Franklin Templeton continues to grow its active fixed income exchange-traded fund (ETF) lineup with the 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.
