Franklin Templeton Adds to Active ETF Lineup with Launch of Western Asset Bond ETF (WABF)
WABF is Franklin Templeton’s 14th active fixed income ETF for US investors
SAN MATEO, Calif., September 21, 2023--(BUSINESS WIRE)--Franklin Templeton continues to grow its active fixed income exchange-traded fund (ETF) lineup with today’s launch of Western Asset Bond ETF on Nasdaq under the ticker WABF. WABF is actively managed by Western Asset, a leading fixed income manager and specialist investment manager of Franklin Templeton.
"Last year was extremely challenging for bond investors, but the silver lining of the recent rough patch is that bond yields and valuations have been restored. And, while we expect the Federal Reserve to be nearing the end of its rate-hiking cycle and disinflation is well underway, we believe investors are now much more likely to find opportunities for enhanced yield in fixed income," said John Bellows, CFA, a Western Asset Portfolio Manager on WABF. "We believe that the case for fixed income is very strong today, and we are thrilled to begin offering WABF at this point in the market cycle."
WABF seeks to maximize total return consistent with prudent investment management and liquidity needs by investing in various types of fixed income securities, including corporate debt, US and non-US government securities, asset-backed securities, mortgage-backed securities, collateralized mortgage obligations, collateralized debt obligations and mortgage dollar rolls. It also may invest in derivatives, including swaps and security-based swaps, futures and options on futures, and swaptions and security options. WABF may invest up to 20% of its assets in below investment grade fixed income securities or debt instruments. WABF presently intends to limit its investments to US dollar-denominated securities.1
"Franklin Templeton is a leader in the active fixed income ETF marketplace with 14 offerings across the credit and duration spectrums," said Patrick O’Connor, Head of Global ETFs for Franklin Templeton. "Amid the rapidly changing macroeconomic environment, investors are looking to active management to manage duration and recession risks within their fixed income allocation. We are proud to add WABF to our growing lineup from the skilled and experienced team at Western Asset."
WABF’s portfolio management team includes Western Asset Co-Chief Investment Officer, S. Kenneth Leech, John Bellows, Mark Lindbloom, Frederick R. Marki, Nicholas Mastroianni and Julien A. Scholnick.
WABF is Western Asset’s third ETF, alongside Western Asset Total Return ETF (WBND) and Western Asset Short Duration Income ETF (WINC).
Franklin Templeton’s US ETF platform provides solutions for a range of market conditions and investment objectives through active, smart beta and passively managed ETFs. Franklin Templeton offers 58 ETFs in total in the US, with combined assets under management of over $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 August 31, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.
About Western Asset
Western Asset is one of the world’s leading fixed-income managers with over 50 years of experience and $388 billion in assets under management (AUM) as of June 30, 2023. With a focus on long-term fundamental value investing that employs a top-down and bottom-up approach, the firm has nine offices around the globe and deep experience across the range of fixed-income sectors. Founded in 1971, Western Asset has been recognized for delivering superior levels of client service alongside its approach emphasizing team management and intensive proprietary research, supported by robust risk management. To learn more about Western Asset, please visit www.westernasset.com.
Western Asset is an independent specialist investment manager of Franklin Templeton.
This is the manager’s current thinking but may be subject to change.
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.
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. 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. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Active management does not ensure gains or protect against market declines. 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. Active and frequent trading may increase a shareholder’s tax liability and transaction costs.
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.
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Contacts
Franklin Templeton Corporate Communications:
Vanessa Garcia, (917) 562-5151, vanessa.garcia@franklintempleton.com
