Franklin Templeton Announces Changes to LibertyShares ETF Offerings
February 19 2020 - 5:11PM
Business Wire
Franklin Templeton today announced it will close and liquidate
Franklin Liberty International Opportunities ETF (FLIO). The
liquidation is anticipated to occur on or about March 23, 2020. The
firm regularly reviews its investment offerings, ensuring products
remain competitive and positioned to meet the evolving needs of
investors.
Franklin Templeton’s ETF platform, LibertyShares, is one of the
fastest growing ETF platforms in the US, with over $4.5 billion
assets under management as of January 31, 2020. Following the
liquidation, Franklin Templeton’s US LibertyShares ETF platform
will comprise 40 ETFs spanning all assets classes and offered
through active, smart beta, and passive investment styles. Notably,
Franklin Templeton plans to continue expanding its ETF lineup in
2020.
Key dates for the closure include: - February 20, 2020: Final
day the Fund will accept creation orders from authorized
participants - March 16, 2020: Final day Fund shares will trade on
NYSE Arca, Inc. (NYSE Arca) - March 17, 2020: Listing removed from
NYSE Arca prior to market open - March 23, 2020: Liquidation date
with proceeds of liquidation sent to shareholders
When the Fund is in the process of liquidating its portfolio,
which is anticipated to commence prior to March 17, 2020, the Fund
will hold cash and securities that may not be consistent with the
Fund’s investment goal and strategies.
Shareholders may sell their shares of the Fund on NYSE Arca
until the market close on March 16, 2020 and may incur the usual
and customary brokerage commissions associated with the sale of
Fund shares. The Fund’s shares will no longer trade on NYSE Arca
after market close on March 16, 2020, and the shares will be
subsequently delisted. At the time the liquidation of the Fund is
complete, shares of the Fund will be individually redeemed.
Shareholders who do not sell their shares of the Fund before market
close on March 16, 2020 will receive cash equal to the amount of
the net asset value of their shares, which will include any capital
gains and dividends, on or about March 23, 2020.
For those shareholders with taxable accounts and for Federal,
state and local income tax purposes: (a) any liquidation proceeds
paid to such shareholder should generally be treated as received by
such shareholder in exchange for the shareholder’s shares and the
shareholder will therefore generally recognize a taxable gain or
loss; and (b) in connection with the liquidation, the Fund may
declare taxable distributions of its income and/or capital gain.
Shareholders should consult their tax advisers regarding the effect
of the Fund’s liquidation in light of their individual
circumstances. .
For more information, please see the Fund’s prospectus or 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 Fund
All investments involve risks, 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.
Special risks are associated with foreign investing, including
currency fluctuations, economic instability and political
developments; investments in emerging markets involve heightened
risks related to the same factors. Investments in developing
markets involve heightened risks related to the same factors, in
addition to those associated with their relatively small size and
lesser liquidity. To the extent the fund focuses on particular
countries, regions, industries, sectors or types of investment from
time to time, it may be subject to greater risks or adverse
developments in such areas of focus than a fund that invests in a
wider variety of countries, regions, industries or sectors or
investments. Smaller- and midsize-company stocks have historically
experienced more price volatility than larger-company stocks,
especially over the short term. Investments in derivatives involve
costs and create economic leverage, which may result in significant
volatility and cause the fund to participate in losses (as well as
gains) that significantly exceed the fund's initial investment.
These and other risks are discussed in the fund's prospectus.
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 $688 billion in assets under management as of
January 31, 2020. For more information, please visit
franklintempleton.com.
Copyright © 2020. Franklin Templeton. All rights reserved.
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version on businesswire.com: https://www.businesswire.com/news/home/20200219006032/en/
Franklin Templeton Corporate Communications: Pholida Barclay,
(212) 632-3204, pholida.barclay@franklintempleton.com Prosek
Partners: Mara Bernstein, (646) 818-9278, mbernstein@prosek.com
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