Securityholders Approve Changes to Franklin Templeton Corporate Class Fixed Income Funds in Canada Français
TORONTO, Dec. 1, 2014 /CNW/ - Franklin Templeton Investments Corp. today announced that securityholders have approved the proposed mergers for six Corporate Class funds, which were voted on at special meetings of investors held on November 28, 2014 in Toronto.
With each of the approved Yield Class mergers, transitioning to the Continuing fund will provide investors with substantially similar assets and help avoid future tax consequences. This is a result of tax law changes announced by the federal government in 2013, which removed eligibility for Yield Class funds to have income treated as capital gains via forward contracts, as of December 31, 2014.
In addition, with the changes to the tax position of the Yield Class funds within Franklin Templeton Corporate Class Ltd., the merger of Franklin Bissett Bond Corporate Class into its underlying fund is expected to decrease the amount of ordinary interest income earned within the corporation.
Approved Mergers
Five Corporate Class funds will merge into their corresponding mutual fund trust versions, which have investment objectives that are substantially similar to those of the terminating funds; and Franklin Bissett Money Market Yield Class will merge into its corresponding Corporate Class version.
The approved mergers below will occur after the close of business on or around December 12, 2014.
| Terminating Funds |
Continuing Funds |
| Franklin Bissett Bond Yield Class |
Franklin Bissett Bond Fund |
| Franklin Bissett Bond Corporate Class |
Franklin Bissett Bond Fund |
| Franklin Bissett Canadian Short Term Bond Yield Class |
Franklin Bissett Canadian Short Term Bond Fund |
| Franklin Bissett Corporate Bond Yield Class |
Franklin Bissett Corporate Bond Fund |
| Franklin Bissett Money Market Yield Class |
Franklin Bissett Money Market Corporate Class |
| Templeton Global Bond Hedged Yield Class |
Templeton Global Bond Fund |
Regarding the merger of Templeton Global Bond Hedged Yield Class with its reference fund, Templeton Global Bond Fund which does not use currency forwards, securityholders within the Yield Class fund who wish to maintain exposure to a US dollar hedge have the option of initiating a switch to Templeton Global Bond Fund (Hedged) any time before the merger, or shortly thereafter. Franklin Templeton does not charge any fees for such switches.
Completing the Mergers
Each proposed merger will be executed on a taxable basis, with the exception of the merger of Franklin Bissett Money Market Yield Class into Franklin Bissett Money Market Corporate Class, which will be implemented on a tax-deferred basis within the Corporate Class structure.
Investors are encouraged to speak with their financial advisor about these changes and review their options. For account information, our client services team can be reached between 8 a.m. to 8 p.m. ET. at 1.800.387.0830 (toll-free). Please visit franklintempleton.ca for more information on Franklin Templeton's mutual funds.
About Franklin Templeton Investments
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 150 countries. Through specialized teams, the company has expertise across all asset classes—including equity, fixed income, alternative and custom solutions. The company's more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in 35 countries, the California–based company has more than 65 years of investment experience and over US$898 billion (over C$1,012 billion) in assets under management as of October 31, 2014.
For more information, please visit franklintempleton.ca or connect with Franklin Templeton on Twitter (@FTI_Global). Read the Beyond Bulls & Bears blog featuring perspectives from Franklin Templeton investment professionals around the world and the Investment Adventures in Emerging Markets blog from Mark Mobius (@MarkMobius), executive chairman of Templeton Emerging Markets Group.
Copyright © 2014. Franklin Templeton Investments Corp. All rights reserved.
SOURCE: Franklin Templeton Investments Corp.
Media contacts: Sarah Kingdon, Corporate Communications, Franklin Templeton Investments, 416.957.6191; Amie Lauder, Corporate Communications, Franklin Templeton Investments, 416.957.6560
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