TORONTO, September 21, 2022 /CNW/ – Franklin Templeton Canada today announced proposed index provider and investment objective changes for two ETFs, as well as the proposed merger of two fixed income ETFs.
Proposed ETF Changes
Franklin Templeton proposes a new index provider with Solactive AG1and new investment objectives for the following ETFs:
Franklin Emerging Markets Multifactor Index ETF (FLEM) – Suggested investment objective: The ETF aims to track, as closely as possible and before fees and expenses, the performance of the Solactive GBS Emerging Markets Large & Mid Cap CAD Index-NR. It invests primarily in equity securities in emerging markets. If this investment objective is approved, the ETF name will change to Franklin Emerging Markets Equity Index ETF.
Franklin FTSE Europe ex UK Index ETF (HALLWAY) – Suggested investment objective: The ETF aims to track, as closely as possible and before fees and expenses, the performance of the Solactive GBS Developed Markets ex North America Large & Mid Cap CAD Index-NR. It invests primarily in equity securities of large and mid capitalization issuers in developed markets, excluding North America. If this investment objective is approved, the ETF name will change to Franklin EAFE Equity Index ETF.
If approved, these changes will be effective on or about December 21, 2022. On the same day, the management fee for the Franklin Emerging Markets Multifactor Index ETF will be reduced from 45 basis points (bps) to 19 bps. The management fee for the Franklin FTSE Europe ex UK Index ETF remains unchanged at 9 basis points. The tickers remain the same for both ETFs.
Proposed ETF merger
Franklin Templeton proposes a merger Franklin US Investment Grade Corporate Bond Active ETF (CAD-hedged) (FLUI) in Franklin Western Asset Core Plus Bond Active ETF (FWCP) on a taxable basis.
The Franklin Western Asset Core Plus Bond Active ETF seeks to maximize total return through exposure to investment grade debt securities of issuers worldwide, while adopting a sustainable investment approach by investing directly in such instruments and/or entities is invested by Franklin Western Asset Core Plus Bond Fund (or its successor fund).
Subject to investor approval, the merger will take place on or at December 16, 2022. If the merger is not approved, the Franklin US Investment Grade Corporate Bond Active ETF (CAD-Hedged) will terminate on or about December 21, 2022.
The ETFs’ independent review committee has reviewed the proposed merger and has determined that the merger, if proceeded, will produce a fair and reasonable outcome for the Franklin US Investment Grade Corporate Bond Active ETF (CAD-Hedged). All costs and expenses associated with the merger, including meeting expenses, will be borne by the manager and will not be charged to the ETFs. Investors will not be charged any commission or other fees for switching from shares of the Franklin US Investment Grade Corporate Bond Active ETF (CAD-Hedged) to shares of the Franklin Western Asset Core Plus Bond Active ETF.
Special session details for proposed changes
The proposed ETF changes and proposed ETF merger are subject to investor approvals obtained at special meetings held virtually December 9, 2022. Registered investors per October 17, 2022have access to the meeting documents via notices published on Franklin Templeton’s Website providing more details on the proposed changes. Investors are strongly advised to vote by one of the methods described in the meeting documentation before the proxy voting deadline. Investors interested in attending the virtual meeting can access it at franklintempleton.ca/december9meeting.
Investors are encouraged to speak to their financial advisor about these changes. Franklin Templeton’s Customer service team is also available between 8:00 a.m. and 6:00 p.m. EDT at 1-800-387-0830 or [email protected]
About Western Asset
Western Asset is one of the world’s leading fixed income managers with 50 years of experience and $407.5 billion in assets under management as of June 30, 2022. With a focus on long-term fundamental value investing using a top-down and bottom-up approach, the firm has nine offices around the world and extensive experience across a diverse range of fixed income sectors. Founded in 1971, Western Asset is known for its approach that emphasizes team management and intensive proprietary research, backed by robust risk management. Western Asset is an independent specialist investment manager of Franklin Templeton. To learn more about Western Asset, please visit westernasset.com.
Around Franklin Templeton
Franklin Resources, Inc. (NYSE: BEN) is a global investment management company with subsidiaries trading as Franklin Templeton and serves customers in over 155 countries. In Canada, the Company’s subsidiary is Franklin Templeton Investments Corp., trading as Franklin Templeton Canada. Franklin Templeton’s Mission is to help clients achieve better results through investment management expertise, wealth management and technology solutions. Through its dedicated investment managers, the firm offers boutique specialization on a global scale and brings extensive capabilities across equities, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and around 1,300 investment professionals, the California-based company has over 75 years of investment experience and approx $1.4 trillion (approximately CA$1.8 trillion) in assets under management August 31, 2022. For more information, please visit franklintempleton.ca and connect with Franklin Templeton on TwitterFacebook and LinkedIn and read the Beyond Bulls & Bears blog.
1. Solactive AG (“Solactive”) is the licensor of the Solactive GBS Emerging Markets Large & Mid Cap CAD Index NO and Solactive GBS Developed Markets ex North America Large & Mid Cap CAD Index-NR (the “Indices”). The financial instruments based on the indices are in no way sponsored, endorsed, promoted or sold by Solactive, and Solactive makes no representation, guarantee or representation, express or implied, as to: (a) the advisability of investing in the financial instruments; (b) the quality, accuracy and/or completeness of the Indices; and/or (c) the results obtained or expected to be obtained by any person or entity from use of the Indices. Solactive reserves the right to change the calculation or publication methods related to the indices. Solactive is not liable for any damage suffered or incurred as a result of the use (or inability to use) of the indices.
Investing in ETFs may involve commissions, management fees and expenses. Investors should carefully consider an ETF’s investment objectives and strategies, risks, fees and expenses before investing. The prospectus and ETF facts contain this and other information. Please read the prospectus and ETF facts carefully before investing. ETFs trade like stocks, fluctuate in market value and can trade at prices above or below the ETF’s net asset value. Broker commissions and ETF costs reduce returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeatable.
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SOURCE Franklin Templeton Investments Corp.
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