Franklin Templeton Mergers & Terminations

OVERVIEW

On August 20, 2020, we issued a press release announcing the tax-deferred mergers of 23 funds into equivalent trust funds, including Templeton Growth Fund, Ltd., Templeton EAFE Developed Markets Fund and 21 other corporate class funds.

We also announced the termination of two corporate class funds: Franklin ActiveQuant Canadian Corporate Class and Franklin Bissett Canadian Dividend Corporate Class.

These corporate class funds served investors well for many years, but these mergers ensure that our clients’ interests are best served going forward.

Each equivalent trust fund has substantially similar investment objective and identical management and administration fees as the corporate class fund that will merge into it. The benefit for your clients is that trust funds generally deliver better long-term performance.

  • Trust fund outperformance (underperformance) vs corporate class funds
    (Comparison of calendar year performance, Series A)

    Source: Franklin Templeton Investments Corp. Only mandates where both a comparable trust and corporate class version are available are shown.

We also announced the merger of Templeton EAFE Developed Markets Fund into Templeton International Stock Fund II.

These two funds have similar investment objectives, but Templeton International Stock Fund II, the continuing fund, is expected to provide superior returns because it has a broader opportunity set.

MERGER OF TEMPLETON GROWTH FUND, LTD.

We have proposed the tax-deferred merger of Templeton Growth Fund, Ltd. into Templeton Growth Fund.

On or about November 13, 2020, we will launch a new trust fund, Templeton Growth Fund, which is intended to be the successor fund to Templeton Growth Fund, Ltd.

The new fund has the same investment objective, strategies and fee structures as Templeton Growth Fund, Ltd. If this merger proceeds, the performance history of Templeton Growth Fund, Ltd. will be preserved in Templeton Growth Fund.

How was this communicated to your clients?

On September 30, 2020, we provided an information package by mail to each impacted investor and asked them to vote on the proposed merger and other business matters at an annual and special meeting (the “Meeting”) which was held on October 30, 2020.

Included in that information package were:

  • a notice of the meeting
  • a customized form of proxy
  • a Fund Facts document for each series of Templeton Growth Fund that will be issued to that investor upon completion of the merger

What were the voting results?

This merger has been approved and will occur on or about November 13, 2020.

For notices sent to non-registered U.S. residents on September 4, 2020, please click here.


Learn more:

MERGER OF 21 OTHER CORPORATE CLASS FUNDS

We have proposed the tax-deferred mergers of 21 corporate class funds into their equivalent trust funds. We have also closed these corporate class funds to new investors, except for Franklin U.S. Monthly Income Hedged Corporate Class and Templeton Growth Corporate Class.

How was this communicated to your clients?

On September 30, 2020, we provided an information package by mail to each impacted investor in these corporate class funds asking them to vote on the proposed merger(s) at the special meeting which was held on October 30, 2020.

Included in that information package were:

  • a notice of the meeting
  • a customized form of proxy
  • a Fund Facts document for each series of each trust fund that will be issued to that investor upon completion of the mergers (an investor who held multiple merging funds received multiple Fund Facts documents)

What were the voting results?

These mergers have been approved and will occur on or about November 20, 2020.

To access the series termination notices sent to impacted investors on September 4, 2020, please

ALL OTHER ACCOUNTSCLIENT-HELD REGISTERED ACCOUNTS
Franklin Bissett Canadian Equity Corporate Class Series T, PT, OT Terminations download download
Franklin U.S. Monthly Income Hedged Corporate Class Series I Termination download download
Franklin U.S. Rising Dividends Corporate Class Series I Termination download download
Templeton International Stock Corporate Class Series I Termination download download

Learn more:

