Franklin Templeton launches two green bond ETFs

The new funds will be managed by a team headed by David Zahn

Franklin Templeton has launched three active fixed income ETFs, which includes two sustainable green bond funds.

The Franklin Sustainable Euro Green Sovereign, Franklin Sustainable Euro Green Corp 1-5 Year and Franklin Euro IG Corporate are all Ucits offerings.

The new funds will be managed by Franklin Templeton’s European fixed income team, headed up by David Zahn (pictured).

The total expense ratios (TER) are 0.18% for Franklin Sustainable Euro Green Corp 1-5 Year and Franklin Sustainable Euro Green Sovereign, and 0.15% for Franklin Euro IG Corporate.

See also: – Franklin Templeton launches two sustainable thematic ETFs

The new funds bring the asset manager’s total number of active ETFs to six. The launches also mean that 13 of the firm’s ETFs are now classified under SFDR as Article 8 or 9.

Zahn commented: “Having launched the first active European green bond ETF over four years ago, we continue to see significant growth opportunities, with Europe remaining a cornerstone in the global green bond market with cumulative issuance totalling €331bn last year.

“The launch of the Franklin Sustainable Euro Green Sovereign Ucits ETF and the Franklin Sustainable Euro Green Corp 1-5 Year Ucits ETF continue to expand our green bond offering to better address client needs.

“Our new green bond strategies seek to generate attractive risk-adjusted returns while providing liquidity to projects with environmental benefits.”

This article first appeared on ESG Clarity’s sister title Portfolio Adviser.