2023-07-07 10:30:37
Franklin Templeton launches two new sustainable and thematic ETFs focused on food, health and wellness for European investors.
Franklin Templeton is pleased to announce the launch of two new sustainability thematic ETFs: the Franklin Future of Food UCITS ETF and the Franklin Future of Health and Wellness UCITS ETF. These new offerings bring the total number of thematic ETFs to three and Article 82 SFDR compliant ETFs to ten in the Franklin Templeton ETF portfolio.
The growth of the world population and the consequent need to increase food production represent a key challenge for humanity in the future, driving innovation and investment in new and more efficient technologies. As populations live longer, the demand for more frequent healthcare and wellness activities is also on the rise, creating significant potential for engaging in healthcare innovation.
Dina Ting, Head of Portfolio Management for Franklin Templeton Global Indices, said: “These new Article 8 ETFs take a multi-dimensional investment approach to stock selection as they take advantage of long-term societal changes resulting from macroeconomic developments, geopolitical and technological.By 2050, the world population will have increased by two billion, reaching almost 10 billion, which means that food production will need to increase by approximately 60%.In addition, the wellness market is projected to grow from $4.4 trillion in 2020, representing 5% of global gross domestic product, to $6.8 trillion by 2030.”
The Franklin Future of Food UCITS ETF and the Franklin Future of Health and Wellness UCITS ETF track the performance of the Solactive Sustainable Food Index and the Solactive Sustainable Health and Wellness Index, respectively.
The Solactive Sustainable Food Index is designed to offer exposure to companies related to the food industry that use technology, efficient production and supply practices, and/or demonstrate innovation with the aim of creating a sustainable food ecosystem. The companies included represent industries such as agricultural machinery, smart agriculture, aquaculture, sustainable and healthy food, among others, and should be considered by Institutional Shareholder Services (ISS), the world’s leading provider of corporate governance and responsible investment solutions, as contributors to the Sustainable Development Goals (SDG) 2 (Zero Hunger), SDG 9 (Industry, Innovation and Infrastructure), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 14 (Life Underwater) or SDG 15 (Life on Land Ecosystems).
Meanwhile, the Solactive Sustainable Health and Wellness Index is designed to offer exposure to those companies that use technology and demonstrate innovation within the healthcare industry, as well as companies that enable access to healthcare or health and wellness services for a wide range of consumers, including the elderly. This includes companies in areas such as genomics, medical imaging, eHealthcare, mind and body wellness, diseases of the elderly, and independent ageing, recognized by ISS as contributing to SDG 3 (Good Health and Wellbeing).
Actions that significantly impede any of the 17 SDGs will not be eligible to be part of the indices. In addition, companies are assessed once morest specific ESG criteria, including, among others, gender diversity on boards of directors and their impact on biodiversity sensitive areas.
Rafaelle Lennox, Head of Product Strategy UCITS ETF at Franklin Templeton, commented: “We are pleased to have collaborated with Solactive and ISS to create these cutting-edge solutions aligned with the UN SDGs, giving investors exposure to companies across the globe. world involved in innovative and sustainable practices in the fields of food and health”.
The new ETFs will be listed on Deutsche Börse Xetra (XETRA) on July 6, on the London Stock Exchange (LSE (LON:)) on July 7 and on the Borsa Italiana on July 18. They are registered in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Spain, Sweden and the United Kingdom. The ETFs will be managed by Dina Ting, Head of Global Indices Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager at Franklin Templeton.
Caroline Baron, Head of EMEA ETF Distribution at Franklin Templeton, added: “These two new sustainable ETFs offer access to secular growth stories and, by investing in innovative companies and potential disruptors, have the potential to outperform traditional indices. Franklin Templeton is a leader in thematic and technology investing, and allocating capital to these ETFs is an attractive way for investors to diversify the portfolio due to their unique exposure.”
Read the full article in DirigentesDigital
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