Franklin Templeton has announced the launch of its new smart beta MSCI China Paris-Aligned Climate UCITS ETF within its Franklin LibertySharesTM range. This is the third EU SFDR Article 93 compliant Paris-Aligned Climate strategy in the range.
The new ETF will track the EU Climate Benchmark PAB and MSCI China Climate Paris-Aligned Indices and includes large and mid-cap Chinese equity securities. Designed to support investors seeking to reduce their exposure to transition and physical climate risks, the index will overweight Chinese companies transitioning to a lower-carbon economy whilst ensuring full alignment with the decarbonisation goals of the Paris Climate Agreement.
The Franklin MSCI China Paris Aligned Climate UCITS ETF4’ will list on the Deutsche Börse Xetra (XETRA) on 15 June and the Borsa Italiana and London Stock Exchange (LSE) on 17 June. The fund will be registered in Austria, France, Germany, Ireland, Italy, Spain, the UK and Nordics.
“We are delighted to add this new MSCI China Paris-Aligned Climate ETF at a competitive fee to our suite of ParisAligned Climate ETFs. The ETF is a natural extension of the Paris-Aligned Climate ETF product range we launched two years ago and provides exciting growth opportunities in Chinese stock markets by investing in securities transitioning to a low carbon economy. Aligned with the EU Climate Benchmark Regulation, it will additionally offer investors key standardisation, transparency and reporting benefits and should appeal to a wide range of European investors seeking more sustainable investment solutions.”Caroline Baron, Head of ETF Business Development, EMEA, Franklin Templeton
With a total expense ratio (TER5 ) of 0.22%, a competitive fee for its respective category in the Europe, the new ETF will provide European investors with cost-efficient, UCITS-compliant, equity exposure to large and mid-capitalisation stocks in China pursuing decarbonisation opportunities.
“By starting with a key benchmark like MSCI China, investors can align their core China equity holdings to the Paris Climate Agreement and reduce their exposure to climate change risks and capture opportunities in the low Franklin Templeton Cannon Place 78 Cannon Street London EC4N 6HL United Kingdom”Rafaelle Lennox, Vice President, Senior ETF Product Specialist, Franklin Templeton