Franklin Templeton plans to convert two mutual funds to ETFs

SAN MATEO, Calif .– (COMMERCIAL THREAD) – Franklin Templeton today announced its intention to convert two mutual funds into ETFs. BrandywineGLOBAL – Dynamic US Large Cap Value Fund and Martin Currie International Sustainable Equity Fund each have a track record of more than 5 years and a Morningstar performance in the first quartile.1 The conversions, subject to shareholder approval, are expected to be effective in the third or fourth quarter of 2022. Brandywine Global Investment Management, LLC and Martin Currie Inc. are specialist investment managers of Franklin Templeton.

“The two mutual funds that we plan to convert to ETFs are investment strategies that have produced exceptional results and are managed in a way that fits well within an ETF envelope,” said Pierre Caramazza , head of product and specialty sales in the United States for Franklin Templeton. “The addition of these new ETFs would expand our lineup into actively managed large-cap value and international growth spaces in the United States, where we have strong investment capabilities among our specialist investment managers. ”

Patrick O’Connor, Head of Global ETFs for Franklin Templeton, said: “Active ETFs have experienced tremendous growth, with a 3-year compound annual growth rate of assets under management of 63%.2 We believe that client demand will continue to increase as investors seek active information combined with the benefits of the ETF structure. With these ETF conversions, we are making the most of the capabilities of our diverse investment management teams to meet the changing needs of our clients.

BrandywineGLOBAL – Dynamic US Large Cap Value Fund seeks long-term capital appreciation by investing quantitatively in US equities. The fund normally invests at least 80% of its net assets in equity securities of large cap US companies. The mutual fund had net assets of over $ 227 million as of November 30, 2021.

The Martin Currie International Sustainable Equity Fund strives to provide long-term capital appreciation by investing in equities and equity-linked securities of foreign companies. The fund has a strong focus on environmental, social and governance (ESG) management and typically invests at least 80% of its assets in securities that meet Martin Currie’s ESG criteria. The mutual fund had net assets of over $ 26 million as of November 30, 2021.

Each new ETF would be managed in a manner substantially similar to that of the corresponding mutual fund, and the investment objective of the ETF, the principal investment strategies, the principal sub-advisor and the portfolio management team would be the ones. same as those of the corresponding mutual fund.

Franklin Templeton’s ETF platform is designed to drive better results for clients through a diverse and innovative product line offered across all asset classes and geographies. Over 55 ETFs are offered in the United States, providing solutions for a range of market conditions and investment opportunities through active, smart beta and passively managed ETFs. Our US ETF platform had approximately $ 9.7 billion in assets under management as of November 30, 2021 and draws on the strength and resources of one of the world’s largest asset managers. Gather information about investing in ETFs by visiting franklintempleton.com/etfs and by following Franklin LibertyShares on Twitter: @libertyshares.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN], is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in more than 165 countries. Franklin Templeton’s mission is to help clients achieve better results through their investment management expertise, wealth management and technology solutions. Through its specialized investment managers, the company brings extensive capabilities in equities, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has more than 70 years of investment experience and more than $ 1.5 trillion in assets under management as of November 30, 2021. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

Important information

Past performance is no guarantee of future results. Equity securities are subject to price fluctuations and possible loss of capital. Fixed income securities involve interest rate, credit, inflation and reinvestment risks; and the possible loss of capital. When interest rates rise, the value of fixed income securities decreases. High yield bonds are subject to greater price volatility, illiquidity and the possibility of default. International investments are subject to specific risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. A manager’s environmental, social and governance (ESG) investment strategies may limit the types and number of investment opportunities available and, therefore, may underperform strategies that are not subject to such criteria. Active management does not guarantee gains or protect against market downturns.

Before investing, carefully consider the investment objectives, risks, costs and expenses of a Fund. You can find this and other information in each prospectus, or summary prospectus, if any, which is available at www.franklintempleton.com. Please read it carefully.

Franklin Distributors, LLC., FINRA / SIPC Member and Franklin Templeton Affiliate.

Copyright © 2021. Franklin Templeton. All rights reserved.


1 Morningstar source as of 11/30/2021. Morningstar percentile rankings are based on a fund’s total returns against all funds in the same category. Exchange-traded funds and open-ended mutual funds are considered a single population for comparison purposes. Calculations assume reinvestment of distributions and exclude sales charges, if any. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The best performing fund in a category will always be ranked 1. Morningstar Inc. is a independent investment research firm that compiles and analyzes data on funds, stocks and general markets. A high ranking does not necessarily imply that a fund performed positively for the period. The rankings indicated relate to Class I shares. Other share classes have different expense structures and performance characteristics. The classes have a common portfolio. Past performance and is no guarantee of future results. BrandywineGLOBAL – Dynamic US Large Cap Value Fund The Morningstar peer group category of the US High Value Fund is the US High Value Fund. Class I ranked 14th (147/1221 funds) for the 1 year period, 19th (186/1186 funds) for the 3 year period, 19th (181/1131 funds) for the 5 year period. The Morningstar Reference Group of the Martin Currie International Sustainable Equity Fund is US Fund Foreign Large Growth. Class I ranked 12th (39/449 funds) for the 1 year period, 13th (49/420 funds) for the 3 year period, 13th (45/393 funds) for the 5 year period. On September 30, 2021, the Martin Currie International Sustainable Equity Fund changed its name and investment policy, specifying that it will invest at least 80% of its assets in securities meeting environmental, social and governance criteria.

2 Morningstar source as of 11/30/2021 for US active ETFs.