Active ETFs, which differ from traditional index ETFs by aiming to deliver consistent alpha while maintaining transparency and liquidity, have seen their global assets top $1.8 trillion. This surge reflects a growing demand from both retail and institutional investors for investment vehicles that offer the accessibility, transparency, and affordability of the ETF structure.

"Investors today want more choice in the ETF space," said Felicity Walsh, Managing Director of Franklin Templeton Australia and New Zealand. "Our range of active ETFs are designed to bring together the liquidity and transparency of a listed structure with an active and intelligent approach to portfolio management."

Walsh emphasised the strength of Franklin Templeton's global platform, stating, "We are leveraging the expertise of our investment groups and harnessing the full strength of Franklin Templeton's global platform, spanning decades of market expertise and deep research capabilities – making all of that available in a format that suits how Australians want to invest today."

**Western Asset Enhanced Income Fund – Active ETF (FEIF)**

The Western Asset Enhanced Income Fund – Active ETF (FEIF) is designed to enhance the fixed income segment of investors' portfolios. Anthony Kirkham, Co-Chief Investment Officer and Head of Asia Pacific Investment Management at Western Asset Management, explained the fund's strategy: "FEIF is designed for investors who want to do more with the fixed income portion of their portfolio. It offers a short-duration, high-quality credit strategy that seeks to generate meaningful income above the cash rate, while actively managing risk across sectors and individual securities."

Kirkham highlighted the fund's unique proposition, noting, "For investors looking for yield without taking on significant interest rate sensitivity, this fund offers a genuinely differentiated option as an active ETF."

FEIF provides investors with access to a diversified portfolio of Australian and global fixed income securities managed by Western Asset Management. The fund aims to exceed the Bloomberg AusBond Bank Bill Index by 1.5 to 2 per cent per annum over rolling three-year periods. As of 30 April 2026, the Western Asset Enhanced Income Fund returned 6.12 per cent over one year and 7.54 per cent per annum over three years, outperforming the benchmark's returns of 3.79 per cent and 4.16 per cent, respectively. The fund has also received Recommended ratings from Lonsec and Zenith Investment Partners.

**Franklin Global Systematic Equity Fund – Active ETF (FGSE)**

The Franklin Global Systematic Equity Fund – Active ETF (FGSE) is tailored for investors seeking broad global equity exposure with a strategy that extends beyond mere index tracking. Chris Floyd, Portfolio Manager at Franklin Templeton Investment Solutions, described the fund's approach: "FGSE suits investors who want broad global equity exposure and are seeking an approach that goes beyond tracking an index. Our systematic process analyses thousands of companies daily across quality, valuation, sentiment and other factors, seeking to identify those with the strongest return potential."

Floyd further elaborated on the fund's objectives, stating, "The result is a style-neutral, diversified portfolio that aims to deliver consistent outperformance over time, one which we think is a compelling proposition for growth investors."

Managed by the Systematic Equity team within Franklin Templeton Investment Solutions (FTIS), FGSE offers a quantitatively driven, benchmark-aware exposure to global equities. The fund aims to outperform the MSCI World ex-Australia Index (after fees) over rolling three-year periods, with a tracking error of 2 to 3 per cent per annum. Over one year to 30 April 2026, the Franklin Global Systematic Equity Fund returned 15.16 per cent (after fees) and 19 per cent per annum over three years, compared with benchmark returns of 15.06 per cent and 16.52 per cent. The fund, which has been in the Australian market for over two decades, maintains a long track record of outperforming its benchmark. It also holds Recommended ratings from Lonsec and Zenith Investment Partners.

These two new ETFs join an existing suite of seven active ETFs offered by Franklin Templeton, including the Betashares Western Asset Australian Bond Active ETF (BNDS) and the ClearBridge Global Infrastructure Income Fund (Hedged) Active ETF (CIIH), among others. As Franklin Templeton continues to expand its active ETF offerings, it remains committed to providing innovative investment solutions that meet the evolving needs of Australian investors.