Franklin Templeton launches two active ETFs in Australia

Franklin Templeton has launched two new active ETFs on the ASX, the Franklin Global Systematic Equity Fund Active ETF (FGSE) and the Western Asset Enhanced Income Fund Active ETF (FEIF).

This brings its total local active ETF range to nine products.

Unlike traditional index ETFs, both strategies aim to deliver consistent alpha while retaining ETF transparency and liquidity, Franklin Templeton said.

"Investors today want more choice in the ETF space," Franklin Templeton Australia and New Zealand managing director Felicity Walsh said.

"Our range of active ETFs are designed to bring together the liquidity and transparency of a listed structure with an active and intelligent approach to portfolio management."

Walsh added Franklin Templeton is leveraging the expertise of its investment groups and making it available in a format that suits how Australians want to invest today.

Franklin Templeton Investment Solutions portfolio manager Chris Floyd said FGSE suits investors who want broad global equity exposure and are seeking an approach that goes beyond tracking an index.

"Our systematic process analyses thousands of companies daily across quality, valuation, sentiment and other factors, seeking to identify those with the strongest return potential," he said.

"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."

Over one year to April 2026 the Franklin Global Systematic Equity Fund returned 15.16% after fees, compared with benchmark return of 15.06% in the same period.

Western Asset Management head of Asia Pacific investment management and co-chief investment officer Anthony Kirkham said FEIF 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," he said.

The Western Asset Enhanced Income Fund returned 6.12% over one year to April 2026, compared with the benchmark performance of 3.79%.