The Article 8-classified Franklin Future of Food UCITS ETF and Franklin Future of Health and Wellness UCITS ETF track the performance of the Solactive Sustainable Food index and Solactive Sustainable Health and Wellness index respectively.
The Solactive Sustainable Food index is designed to provide exposure to companies related to the food industry that utilise technology, efficient production and supply services and demonstrate innovation with the aim of creating a sustainable food ecosystem.
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Companies included represent industries such as agriculture machinery, smart farming, aquaculture and sustainable and healthy food. They must be deemed to be contributing to a set of Sustainable Development Goals by Institutional Shareholder Services.
The Solactive Sustainable Health and Wellness index provides exposure to companies using technology and demonstrating innovation within the healthcare industry, as well as those enabling access to care, healthcare or wellness provision.
The index will track the performance of companies in areas such as genomics, medical imaging, e-healthcare, mind and body wellness, senior diseases and independent ageing recognised by ISS to be contributing to SDG 3, Good Health and Wellbeing.
Stocks deemed to be “significantly obstructing” any of the 17 SDGs will not join the indices. Companies are also screened for specific ESG criteria, including board gender diversity and impact on biodiversity-sensitive areas.
Rafaelle Lennox, head of UCITS ETF product strategy, Franklin Templeton, said: “We are delighted to have partnered with Solactive and ISS in the creation of these forward-looking solutions aligned to UN SDGs, providing investors with exposure to companies globally involved in innovative and sustainable practices across food and healthcare.”
The ETFs, which will list on the London Stock Exchange on 7 July, will be managed by Dina Ting, head of global index portfolio management and Lorenzo Crosato, ETF portfolio manager at Franklin Templeton. The ETFs will have a total expense ratio of 0.30%.
