Franklin Templeton has launched of two Paris-aligned Climate UCITS ETFs within its Franklin LibertyShare range – making it one of the first providers in the European market to launch smart beta ETFs compliant with the EU’s new Paris Aligned Benchmark (PAB).
The Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF and Franklin S&P 500 Paris Aligned Climate UCITS ETF will list on the Deutsche Börse on 30th July and on the London Stock Exchange (LSE) and Borsa Italiana on the 31st July. They will also be registered in Austria, Denmark, Finland, Sweden and Switzerland thereafter, the company said.
The funds are designed to provide European investors with European and US equity exposure, while being aligned with the de-carbonisation goals of the Paris Climate Agreement.
Julie Moret, global head of ESG, Franklin Templeton, said: “The ascent of climate change on the EU’s regulatory agenda has resulted in the creation of two new EU climate benchmarks, which provide clear rules that ensure the indices are comparable and transparent.
“PAB’s philosophy aims to not only reduce climate change risks but also contribute to the transition to a low carbon economy and capture its benefits and opportunities.”
Caroline Baron, head of ETF Sales EMEA, Franklin Templeton, said that the launch will sit alongside the company’s 16 smart beta, active and passive ETF strategies for European investors and predicted that a cost of 15 basis points the range will be “the cheapest climate ETFs in the European market”.
The Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF will aim track the STOXX Europe 600 Paris-Aligned Benchmark Index, while the Franklin S&P 500 Paris Aligned Climate UCITS ETF will aim to track the S&P 500 Paris-Aligned Climate Index.
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