Proposed Repositioning of Franklin
Liberty Canadian
Investment Grade Corporate ETF (FLCI) Also Announced
TORONTO, Jan. 24, 2022 /CNW/ - Franklin Templeton Canada is listing Franklin
Western Asset Core Plus Bond Active ETF (FWCP) on the Toronto Stock
Exchange (TSX) today, January 24,
2022. FWCP ETF invests primarily in units of Franklin
Western Asset Core Plus Bond Fund, which uses multiple diversified
strategies that benefit returns and dampen volatility in different
market environments.
"We are offering the first ETF in Canada from Franklin
Templeton's global fixed income specialist, Western Asset,
which has 50 years of proven investment expertise," said
Duane Green, president and CEO,
Franklin Templeton Canada. "We are
focused on continuing to expand our suite of ETFs and showcase our
vast investment capabilities from our in-house specialist
investment managers to help Canadians achieve their desired
investment outcomes."
Franklin Templeton's diverse
and innovative ETF platform was built to provide better client
outcomes for a range of market conditions and investment
opportunities. The product suite offers active, smart beta and
passive ETFs that span multiple asset classes and
geographies. For more information, please
visit franklintempleton.ca/etf.
Vote on Repositioning of FLCI ETF
Franklin Templeton Canada has
proposed that Franklin Liberty Canadian Investment Grade Corporate
ETF (FLCI), which invests directly in fixed income securities, be
repositioned to invest primarily in units of Franklin Bissett
Corporate Bond Fund.
Franklin Bissett Corporate Bond Fund is a 4-star Morningstar
rated fund1 and ranks in the top quartile amongst
its peers in the Morningstar Canadian Corporate Fixed Income
category for annualized returns in all standard performance periods
for one through 15 years2. As one of the highest income
distributing funds3, it offers the potential for higher
total returns by focusing primarily on investment-grade corporate
bonds, debentures and short-term notes.
The proposed repositioning of FLCI ETF will be voted on at a
special meeting of investors, to be held in a virtual-only format
on April 22, 2022, at 9 a.m. EST.
Investors are strongly encouraged to vote in advance of the
proxy voting deadline via any of the methods described in the
notice and access document, which they will receive by mail.
Investors who would like to attend the virtual meeting can access
it at franklintempleton.ca/flcimeeting.
Pending investor approval, the repositioning of FLCI ETF will be
implemented on or around May 13,
2022. If the repositioning of the ETF is approved, its name
will be changed to Franklin Bissett Corporate Bond Active ETF, but
its ticker will remain FLCI on the TSX. There will be no changes to
FLCI's portfolio management team or management fees.
Investors are encouraged to speak to their financial advisor
about this change. Franklin Templeton's client service
team is also available between 8
a.m. and 6 p.m. EST at 1-800-387-0830
or service@franklintempleton.ca.
FLCI ETF is managed by the Franklin Bissett fixed income team
that provides investors with Canadian fixed income expertise,
grounded in a global perspective. Managing over $5 billion in fixed income assets4,
the team focuses on investing in Canada with potential for enhanced returns
through global diversification, managing multi-sector, credit and
duration-targeted strategies.
About Western Asset
Western Asset is one of the
world's leading fixed-income managers with 50 years of experience
and US$492.4 billion in assets under
management (AUM) as of December 31,
2021. With a focus on long-term fundamental value investing
that employs a top-down and bottom-up approach, the firm has nine
offices around the globe and deep experience across the range of
fixed-income sectors. Founded in 1971, Western Asset has been
recognized for delivering superior levels of client service
alongside its approach emphasizing team management and intensive
proprietary research, supported by robust risk management. To learn
more about Western Asset, please visit westernasset.com.
About Franklin
Templeton
Franklin Resources, Inc. [NYSE:BEN] is a
global investment management organization with subsidiaries
operating as Franklin Templeton and
serving clients in over 165 countries. In Canada, the company's
subsidiary is Franklin Templeton Investments Corp., which operates
as Franklin Templeton Canada.
