Franklin Templeton selects Euroclear’s international ETF structure for first European listing
Brussels/London, 8 September 2017 – Euroclear Bank, the Brussels-based international central securities depository (ICSD), and Franklin Templeton Investments, a global investment manager, are collaborating on issuing four smart beta exchange traded funds (ETFs) within their Franklin LibertySharesTM range in Europe.
The ETFs, which use Euroclear’s international issuance structure, will be listed and traded today on the London Stock Exchange (LSE) and settle directly in the ICSD – Euroclear Bank.
The ETF range includes two multi-factor funds which have a specific focus on quality stocks - the Franklin LibertyQ Global Equity SRI UCITS ETF and the Franklin LibertyQ U.S. Equity UCITS ETF. Also two income focused funds which invest in stocks demonstrating a high and persistent dividend income – the Franklin LibertyQ Global Dividend UCITS ETF and Franklin LibertyQ European Dividend UCTIS ETF.
“Our strategic goal, three years in the making, has been to build a world class global ETF platform. We are very excited to bring our Franklin LibertySharesTM ETF platform to Europe following our successful launches in the US and Canada and to partner with Euroclear to make the trading and settlement of our ETFs as simple as possible for our clients.” said Patrick O’Connor, Head of Global ETFs, Franklin Templeton.
Stephan Pouyat, Global Head of Capital Markets and Funds Services, Euroclear added: “We welcome this collaboration with Franklin Templeton and are pleased to be part of their first ETF issuance in Europe. Euroclear are proud to connect Franklin Templeton with our European and global client base, using an international ETF structure that provides an effective and efficient settlement solution.”
Launched in 2013, Euroclear’s international structure for ETFs brings increased efficiency to a process that had previously only been supported by fragmented domestic market practices across Europe. Euroclear provides one place of settlement - an ICSD, thereby significantly reducing the complexity, cost and risk involved in ETF issuance. ETFs to the value of EUR 230 billion ($271 billion) are currently issued in the international structure, which represents over one third of the market.
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About Euroclear Bank
Euroclear Bank provides settlement and related securities services for cross-border transactions involving domestic and international bonds, equities, derivatives and investment funds. Serving major financial institutions located in more than 90 countries, Euroclear Bank, based in Brussels, is part of the Euroclear group. Euroclear Bank is rated AA+ by Fitch Ratings and AA by Standard & Poor’s.
As well as Euroclear Bank, the Euroclear group includes Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 655 trillion in securities transactions in 2016, representing 196 million domestic and cross-border transactions. In the first half of 2017, the group held EUR 28 trillion in assets for clients.
For more information about Euroclear Bank, please check our About section