Franklin Templeton launches two new sustainable and thematic funds focusing on Food, Health and Wellbeing for European investors

Franklin Templeton announces the launch of two new sustainable thematic ETFs, the Franklin Future of Food UCITS ETF and the Franklin Future of Health and Wellness UCITS ETF.

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By ETFWorld.co.uk

Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton

– The new thematic ETFs invest in companies with sustainable practices in the practices in the health and food sectors.

– Classified as falling under Article 8 of the European SFDR Directive, their stock selection is aligned with the UN’s Sustainable Development Goals (SDGs).

– These strategies complement the company’s broad range of sustainable ETFs and provide access to key secular growth models.

Franklin Templeton announces the launch of two new sustainable thematic ETFs, the Franklin Future of Food UCITS ETF and the Franklin Future of Health and Wellness UCITS ETF. With these new offerings, Franklin Templeton’s ETF range now includes three thematic ETFs and ten Article 8 compliant SFDR ETFs.

Global population growth and the associated need to increase food production represent a major challenge for humanity in the future, driving innovation and investment in new and more efficient technologies. As life expectancy increases, the demand for more frequent medical care and wellness activities is also on the rise, creating significant potential for innovation in healthcare.

Franklin Templeton1 is pleased to announce the launch of two new sustainable thematic ETFs, the Franklin Future of Food UCITS ETF and the Franklin Future of Health and Wellness UCITS ETF. With these new offerings, Franklin Templeton’s ETF range now includes three thematic ETFs and ten Article 82 compliant ETFs.

Global population growth and the associated need to increase food production represent a major challenge for humanity in the future, driving innovation and investment in new and more efficient technologies. As life expectancy increases, the demand for more frequent medical care and wellness activities is also on the rise, creating significant potential for innovation in healthcare.

Dina Ting, Head of Global Index Portfolio Management, Franklin Templeton, said: “These new Article 8 ETFs take a multi-dimensional approach to stock selection, as they capitalise on long-term societal changes driven by macroeconomic, geopolitical and technological developments. By 2050, the world’s population will have risen by two billion to almost 10 billion, meaning that food production will need to increase by around 60%. The wellness market is also expected to grow from $4,400 billion in 2020, or 5% of global economic output, to $6,800 billion in 2030.”

The Franklin Future of Food UCITS ETF and the Franklin Future of Health and Wellness UCITS ETF track the performance of the Solactive Sustainable Food Index and the Solactive Sustainable Health and Wellness Index respectively.

The Solactive Sustainable Health and Wellness Index is designed to provide exposure to companies in the food sector that use technology, efficient production and sourcing practices, and/or innovation to create a sustainable food ecosystem. The companies selected represent sectors such as agricultural machinery, smart farming, aquaculture and sustainable and healthy food, and must be considered by Institutional Shareholder Services (ISS), the world’s leading provider of corporate governance and responsible investment solutions, as contributing to MDG 2 (Zero Hunger), MDG 9 (Industry, Innovation and Infrastructure), MDG 12 (Responsible Consumption and Production), MDG 13 (Combating Climate Change), MDG 14 (Aquatic Life) or MDG 15 (Terrestrial Life).

The Solactive Sustainable Health and Wellness index is designed to provide exposure to companies that use technology and demonstrate innovation in the healthcare sector, as well as those that provide access to care, health or well-being for a wide range of consumers, including the elderly. These are companies active in areas such as genomics, medical imaging, e-health services, mind-body wellness, disease and independent living for older people, which are recognised by the ISS as contributing to SDG 3 (Health and Wellbeing).

Any stock considered to be a significant impediment to any of the 17 SDGs will not be eligible for inclusion in the indices. Companies are also selected on the basis of specific ESG criteria, including board gender diversity and negative impact on biodiversity hotspots.

Rafaelle Lennox, Head of UCITS ETF Product Strategy, Franklin Templeton, said: “We are delighted to have worked with Solactive and ISS to create these forward-looking solutions aligned with the UN’s SDGs, providing investors with exposure to companies around the world that have implemented innovative and sustainable practices in the areas of food and healthcare.”

The new ETFs will be listed on Deutsche Börse Xetra (XETRA) from 6 July, on the London Stock Exchange (LSE) from 7 July and on Borsa Italiana from 18 July. They are registered in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Spain, Sweden and the UK. These ETFs will be managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager at Franklin Templeton.

Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton, added: “These two new sustainable ETFs provide access to secular growth models and, by investing in innovative companies and potential disruptors, are likely to outperform traditional indices. Franklin Templeton is a leader in thematic and technology investing, and an allocation to these ETFs is an excellent portfolio diversification tool for investors, given their unique exposure.”

Competitive fees

With a total expense ratio (TER7) of 0.30%, the new ETFs will provide European investors with some of the lowest competitive fees for sustainable solutions in their respective categories in Europe.

Source: ETFWorld