Two new ETFs for Franklin Templeton

Franklin Templeton has launched actively managed global equity and fixed income exchange-traded funds (ETFs) on the ASX today.

The Franklin Global Growth Fund (FRGG) invests in companies operating in developed and emerging markets from around the world other than in Australia.

The fund aims to outperform the MSCI World ex Australia Index net of returns, after fees and expenses but before taxes over the medium to longer term.

FRGG portfolio manager Francyne Mu said: "We look globally for financially sustainable business models, and proven management teams that are focused on the creation of shareholder value. We utilise the results of this analysis to build a concentrated, best-ideas portfolio of 35 to 40 stocks."

The fund does not invest in securities issued by companies that are directly involved in producing controversial weapons, tobacco products, and mining or extracting thermal coal, or extracting oil from tar sands subject to a 10% revenue threshold.

The Franklin Australian Absolute Return Bond Fund (FRAR) is an actively managed portfolio of fixed income strategies, investing in debt instruments issued by governments and corporations worldwide.

It aims to beat the Bloomberg AusBond Bank Bill Index after fees and expenses but before taxes over the short to medium term.

Franklin Templeton fixed income portfolio manager Chris Siniakov said: "Through the listing of our fund on the ASX, we will be able to offer our unique approach to fixed income investing to a whole new range of investors who may not have been able to access strategies like these until now."

FRGG and FRAR are an offshoot of Franklin Templeton's managed funds.

Franklin Templeton managing director and head of Australia and New Zealand Felicity Walsh said the fund manager's range of active ETFs provide access to specialised investment strategies to meet clients' investment goals.

"Furthermore, listing on the ASX will mean that investors will now be able to access the investment expertise and differentiated performance attributes of these funds through intraday-traded vehicles," she said.

"These multi-distributed ETFs will complement our existing range of active ETFs which we manage in partnership with Betashares and further expand access to our premier suite of investment strategies."

Last year, Franklin Templeton launched its Franklin K2 Athena Fund, which invests in uncorrelated risk premia strategies in equities, fixed income, and currencies.