Franklin Templeton launched the Franklin Income Focus ETF (NYSE Arca: INCM) on the New York Stock Exchange. The actively managed ETF invests opportunistically across different asset classes, markets, and sectors by using income generation strategies. This is the issuer’s first multi-asset exchange traded fund.
INCM invests in a multi-asset, diversified portfolio of equity and debt securities. It uses 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.
“While Franklin Templeton has established a strong presence in the ETF market with active strategies, this is a key launch,” said VettaFi’s head of research Todd Rosenbluth. “Franklin offers a popular, successful mutual fund with a similar-sounding approach. We think ETF-minded advisors will find the offering compelling.”
Perks of the Fund
CIO Ed Perks will lead the new ETF’s portfolio management team, which includes portfolio managers Todd Brighton and Brendan Circle. INCM offers many of the same benefits as the Franklin Income Fund, along with some notable differences that use the ETF structure’s liquidity and transparency features.
“Against today’s backdrop of uncertainty, we are hearing client demand for outcome-oriented strategies, specifically those that generate attractive income,” said Perks. “Which can be a meaningful component of total return in uncertain times. Where others see volatility in the marketplace, we see opportunity.”
Perks added: “Our active multi-asset strategy allows us to maintain equity exposure while managing risk and diversifying our portfolio, particularly within fixed income.”
ICM carries an expense ratio of 38 basis points.
Franklin Templeton’s U.S. ETF platform provides solutions for a range of market conditions and investment objectives through active, smart beta, and passively managed ETFs. Franklin Templeton offers 59 ETFs in the U.S. with about $11.5 billion in combined assets under management.