Franklin Templeton is launching an MSCI China Paris-Aligned Climate Ucits ETF.
This strategy will sit within the firm’s Franking LibertyShares range on the Deutsche Börse Xetra from 15 June, and the Borsa Italiana and London Stock Exchange from 17 June.
It will track the EU Climate Benchmark PAB and MSCI China Climate Paris-Aligned Indices with a focus on large and mid-cap Chinese equity securities.
In doing so, the ETF could support investors in reducing their exposure to transition and physical climate risks.
The Ucits-compliant smart beta fund will be managed by Dina Ting, head of global index portfolio management, and Lorenzo Crosato, ETF portfolio manager at Franklin Templeton.
This strategy will have a total expense ratio of 0.22%.
Caroline Baron, head of ETF business development, EMEA at Franklin Templeton commented: “The ETF is a natural extension of the Paris-Aligned Climate ETF product range we launched two years ago and provides exciting growth opportunities in Chinese stock markets by investing in securities transitioning to a low carbon economy.
“Aligned with the EU Climate Benchmark Regulation, it will additionally offer investors key standardisation, transparency and reporting benefits and should appeal to a wide range of European investors seeking more sustainable investment solutions.”
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