Franklin Templeton launches new Franklin MSCI World Catholic Principles UCITS ETF. This ETF brings the number of Article 83 ETFs under the SFDR Regulation to 12 in the Franklin Templeton range which together features more than half of Article 8 or 9 compliant products. The investment objective of this new global index-linked ETF is to provide a exposure to large- and mid-cap stocks of companies considered environmentally and socially responsible in developed market countries.
The ETF tracks the performance of the MSCI World Select Catholic Principles ESG Universal and Low Carbon index which focuses on companies with lower exposure to carbon emissions and a higher ESG rating, the holdings in the index must also have a minimum ESG rating of “BB” according to the MSCI ESG Ratings ranking. The index excludes companies involved in controversial activities, such as civilian firearms, nuclear weapons, and controversial and conventional weapons. Investments in gambling, tobacco and thermal coal businesses are subject to significant restrictions and are based on revenues generated by these businesses. The index also includes three additional exclusions, consisting of abortion and contraceptives, animal testing and stem cell research, to align with Catholic values. The result is an overall MSCI ESG Rating of AA5, highlighting the strength of the ETF’s sustainability profile. Over 65%5 of the securities in the portfolio currently obtain an MSCI ESG Rating between A and AAA
Caroline BaronHead of ETF Distribution, EMEA, Franklin Templeton
“Following the launch of the Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF two years ago and following client interest, we are pleased to expand our value-based product offering and introduce this new Franklin MSCI World to European investors Catholic Principles UCITS ETF. With this new product we wanted to offer investors a global ESG-focused equity strategy within an ETF structure that incorporates specific Catholic values, but which also provides an Article 8 compliant core equity solution.”
Antonio GattaInstitutional Sales Director, Franklin Templeton ha commentato:
“With the listing of the Franklin MSCI World Catholic Principles UCITS ETF on the Italian Stock Exchange, our offering is enriched with an equity strategy that allows investors to discover the return potential of global stocks selected according to Catholic principles compliant with investment guidelines provided by the Italian Episcopal Conference and approved by Nummus.Info, the ethical consultant of the CEI. Specifically, exclusions are applied in the investment process of this ETF that do not take into consideration companies involved in controversial commercial activities and those that emit high quantities of carbon. In this way investors have the opportunity to integrate ethical and moral values into investment standards. Consistent with our intent to provide unique and personalized solutions to our clients, we believe that this type of investment is a further response to the needs of institutional clients who are increasingly looking for ESG investments that prove useful for the community. This ETF is in fact Art. 8 according to the SFDR regulation like the Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF, a previously launched bond ETF and, as an equity one, differentiates our choice of investment sectors according to the Catholic principles available in response to the different needs and preferences of our customers”.
The ETF will provide European investors withCost-effective equity exposure to developed marketsUCITS compliant and aligned with Catholic principles, offering one of the lowest total expense ratios (TER6) in Europe, at 0.27%, for its respective category.
Silvia AnselmiCFA, ETF Distribution, Italy, Franklin Templeton ha concluso:
“With the launch of this second solution inspired by Catholic principles, our range of ETFs compliant with Articles 8 and 9 of the SFDR Regulation is further expanded. Investors are increasingly inclined to view these exposures as core allocations within portfolios, a trend we have observed more recently. By rigorously applying value and climate filters, this competitively priced ETF allows us to generate a portfolio that can find space in the equity allocations of our clients who want to integrate ethical values into their investments.”
Here are the details of the Franklin MSCI World Catholic Principles UCITS ETF which was listed today on the Italian Stock Exchange.
Fund Name
ISIN
Borsa Italiana Ticker
Franklin MSCI World Catholic Principles UCITS ETF
IE000AZOUN82
FAITH
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