Franklin Templeton Announces Plan to Liquidate Franklin Sustainable International Equity ETF
MWN-AI** Summary
Franklin Templeton has announced the impending liquidation of the Franklin Sustainable International Equity ETF (MCSE), with the process expected to be finalized around January 16, 2026. Following the close of business on December 19, 2025, the fund will cease to accept creation orders, and trading will be suspended before the market opens on January 12, 2026. Shareholders wishing to sell their shares can do so on the NASDAQ until market close on January 9, 2026, after which trading will be halted, and shares will be delisted.
As part of the liquidation, the fund will begin transitioning its investment portfolio prior to January 9, 2026, resulting in it holding cash and securities that may not align with its original investment strategy. Shareholders who do not sell their shares by the specified date will receive cash distributions equivalent to the net asset value of their remaining shares on or around January 16, 2026. It is important to note that any proceeds from the liquidation will likely be subject to taxation, including potential gains or losses, and shareholders are advised to consult their tax professionals regarding the implications of the liquidation.
Franklin Templeton, a globally recognized investment management firm, boasts over 75 years of experience and manages approximately $1.64 trillion in assets. The firm is dedicated to providing clients with expertise in various investment strategies, ensuring adaptability in fluctuating market conditions. Despite the pending closure of the Franklin Sustainable International Equity ETF, Franklin Templeton continues to offer a robust platform of ETFs, focused on meeting diverse client needs. For more details, stakeholders are encouraged to visit Franklin Templeton’s investor relations website.
MWN-AI** Analysis
Franklin Templeton's recent decision to liquidate the Franklin Sustainable International Equity ETF (MCSE) indicates a significant shift within their investment strategy and expresses a clear message to investors: adapt or risk falling behind. The scheduled liquidation around January 16, 2026, brings several implications for current and prospective shareholders.
For existing shareholders, immediate considerations are paramount. The last trading day for MCSE shares is January 9, 2026. Investors should carefully assess their positions before this date. If they choose not to exit their investment before the liquidation, they will receive cash equivalent to their shares' net asset value post-liquidation, inclusive of potential capital gains or dividends. However, potential tax repercussions from this cash distribution should prompt consultations with tax advisors since liquidation proceeds may trigger taxable events.
Moreover, the imminent halt in new creation orders and trading on NASDAQ suggests reduced liquidity and potential pricing inefficiencies in the lead-up to closure. Investors holding MCSE may wish to sell before market close on January 9, 2026, to mitigate liquidity risks.
For prospective investors, this news serves as a reminder of the risks associated with investing in specialized funds, particularly those with strict environmental, social, and governance (ESG) criteria. As Franklin Templeton shifts its focus away from the MCSE, new or existing investment avenues within their other ETFs may present opportunities, particularly those that embrace diversification across different asset classes.
In conclusion, investors should consider these developments carefully. The liquidation of the MCSE ETF could indicate market opportunities elsewhere within Franklin Templeton’s portfolio, but vigilance regarding tax implications and the timing of market exits will be crucial in navigating this transition effectively.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Franklin Templeton today announced it will liquidate and dissolve Franklin Sustainable International Equity ETF (MCSE). The liquidation is anticipated to occur on or about January 16, 2026.
After the close of business on December 19, 2025, the Fund will no longer accept creation orders. Trading in the Fund on the Nasdaq Stock Market LLC (NASDAQ) will be halted prior to market open on January 12, 2026. Proceeds of the liquidation are currently scheduled to be sent to shareholders on or about January 16, 2026.
When the Fund is in the process of liquidating its portfolio, which is anticipated to commence prior to January 9, 2026, the Fund will hold cash and securities that may not be consistent with the Fund’s investment goal and strategies. Shareholders may sell their shares of the Fund on NASDAQ until the market close on January 9, 2026 and may incur the usual and customary brokerage commissions associated with the sale of Fund shares. The Fund’s shares will no longer trade on NASDAQ after market close on January 9, 2026, and the shares will be subsequently delisted.
At the time the liquidation of the Fund is complete, shares of the Fund will be individually redeemed. Shareholders who do not sell their shares of the Fund before market close on January 9, 2026 will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends, on or about January 16, 2026.
For those shareholders with taxable accounts and for Federal, state and local income tax purposes: (a) any liquidation proceeds paid to such shareholder should generally be treated as received by such shareholder in exchange for the shareholder’s shares and the shareholder will therefore generally recognize a taxable gain or loss; and (b) in connection with the liquidation, the Fund may declare taxable distributions of its income and/or capital gain. Shareholders should consult their tax advisers regarding the effect of the Fund’s liquidation in light of their individual circumstances.
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 equity, fixed income, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.64 trillion in assets under management as of August 31, 2025. The Company posts information that may be significant for investors in the Investor Relations and News Center sections of its website, and encourages investors to consult those sections regularly. For more information, please visit investors.franklinresources.com.
About Franklin Templeton ETFs
At Franklin Templeton, we've built an all-weather ETF and ETP platform. With over $47 billion in AUM and 100+ ETFs across all asset classes (as of 8/21/25), we offer comprehensive solutions to keep clients invested in any market. Backed by 11 specialist investment managers delivering an established lineup of active, passive and smart beta + innovation-focused ETP strategies, we partner to serve wealth managers in a variety of ways across an entire portfolio. Experience the power of a partnership that opens doors to endless possibilities. For more information, please visit https://www.franklintempleton.com/investments/capabilities/etfs/index .
Important Information
ETFs and ETPs trade like stocks, fluctuate in market value and may trade at prices above or below the ETFs/ETPs net asset value. Brokerage commissions and ETF/ETP expenses will reduce returns.
ETF/ETP shares may be bought or sold throughout the day at their market price, not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs/ETPs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.
Risks
All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. 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. To the extent the fund invests in companies in a specific country or region, the fund may experience greater volatility than a fund that is more broadly diversified geographically. The managers’ environmental, social and governance (ESG) strategies may limit the types and number of investments available and, as a result, may forgo favorable market opportunities or underperform strategies that are not subject to such criteria. There is no guarantee that the strategy's ESG directives will be successful or will result in better performance. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the fund's performance and result in greater fluctuation in the value of the fund's shares. These and other risks are discussed in the fund’s prospectus.
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.
Franklin Distributors, LLC Member FINRA/SIPC
View source version on businesswire.com: https://www.businesswire.com/news/home/20250908289445/en/
Franklin Resources, Inc.
Media Relations: Beverly Khoo (929) 773 4670,
beverly.khoo@franklintempleton.com
FAQ**
What were the primary reasons behind Franklin Resources Inc. (NYSE: BEN) deciding to liquidate the Franklin Sustainable International Equity ETF?
How might the liquidation of the Franklin Sustainable International Equity ETF impact shareholders' taxable gains for those with taxable accounts?
What will happen to the investments held by the Franklin Sustainable International Equity ETF as it prepares for liquidation prior to January 9, 2026?
How does Franklin Resources Inc. (BEN) plan to communicate further developments regarding the liquidation to its investors and shareholders?
**MWN-AI FAQ is based on asking OpenAI questions about Martin Currie Sustainable International Equity ETF (NASDAQ: MCSE).
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