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 to investors is that trust funds generally deliver better long-term performance.

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. INTO TEMPLETON GROWTH FUND

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 are we communicating this to you?

By September 30, 2020, we’ll provide an information package by mail to each impacted investor and ask them to vote on the proposed merger and other business matters at an annual and special meeting (the “Meeting”) to be held on or about October 30, 2020. Included in that information package will be:

  • 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

If approved, this merger will occur on or about November 13, 2020. If the merger does not receive the necessary approvals, Templeton Growth Fund, Ltd. will be closed to all new investments on or about November 13, 2020, when Templeton Growth Fund becomes available for purchase.


Learn more:

MERGER OF 21 OTHER CORPORATE CLASS FUNDS INTO THEIR EQUIVALENT TRUST 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 are we communicating this to you?

By September 30, 2020, we’ll provide an information package by mail to each impacted investor in these corporate class funds asking them to approve the merger(s) at the special meeting to be held on or about October 30, 2020.

Included in that information package will be:

  • a notice of the special 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 holds multiple merging funds will receive multiple Fund Facts documents)

If approved, these mergers will occur on or about November 20, 2020. If these mergers do not receive the necessary approvals, each corporate class fund will be closed to all new investments or will be terminated on or about November 13, 2020.


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 or 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 or Franklin Quotential Diversified Income Portfolio II*
Franklin Quotential Growth Corporate Class Portfolio Franklin Quotential Growth Portfolio
Franklin U.S. Monthly Income Corporate Class Franklin U.S. Monthly Income Fund or Franklin U.S. Monthly Income Fund II*
Franklin U.S. Monthly Income Hedged Corporate Class3,4 Franklin U.S. Monthly Income Fund or Franklin U.S. Monthly Income Fund II*
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 or Templeton Global Smaller Companies Fund II*
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 November 6, 2020.

How are we communicating this to you?

By September 4, 2020, we will mail a notice of termination to each impacted investor.

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 are we communicating this to you?

By September 18, 2020, we’ll provide 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

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

For more information, please contact your financial advisor, or contact us using the live chat feature on this page or call us at 1 (800) 387-0830. We’re available Monday-Friday from 8 a.m. to 8 p.m. (ET)

2

Vote
If you are impacted, you 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 us at 1 (800) 387-0830, Monday to Friday, from 8 a.m. to 8 p.m. (ET).