Franklin Templeton and Schroders Expand Sustainable Fund Lineups

Franklin Templeton has introduced three new exchange-traded funds specifically for European investors, focusing on green sovereign and corporate debt. Managed by the firm’s European fixed income team, the addition brings the company’s total active ETF count to six. Notably, 13 of these funds now meet the EU’s Sustainable Finance Disclosure Regulation (SFDR) Article 8 or 9 criteria, accounting for more than half of the firm's total ETF range. David Zahn, head of European fixed income, noted that the new strategies aim to provide liquidity to environmentally beneficial projects while maintaining risk-adjusted returns.

Simultaneously, Schroders has added two global equity funds to its thematic transformation range: the Schroder ISF Circular Economy and the Schroder ISF Sustainable Infrastructure. The former, managed by Jack Dempsey, seeks capital growth by targeting companies that decouple economic expansion from resource depletion. The latter, managed by Ashley Thomas, invests in renewable energy, water, and waste utilities. Both funds are classified under Article 9 of the SFDR, further integrating UN Sustainable Development Goals into the firm's core investment framework.