Franklin Templeton Launches Catholic EM Sovereign Debt ETF

This new Article 8 Smart Beta ETF will be managed by John Beck, senior vice president and director of global fixed income and will be based on the ICE BofA Diversified Emerging Markets External Debt Sovereign Bond index.

The index excludes bonds issued by countries that score poorly on criteria identified by the index provider as Roman Catholic principles, such as governments’ moral integrity or social justice. The ETF also adjusts its security weightings to reduce its overall carbon footprint relative to the index. 

Goldman Sachs AM launches emerging markets ex-China equity fund

“With this offering we have created a custom-made index and partnered with an ethical advisor to ensure clients have access to a distinct ETF backed by the scale and resources of Franklin Templeton,” said Caroline Baron, head of ETF business development EMEA. 

“The combination of Catholic values-based exclusions and a screening process for decarbonisation opportunities from the ETF’s investable universe should subsequently appeal to a broad range of investors seeking to widen their portfolio of sustainable investments.”

The ETF will be available to investors on London Stock Exchange for a total expense ratio of 0.35%.