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SAN MATEO, Calif. - Franklin Templeton (BEN), a global investment management organization with a market capitalization of $11.67 billion and a robust dividend yield of 5.72%, has announced its intention to convert 10 of its Putnam municipal bond mutual funds into exchange-traded funds (ETFs). According to InvestingPro data, the company has maintained dividend payments for 45 consecutive years, demonstrating its commitment to shareholder returns. Scheduled between the fourth quarter of 2025 and the first quarter of 2026, this move is aimed at expanding the company’s municipal bond ETF offerings.
The funds transitioning to the Franklin Templeton ETF platform include various tax-exempt income funds focused on California, Massachusetts, Minnesota, New Jersey, New York, Ohio, Pennsylvania, as well as a short-term municipal income fund, a tax-exempt income fund, and a tax-free high yield fund.
Patrick O’Connor, Head of Global ETFs at Franklin Templeton, stated that the conversion is in response to investor demand for municipal bond strategies that are cost-efficient, flexible, and transparent. He emphasized that the firm’s ETF lineup is designed to offer a range of solutions for different types of investors.
Municipal bonds are a staple in many investment portfolios due to their federally tax-exempt status and historically low default rates. They are often used as diversifiers within fixed income allocations.
Ben Barber, Director of Fixed Income - Municipal Bonds at Franklin Templeton, highlighted that these conversions position the company at the forefront of offering municipal bond strategies in an ETF format. He remarked that this change will make tax-free income solutions more accessible to all investors and is a testament to the company’s commitment to innovation in the municipal bond market.
As of May 15, 2025, Franklin Templeton’s U.S. ETF platform comprises over 70 ETFs with approximately $32 billion in assets under management. The proposed changes are expected to enhance the firm’s industry standing by providing a broader array of ETF investment options across active, smart beta, and passive strategies. The company’s financial health appears strong, with InvestingPro analysis showing a current ratio of 6.58 and revenue growth of 7.38% in the last twelve months.
Franklin Templeton, with subsidiaries operating as Franklin Templeton and serving clients worldwide, manages a global scale of investment capabilities in equity, fixed income, alternatives, and multi-asset solutions. The company, headquartered in California, boasts more than 75 years of investment experience and $1.53 trillion in assets under management as of April 30, 2025.
Investors should note that ETFs and ETPs are subject to market fluctuations and risks, including the potential loss of principal. Before investing, it is crucial to consider the funds’ investment objectives, risks, charges, and expenses, all of which are detailed in the funds’ prospectuses available on the Franklin Templeton website. For deeper insights into Franklin Templeton’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and a detailed Pro Research Report, which is part of the platform’s coverage of over 1,400 US stocks.
This news is based on a press release statement from Franklin Templeton.
In other recent news, Franklin Resources Inc. reported its first-quarter 2025 earnings with a notable revenue performance, achieving $2.11 billion, which surpassed the projected $1.6 billion. However, the company reported an earnings per share of $0.47, falling short of the $0.50 forecast. In addition to its earnings report, Franklin Resources launched innovative financial products, including a crypto index ETF, and maintained strong international sales momentum. Despite the earnings per share miss, the revenue beat boosted investor confidence, reflecting positively on the company’s strategic direction. The company also demonstrated resilience with assets under management reaching $1.54 trillion, despite a decrease in adjusted operating income by 8.6% from the previous quarter. Analysts noted the company’s continued innovation and strong performance in international markets as positive indicators. Franklin Resources remains cautiously optimistic about global equity markets and expects further growth in its alternatives allocation.
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