This article was originally published by our sister title, Portfolio Adviser
Franklin Templeton has launched an index-tracking ETF for large and mid-cap stocks in Japan, reaching 22 index ETFs in total for the company.
The Franklin FTSE Japan UCITS ETF tracks the FTSE Japan index, which aims to encapsulate 90% of the investable Japanese equity market. To 29 July, the index has returned 22.9% over the last year. Officially listing on the London Stock Exchange 31 July, the ETF will be offered at a 0.09% total expense ratio.
Dina Ting, head of global index portfolio management, and Lorenzo Crosato, ETF portfolio manager, will run the ETF. Ting has been with Franklin Templeton since 2015 and previously spent almost a decade at BlackRock where she managed a group of iShares ETFs as well as leading the institutional emerging markets team. Crosato also joined from BlackRock and has been with Franklin Templeton since 2017.
See also: Where next for Japan’s economy and markets?
Caroline Baron, head of ETF distribution, EMEA, for Franklin Templeton, said: “We are pleased to offer this new, single country index tracking Japan equity UCITS ETF to European investors. Investors can now gain diversified exposure to more than 500 Japanese companies across a wide range of industries.
“The Japanese equity market is the second largest equity market in Asia Pacific and the largest developed market in the region. Following decades of deflationary tendencies, Japan’s central bank recently stated it sees a virtuous cycle between wages and prices intensifying, which should further help to bolster consumption and investments. The country’s strong position on the global technology supply chain, including semiconductors, along with a renewed focus on corporate governance and shareholder value should also bode well for the domestic equity market.”
The launch comes just over a month after the introduction of Franklin Templeton’s FTSE Developed World UCITS ETF, also managed by Ting and Crosato. As of 30 June, the global ETF platform holds nearly $27bn assets under management.
Matthew Harrison, head of Americas (ex-US), Europe and UK for Franklin Templeton, said: “Following the launch of the Franklin FTSE Developed World UCITS ETF a few weeks ago, we are delighted to expand our offering of core equity index tracking products with the launch of this new, low-cost FTSE Japan ETF. With $6trn in market capitalisation and Japanese market returns expected to recover, Japanese equities can be a core equity building block option within an investor’s portfolio.”
