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 email@example.com.
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.
For further information: Media Contact: Sarah Kingdon, Corporate Communications, Franklin Templeton, 416.957.6191, firstname.lastname@example.org