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Franklin Templeton to overhaul fund line-up

By The IJ Staff | August 30 2019 11:30AM

Freepik

Franklin Templeton Canada today announced changes to its fund line-up, including 11 proposed mutual fund mergers and five mutual fund terminations.

"Our firm is focused on simplifying our mutual fund offerings to make it easier for advisors and investors to select a suitable fund from a streamlined range of investment options," said Duane Green, president and CEO, Franklin Templeton Canada. "We continue to focus on providing high quality investment solutions to deliver better outcomes for Canadians."

Pending regulatory and investor approval, each terminating fund will be merged into the corresponding continuing fund on or around the proposed merger date, as indicated in the table below.

Terminating Funds

Continuing Funds

Proposed
Merger
Date
(2019)

Franklin Quotential Fixed Income Portfolio

Franklin Bissett Core Plus Bond Fund

Nov. 15

Templeton Asian Growth Corporate Class (1)

Templeton Frontier Markets Corporate Class

Templeton Emerging Markets Fund

Nov. 15

Franklin Bissett Canadian All Cap Balanced Fund

Franklin Bissett Canadian All Cap Balanced Corporate Class

Franklin Bissett Monthly Income and Growth Fund

Nov. 22

Franklin Bissett Energy Corporate Class

Franklin Bissett Canadian Equity Fund

Nov. 22

Franklin Bissett Microcap Fund

Franklin Bissett Small Cap Corporate Class

Franklin Bissett Small Cap Fund

Nov. 22

Franklin Select U.S. Equity Fund (2)

Franklin U.S. Opportunities Fund

Nov. 15

Franklin Mutual U.S. Shares Fund (3)

Franklin Mutual U.S. Shares Corporate Class (3)

Franklin U.S. Rising Dividends Fund

Nov. 22

(1) Investors in series A, F and I of this fund also need to vote at the series level due to the different fee structures of these series in the continuing fund. (2) Previously announced via press release on June 25, 2019. (3) Series I of both funds will be liquidated after the close of business on or around November 15, 2019, regardless of whether these mergers take place.

Franklin Templeton says that at the close of business on Aug. 30, each terminating fund will cease distribution of its securities to new investors until the applicable merger listed date above. 

The proposed mergers will be voted on at special meetings of investors to be held on or around Nov. 1, 2019 in Toronto. Each terminating fund whose merger does not receive the required approvals will be terminated, with the exception of Franklin Bissett Microcap Fund, added the company.

Fund terminations

In addition to the proposed fund mergers, Franklin Templeton plans to terminate the following five funds on or around Nov. 15, 2019:

  • Franklin Global Small-Mid Cap Fund
  • Franklin Mutual European Fund
  • Franklin Target Return Fund
  • Templeton Asian Growth Fund
  • Templeton Frontier Markets Fund

As of the close of business Aug. 30, each terminating fund will cease distribution of its securities to current and new investors.

Investors who prefer to switch into any of Franklin Templeton's other funds or redeem their investment ahead of the fund's termination date, are advised to work with their financial advisor to submit their instructions on or before Nov. 14, 2019, adds the company.

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