Global investment manager Franklin Templeton announced today the launch of the Franklin Future of Food UCITS ETF and Franklin Future of Health and Wellness UCITS ETF, two new exchange traded funds that invest in healthcare and food companies that engage in sustainable practices.
Stock selection for the funds is aligned to UN Sustainable Development Goals (SDGs), the 17 categories of goals adopted as part of the 2030 Agenda for Sustainable Development, with the aim to protect the planet and improve the quality of life globally. The SDGs include targets such as ending poverty and hunger, improving education, and protecting the environment.
The new ETFs are classified as Article 8 under the EU’s SFDR regulation, bringing the firm’s total Article 8 compliant ETFs to 10.
Dina Ting, Head of Global Index Portfolio Management, Franklin Templeton, said:
“These new Article 8 ETFs take a multi-dimensional investment approach to stock selection in that they leverage long-term societal shifts resulting from macroeconomic, geopolitical and technological developments.”
Launched in collaboration with index provider Solactive, the Franklin Future of Food UCITS ETF will track the Solactive Sustainable Food Index and the Franklin Future of Health and Wellness UCITS ETF will track the Solactive Sustainable Health and Wellness Index
The Solactive Sustainable Food Index targets companies that prioritize sustainability and innovation in the food network, across industries including agricultural machinery, aquaculture, crop protection, packing solutions, smart farming, sustainable food, and water technology. Companies selected for inclusion must be deemed by Institutional Shareholder Services (ISS) to be contributing to SDG 2 (Zero Hunger), SDG 9 (Industry, Innovation & Infrastructure), SDG 12 (Responsible Consumption & Production), SDG 13 (Climate Action), SDG 14 (Life Below Water) or SDG 15 (Life On Land).
The Solactive Sustainable Health and Wellness Index considers companies that facilitate healthcare access and meet diverse consumers focusing on an ageing population, with a focus on innovative healthcare companies in areas including eHealth, genomics, medical imaging, robotic surgery, and those specializing in senior diseases, recognized by ISS to be contributing to SDG 3 (Good Health and Well-being).
Timo Pfeiffer, Chief Markets Officer at Solactive, said:
“We are pleased to continue our engagement with Franklin Templeton to launch these indices. Our food and healthcare indices enable investors to gain exposure to companies that are at the forefront of innovation and create a positive impact in these vital sectors, which have great potential to grow. Moreover, they align with ESG criteria, which is a current increasing demand to help build a better planet.”
Both ETFs will be managed by Dina Ting and Lorenzo Crosato, ETF Portfolio Manager at Franklin Templeton.
Caroline Baron, Head of ETF Distribution, EMEA, Franklin Templeton, said:
“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 to these ETFs is an attractive means of portfolio diversification for investors, given their unique exposure.”