Franklin Templeton Investments Corp. plans to make several changes to its fund lineup, the company announced Friday.

According to the firm, there will be changes to the investment objectives of some funds as well as a series of fund mergers. The changes will take effect as of the close of business on or before June 13, 2008.

First, Bissett Income Trust and Dividend Fund’s investment objective will change to an equity mandate to gain capital appreciation by investing primarily in dividend paying or income producing Canadian securities, including common shares, income trust units and preferred shares. This will give the fund the flexibility to invest in a broader universe of companies, outside of income trusts, the firm said. Concurrent with the investment objective change, the fund’s name will change to Bissett Canadian Dividend Fund.

As well, Franklin U.S. Small-Mid Cap Growth Fund will change its investment objective to gain capital appreciation by investing primarily in U.S. equities demonstrating accelerating growth, increasing profitability, or above average growth or growth potential compared to the overall economy. This will provide the manager the flexibility to take advantage of a broader range of growth opportunities, according to the firm. The name of the fund will change to Franklin Flex Cap Growth Fund.

The investment objectives of Templeton European Corporate Class, Franklin World Growth Corporate Class, Franklin Japan Corporate Class and Franklin Flex Cap Growth Corporate Class will change from investing directly in issuers’ securities to investing in units of underlying unit trust funds, which have investment objectives that are consistent with each Corporate Class fund’s current investment objective, the company said. The new investment objectives are as follows:

>Templeton European Corporate Class: Long-term capital appreciation by investing substantially all of its assets in units of Templeton European Fund

>Franklin World Growth Corporate Class: Long-term capital appreciation by investing substantially all of its assets in units of Franklin World Growth
Fund

>Franklin Japan Corporate Class: Long-term capital appreciation by investment substantially all of its assets in units of Franklin Japan Fund

>Franklin Flex Cap Growth Corporate Class: Long-term capital appreciation by investing substantially all of its assets in units of Franklin Flex Cap Growth Fund

In terms of fund mergers, Franklin U.S. Small-Mid Cap Growth Corporate Class will merge into Franklin Flex Cap Growth Corporate Class. According to the firm, the current objective of Franklin Flex Cap Growth Corporate Class is to invest in U.S. equities demonstrating accelerating growth, increasing profitability, or above average growth or growth potential compared to the overall economy. As noted above, Franklin Flex Cap Growth Corporate Class will be changing its investment objective to invest substantially all of its assets in units of Franklin Flex Cap Growth Fund.

Meanwhile, Bissett Large Cap Fund will merge into the Bissett Canadian Equity Fund. Bissett Canadian Equity Fund’s objective is long-term capital appreciation by investing in a diversified portfolio of mid- to large-capitalization Canadian equities.

Templeton Global Balanced Fund will merge into Templeton Global Income Fund. Templeton Global Income Fund’s objective is current income while maintaining prospects for capital appreciation by investing primarily in debt and equity securities issued around the world.

And finally, Templeton Balanced Fund will merge into Templeton Canadian Asset Allocation Fund. Templeton Canadian Asset Allocation Fund’s objective is high long-term total return from interest, dividends and capital gains by investing primarily in a mix of Canadian equities and fixed-income securities.

Along with the merger, the name of Templeton Canadian Asset Allocation Fund will change to Templeton Canadian Balanced Fund.

The company noted in a news release that securityholders of Franklin U.S. Small-Mid Cap Growth Corporate Class, Bissett Large Cap Fund and Templeton Global Balanced Fund will receive securities of the respective continuing funds on a dollar-for-dollar and series-by-series basis. As well, securityholders of Templeton Balanced Fund will receive Series F units of Templeton Canadian Asset Allocation Fund on a dollar-for-dollar basis.