FRANKLIN BSP CLO ETF (USD) YCLO.US

Franklin BSP CLO ETF is an actively managed exchange-traded fund whose objective is to seek capital preservation and current income. Under its mandate, the fund invests at least 80% of its net assets in collateralized loan obligations (CLOs), focusing predominantly on investment-grade CLO debt tranches.

Under normal market conditions it generally limits sub-investment grade CLO exposure to about 5% of net assets. The asset class comprises primarily floating-rate and sometimes fixed-rate debt securities issued by CLOs collateralized largely by senior secured loans, senior unsecured loans, subordinate corporate loans, and in some cases below investment-grade debt.

The geographic exposure is the United States and Europe, with securities denominated in both U.S. dollars and foreign currencies. The fund may hedge non-U.S.-dollar exposures.

It buys securities on both primary and secondary markets and does not track a benchmark index. The fund is managed by Franklin Advisers, Inc., with sub-advisory services provided by Benefit Street Partners (BSP), a specialist in structured credit.

The portfolio management team applies a combination of top-down macroeconomic analysis and bottom-up credit underwriting, portfolio construction, and active risk management. The ETF is a series of Franklin Templeton ETF Trust, a U.S.-registered open-end management investment company under the Investment Company Act of 1940.