Terminating and Continuing Funds

Terminating FundContinuing Trust Fund
Franklin ActiveQuant U.S. Corporate Class Franklin ActiveQuant U.S. Fund
Franklin Bissett Canadian Balanced Corporate Class Franklin Bissett Canadian Balanced Fund
Franklin Bissett Canadian Equity Corporate Class1 Franklin Bissett Canadian Equity Fund
Franklin Bissett Dividend Income Corporate Class Franklin Bissett Dividend Income Fund
Franklin Bissett Money Market Corporate Class Franklin Bissett Money Market Fund
Franklin Global Growth Corporate Class2 Franklin Global Growth Fund2
Franklin Mutual Global Discovery Corporate Class Franklin Mutual Global Discovery Fund II
Franklin Quotential Balanced Growth Corporate Class Portfolio Franklin Quotential Balanced Growth Portfolio
Franklin Quotential Balanced Income Corporate Class Portfolio Franklin Quotential Balanced Income Portfolio
Franklin Quotential Diversified Equity Corporate Class Portfolio Franklin Quotential Diversified Equity Portfolio
Franklin Quotential Diversified Income Corporate Class Portfolio Franklin Quotential Diversified Income Portfolio
Franklin Quotential Growth Corporate Class Portfolio Franklin Quotential Growth Portfolio
Franklin U.S. Monthly Income Corporate Class Franklin U.S. Monthly Income Fund
Franklin U.S. Monthly Income Hedged Corporate Class3,4 Franklin U.S. Monthly Income Fund
Franklin U.S. Opportunities Corporate Class Franklin U.S. Opportunities Fund
Franklin U.S. Rising Dividends Corporate Class3 Franklin U.S. Rising Dividends Fund
Franklin U.S. Rising Dividends Hedged Corporate Class5 Franklin U.S. Rising Dividends Fund
Templeton Emerging Markets Corporate Class Templeton Emerging Markets Fund
Templeton Global Smaller Companies Corporate Class Templeton Global Smaller Companies Fund
Templeton Growth Corporate Class6 Templeton Growth Fund7
Templeton International Stock Corporate Class3 Templeton International Stock Fund II8

TERMINATION OF FRANKLIN ACTIVEQUANT CANADIAN CORPORATE CLASS AND FRANKLIN BISSETT CANADIAN DIVIDEND CORPORATE CLASS

Franklin ActiveQuant Canadian Corporate Class and Franklin Bissett Canadian Dividend Corporate Class will be closed to all new investments after August 20, 2020 and terminated on or about November 6, 2020.

How have we communicated this to your clients?

On September 4, 2020, we mailed a notice of termination to each impacted investor.

ALL OTHER ACCOUNTSCLIENT-HELD REGISTERED ACCOUNTS
download download

ALL OTHER ACCOUNTSCLIENT-HELD REGISTERED ACCOUNTS
download download

Learn more:

MERGER OF TEMPLETON EAFE DEVELOPED MARKETS FUND INTO TEMPLETON INTERNATIONAL STOCK FUND II

We have announced the tax-deferred merger of Templeton EAFE Developed Markets Fund into Templeton International Stock Fund II. We have also closed Templeton EAFE Developed Markets Fund to all new investments.

We have created Templeton International Stock Fund II, a new continuing trust fund, to facilitate a tax-deferred merger. It has substantially similar investment objective, investment strategies and fee structures as Templeton International Stock Fund and will invest substantially all of its assets in units of that fund.

Why have we created a new fund?

The participation of Templeton International Stock Fund in a tax-deferred merger would cause unused tax losses to be extinguished within that fund, which would not be in the best interests of investors in that fund.

How have we communicated this to your clients?

On September 18, 2020, we provided the following information by mail to every investor who holds Templeton EAFE Developed Markets Fund:

  • Merger Notice
  • a Fund Facts document for each series of Templeton International Stock Fund II that will be issued to that investor upon completion of the merger

This merger will occur on or about November 20, 2020.

Learn more:

What we encourage you to do

1

Get a report of your impacted clients
Log into franklintempleton.ca and select “Notifications” option from the “Tips” menu.

2

Learn about the continuing funds
This page provides detailed information about each merger.

3

Encourage your clients to vote
Your impacted clients can vote via the Internet at www.proxyvote.com up to 24 hours before the October 30 meetings.

Questions?

We’re here to help. Contact your Franklin Templeton wholesaler or call us at 1 (800) 387-0830, Monday to Friday, from 8 a.m. to 8 p.m. (ET). You can also use the live chat feature on this page.