Investment Products and Service Launches

Franklin Templeton Investments rolls out actively managed ETF suite; AXA launches collective investment trust; BlackRock reducing iShares ETF costs; and more.

By Javier Simon | October 06, 2016
Page 1 of 5 View Full Article
Franklin Templeton Investments Rolls Out Actively Managed ETF Suite
Franklin Templeton Investments has introduced a new suite of actively managed exchange-traded funds (ETFs) to its Franklin LibertyShares platform. The suite includes two new products which are the Franklin Liberty U.S. Low Volatility ETF (FLLV) and the Franklin Liberty Investment Grade Corporate ETF (FLCO). It also features the Franklin Liberty Short Duration U.S. Government ETF (FTSD), an active ETF launched in 2013.

“Investors have embraced the ETF wrapper for its benefits, which may include liquidity, tax efficiency and transparency,” says Patrick O’Connor, global head of ETFs for Franklin Templeton Investments. “Now they want the opportunity to seek better risk-adjusted returns over the long term. Through Franklin LibertyShares, we are providing investors with simple and efficient options to help them address their desired outcomes. Our actively managed ETFs can help investors meet their investment needs by serving as a core or complementary portfolio holding.”

The FLLV seeks capital appreciation with an emphasis on lower volatility than the broader U.S. equity market, as measured by the Russell 1000 Index, the firm explains. The fund applies a “bottom up” research process to identify stocks that exhibit strong fundamental characteristics, and screens for stocks with the lowest realized volatility scores, based on a proprietary quantitative model, relative to their corresponding sectors. Risk considerations are incorporated into the final stock selection process. The ETF is managed by Todd Brighton, CFA, vice president and portfolio manager for Franklin Equity Group.

The FLCO aims to provide a high level of current income while seeking preservation of capital by investing at least 80% of its net assets in investment-grade corporate debt securities and investments. The fund may invest up to 40% of its net assets in foreign securities, including those in developed markets, and up to 15% of its net assets in non-U.S. dollar denominated securities. The ETF is managed by Marc Kremer and Shawn Lyons. Both CFAs are research analysts and portfolio managers for Franklin Templeton Fixed Income Group.

The FTSD seeks to preserve shareholders’ capital by investing at least 80% of its net assets in securities issued or guaranteed by the U.S. government, its agencies or instrumentalities. The fund targets an estimated average portfolio duration of three years or less. The ETF is managed by Roger Bayston, CFA, senior vice president and portfolio manager for Franklin Templeton Fixed Income Group. Launched in 2013, the ETF has assets under management of approximately $169 million, the firm says.  

With the introduction of this new suite of actively managed ETFs, Franklin Templeton expands its Franklin LibertyShares fund offerings to seven ETFs. For more information about these ETFs, visit

NEXT: AXA Launches Collective Investment Trust