Toronto-based Franklin Templeton Investments Canada has launched three actively managed fixed-income ETFs, the company announced on Monday.
Franklin Liberty Global Aggregate Bond ETF (CAD-Hedged), Franklin Liberty Senior Loan ETF (CAD-Hedged) and Franklin Liberty U.S. Investment Grade Corporate ETF (CAD-Hedged) began trading on the Toronto Stock Exchange today.
“The fixed income market is becoming increasingly more complex in this low interest rate environment,” says Duane Green, president and CEO of Franklin Templeton Investments Canada, in a statement.
“To help investors and advisors navigate the credit markets, we have introduced three fixed income ETFs that employ an active approach to security selection, with currency heading to manage risk — all at a low cost.”
Franklin Liberty Global Aggregate Bond ETF aims to maximize total investment return, consisting of a combination of interest income and capital appreciation by investing mainly in investment grade fixed or floating-rate debt securities issues by governments, government related entities and corporations worldwide.
The ETF is co-managed by John Beck, director of fixed income, London for Franklin Templeton, and Warren Keyser, senior vice president and portfolio manager. The management fee is 35 basis points (bps).
Franklin Liberty Senior Loan ETF aims to provide a high level of current income while seeking preservation of capital by investing mainly in senior secured income-producing floating rate corporate loans made to, and corporate debt securities issued by, U.S. and non-U.S. entities.
The ETF is co-managed by Mark Boyadjian, director of Floating Rate Debt Group, senior vice president and portfolio manager; Madeline Lam, vice president and portfolio manager; and Justin Ma, vice president and portfolio manager. The management fee is 45 bps.
Lastly, Franklin Liberty U.S. Investment Grade Corporate ETF aims to provide a high level of current income while seeking preservation of capital by investing primarily in U.S. dollar denominated investment grade corporate debt securities issued by U.S. and non-U.S. entities.
The ETF is co-managed by Shawn Lyons, vice president and portfolio manager, and Marc Kremer, vice president and portfolio manager. The management fee is 35 bps.
The three ETFS will join Franklin Liberty Canadian Investment Grade ETF, managed by Franklin Bissett Investment Management, to develop a suite of four fixed income ETFs that invest in Canada, the U.S. and globally.
“The suite of ETFs will provide investors with the essential building blocks for the fixed income component of a portfolio,” says Patrick O’Connor, head of global ETFs at Franklin Templeton Investments, in a statement.
“We are continuing to focus on bringing investors and advisors ETFs that can help them reach their desired outcomes.”