Toronto-based Franklin Templeton Investments Corp. has proposed three mergers to streamline its Canadian fund lineup.

The proposed mergers of Templeton Canadian Stock Fund, Templeton Canadian Stock Corporate Class and Templeton Canadian Balanced Fund into designated Franklin Bissett funds will be voted on at special meetings of securityholders to be held on or around Feb. 27, 2015 in Toronto.

The proposed mergers include:

  • Templeton Canadian Stock Fund into Franklin Bissett Canadian Equity Fund;
  • Templeton Canadian Stock Corporate Class into Franklin Bissett Canadian Equity Corporate Class; and
  • Templeton Canadian Balanced Fund into Franklin Bissett Canadian Balanced Fund.

The $2.7 billion Franklin Bissett Canadian Equity and Franklin Bissett Canadian Equity Corporate Class funds are co-managed by Garey Aitken, CIO, and Tim Caulfield, director of Equity Research, for Calgary-based Franklin Bissett Investment Management. The funds’ managers employ a disciplined growth-at-a-reasonable-price (GARP) investment style to deliver strong absolute, relative and risk-adjusted returns over time. Representing a pure and true complement to global holdings, the funds exclusively invest in Canadian equities.

With more than $1 billion in assets under management, Franklin Bissett Canadian Balanced Fund is also co-managed by Aitken and Tom O’Gorman, director of fixed income, for Franklin Bissett. The fund seeks a balance of current income and long-term capital appreciation by investing primarily in a portfolio of Franklin Bissett funds to achieve a balance of equity and fixed income investments. The fund provides clients access to diversification across asset classes, market capitalization and geographic regions, while helping to mitigate risk and seeking to maximize returns over time.

All of the continuing funds have better historical performance than the terminating funds, along with lower fees, Franklin Templeton notes.

Securityholders can switch to a different fund or redeem their holdings in the terminating funds on or prior to the close of business on Mar. 12, 2015. If the mergers are approved, at the close of business on Mar. 13, 2015, any remaining securityholders of the terminating funds will have their holdings transferred to the continuing fund on a series-by-series, dollar-for-dollar basis. Each of the proposed mergers will be executed on a tax-deferred basis.