TORONTO, Aug. 15, 2024 /CNW/ - Franklin Templeton Canada today announced the proposed tax-deferred merger of Templeton Sustainable Global Balanced Fund into Franklin Brandywine Global Sustainable Balanced Fund, a fund with the same investment objective, risk classification and fee structure.
Investors in Franklin Brandywine Global Sustainable Balanced Fund will vote on the proposed merger at a special meeting to be held on or around November 14, 2024, in Toronto.
Pending investor approval, the proposed merger will be implemented after the close of business on or around December 6, 2024. Investors in Templeton Sustainable Global Balanced Fund will receive units of Franklin Brandywine Global Sustainable Balanced Fund on a dollar-for-dollar and series-by-series basis.
Investors in Templeton Sustainable Global Balanced Fund who prefer to switch into another Franklin Templeton fund or redeem their investments ahead of December 6, 2024, are advised to work with their investment advisor to submit their instructions on or before December 5, 2024. Franklin Templeton's client service team is also available to assist and can be contacted at 1-800-387-0830.
As this will be a tax-deferred merger, the current taxation years for both funds involved in the merger will be deemed to end on the effective date of the proposed merger, giving rise to shorter taxation year ends. On or before December 6, 2024, Templeton Sustainable Global Balanced Fund and Franklin Brandywine Global Sustainable Balanced Fund will each distribute a sufficient amount of their net income and realized capital gains to unitholders to ensure that they will not be subject to ordinary income tax for such taxation year.
In anticipation of the proposed merger, Templeton Sustainable Global Balanced Fund will be closed to new investors after the close of business today, August 15, 2024.
If the proposed merger is not approved by investors in Franklin Brandywine Global Sustainable Balanced Fund, this fund will be terminated after the close of business on or around December 6, 2024. Any investors who hold the fund in registered accounts will have their investments switched into the same series – except for series T and FT which will be switched to series A and F, respectively – of Franklin Canadian Money Market Fund without tax consequences. For non-registered accounts, the units will be redeemed at the series net asset value (NAV) per unit and Franklin Templeton Canada will send the proceeds to the investor or their dealer.
Investors in Templeton Sustainable Global Balanced Fund will receive notification of the details of the proposed tax-deferred merger by mail at least 60 days prior to the effective date of the proposed merger. The information circular with details of the proposed merger will be available on Franklin Templeton's website on or around September 30, 2024.
Series Terminations
Prior to the merger, series I, V and T-USD of Templeton Sustainable Global Balanced Fund will be terminated after the close of business on or around December 2, 2024. Any investors who hold series I, V or T-USD in registered accounts will have their investments switched into series A of Franklin Canadian Money Market Fund without tax consequences. For non-registered accounts, the units will be redeemed at the series NAV per unit and Franklin Templeton Canada will send the proceeds to the investor or their dealer. Impacted investors will receive notification of the details of the series termination by mail at least 60 days prior to the effective date of the series termination.
Pursuant to National Instrument 81-107 – Independent Review Committee for Investment Funds, the independent review committee of the funds has reviewed and issued its approval with respect to the proposed merger on behalf of Templeton Sustainable Global Balanced Fund and provided a positive recommendation with respect to the proposed merger on behalf of Franklin Brandywine Global Sustainable Balanced Fund.
All costs and expenses associated with the proposed merger, the series terminations and the special meeting will be borne by Franklin Templeton Canada.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. In Canada, the company's subsidiary is Franklin Templeton Investments Corp., which operates as Franklin Templeton Canada. Franklin Templeton's mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over US$1.6 trillion (over CDN$2.2 trillion) in assets under management as of July 31, 2024. For more information, please visit franklintempleton.ca and connect with Franklin Templeton on LinkedIn, X and Facebook.
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SOURCE Franklin Templeton Investments Corp.
Media Contact: Sarah Kingdon, Corporate Communications, Franklin Templeton, 416.957.6191, [email protected]
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