Franklin Templeton Aligns Smart Beta ETF to Paris Agreement

    Stockholm (NordSIP) – On July 30 and 31, Franklin Templeton extends its Franklin LibertyShare smart-beta ETF range with the launch of two climate-focused funds aligned with the Paris-aligned version of the Stoxx Europe 600 and the S&P 500 index. These benchmarks offer investors increased exposure to companies involved in the transition to a low carbon economy, compared to the original index.

    “The EU Climate Benchmark regulation suggests we will see a significant uplift in the adoption of climate-aligned investments across European markets, with investors moving away from the notion that they are niche products to building portfolios with sustainable finance at their core,” says Julie Moret, global head of ESG at Franklin Templeton.

    “The ascent of climate change on the EU’s regulatory agenda has resulted in the creation of two new EU climate benchmarks, which provide clear rules that ensure the indices are comparable and transparent,” she adds.

    Caroline Baron, head of ETF Sales EMEA, Franklin Templeton, expects the new fund to be “the cheapest climate ETFs in the European market.”

    The funds will first be available in Germany, the UK and Italy and later in several other European countries including in Sweden and Finland.

    Image by Pexels from Pixabay

    Aline Reichenberg Gustafsson, CFA
    Aline Reichenberg Gustafsson, CFA is Editor-in-Chief for NordSIP and Managing Director for Big Green Tree Media. She has 18 years of experience in the asset management industry in Stockholm, London and Geneva, including as a long/short equity hedge fund portfolio manager, and buy-side analyst, but also as CFO and COO in several asset management firms. Aline holds an MBA from Harvard Business School and a License in Economic Sciences from the University of Geneva.

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