Franklin Templeton has announced the launch of the Templeton Emerging Markets Sustainability Fund – a sub-fund of the Luxembourg-based Franklin Templeton Investments Funds (FTIF).
The new fund will be jointly managed by Andrew Ness from Edinburgh and Chetan Sehgal from Singapore, portfolio manager of the FTEME (Franklin Templeton Emerging Markets Equity) team, who also jointly manage the successful Templeton Global Emerging Markets strategy.
On the subject of matching items
The investment objective of the fund is to achieve capital growth by investing primarily in companies that are domiciled, resident or listed in developing or emerging countries (EM) around the world and that have good or improved sustainability criteria. The fund seeks out companies whose products and services are geared towards one or more of the six positive result areas linked to the UN Sustainable Development Goals (SDGs). The six positive outcome areas are: Basic Needs, Wellbeing, Decent Work, Healthy Ecosystems, Climate Stability, and Resource Security.
The fund has its own framework that reflects the most important megatrends in emerging markets such as demographic change, urbanization and technological innovations. ”
The fund will also apply specific ESG exclusions and will not invest in companies involved in the extraction of weapons, tobacco, coal and unconventional oil and gas extraction, or whose activities have violated the United Nations Global Compact.
The fund will aim to invest in a compelling portfolio of 30 to 50 emerging market stocks with an investment horizon of five years. ESG analysis is an essential part of the investment process. Each investment is analyzed to meet the criteria of the proprietary bottom-up ESG Inclusion Framework with three pillars, which measures:
- Orientation of the company towards positive environmental and / or social areas,
- Intent to maintain or improve the ESG footprint of the company’s operating model, and
- Transitional potential for improvement through engagement as an active owner.
Andrew Ness said: “Our rigorous and holistic three-pillar framework for the inclusion of ESG means that in addition to companies that have good sustainability criteria, we can also invest in companies that may be imperfect and have an impact by working proactively with those companies on investors. ” We believe that our core role as stewards of our clients’ capital is to responsibly allocate, manage and monitor to create long-term value for our investors. “
Julie Moret, Global Head of ESG commented: “Our philosophical focus is on the positive and enhanced integration of sustainability. The fund adopts a proprietary framework that reflects major emerging market megatrends such as demographic changes, urbanization and technological innovations that open up new opportunities Improving awareness of sustainability issues in emerging countries. “
Julian Ide, Head of EMEA Sales concluded: “Our commitment and reputation as an emerging market expert over several decades mean that we are viewed by companies and countries as a long-term investment partner.”
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