Franklin Templeton Investments has partnered with Nasdaq Dorsey Wright for the first time to launch the Franklin LibertyShares International Equity model portfolio.
The asset allocation portfolio, which is comprised entirely of Franklin Templeton’s passive single-country and regional ETFs, aims to identify major themes in the international equity market and maintain exposure to the ETFs driven by price momentum and eliminate exposure to those exhibiting lower relative price momentum.
A total of 18 ETFs are considered for selection in the model portfolio but new ETFs could also be included as they are launched, according to the firm. The model first went live on September 1.
There is no overlay model fee in addition to the underlying ETF fees, which range from nine to 19 basis points. However, financial advisors can only access the model portfolio through subscription to Nasdaq Dorsey Wright’s platform.
As part of the collaboration, Nasdaq Dorsey Wright is responsible for all aspects of portfolio construction and ongoing management, including fund selection and asset allocation decisions. Dorsey Wright selects ETFs for use in the model portfolio based on its proprietary ‘relative strength matrix’ system.
Franklin LibertyShares has more than $2 billion in assets under management globally as of September 30. As a whole, Franklin Templeton had $682.7 billion in assets under management at the end of October.
Richmond, Virginia-based Dorsey Wright is one of the largest smart beta index providers with $56.8 billion in assets under management tracking Nasdaq Smart Beta indices. The firm was acquired by Nasdaq in 2015.