Franklin Templeton asks shareholders to convert three core equity mutual funds into ETFs

Franklin Templeton ETF Trust filed a consent solicitation statement and prospectus on 30 October. It asks shareholders to approve the reorganisation of three Franklin Fund Allocator Series mutual funds into ETFs.

The conversions

Mutual fund	Acquiring ETF	Exchange
Franklin U.S. Core Equity (IU) Fund	Franklin Core U.S. Enhanced Equity ETF (FLQL), currently Franklin U.S. Large Cap Multifactor Index ETF and to be renamed on or about 1 December 2026	Cboe BZX
Franklin Emerging Market Core Equity (IU) Fund	Franklin Core Emerging Market Enhanced Equity ETF	Texas Stock Exchange
Franklin International Core Equity (IU) Fund	Franklin Core International Enhanced Equity ETF	Texas Stock Exchange

The emerging-market and international ETFs are newly formed shell funds with no operating history. The US fund would merge into an existing ETF.

Terms

Shareholders would receive whole ETF shares plus cash in lieu of fractional shares. The filing cites the expected tax-free nature of the reorganisations among the factors the board considered, and says the board approved the plan unanimously at a meeting on 14–15 July 2026.

The filing says each ETF has a higher expense ratio than its mutual fund because of a unitary fee of 0.15%, 0.30% and 0.20% respectively, which will be waived at the client level. Shareholders are asked to return written consent cards by 3:00 p.m. Pacific time on 21 January 2027.

Why it matters

The plan would move three mutual funds into ETF form in reorganisations the filing expects to be tax-free. In addition, two of the three resulting ETFs would list on the Texas Stock Exchange.

Added to The Midpoint on 31 October 2026, with the ETFs section. This article is dated to the event it describes; it was not published at the time.

Sources

• Consent Solicitation Statement/Prospectus (Form N-14), Franklin Templeton ETF Trust via SEC EDGAR, 30 Oct 2026