ETF Market Canada News - ETF Market Canada - Wed Aug 7, 5:54AM CDT
Introduction to Franklin Multi-Asset ETF Portfolios
In the latest edition of Issuer’s Insight, Rob Marrocco, Global Head of ETFs for Cboe Global Markets, chats with Mike Greenberg, SVP and Global Head of Americas Portfolio Management for Franklin Templeton. They discuss Franklin Templeton’s Multi-Asset ETF Portfolios, highlighting its structure, recent updates, and the team’s approach to portfolio management.
Diverse Portfolio Options
Franklin Templeton’s Multi-Asset ETF Portfolios offers four distinct managed portfolios, ranging from conservative to all-equity. Mike Greenberg explains that these portfolios aim to provide robust diversification and professional investment management. The conservative portfolio is weighted towards fixed income, while the all-equity portfolio targets higher growth. Each portfolio is managed by a team of 70 investment professionals who focus on careful asset allocation and selection.
Recent Additions and Performance
The portfolios have shown notable performance, with each of 3 portfolios, that are on the market since 2019, ranked by Morningstar in the first or second quartile over one, three, and five years.¹ This performance has led Franklin Templeton to evolve the program. A recent addition is the fourth, 100% equity portfolio, designed for investors seeking higher growth. This portfolio is diversified across domestic and international markets, developed and emerging markets, and various sectors and styles.
The transition from a fund of ETFs to ETF of ETFs provides an alternative structure for investors, enhancing the portfolio’s flexibility. Furthermore, Franklin Templeton has reduced fees across all portfolios, making them competitive within the industry, even compared to passive options.
Strategic Portfolio Management
Mike Greenberg states that the Franklin Templeton Investment Solutions team, comprising 70 global investment professionals, supports the Canadian PM team based in Toronto. This team brings expertise in asset allocation, macro research, ETF research, portfolio construction, and risk management.
The management approach emphasizes strong diversification across asset classes, styles, and sectors. Each portfolio is tailored to specific risk tolerances, allowing investors to select options that align with their preferences. An important aspect of their strategy is the dynamic tilting of portfolios. The team actively adjusts exposure to various markets based on identified opportunities.
Competitive Edge
When asked about the unique aspects of Franklin Templeton’s offering, Mike Greenberg highlights the blend of active management with competitive pricing – 13 basis points management fee for all the ETF series. This combination aims to offer the benefits of professional management without the high costs typically associated with it. The team’s ability to leverage global expertise is intended to ensure that each portfolio is managed with precision and insight.
Conclusion
Franklin Multi-Asset ETF Portfolios offers a range of options with competitive fees and a dynamic management strategy. The portfolio provides diversified, professionally managed solutions tailored to various risk tolerances. By combining active and passive management elements, Franklin Templeton Canada seeks to deliver a compelling offering for investors looking to optimize their portfolios.
¹ Morningstar Research Inc., as of June 30, 2024. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The Morningstar ranking is subject to change every month.
For each of the 1, 3 and 5 year performance periods, there were in total 1176 funds in the category for 1 year period, 1022 funds for 3-year period and 918 funds for 5-year period, respectively, in the Morningstar Global Equity Balanced category. Franklin Growth ETF Portfolio ranked in the first quartile in the 1 year period (298 overall), first quartile in the 3 year period (231 overall) and in the first quartile in the 5 year period (166 overall). All ranking data refers to Series F units and is subject to change every month.
For each of the 1, 3 and 5 year performance periods, there were in total 1555 funds in the category for 1 year period, 1346 funds for 3-year period and 1167 funds for 5-year period, respectively, in the Morningstar Global Neutral Balanced category. Franklin Core ETF Portfolio ranked in the second quartile in the 1 year period (411 overall), second quartile in the 3 year period (457 overall) and in the second quartile in the 5 year period (321 overall). All ranking data refers to Series F units and is subject to change every month.
For each of the 1, 3 and 5 year performance periods, there were in total 848 funds in the category for 1 year period, 766 funds for 3-year period and 682 funds for 5-year period, respectively, in the Morningstar Global Fixed Income Balanced category. Franklin Conservative Income ETF Portfolio ranked in the second quartile in the 1 year period (344 overall), second quartile in the 3 year period (360 overall) and in the second quartile in the 5 year period (252 overall). All ranking data refers to Series F units and is subject to change every month.
Important legal information
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the prospectus and fund fact/ETF facts document before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently. Past performance may not be repeated.
The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is not necessarily indicative nor a guarantee of future performance. All investments involve risks, including possible loss of principal.
Issued by Franklin Templeton Investments Corp., 200 King Street West, Suite 1400 Toronto, ON, M5H3T4, Fax: (416) 364-1163, (800) 387-0830, www.franklintempleton.ca
