Franklin Templeton Investments has launched a new actively managed exchange-traded fund to its LibertyShares platform, providing exposure to a well-diversified portfolio of international equities. The Franklin Liberty International Opportunities ETF (NYSE: FLIO) invests in international equity markets outside the US, spanning developed, developing and frontier markets, and across sectors and market capitalizations.
Patrick O’Connor, Global Head of ETFs for Franklin Templeton Investments.
Patrick O’Connor, Global Head of ETFs for Franklin Templeton Investments, commented: “The launch of Franklin Liberty International Opportunities ETF marks our first actively managed international ETF and continuing expansion of our LibertyShares offerings. With over 75% of the world’s GDP coming from countries outside the US, investing internationally can provide portfolio diversification, which can reduce overall risk.
The ETF is co-managed by Stephen Dover, CIO for Franklin Templeton Local Asset Management and Templeton Emerging Markets Group, and Purav Jhaveri, Managing Director of Investment Strategy for the Local Asset Management Group.
In determining the fund’s strategic course, the managers will draw upon Franklin Templeton’s global network of asset management teams, who provide on-the-ground insights on local market conditions, dynamics and valuations and timely perspective on market events, risks and opportunities. Furthermore, the fund’s managers will also leverage the expertise of Templeton Emerging Markets Group’s more than 50 investment professionals for further insight into emerging countries.
O’Connor notes: “As we believe successful international investing can benefit from combining a global investment perspective with local presence and insights, we are leveraging fundamental research from our local asset management and emerging markets teams around the world in managing this new ETF.”
In constructing a diversified portfolio of companies, the fund’s managers have noted four key attributes that would foster high convictions for security selection. These include: high quality – the ability to create sustainable shareholder value; superior earnings growth – fostered by strong brands, intellectual property, or local franchises; low financial leverage – to allow companies to capitalize on investment opportunities; and strong management track records – demonstrating success in executing growth projects.
The Franklin LibertyShares platform, the ETF arm of the firm’s business, includes strategic beta and actively managed ETFs with more than $540m in assets under management as of 24 January 2017.