Franklin Templeton Launches MSCI World Catholic Principles ETF

Franklin Templeton has unveiled the Franklin MSCI World Catholic Principles UCITS ETF, designed to provide exposure to large and mid-cap companies in developed markets, with a focus on sustainability and Catholic principles.

Investment Objective and Sustainability Profile

The ETF aims to offer exposure to companies with lower carbon exposure and higher ESG ratings, aligned with specific Catholic values. This is reflected in its overall MSCI ESG rating of AA. The ETF tracks the performance of the MSCI World Select Catholic Principles ESG Universal and Low Carbon Index.

More than 65% of the portfolio's holdings achieve MSCI ESG ratings between A and AAA, with a minimum rating of BB. Additionally, it excludes companies involved in controversial businesses such as civilian firearms, nuclear weapons, and conventional arms. It also has exclusions for abortion, contraceptives, animal testing, and stem cell research to remain aligned with Catholic values.

ETF Characteristics and Availability

The ETF is classified as Article 8 and adds to Franklin Templeton's ETF offering, bringing the ETF's Article 8 range to 12 products. It will be available on Xetra, the London Stock Exchange, and the Borsa Italiana, with a TER of 0.27%.

The ETF management will be led by Dina Ting, Global Head of Indexed Funds, and Lorenzo Crosato, ETF Manager, both with extensive industry experience in ETF strategies.

It is a tailor-made solution. The MSCI World Select Catholic Principles ESG Universal and Low Carbon Index was created through a partnership between Franklin Templeton, MSCI and ethical advisor Nummus.Info

Rafaelle Lennox, head of ETF UCITS product strategy at Franklin Templeton.

Conclusion

The launch of the Franklin MSCI World Catholic Principles UCITS ETF expands options for investors with a focus on sustainability and Catholic principles. With its focus on ESG values and exclusion of controversial businesses, the ETF offers an additional choice for those seeking to align their investments with their personal beliefs.