Franklin Templeton Announces Liquidation of ClearBridge Focus Value ESG ETF

Rhea-AI Summary

Franklin Templeton has announced the liquidation of ClearBridge Focus Value ESG ETF (CFCV), set to occur around November 5, 2024. Key dates include:

• September 5, 2024: Board approval of liquidation
• October 8, 2024: Last day for creation orders
• October 29, 2024: Final trading day on Cboe BZX Exchange
• October 30, 2024: Trading halted, portfolio liquidation begins
• November 5, 2024: Estimated date for distribution of liquidation proceeds

Shareholders can sell their shares until market close on October 29, 2024. Those who don't sell will receive cash equal to the net asset value of their shares, including capital gains and dividends. The liquidation may have tax implications, and shareholders are advised to consult their tax advisors.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Templeton today announced it will liquidate and dissolve ClearBridge Focus Value ESG ETF (CFCV). The liquidation is anticipated to occur on or about November 5, 2024.

The liquidation of CFCV was approved by the Fund’s board of trustees on September 5, 2024, and does not require the approval of shareholders.

After the close of business on October 8, 2024, the Fund will no longer accept creation orders. Trading in the Fund on Cboe BZX Exchange, Inc. (“Cboe”) will be halted prior to market open on October 30, 2024. Proceeds of the liquidation are currently scheduled to be sent to shareholders on or about November 5, 2024.

When the Fund is in the process of liquidating its portfolio, which is anticipated to commence prior to October 30, 2024, the Fund will hold cash and securities that may not be consistent with the Fund’s investment objective and strategies.

Shareholders may sell their shares of the Fund on Cboe until the market close on October 29, 2024, 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 Cboe after market close on October 29, 2024, 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 October 29, 2024 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 November 5, 2024.

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.

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 150 countries. 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 offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.6 trillion in assets under management as of July 31, 2024. For more information, please visit franklintempleton.com and follow us on LinkedIn, X and Facebook.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. The investment style may become out of favor, which may have a negative impact on performance. The managers’ environmental, social and governance (ESG) strategies may limit the types and number of investments available and, as a result, may forgo favorable market opportunities or underperform strategies that are not subject to such criteria. There is no guarantee that the strategy's ESG directives will be successful or will result in better performance. These and other risks are discussed in the fund’s prospectus. These and other risks are discussed in the fund’s prospectus.

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.

Franklin Distributors, LLC. Member FINRA/SIPC. ClearBridge Investments, LLC, and Franklin Distributors, LLC, are Franklin Templeton affiliated companies.

Copyright © 2024. Franklin Templeton. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240906872804/en/

Franklin Templeton Corporate Communications:

Lisa Tibbitts, (904) 942-4451, Lisa.Tibbitts@franklintempleton.com

Source: Franklin Templeton

FAQ

When will the ClearBridge Focus Value ESG ETF (CFCV) be liquidated?

The ClearBridge Focus Value ESG ETF (CFCV) is scheduled to be liquidated on or about November 5, 2024.

What is the last day to trade CFCV shares on the Cboe BZX Exchange?

The last day to trade CFCV shares on the Cboe BZX Exchange is October 29, 2024, before market close.

When will CFCV stop accepting creation orders?

CFCV will stop accepting creation orders after the close of business on October 8, 2024.

What happens to CFCV shares not sold before the liquidation?

Shareholders who don't sell their CFCV shares before October 29, 2024, will receive cash equal to the net asset value of their shares, including any capital gains and dividends, on or about November 5, 2024.

Are there tax implications for CFCV shareholders due to the liquidation?

Yes, the liquidation may have tax implications. Shareholders may recognize taxable gains or losses and may receive taxable distributions. It's recommended to consult a tax advisor for individual circumstances.