Franklin Templeton announced plans to convert its Franklin Focused Growth mutual fund to an exchange-traded fund (ETF) for U.S. investors. The conversion, which is subject to shareholder approval, is expected to be effective in the fourth calendar quarter of 2023. If approved, this will be the firm's third mutual fund-to-ETF conversion.

Franklin Focused Growth Fund seeks capital appreciation by investing predominantly in equitysecurities of companies that the investment manager believes offer compelling growth opportunities. The investment manager considers many factors in the selection criteria, including historical and potential growth in revenues and earnings, assessment of strength and quality of management, and determination of a company's strategic positioning in its industry. The new Franklin Focused Growth ETF will be managed in a substantially similar manner as the mutual fund, and the ETF's investment goal, principal investment strategies, performance benchmark, investment adviser and portfolio management team will be the same as the predecessor mutual fund.

One exception is that the ETF, unlike the mutual fund, will be a non-diversified fund (within the meaning of the Investment Company Act of 1940), which means that it will generally investa greater proportion of its assets in the securities of one or more issuers and will invest overall in a smaller number of issuers than a diversified fund.1Matthew J. Moberg, senior vice president and portfolio manager with the Franklin Equity Group, has managed the mutual fund since 2016 and will manage the new ETF. The reorganization of the mutual fund to an ETF was approved by the mutual fund's governing board at a meeting held on December 14-15, 2022. Shareholders of the mutual fund will receive notice of a special meeting seeking approval of the conversion, as well as information about the ETF, reasons for the proposed reorganization and potential benefits, in the second calendar quarter of 2023.

The shareholder meeting for approval of the conversion is scheduled for June 30, 2023. 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 currently offers 59 ETFs in the U.S. with combined assets under management of approximately $10 billion.

If approved by shareholders, this conversion will be the firm's 60th ETF available to U.S. investors.