Franklin Templeton  

Franklin Templeton entering fairly crowded market

Franklin Templeton entering fairly crowded market

Franklin Templeton is launching its LibertyShares range in the UK, starting with a range of smart beta ETFs.

The first four ETFs are listed today (8 September) on the London stock exchange and cover global equities, US equities, global dividend stocks and US dividend stocks.

The range, which is already available in the US and Canada, uses custom Franklin LibertyQ indices.

These indices are constructed by weighting four factors - quality, value, momentum and volatility, using an in-house model.

“Our first European offerings aim to help investors achieve specific investment outcomes such as strong risk-adjusted returns, lower volatility and downside protection,” said Patrick O’Connor, Head of Global ETFs. “Our strategic goal, three years in the making, has been to build a world class global ETF platform.”

Martyn Gilbey, UK head of Franklin Templeton, said: “As UK investors look for smarter ways to get returns on their money, their investment needs have evolved. Many investors have already embraced the ETF wrapper for its benefits, including low cost, liquidity, tax efficiency, and transparency.”

LibertyShares was launched in the US in June last year and expanded to Canada in May of this year.

Financial adviser Tristan Freer, from Worcester, said that he felt that Franklin Templeton is expanding into a fairly crowded market.

He said: “There are a lot of ETFs available in the UK now.

"I tend to use ETF fund of funds, as they don’t have too much exposure to one particularly index.

"For those who are focused on cost and that is the most important thing about a fund, ETFs are definitely a good solution.”

rosie.murray-west@ft.com