TORONTO, April 22, 2022 /CNW/ - Franklin Templeton Canada today announced that it will terminate two ETFs, Franklin Martin Currie Sustainable Global Equity Active ETF (FGSG) and Franklin Martin Currie Sustainable Emerging Markets Active ETF (FSEM), on or around June 29, 2022.
Investors in Canada will still be able to access these sustainable strategies from Martin Currie in a mutual fund format through Franklin Martin Currie Sustainable Global Equity Fund and Franklin Martin Currie Sustainable Emerging Markets Fund.
Franklin Templeton Canada regularly reviews its investment offerings to ensure that its ETF and fund line-up remains competitive and positioned to meet the evolving needs of investors and advisors. As FGSG and FSEM have not achieved scale and have not qualified as mutual fund trusts under the Income Tax Act (Canada), the company has made the decision to terminate these two ETFs.
Investors who currently hold units of these ETFs outside a registered plan should speak with a tax advisor regarding the potential tax implications associated with the ETFs not qualifying as mutual fund trusts.
Effective today, April 22, 2022, no further direct subscriptions for units of FGSG or FSEM will be accepted. Units of these ETFs will continue to be listed on the Toronto Stock Exchange (TSX) until delisting occurs at the close of business on or around June 24, 2022.
On or around June 29, 2022, Franklin Templeton Canada will sell and convert the ETFs' portfolios to cash, and the remaining assets—after paying or providing for the ETFs' liabilities and obligations—will be distributed to the ETFs' unitholders on a pro rata basis. Unitholders who do not sell or redeem their units before the close of business on June 24, 2022, will receive cash representing their proportionate share of the ETFs' assets on or around June 30, 2022.
Investors are encouraged to speak to their financial advisor about their investment options. Franklin Templeton's client service team is also available to answer questions between 8 a.m. and 6 p.m. EST at 1-800-387-0830 or [email protected].
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. In Canada, the company's subsidiary is Franklin Templeton Investments Corp., which operates as Franklin Templeton Canada. 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 boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately US$1.5 trillion (approximately CAN$1.9 trillion) in assets under management as of March 31, 2022. For more information, please visit franklintempleton.ca and connect with Franklin Templeton on Twitter, Facebook and LinkedIn, and read the Beyond Bulls & Bears blog.
Commissions, management fees and expenses all may be associated with investments in ETFs. Investors should carefully consider an ETF's investment objectives and strategies, risks, fees and expenses before investing. The prospectus and ETF facts contain this and other information. Please read the prospectus and ETF facts carefully before investing. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF's net asset value. Brokerage commissions and ETF expenses will reduce returns. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.
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SOURCE Franklin Templeton Investments Corp.
Media Contact: Sarah Kingdon, Corporate Communications, Franklin Templeton, 416-957-6191, [email protected]
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