Franklin Templeton has launched its first multi-asset exchange-traded fund (ETF) called the Franklin Income Focus ETF (ticker: INCM) on NYSE Arca. The ETF aims to maximize income for investors over a full market cycle by opportunistically investing across different asset classes, markets, and sectors using income generation strategies.
INCM is actively managed and has an expense ratio of 38 basis points. It invests in a diversified portfolio of equity and debt securities using a dynamic allocation approach that adjusts to changing market conditions. The equity securities within the portfolio may include common stocks, including dividend-paying stocks, and convertible preferred securities, while the debt securities may consist of fixed, floating, and variable rate instruments.
The portfolio management of INCM is led by Chief Investment Officer Ed Perks, along with portfolio managers Todd Brighton and Brendan Circle. The team has over 60 years of combined investment experience managing multi-asset solutions. Franklin Income Investors, the team managing INCM, oversees nearly $85 billion in multi-asset income strategies, including the flagship Franklin Income Fund.
The launch of INCM reflects Franklin Templeton’s response to client demand for outcome-oriented strategies that generate attractive income. The firm believes that its active multi-asset strategy, which maintains equity exposure while managing risk and diversifying the portfolio, provides a potential differentiator in the ETF space.
Franklin Templeton currently manages over 100 ETFs globally, with more than $15 billion in assets under management. The firm’s U.S. ETF platform offers a range of active, smart beta, and passively managed ETFs, providing solutions for various market conditions and investment objectives.