Franklin Templeton on Monday said that all 21 Ucits ETFs from its Icav range have become available to Luxembourg investors in response to growing client demand for ETF solutions.
Registering its ETF range in Luxembourg is “an important step” in terms of expansion in Europe, it said, referring to the “vast potential” of this market, which has grown annually at a rate of 29 per cent since 2008, said the California-based firm with more than 15 billion dollars in global assets under management.
“Our ambition is to become a top 10 European ETF provider by continuing the build-up of our ETF platform focusing on fixed income, sustainability and thematics,” said Caroline Baron (photo), head of ETF distribution EMEA, in a press release.
“We are strongly positioned for the future and believe that entering the Luxembourg market now will help us grow further,” she said. “This region has traditionally been using ETFs for a long time and professional investors tend to be knowledgeable and keen to use ETFs. We are excited to increase our regional coverage and look forward to working with investors in Luxembourg.”
Funds of funds
Luxembourg is regarded as a major European wealth and asset management market and has one of the biggest concentration of funds of funds in Europe.
ETFs are particularly well suited for fund of fund vehicles, said Guillaume Dambrine, who joined the firm in May 2022 as senior ETF sales specialist for France, Belgium and Luxembourg. “They enable tactical and precise allocations, among all asset classes and regions, at a competitive cost, thus making it appealing for us to expand in this market”.
Franklin Templeton’s range of 21 Ucits ETFs span includes sustainable, passive, actively managed fixed income ETFs, smart beta and thematic products, including funds that provide exposure to the de-carbonisation goals of the Paris Climate Agreement, emerging markets, green bonds, metaverse and a fixed income product based on Catholic principles.
The firm, which already has a long-standing presence in Luxembourg, believes that its ETF range will enable its Luxembourg clients “to utilize our ETF range as a component of a diversified portfolio, complementing our traditional active fund management solutions”, said Bérengère Blaszczyk, head of distribution for France, Benelux & Nordics at Franklin Templeton.
The firm’s ETFs are listed on the Deutsche Börse, the London Stock Exchange, Borsa Italiana, Swiss Stock Exchange SIX. Eight are currently listed on Euronext Amsterdam, thus making them available for both Euro and Sterling denominated trading but also in U.S. dollars where relevant.