Global asset management firm Franklin Templeton has established three active fixed income exchange-traded funds (ETFs): Franklin Sustainable Euro Green Sovereign UCITS ETF, Franklin Sustainable Euro Green Corp 1-5 Year UCITS ETF, and Franklin Euro IG Corporate UCITS ETF. The Euro Green Sovereign fund, classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR), will pursue a sustainable investment objective by providing exposure primarily to the European sovereign green bond market. The Euro Green Corp 1-5 fund, also classified to Article 9, will provide exposure to the European corporate green bond market with a short to mid duration of less than five years. The Euro IG Corporate fund, categorised as Article 8, aims to primarily invest in Euro-denominated investment grade corporate debt securities issued by European companies and has at least 20% of its assets invested in environmentally sustainable investments and 1% in social sustainable investments. Caroline Baron, Head of ETF Distribution, EMEA, at Franklin Templeton, said: “We are pleased to offer European investors a diversified range of competitively priced sustainable active ETFs, which include providing a sovereign bond solution with flexible duration and a shorter maturity corporate green bond strategy, the only active ETFs in these segments.”
