Franklin Templeton to liquidate Hong Kong ETF

Published 22/05/2025, 21:46
Franklin Templeton to liquidate Hong Kong ETF

SAN MATEO, Calif. - Franklin Templeton (NYSE: BEN), the global investment management firm currently trading near $21.60 with a market capitalization of $11.4 billion, has announced the upcoming liquidation and dissolution of its Franklin FTSE Hong Kong ETF (NYSE:FLHK). According to InvestingPro data, the company has demonstrated solid financial performance with an 8.3% year-to-date return. The decision, approved by the fund’s board of trustees on May 21, 2025, sets the liquidation date on or about July 8, 2025.

Starting June 10, 2025, the fund will cease accepting creation orders. Trading of the fund will be halted on the NYSE Arca before the market opens on July 2, 2025. Investors should note that the fund’s portfolio will begin liquidating prior to this date, potentially holding cash and securities that do not align with the fund’s original investment goals and strategies.

Shareholders have the option to sell their shares on the NYSE Arca until the market closes on July 1, 2025, subject to standard brokerage commissions. After this date, FLHK shares will no longer be traded and will be delisted from the exchange.

Upon completion of the liquidation process, the fund’s shares will be redeemed individually. Shareholders who do not sell their shares by the market close on July 1, 2025, will receive cash reflecting the net asset value of their shares, including any capital gains and dividends, around July 8, 2025.

For tax purposes, shareholders with taxable accounts may recognize a taxable gain or loss from the liquidation proceeds. Additionally, the fund may declare taxable distributions of income and/or capital gains during the liquidation. Shareholders are advised to consult with tax professionals regarding the individual effects of the fund’s liquidation.

Franklin Templeton operates globally, providing investment management, wealth management, and technology solutions to clients in over 150 countries. With a history stretching over 75 years and $1.53 trillion in assets under management as of April 30, 2025, the company is headquartered in California and employs more than 1,500 investment professionals across the world. InvestingPro analysis reveals the company’s strong financial position with a current ratio of 6.58 and an impressive 45-year track record of consistent dividend payments, currently yielding 5.92%. The company generates annual revenue of $8.7 billion and is currently trading below its Fair Value according to InvestingPro’s proprietary analysis.For a comprehensive understanding of Franklin Templeton’s financial health and growth prospects, including additional ProTips and detailed metrics, check out the full Pro Research Report available on InvestingPro.

This news is based on a press release statement.

In other recent news, Franklin Resources reported its first-quarter 2025 earnings, revealing revenue of $2.11 billion, surpassing the projected $1.6 billion. However, the company fell short of earnings per share expectations, posting $0.47 against a forecast of $0.50. Franklin Templeton also announced plans to convert 10 Putnam municipal bond mutual funds into exchange-traded funds (ETFs) between late 2025 and early 2026, aiming to expand its municipal bond ETF offerings. In another development, Franklin Templeton appointed Surajit Ray as Head of Portfolio Construction and Quantitative Risk for its Franklin Equity Group. This role is intended to enhance systematic, risk-aware portfolio construction processes. Additionally, Franklin Resources declared a quarterly dividend of $0.32 per share, marking a 3.2% increase from the same quarter last year. These developments reflect the company’s ongoing strategic initiatives and commitment to shareholder value.

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