Franklin Templeton has launched a new active exchange-traded fund (ETF) for investors seeking stable and growing income streams.
The investment manager unveiled the Martin Currie Real Income Fund – Active ETF (R3AL), an active ETF now available on the ASX.
Based on the Martin Currie Real Income Fund, the ETF structure enables Australian investors to access the same long-term growth and attractive income characteristics, the firm stated.
The ETF invests in sectors that have low economic sensitivity which typically exhibit lower total volatility than the broader market and high-quality assets with pricing power and inflation protection.
Moreover, its multisector blend approach provides diversification benefits while avoiding concentration risks, according to Franklin Templeton.
The product is managed by portfolio managers Ashton Reid and Andrew Chambers who work alongside the broader Martin Currie Australia investment team, which is led by chief investment officer Reece Birtles.
“With ongoing equity market volatility, investors are seeking stable and growing income streams. Real assets are the backbone of society, so even in slower growth periods they offer a compelling, lower-risk income exposure,” Reid commented.
“With positive earnings and dividend revisions now improving for quality real assets, the portfolio fundamentals look good. Unlike the unlisted world, listed real assets have now priced in higher interest rates so our portfolio offers attractive valuations.”
In particular, the ETF’s investment universe includes diversified exposure to three listed real asset sectors: real estate investment trusts (REITs), infrastructure and utilities.
Reid added: “We see consistent yield and rising income growth, which makes for an appealing total return in an uncertain market.”
Felicity Walsh, managing director of Franklin Templeton Australia, said the new product complements its existing range of active ETFs, such as the Franklin Australian Absolute Return Bond Fund (Managed Fund) and the Franklin Global Growth Fund (Managed Fund).
“ETFs are increasingly being added to asset allocations across investment portfolios due to their flexibility, cost efficiency and ease of access. By bringing the Martin Currie Real Income Fund into an ETF structure, we are aligning with the evolving preferences of investors who want simple, transparent and scaleable solutions to grow their wealth,” Walsh explained.
Towards the end of 2024, Franklin Templeton announced five new internal promotions in its Australian business.
This included Louise Thompson being named head of consultants and retail sales, tasked with leading the distribution team towards developing solutions to meet client needs.
She had been the head of research and consultants at Franklin Templeton for the past four years. Prior to this, she was the head of strategic accounts for over two years.
