Markets Sovereign Debt Ucits ETF. It will invest in both euro and dollar denominated sovereign debt issued by emerging market countries, but with an emphasis on Catholic principles and values. The ETF listed on the Deutsche Boerse, the Borsa Italiana, and the London Stock Exchange. (ETF Stream)
Catholic Principles Emerging Markets Sovereign Debt Ucits ETF
The strategy of the ETF is to invest in both euro and dollar denominated sovereign debt issued by emerging market countries.
However, it excludes bonds issued by countries that do not score well on several criteria set out by the index provider as Roman Catholic principles including a governments’ moral integrity, social justice, abolition of the death penalty and care for the planet based on environmental, social, governance ratings data.
As a result, the ETF observes Catholic principles and environmental sustainability in its investing process. It is benchmarked with the ICE BofA Diversified Emerging Markets External Debt Sovereign Bond index, and has a total expense ratio of 0.35%.
It is labelled Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Caroline Baron, head of ETF business development EMEA at Franklin Templeton, commented: “With this offering we have created a custom-made index and partnered with an ethical adviser to ensure clients have access to a distinct ETF backed by the scale and resources of Franklin Templeton.”
“The combination of Catholic values-based exclusions and a screening process for decarbonisation opportunities from the ETF’s investable universe should subsequently appeal to a broad range of investors seeking to widen their portfolio of sustainable investments.”
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