New ETF offers active management and low costs
Franklin Templeton Canada has announced the expansion of its active fixed income ETF offerings with the introduction of a new ETF series of the Franklin Canadian Government Bond Fund, listed as FGOV on the Toronto Stock Exchange (TSX).
FGOV is designed to provide investment advisors and investors with high-quality Canadian government bond exposure, featuring the added advantage of active management at a low cost, specifically a 20-basis point fee.
Ahmed Farooq, SVP, head of Retail ETF Distribution at Franklin Templeton Canada, highlighted the aim of providing a broad range of fixed income options.
He stated: “We are focused on providing investment advisors and investors with a robust variety of fixed income options to help position their portfolios across interest-rate environments.”
He further emphasized FGOV's strategic positioning for times when interest rates are cut, offering a high-quality, longer-duration investment actively managed by their fixed income team.
The Franklin Canadian Government Bond Fund seeks to generate current income, liquidity, and modest capital appreciation, primarily investing in bonds issued by Canadian federal, provincial, and municipal governments and government agencies, mortgage-backed securities, and real return bonds.
Andrew Ashton, head of Americas (ex-US) Distribution and chairperson of Franklin Templeton Canada, reaffirmed their commitment to delivering superior fixed income solutions, stating: “We remain committed to bringing the best fixed-income capabilities from our specialist investment managers – like Franklin Fixed Income – to support investment advisors with solutions that help provide better investment outcomes for their clients.”
Darcy Briggs, SVP, portfolio manager, and Brian Calder, VP, portfolio manager and senior trader, both with Franklin Fixed Income’s Canadian team, co-manage the fund.
They bring 29 and 24 years of industry experience, respectively, focusing on Canadian fixed income investments with the potential for enhanced returns through global diversification.
In addition to FGOV, Franklin Templeton Canada offers other fixed income ETFs to complement Canadian fixed income exposure, including Franklin Brandywine Global Sustainable Income Optimiser Fund (FBGO), Franklin Global Core Bond Fund (FLGA), and Franklin Western Asset Core Plus Bond Fund (FWCP).
