Franklin Templeton launches active bond ETF

fixed income bonds ETFs Franklin Templeton

17 April 2024
| By Jasmine Siljic |
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Franklin Templeton has announced a new active bond fund, offering investors a diversified portfolio of Australian and global fixed income securities.

The Franklin Australian Absolute Return Bond Fund (Managed Fund) was launched on the ASX on 15 April with over 200 holdings.

The exchange-traded fund (ETF) combines top-down macroeconomic insights with bottom-up fundamental research methods to create a portfolio of fixed income strategies which target absolute returns over market cycles.

Chris Siniakov, portfolio manager for the fixed income ETF, 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.”

Last week, a recent State Street report revealed fixed income ETFs made up one-third (34 per cent) of flows in 2023, which is expected to rise further in 2024 and drive overall ETF growth.

Franklin Templeton also launched a second active ETF, the Franklin Global Growth Fund (Managed Fund).

It implements bottom-up stock analysis to select quality growth companies, offering a diversified portfolio underpinned by secular growth trends.

“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,” said Francyne Mu, portfolio manager for the Franklin Global Growth Fund.

According to Felicity Walsh, Franklin Templeton managing director and head of Australia and New Zealand, the two ETFs open avenues for Australian investors looking to diversify their portfolios through domestic and international investment opportunities.

“As more of our valued adviser, licensee and consultant clients build listed portfolios to complement their traditional unlisted portfolios, we want to ensure we are supporting advisers in delivering the best investment solutions possible to their clients,” she remarked.

“Our aim is to democratise access to high-quality investment strategies.”

The multidistributed ETFs expand Franklin Templeton’s existing range of active ETFs which it manages in partnership with Betashares.

The asset manager holds $2.1 trillion in assets under management, as of 31 December 2023, and services clients in more than 150 countries. 

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