What You Need to Know
- BNY Mellon launches three active, sustainable ETFs, expanding its suite of active ETFs.
- Franklin Templeton is converting the Brandywine GLOBAL — Dynamic US Large Cap Fund to an ETF.
- It is also converting the Martin Currie International Sustainable Equity Fund to an ETF.
Franklin Templeton has announced plans to convert two actively managed mutual funds to ETFs.
They are the Brandywine GLOBAL — Dynamic US Large Cap Fund (LMBJX), which had over $227 million in assets as of Nov. 30, and the Martin Currie International Sustainable Equity Fund (LUFIX), with over $26 million in assets.
The two funds “are investment strategies that have delivered exceptional results and are managed in a fashion that fits well in an ETF wrapper,” said Pierre Caramazza, head of U.S. product and specialty sales at the firm, in a statement.
Both funds are rated four stars by Morningstar, but their outlooks from Morningstar analysts are mixed: negative for the Martin Currie International Sustainable Equity Fund and neutral for the Brandywine GLOBAL— Dynamic U.S. Large Cap Value.
LMBJX has performed in the top quartile of its peers in 2020 and year-to-date through Nov. 30. LUFIX has scored in the top quartile in three of the last four years, including 2021 through Nov. 30. (In 2020, it was in the top half.)
“With these ETF conversations, we are best leveraging the capabilities of our diversified investment management teams to meet the evolving needs of clients,” said Patrick O’Connor, head of global ETFs for Franklin Templeton, in a statement.