Franklin Templeton launches the firm’s first multi-asset ETF, Franklin Income Focus ETF, on NYSE Arca under the ticker INCM. INCM seeks to maximise income for investors over a full market cycle by investing opportunistically across different asset classes, markets and sectors and utilising income generation strategies.
Actively managed and priced at 38 basis points, INCM invests in a multi-asset, diversified portfolio of equity and debt securities using a dynamic allocation approach that adjusts and adapts to changing market conditions. Equity securities within the portfolio may include common stocks, including dividend-paying stocks, as well as convertible preferred securities. Debt securities may include all varieties of fixed, floating and variable rate instruments.
INCM is managed by Franklin Income Investors, which oversees nearly USD85 billion in multi-asset income strategies, including one of the firm’s flagship funds, Franklin Income Fund. The new ETF’s portfolio management is led by Chief Investment Officer Ed Perks and includes portfolio managers Todd Brighton and Brendan Circle. Together, the team has more than 60 years of combined investment experience managing multi-asset solutions. INCM offers clients many of the same benefits as Franklin Income Fund, along with some notable differences that utilise the ETF structure’s liquidity and transparency features.
“Franklin Income Fund will soon celebrate its 75th year of delivering uninterrupted dividends to clients through every type of market environment,” says Jenny Johnson, CEO of Franklin Templeton. “We are delighted to extend our income capabilities in the multi-asset space to a new group of investors through the ETF vehicle.”
“Against today’s backdrop of uncertainty, we are hearing client demand for outcome-oriented strategies, specifically those that generate attractive income, which can be a meaningful component of total return in uncertain times. Where others see volatility in the marketplace, we see opportunity,” said Perks. “Our active multi-asset strategy allows us to maintain equity exposure while managing risk and diversifying our portfolio, particularly within fixed income. We believe our dynamic and flexible approach across a range of asset classes is a potential differentiator in the ETF space.”
“The launch of INCM speaks to the continued growth story of our ETF business—currently at more than 100 ETFs and $15 billion in assets under management globally—and our strong belief in the value of active management within the ETF vehicle,” said Patrick O’Connor, Head of Global ETFs. “For years, we have received feedback from investors who wanted a multi-asset ETF managed by Franklin Income Investors, the same team as our flagship Franklin Income Fund. We are thrilled to offer their philosophy and experience in managing income solutions to ETF investors.”