Franklin Templeton's mission is to
help clients achieve better outcomes through investment management
expertise, wealth management and technology solutions. Through its
specialist investment managers, the company brings extensive
capabilities in equity, 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 75 years of
investment experience and over US$1.5
trillion (over CAN$1.9 trillion) in assets under management
as of December 31, 2021. For more
information, please visit franklintempleton.ca and connect with
Franklin Templeton on
Twitter, Facebook and LinkedIn, and read the Beyond Bulls
& Bears blog.
1. As of December 31,
2021. © 2022 Morningstar Inc. All rights reserved. The
information contained herein: (1) is proprietary to Morningstar
and/or its content providers; (2) may not be copied or distributed;
and (3) is not warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers are responsible for
any damages or losses arising from any use of this information.
Past performance is no guarantee of future results. The Morningstar
RatingTM for funds, or "star rating",
is calculated for managed products (including mutual funds,
variable annuity and variable life subaccounts, exchange-traded
funds, closed-end funds, and separate accounts) with at least
a 3-year history. Exchange-traded funds and open-ended mutual
funds are considered a single population for comparative
purposes. It is calculated based on a Morningstar
Risk-Adjusted Return measure that accounts for variation in
a managed product's monthly excess performance, placing more
emphasis on downward variations and rewarding consistent
performance. The top 10% of products in each category receive 5
stars, the next 22.5% receive 4 stars, the next 35% receive 3
stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1
star. The overall Morningstar Rating for a managed product is
derived from a weighted average of the performance figures
associated with its 3-, 5- and 10-year (if applicable) Morningstar
Ratings metrics. The weights are 100% 3-year rating for 36-59
months of total returns, 60% 5-year rating/40% 3-year rating for
60-119 months of total returns, and 50% 10-year rating/30% 5-year
rating/20% 3-year rating for 120 or more months of total returns.
While the 10-year overall star rating formula seems to give the
most weight to the 10-year period, the most recent 3-year period
actually has the greatest impact because it is included in all 3
rating periods. Franklin Bissett Corporate Bond Fund is rated
within the Morningstar Canadian Corporate Fixed Income category.
All performance data refers to series F units. Please refer to
morningstar.ca for more details on the calculation of Morningstar
Risk-Adjusted Ratings and the 1-year information. For each of the
3-, 5- and 10-year performance periods, there were in total 73, 61
and 32 funds, respectively, in the Morningstar Canadian Corporate
Fixed Income category
2. Based on Morningstar quartile rankings in the peer group.
Franklin Bissett Corporate Bond Fund - series F was a top quartile
performer in the Morningstar Canadian Corporate Fixed Income
category over the most recent 1-, 2-, 3-, 5-, 10- and
15-year standard performance periods. A quartile is used to
describe a small group composed of 25% of a larger
group. Source: Morningstar Research, Inc., as
of December 31, 2021.
3. For Franklin Bissett Corporate Bond Fund - series F, the
5-year average of the distribution yield is 1.48 times higher than
that of the Morningstar Canadian Corporate Fixed Income category
average. The 12-month trailing distribution yield of
Franklin Bissett Corporate Bond Fund - series F/Morningstar
Canadian Corporate Fixed Income category for each year in the
5-year period are as follows: 4.04%/2.76% in 2017; 4.47%/2.86% in
2018; 4.27%/2.60% in 2019; 3.78%/2.61% in 2020; and 3.47%/2.68% in
2021.The trailing 12-month distribution yield is the sum of
a fund's total trailing 12-month interest and dividend payments (if
any) divided by the last month's ending unit price net asset value
(NAV) plus any capital gains distributed over the same period. For
the Canadian Fixed Income category, the amount shown is the average
distribution yield of all currently active funds in the category.
The yield comparison is calculated based on the average 12-month
trailing distribution yield for the past 5 calendar years of the
fund divided by that of the category. Mutual fund distributions are
not guaranteed, are set and may change at the discretion of
Franklin Templeton Canada.
Distributions are not an indication of performance or rate of
return. Source: Franklin Templeton
and Morningstar Research, Inc. as of December 31, 2021.
4. As of December 31,
2021
Commissions, trailing commissions, management fees, brokerage
fees and expenses may be associated with investments in mutual
funds and ETFs. Please read the prospectus and fund facts/ETF facts
document before investing. Mutual funds and ETFs are not
guaranteed. Their values change frequently. Past performance may
not be repeated.
SOURCE Franklin Templeton Investments Corp.