Franklin Templeton to Offer New Multi-Asset ETF Focused on Income

Rhea-AI Summary

Franklin Templeton is launching the Franklin Income Focus ETF this summer to enhance income generation for U.S. investors. The ETF will employ a multi-asset strategy, dynamically adjusting its portfolio across various asset classes, including equity and debt securities, to respond to changing market conditions. Managed by a team with over 60 years of experience, the ETF aims to maximize income over complete market cycles. Currently, Franklin Templeton offers 58 ETFs, managing approximately $10 billion in assets. The firm has a substantial history, managing $1.4 trillion in assets as of February 28, 2023.

Positive

• Launch of Franklin Income Focus ETF aiming to maximize income over a full market cycle.
• Dynamic allocation strategy adapts to changing market conditions.
• Experienced management team with over 60 years of combined investment experience.
• Franklin Templeton currently manages approximately $10 billion in ETF assets.

Negative

• None.

The Franklin Income Focus ETF will offer U.S. ETF investors access to a dynamic, multi-asset strategy that adjusts and adapts to changing market conditions

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Templeton announces plans to offer a new multi-asset exchange-traded fund (ETF), the Franklin Income Focus ETF, to U.S. investors this summer. The Franklin Income Focus ETF strategy will seek to maximize income over a full market cycle by investing opportunistically across different asset classes, markets and sectors and utilizing income generation strategies. It will be available on the NYSE Arca under the ticker INCM.

INCM will invest in a multi-asset, diversified portfolio of equity and debt securities using a dynamic allocation approach that adjusts and adapts to changing market conditions. Equity securities within the portfolio may include common stocks, including dividend-paying stocks, as well as convertible preferred securities. Debt securities may include all varieties of fixed, floating and variable rate instruments.

The ETF will be managed by the experienced team of Ed Perks, Chief Investment Officer of Franklin Income Investors, and portfolio managers Todd Brighton and Brendan Circle, with more than 60 years of combined investment industry experience. Perks and team currently manage Franklin Templeton’s flagship Franklin Income Fund mutual fund, incepted in 1948, and a Franklin Income separately managed account (SMA)*.

“I’ve been looking forward to this launch since we built the ETF platform in 2016, and the timing couldn’t be better as investors continue to seek income in these challenging markets,” said Patrick O’Connor, Head of Global ETFs for Franklin Templeton. “What Franklin Income Investors has been able to accomplish for clients over the past 70+ years is truly impressive,” continued O’Connor. “Tapping our extensive bench of active managers to bring ETF solutions to market is what we are all about.”

Franklin Templeton’s U.S. ETF platform provides solutions for a range of market conditions and investment objectives through active, smart beta and passively managed ETFs. Franklin Templeton currently offers 58 ETFs in the U.S. with combined assets under management of approximately $10 billion.

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 155 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 offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of February 28, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

The information in the prospectus is not complete and may be changed. The securities may not be sold until the registration statement filed with the Securities Exchange Commission is effective. The prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer is not permitted.

Before investing, carefully consider the Fund’s investment objectives, risks, charges and expenses. You will find this and other information in the prospectus. You can obtain a copy of the preliminary prospectus by calling (800) DIAL BEN/342-5236. Please read it carefully. The final prospectus, when available, should be read carefully before investing.

All investments involve risks, including possible loss of principal.

The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably.

The Fund's share price and yield will be affected by interest rate movements. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the Fund adjust to a rise in interest rates, the Fund's share price may decline.

Credit risk: Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value.

Income: The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security.

Dividend-Oriented Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future.

The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance.

*Funds, ETFs, SMAs and institutional separate accounts offer different choices to access professional investment management, but have important differences including with respect to fees, ownership structure, investment minimums, customization and tax efficiency. Account minimums and other requirements may apply for separately managed accounts and institutional separate accounts.

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.

Franklin Distributors, LLC. Member FINRA, SIPC.

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.

TN23-16

Copyright © 2023. Franklin Templeton. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230310005303/en/

Franklin Templeton Corporate Communications:

Rebecca Radosevich, (212) 632-3207, rebecca.radosevich@franklintempleton.com

Stacey Coleman, (659) 525-7458, stacey.coleman@franklintempleton.com

Source: Franklin Templeton

FAQ

What is the Franklin Income Focus ETF?

The Franklin Income Focus ETF is a multi-asset exchange-traded fund launched by Franklin Templeton, aiming to maximize income over a full market cycle.

When will the Franklin Income Focus ETF be available for investors?

The Franklin Income Focus ETF is scheduled to be available to U.S. investors this summer.

What is the ticker symbol for the Franklin Income Focus ETF?

The Franklin Income Focus ETF will be listed on NYSE Arca under the ticker symbol INCM.

How much assets does Franklin Templeton manage in ETFs?

Franklin Templeton currently manages approximately $10 billion in ETF assets.

What is the management experience behind the Franklin Income Focus ETF?

The ETF is managed by a team with over 60 years of combined experience in the investment industry.