Franklin Templeton Launches BrandywineGLOBAL – U.S. Fixed Income ETF (USFI)

USFI expands Franklin Templeton’s active fixed income ETF lineup, bringing total to 13 ETFs

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Templeton today announced the expansion of its U.S.-domiciled fixed income exchange-traded fund (ETF) lineup with the launch of BrandywineGLOBAL – U.S. Fixed Income ETF on Nasdaq under the ticker USFI. Brandywine Global, a specialist investment manager of Franklin Templeton, has provided a range of differentiated fixed income, equity and alternative solutions to clients since 1986.

USFI seeks total return by investing in U.S. fixed income securities, including debt issued or guaranteed by the U.S. government, its agencies or instrumentalities and political sub-divisions, U.S. corporate debt securities, mortgage-backed securities and asset-backed securities of U.S. issuers, and other fixed income and related investments. USFI invests in investment-grade and U.S. dollar-denominated fixed income securities.

USFI’s portfolio management team consists of Anujeet Sareen, CFA; Brian L. Kloss, JD, CPA; Jack P. McIntyre, CFA; and Tracy Chen, CFA, CAIA. Brandywine Global’s U.S. Fixed Income institutional investment strategy was launched in 1995 and has more than $3.2 billion in assets under management in separately managed accounts and other pooled vehicles as of June 30, 2023.¹

“A tumultuous 2022 capped years of low yields for fixed income. Now, that’s all changed, and the current environment provides a compelling opportunity for investors to reconsider their allocations to bonds. We believe our focus on active management and strategic portfolio decisions differentiates our approach to investing in U.S. fixed income and offers an attractive complement to investors’ other portfolio allocations,” said Sareen. “Our active duration decisions, which rely on Brandywine Global’s top-down, macroeconomic-driven investment approach, combined with our bottom-up fundamental analysis of individual investment opportunities, will make USFI a valuable offering for ETF investors.”

“Franklin Templeton continues to leverage the expertise of our specialist investment managers to develop products that meet investors’ needs and preferences and respond to changing dynamics in the greater investment landscape. A recurring topic of conversation with clients this year has been active fixed income ETFs,” said Patrick O’Connor, Global Head of ETFs for Franklin Templeton. “We believe fixed income is an area where active management shines, and we are excited to bring Brandywine Global’s nearly 30 years of experience in the U.S. fixed income market to this new ETF.”

USFI is Brandywine Global’s second U.S.-domiciled ETF and its first fixed income ETF. Last October, the BrandywineGLOBAL – Dynamic U.S. Large Cap Value ETF (DVAL) launched after the conversion of a corresponding mutual fund.

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 offers 60 ETFs in the U.S. with combined assets under management of approximately $13 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 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 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.4 trillion in assets under management as of June 30, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

About Brandywine Global

Brandywine Global Investment Management, LLC (“Brandywine Global”) believes in the power of value investing. Acting with conviction and discipline, Brandywine Global looks beyond short-term, conventional thinking to rigorously pursue long-term value. Since 1986, the Firm has provided a range of differentiated fixed income, equity, and alternative solutions to clients worldwide. Brandywine Global, a specialist investment manager of Franklin Resources, Inc., manages $54 billion in assets under management as of June 30, 2023, with headquarters in Philadelphia and offices in Singapore and London. Visit www.brandywineglobal.com and the Firm’s industry-leading Around the Curve blog.

1. The investment objective and strategies of the ETF will be substantially similar to those of the Brandywine Global U.S. Fixed Income institutional investment strategy.

What about risks?

All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. To the extent the fund invests in companies in a specific country or region, the fund may experience greater volatility than a fund that is more broadly diversified geographically. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. Active and frequent trading may increase a shareholder’s tax liability and transaction costs.

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.

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.

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Franklin Templeton Corporate Communications:

Vanessa Garcia, (917) 562-5151, vanessa.garcia@franklintempleton.com

Source: Brandywine Global Investment Management, LLC