Franklin Templeton Investments Corp. Thursday announced plans to merge certain funds and terminate others.

The fund company is proposing the mergers of Templeton European Corporate Class and Franklin Japan Corporate Class into Templeton International Stock Corporate Class. The proposed mergers will be voted on at special meetings of securityholders on or about June 4, in Toronto.

Subject to both securityholder and regulatory approval, the proposed mergers will be implemented at the close of business on June 11.

Templeton International Stock Corporate Class’ objective is to achieve long-term capital appreciation by investing substantially all of its assets in units of Templeton International Stock Fund. The International Stock fund invests primarily in equity securities of companies outside Canada and the United States. The fund is part of Franklin Templeton’s Corporate Class structure, which allows investors to switch between Corporate Class funds and portfolios while deferring taxable events until they redeem from the structure.

Templeton says the decision to merge these funds will allow it to streamline its product offering, reduce long-term costs for investors and concentrate resources in other mandates that will better serve the interests of its investors.

Securityholders will receive an information circular in early May 2010 detailing the particulars of the proposed mergers.

Termination of Templeton European and Franklin Japan funds

Templeton will be terminating Templeton European Fund and Franklin Japan Fund. On June 7, these funds will cease offering units for purchase and will make a final distribution of any income and capital gains. On June 9, the funds will distribute the net assets of the funds to unitholders.

Templeton says it may postpone implementing these terminations until a later date, which in any event will be no later than July 31, 2010.

IE