Franklin Templeton today announced fee reductions for three
Franklin LibertyShares® ETFs available to US investors.
“We are constantly evaluating ways to improve client
experiences. I’m excited to announce our latest effort – lower
pricing on our large cap equity and emerging market smart beta ETFs
as well as our international bond active ETF,” said Patrick
O’Connor, global head of ETFs for Franklin Templeton.
Fee Reductions
As detailed in the chart below, management fee reductions will
be made to Franklin LibertyQ U.S. Equity ETF (FLQL) and Franklin
LibertyQ Emerging Markets ETF (FLQE). In addition, the fee waiver
for Franklin Liberty International Aggregate Bond ETF (FLIA) will
be reduced. All reductions are effective August 1, 2019.
Ticker |
Name of Fund |
Current Gross Expense RatioAs of July 31,
2019 |
Current Net Expense Ratio as of July 31, 2019 |
New Net Expense Ratio as of August 1, 2019 |
FLQL |
Franklin LibertyQ U.S. Equity ETF |
0.25% |
0.25% |
0.15% |
FLIA |
Franklin Liberty International Aggregate Bond ETF |
0.69% |
0.35% |
0.25%* |
FLQE |
Franklin LibertyQ Emerging Markets ETF |
0.55% |
0.55% |
0.45% |
*FLIA’s investment manager has contractually agreed to waive or
assume certain expenses so that total annual fund operating
expenses (including acquired fund fees and expenses, but excluding
certain non-routine expenses) for the fund do not exceed 0.25%
until July 31, 2020. The new gross expense ratio for FLIA as of
August 1, 2019 is 2.32% without these reductions.
Franklin LibertyShares, the firm’s global ETF platform, enables
investors to pursue their desired outcomes through a range of
active, smart beta and passive ETFs. LibertyShares has more than $4
billion in assets under management globally as of June 30, 2019 and
is supported by the strength and resources of one of the world’s
largest asset managers. For more information, please visit
franklintempleton.com/etfs.
Visit Franklin LibertyShares’ Capital Markets Corner for
insights on ETF investing and follow Franklin LibertyShares on
Twitter: @libertyshares.
Important Information about the Funds
FLQL, FLIA and
FLQEAll investments involve risk, including
possible loss of principal. Stock prices fluctuate, sometimes
rapidly and dramatically, due to factors affecting individual
companies, particular industries or sectors, or general market
conditions. These and other risks are discussed in the funds’
prospectuses.
FLQL and FLQEThere can be no
assurance that the funds’ multi-factor stock selection process will
enhance performance. Exposure to such investment factors may
detract from performance in some market environments, perhaps for
extended periods. Performance of the funds may vary significantly
from the performance of an index as a result of transaction costs,
expenses and other factors.
FLIA and FLQESpecial risks are
associated with foreign investing, including currency fluctuations,
economic instability and political developments. Investments in
developing markets involve heightened risks related to the same
factors, in addition to those associated with these markets’
smaller size, lesser liquidity and lack of established legal,
political, business and social frameworks to support securities
markets.
FLIABond prices generally move in the opposite
direction of interest rates. As the prices of bonds in the fund
adjust to a rise in interest rates, the fund's share price may
decline. Changes in the financial strength of a bond issuer or in a
bond's credit rating may affect its value. Investing in derivative
securities and the use of foreign currency techniques involve
special risks as such may not achieve the anticipated benefits
and/or may result in losses to the fund. The fund may not achieve
the anticipated benefits, and may realize losses when a
counterparty fails to perform as promised. Sovereign debt
securities are subject to various risks in addition to those
relating to debt securities and foreign securities generally,
including, but not limited to, the risk that a governmental entity
may be unwilling or unable to pay interest and repay principal on
its sovereign debt, or otherwise meet its obligations when due
because of cash flow problems, insufficient foreign reserves, the
relative size of the debt service burden to the economy as a whole,
the government's policy towards principal international lenders
such as the International Monetary Fund, or the political
considerations to which the government may be subject.
ETFs trade like stocks, fluctuate in market value and
may trade at prices above or below the ETF’s net asset value.
Brokerage commissions and ETF expenses will reduce
returns.
ETF shares may be bought or sold throughout the day at their
market price, not their Net Asset Value (NAV), on the exchange on
which they are listed. Shares of ETFs are tradable on secondary
markets and may trade either at a premium or a discount to their
NAV on the secondary market.
Investors should carefully consider a fund’s investment
goals, risks, charges and expenses before investing. To obtain a
summary prospectus and/or prospectus, which contains this and other
information, talk to your financial advisor, call us at (800) DIAL
BEN/342-5236 or visit
franklintempleton.com. Please carefully
read a prospectus before you invest or send money.
About Franklin Templeton
The funds’ principal underwriter is Franklin Templeton
Distributors, Inc., a wholly-owned subsidiary of Franklin
Resources, Inc. [NYSE:BEN] is a global investment management
organization operating as Franklin Templeton. Franklin Templeton’s
goal is to deliver better outcomes by providing global and domestic
investment management to retail, institutional and sovereign wealth
clients in over 170 countries. Through specialized teams, the
company has expertise across all asset classes—including equity,
fixed income, alternative and custom solutions. The company’s more
than 600 investment professionals are supported by its integrated,
worldwide team of risk management professionals and global trading
desk network. With offices in more than 30 countries, the
California-based company has more than 70 years of investment
experience and over $715 billion in assets under management as of
June 30, 2019. For more information, please visit
franklintempleton.com.
Copyright © 2019. Franklin Templeton. All rights reserved.
Corporate Communications: Pholida Barclay, (212) 632-3204,
pholida.barclay@franklintempleton.comProsek Partners: Cary
Ruterman, (857) 302-3712, cruterman@prosek.com
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