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One Big Sale by Franklin Templeton Gutted Australia-Debt ETF

  • WisdomTree’s fund lost almost 90% of its assets in one day
  • Follows global debt market selloff that’s driven up yields
Photographer: James D. Morgan/Getty Images
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How fast can an exchange-traded fund lose nearly 90 percent of its assets? Less than a day.

That’s all it took for Franklin Templeton Investments Corp. in Toronto to cash in more than $130 million shares of WisdomTree Investment Inc.’s Australia & New Zealand Debt Fund last week, according to a person familiar with the matter. The withdrawal amounted to 88 percent of the fund’s assets and left it with just $19 million under management, data compiled by Bloomberg show.