Franklin Templeton has announced plans to liquidate and liquidate the ClearBridge Focus Value ESG ETF (CFCV), which is expected to be liquidated on or about November 5, 2024. The decision, approved by the board of trustees of the fund on September 5, 2024, will take effect without requiring the approval of shareholders The process leading to the liquidation will begin on October 8 2024, the fund will no longer accept construction orders.
Investors have until the market close on October 29, 2024 to redeem their shares of the fund on the Cboe BZX Exchange, Inc. (Cboe) to sell. After this date, the fund will cease trading before the market opens on 30 October 2024, and then the shares will be liquidated. Shareholders who hold their shares until the market close on 29 October will receive cash equivalent to the net asset value (NAV) of their shares on 5 November 2024 or This value includes capital gains and dividends incurred during this period. . As the investment process continues, the fund may adjust its holdings and deviate from its original investment objectives and strategies. The change is expected to take place before 30 October 2024, when the fund prepares to distribute money to shareholders. The fund may exchange holdings with other securities that may not be consistent with the fund’s investment objective. Shareholders who decide to sell their shares in the open market before the cut-off date should be prepared to receive trading commissions related to such transactions. Those who do not sell their shares before the end of October 29 will have their shares automatically redeemed at NAV. From a tax perspective, shareholders and tax accountants should be aware that dividends are considered a taxable event. Generally, this income is treated as if the shareholder received it in exchange for his shares, which may result in a taxable income or loss. In addition, the fund may disclose tax distributions of its income and/or capital gains in preparation for the exemption. Shareholders are advised to consult their own tax advisors to understand how the reduction will affect their financial and tax situation. The decision to terminate the ClearBridge Focus Value ESG ETF reflects Franklin Templeton’s review of its product offering and market conditions. The company remains committed to offering a diverse range of manufacturing solutions to meet the growing needs of its customers.