Toronto-based Franklin Templeton Investments Corp. is going ahead with the termination of three funds, after approval for the move was received on Friday. Investors within the terminating funds will be moved into continuing funds.
Franklin Bissett Strategic Income Fund and Franklin Bissett Strategic Income Corporate Class will be terminated. Clients who hold units of these funds will be moved into Franklin Bissett Monthly Income and Growth Fund. Templeton BRIC Corporate Class also will be terminated. Clients who hold units of that fund will be moved into Templeton Emerging Markets Fund.
The continuing funds mentioned above were chosen to provide more diversification than the corresponding terminating funds, according to an announcement about the merger on the firm’s website. The company also notes that each continuing fund has a management expense ratio that is equal to or lower than that of the corresponding terminating fund.
“Investors in the terminating funds will automatically have their holdings transferred to the continuing fund on a series-by-series, dollar-for-dollar basis after close of business on Aug. 12, 2016,” the announcement states, “except that investors in Series R and S securities of Franklin Bissett Strategic Income Corporate Class will receive Series O and F securities, respectively, of the applicable continuing fund.”
Investors who wish to switch to a different fund or redeem their holdings ahead of the transfer must submit a request to the firm before the close of business on Aug. 11.
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