Franklin Templeton has launched two sustainable thematic ETFs, the Franklin Future of Food UCITS ETF and Franklin Future of Health and Wellness UCITS ETF.
The ETFs will listed on the Deutsche Börse Xetra (XETRA) on 6 July, the London Stock Exchange (LSE) today (7 July) and the Borsa Italiana on 18 July.
The ETFs will be managed by Dina Ting, head of global index portfolio management, and Lorenzo Crosato, ETF portfolio manager.
Ting said: “These new Article 8 ETFs take a multi-dimensional investment approach to stock selection, in that they leverage long-term societal shifts resulting from macroeconomic, geopolitical and technological developments.
“By 2050, the global population will have increased by two billion to almost 10 billion, meaning that food production will need to increase by around 60%. The wellness market is also projected to grow from $4.4trn in 2020, or 5% of global economic output, to $6.8trn by 2030.”
The Franklin Future of Food UCITS ETF and Franklin Future of Health and Wellness UCITS ETFtrack the performance of the Solactive Sustainable Food Index and the Solactive Sustainable Health and Wellness indices respectively.
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The Solactive Sustainable Food Index is designed to provide exposure to companies related to the food industry that use technology; efficient production and supply practices; and/or demonstrate innovation with the aim of creating a sustainable food ecosystem.
Companies included operate within industries such as agricultural machinery; smart farming; aquaculture; and sustainable and healthy food. They must be recognised by Institutional Shareholder Services (ISS), as contributing to SDG 2 (zero hunger), SDG 9 (industry, innovation & infrastructure), SDG 12 (responsible consumption & production), SDG 13 (climate action), SDG 14 (life below water) or SDG 15 (life on land).
The Solactive Sustainable Health and Wellness Index is for providing exposure to companies using technology and demonstrating innovation within the health-care industry, as well as those enabling access to care, health care or wellness provision for a wide range of consumers, including the elderly. This includes companies from areas such as genomics; medical imaging; e-healthcare, mind and body wellness; and geriatric diseases, recognised by ISS as contributing to SDG 3 (good health and well-being).
Companies are additionally screened for specific ESG criteria, including board gender diversity and impact on biodiversity-sensitive areas.
Rafaelle Lennox, head of UCITS ETF product strategy, said: “We are delighted to have partnered with Solactive and ISS in the creation of these solutions aligned to UN SDGs, providing investors with exposure to companies globally involved in innovative and sustainable practices across food and health care.”
Caroline Baron, head of ETF distribution, EMEA added: “These two new sustainable ETFs offer access to secular growth stories, and by investing in innovative companies and potential disruptors have the potential to outperform traditional indices. Allocating to these ETFs is an attractive means of portfolio diversification for investors.”
With the addition of the new ETFs, which are registered in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Spain, Sweden and the UK, Franklin Templeton’s ETF range now has a total of three thematic ETFs and 10 Article 8 SFDR-compliant ETFs. Franklin Templeton’s global ETF platform has around $15bn in assets under management as at 31 May.