Franklin Liberty Euro Green Bond ETF

Issuer: Franklin Templeton

Asset Class: Fixed Income

TER: 30bps

Trading Currency: GBP

Pays Income: False

Listing Date: 02 May 2019

Ticker: FVUG

ISIN: IE00BHZRR253

This actively managed fund offers a targeted approach to sustainable investing by focusing on the European green bond market. The primary objective is to generate total return, comprising both income and capital growth, while adhering to stringent sustainability criteria. The portfolio is constructed with investment-grade, euro-denominated green bonds issued by a diverse range of entities, including sovereign nations, supranational organisations, and corporations. These specific debt instruments are designed to finance projects with demonstrable environmental benefits, such as renewable energy, clean transportation, sustainable water management, and green buildings, allowing investors to directly support the transition to a low-carbon economy.

The investment team employs a rigorous, research-driven process to select securities. This involves not only traditional credit analysis to assess the financial health and risk profile of the issuer but also a deep evaluation of the 'green' credentials of each bond. The managers scrutinise the use of proceeds, the project evaluation and selection process, the management of proceeds, and the issuer's reporting standards to ensure alignment with the fund's environmental mandate. This dual-focus approach aims to build a portfolio of high-quality bonds that can deliver competitive risk-adjusted returns while contributing to positive, measurable environmental outcomes, making it a suitable option for investors seeking to integrate impact and financial goals within their fixed-income allocation.