Franklin Templeton has expanded its Catholic principles range with the launch of a global equity ETF.
The Franklin MSCI Word Catholic Principles UCITS ETF (FLXA) will be listed on the Deutsche Boerse tomorrow, the London Stock Exchange on 26 April and the Euronext Milan on 9 May.
The ETF has a total expense ratio (TER) of 0.27%.
FLXA tracks the MSCI World Select Catholic Principles ESG Universal and Low Carbon index, investing in large and mid-cap developed market companies with an ESG lens.
It aims to invest in companies with “lower carbon exposure”, while companies must have a minimum of a ‘BB’ rating from MSCI ESG Ratings.
It also excludes companies involved in controversial business including civilian firearms and nuclear weapons.
Businesses generating revenue from gambling, tobacco and thermal coal are also “significantly restricted”.
To align with Catholic values, companies involved in abortion and contraceptives, animal testing and stem cell research are also excluded.
Franklin Templeton said the ETF has ‘AA’ MSCI ESG rating, while over 65% of the portfolio is rated between ‘A’ and ‘AAA’.
The ETF is considered Article 8 under the Sustainable Finance Disclosure Regulation and will be managed by Dina Ting, head of global index portfolio management and Lorenzo Crosato, ETF portfolio manager at Franklin Templeton.
Caroline Baron, head of ETF distribution EMEA at Franklin Templeton, said: “With this new fund we wanted to offer investors an ESG-focused global equity strategy within an ETF structure that incorporates specific Catholic values but also provides a core equity Article 8 compliant solution.”
Rafaelle Lennox added: “Investors can now participate in the performance of sustainable developed world equities that align with Catholic principles in one simple ETF.”
The launch follows the unveiling of the Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF (EMCV) in June 2022.
