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Franklin Templeton launches active green bond ETF

Digital Blue SmallFranklin Templeton is launching Europe’s first actively managed Euro Green bond ETF designed to provide exposure to bonds supporting projects aligned to a low-carbon future.

Managed by David Zahn (pictured), head of European fixed income, and portfolio manager Rod MacPhee, the Franklin Liberty Euro Green Ucits ETF will be listed on the Deutsche Börse on April 30 and then on the London Stock Exchange and the Borsa Italiana on May 2.

At least 70% of the fund’s net assets will be invested in green-labelled bonds, with investors receiving exposure to the European green bond market.

“Demand is rising in Europe for high conviction ESG products due to increasing investor and regulatory pressure to incorporate green, ethical and governance factors into investment portfolios,” said Caroline Baron, head of the firm’s ETF sales in Europe, Middle East and Afrca.

According to Zahn, in periods of risk aversion, green bonds exhibit lower volatility as investors tend to hold on to these bonds.

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