Franklin Global Quality Dividend UCITS ETF

Issuer: Franklin Templeton

Asset Class: Equity

TER: 30bps

Trading Currency: USD

Pays Income: False

Listing Date: 08 Sep 2017

Ticker: FRGD

ISIN: IE00BF2B0M76

This actively managed fund offers exposure to a global portfolio of companies from developed markets, selected through a systematic, factor-based approach. The core of the strategy is to identify and invest in high-quality businesses that also offer attractive and sustainable dividend yields. This dual-focus investment process is designed to provide investors with a combination of potential long-term capital growth and a consistent stream of income, aiming to deliver a superior risk-adjusted return compared to the broader market over a full market cycle.

The selection process rigorously screens for two key factors. The 'quality' screen identifies companies with strong fundamentals, such as high profitability, stable earnings, and robust balance sheets with low levels of debt. Concurrently, the 'dividend' screen targets companies with a history of paying dividends, a high dividend yield, and a strong likelihood of sustaining those payments in the future. By integrating these two factors, the strategy seeks to avoid 'value traps'—companies with high yields that may signal underlying financial distress—and instead focuses on fundamentally sound, shareholder-friendly businesses.

This investment may be suitable for those seeking a core global equity allocation with a potentially defensive tilt. The emphasis on quality can offer a degree of resilience during periods of market volatility, while the dividend component provides a regular income flow. The fund aims to generate a compelling total return by capturing both capital appreciation and income, making it an option for investors with a medium to long-term investment horizon who are looking for a blend of growth and income from a diversified international portfolio.