Franklin Templeton Announces Plans to Convert Franklin Focused Growth Mutual Fund to an ETF
Firm will offer same large-cap growth strategy to U.S. investors with the structural advantages of an ETF
The new Franklin Focused Growth ETF will be managed in a substantially similar manner as the mutual fund, and the ETF’s investment goal, principal investment strategies, performance benchmark, investment adviser and portfolio management team will be the same as the predecessor mutual fund. One exception is that the ETF, unlike the mutual fund, will be a non-diversified fund (within the meaning of the Investment Company Act of 1940), which means that it will generally invest a greater proportion of its assets in the securities of one or more issuers and will invest overall in a smaller number of issuers than a diversified fund.1
“We are continually assessing our ETF product lineup for opportunities to diversify our offerings, and we are excited to expand it with the addition of the Franklin Focused Growth strategy,” said Patrick O’Connor, Head of Global ETFs for
The reorganization of the mutual fund to an ETF was approved by the mutual fund’s governing board at a meeting held on
Before investing, carefully consider a fund’s investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, or summary prospectus, if available, at www.franklintempleton.com. Please read it carefully.
All investments involve risks, including possible loss of principal. 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 of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments. Growth stock prices reflect projections of future earnings or revenues, and can, therefore, fall dramatically if the company fails to meet those projections. The fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results. The fund may also invest in small- and mid-capitalization companies, which can be particularly sensitive to changing economic conditions, and their prospects for growth are less certain than those of larger, more established companies. Foreign investing carries additional risks such as currency and market volatility, and political or social instability; risks which are heightened in developing countries. The manager’s portfolio selection strategy is not solely based on ESG considerations, and therefore the issuers in which the fund invests may not be considered ESG-focused companies. Integrating ESG considerations into the investment process is not a guarantee that better performance will be achieved. These and other risks are described more fully in the fund's prospectus.
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their 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 (MP), 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.
- As a non-diversified fund, it will be permitted to invest a higher percentage of its assets in any one security than a diversified fund, which may magnify the fund’s losses from events affecting a particular security.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
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Source: Franklin Templeton