Franklin Plans Mutual-Fund-To-ETF Conversions

December 14, 2021

Franklin Templeton announced late Tuesday that it would convert two of its mutual funds into ETFs.

As long as shareholders approve the change, the $228 million BrandywineGLOBAL - Dynamic US Large Cap Value Fund and the $26 million Martin Currie International Sustainable Equity Fund will be converted into ETFs in the third or fourth quarters of next year, according to a press release.

The former uses a quantitative management approach, while the latter targets non-U.S. securities that have been selected based on ESG criteria. Both funds will retain their management teams and investment strategies.

“The two mutual funds that we plan to convert to ETFs are investment strategies that have delivered exceptional results and are managed in a fashion that fits well in an ETF wrapper,” said Franklin Templeton Head of U.S. Product and Specialty Sales Pierre Caramazza.

So far this year, the industry has seen ETF-to-mutual-fund conversions by Guinness Atkinson, Dimensional Fund Advisors and Motley Fool Asset Management, with J.P. Morgan set to complete its own conversion in 2022.

Contact Heather Bell at [email protected]

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