Californian asset manager Franklin Templeton Investments has introduced its LibertyShares ETF platform in Canada, with plans to launch an initial suite of two actively managed ETFs and two smart beta ETFs in the coming weeks.
Franklin Templeton is expected to launch its first actively managed ETFs in Canada on 30 May 2017.
The venture into Canada will seek to build on the success of Franklin Templeton’s US-listed ETFs which collectively hold over $620 in assets under management. (Data as of the end of April 2017)
“Many Canadian investors have embraced ETFs for the benefits of intra-day trading, liquidity, tax-efficiency and transparency. We believe the future of ETF investing is in continuing to provide these foundational benefits while innovating beyond the limitations of passive investments,” said Duane Green, president and CEO of Franklin Templeton Investments Canada. “These new ETFs are built on a rigorous investment approach, as they are designed by investment professionals with decades of active management and quantitative experience.”
“We combine robust investment research from an active manager’s perspective, while maintaining the attractive benefits of an ETF structure, to provide Canadians with core and complementary portfolio holdings to meet their investment needs,” added Patrick O’Connor, global head of ETFs for Franklin Templeton Investments.
The two actively managed ETFs, the Franklin Liberty Risk Managed Canadian Equity ETF and Franklin Liberty Canadian Investment Grade Corporate ETF, are expected to be listed on the Toronto Stock Exchange (TSX) on 30 May 2017.
The funds will track Canadian equities and Canadian investment grade corporate bonds respectively while featuring the expertise of Franklin Templeton investment teams.
The firm’s smart beta ETFs, the Franklin LibertyQT US Equity Index ETF and Franklin LibertyQT International Equity Index ETF, are expected to be listed on the TSX on 5 June 2017.
Each LibertyQT ETF tracks a rules-based index that applies four custom factor weightings to its underlying index: quality (50%), value (30%), momentum (10%) and low volatility (10%).
O’Connor said: “Franklin LibertyQT smart beta ETFs track indices that use custom-weighted factors that pursue lower volatility and higher risk-adjusted returns over the long-term relative to corresponding cap-weighted benchmarks.”