Franklin Templeton has launched two new active ETFs on the ASX, bringing its local active ETF range to nine products and adding to a global trend that has seen inflows into active ETFs double as a proportion of all ETF assets since 2022.
The new active ETFs include the Western Asset Enhanced Income Fund – Active ETF (FEIF). Unlike traditional index ETFs, it is aimed to deliver consistent alpha while retaining ETF transparency and liquidity.
Active ETFs have topped $1.8 trillion globally, as both retail and institutional investors seek the accessibility, transparency and affordability of the ETF structure.
“Investors today want more choice in the ETF space,” says 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.”
“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)
“FEIF is designed for investors who want to do more with the fixed income portion of their portfolio,” says Anthony Kirkham, co-chief investment officer and head of Asia Pacific Investment Management at Western Asset Management.
“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. For investors looking for yield without taking on significant interest rate sensitivity, this fund offers a genuinely differentiated option as an active ETF.”
FEIF gives investors access to a diversified portfolio of Australian and global fixed income securities managed by Western Asset Management. The fund targets returns that exceed the Bloomberg AusBond Bank Bill Index by 1.5 to 2 per cent per annum, measured over rolling three-year periods.
The Western Asset Enhanced Income Fund returned 6.12 per cent over one year and 7.54 per cent per annum over three years (after fees) to 30 April 2026, compared with the benchmark’s 3.79 per cent and 4.16 per cent respectively.
The Western Asset Enhanced Income Fund has Recommended ratings from both Lonsec and Zenith Investment Partners.
