The actively managed multi-asset ETF is now available on NYSE Arca for U.S. investors
Franklin Templeton today launched the firm’s first multi-asset exchange-traded fund (ETF), Franklin Income Focus ETF, on NYSE Arca under the ticker INCM. INCM seeks to maximize income for investors over a full market cycle by investing opportunistically across different asset classes, markets and sectors and utilizing income generation strategies.
Actively managed and priced at 38 basis points, INCM invests 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.
INCM is managed by Franklin Income Investors, which oversees nearly $85 billion in multi-asset income strategies, including one of the firm’s flagship funds, Franklin Income Fund. The new ETF’s portfolio management is led by Chief Investment Officer Ed Perks and includes portfolio managers Todd Brighton and Brendan Circle. Together, the team has more than 60 years of combined investment experience managing multi-asset solutions. INCM offers clients many of the same benefits as Franklin Income Fund, along with some notable differences that utilize the ETF structure’s liquidity and transparency features.
“Franklin Income Fund will soon celebrate its 75th year of delivering uninterrupted dividends to clients through every type of market environment,” said Jenny Johnson, CEO, Franklin Templeton. “We are delighted to extend our income capabilities in the multi-asset space to a new group of investors through the ETF vehicle.”
“Against today’s backdrop of uncertainty, we are hearing client demand for outcome-oriented strategies, specifically those that generate attractive income, which can be a meaningful component of total return in uncertain times. Where others see volatility in the marketplace, we see opportunity,” said Perks. “Our active multi-asset strategy allows us to maintain equity exposure while managing risk and diversifying our portfolio, particularly within fixed income. We believe our dynamic and flexible approach across a range of asset classes is a potential differentiator in the ETF space.”
“The launch of INCM speaks to the continued growth story of our ETF business—currently at more than 100 ETFs and $15 billion in assets under management globally—and our strong belief in the value of active management within the ETF vehicle,” said Patrick O’Connor, Head of Global ETFs. “For years, we have received feedback from investors who wanted a multi-asset ETF managed by Franklin Income Investors, the same team as our flagship Franklin Income Fund. We are thrilled to offer their philosophy and experience in managing income solutions to ETF investors.”
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 59 ETFs in the U.S. with combined assets under management of approximately $11.5 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 April 30, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.
All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and 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. Dividends may fluctuate and are not guaranteed, and a company may reduce or eliminate its dividend at any time. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Investments in Equity Index-Linked Notes often have risks similar to securities in the underlying index, which could include management risk, market risk and, as applicable, foreign securities and currency risks. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. These and other risks are discussed in the fund’s prospectus.
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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.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
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“Franklin Income Fund will soon celebrate its 75th year of delivering uninterrupted dividends to clients through every type of market environment,” said Jenny Johnson, CEO. “We are delighted to extend our income capabilities to the ETF."
Franklin Templeton Corporate Communications:
Vanessa Garcia (917) 562-5151, firstname.lastname@example.org