FINO Franklin Innovation Fund

Fund mergers proposed as part of product modernization initiative

TORONTO, March 28, 2023 /CNW/ - Franklin Templeton Canada today announced that it is streamlining its product lineup by adding ETF series to select mutual funds, instead of offering separate standalone ETFs. To facilitate this, nine fund mergers are being proposed, which will be voted on at special meetings of investors to be held on June 29, 2023, in Toronto.

Franklin Templeton Canada is proposing the taxable merger of each ETF identified as a terminating fund into the corresponding continuing fund, as noted in the table below. Each terminating fund currently invests substantially all of its assets in its continuing fund. These proposed mergers will be effective at the close of business on or around July 7, 2023.

To facilitate the mergers, a new ETF series of units will be listed on the Toronto Stock Exchange for each continuing fund, in substitution for the currently listed units of each terminating fund, effective on or around July 10, 2023.

The ETF series of each continuing fund will have the same ticker and overall fee (combined management and administration fee) as the terminating fund, so that there will be no change to any investor's total cost of ownership.

On August 8, 2023, mutual fund series A, F and O will be added to Franklin Global Aggregate Bond Active ETF (CAD-Hedged) (FLGA) and Franklin Bissett Ultra Short Bond Active ETF (FHIS), which will be renamed Franklin Global Core Bond Fund and Franklin Bissett Ultra Short Bond Fund, respectively.

Franklin Templeton Canada is proposing the taxable merger of Franklin Global Aggregate Bond Fund into Franklin Global Aggregate Bond Active ETF (CAD-Hedged) (FLGA) at the close of business on or around August 11, 2023. The proposed merger of Franklin Global Aggregate Bond Fund will be voted on at a special meeting of investors to be held on June 29, 2023, in Toronto. In anticipation of the proposed merger, Franklin Global Aggregate Bond Fund will be closed to new investments effective March 28, 2023.

Pursuant to National Instrument 81-107 – Independent Review Committee for Investment Funds, the terminating funds' independent review committee has reviewed the potential conflict of interest matters related to the proposed mergers and has provided Franklin Templeton Canada, with a positive recommendation having determined that the proposed mergers, if implemented, achieve a fair and reasonable result for the terminating funds. All costs and expenses associated with the mergers will be borne by the company and not charged to the investors.

If any of the nine proposed ETF into mutual fund mergers are not approved, the ETF will be liquidated at the close of business on or around July 14, 2023. Subsequently, Franklin Templeton Canada will apply to list new ETF series units of the continuing funds, which have the same investment objectives and strategies as the terminating ETFs. 

If the proposed merger of Franklin Global Aggregate Bond Fund (which is not listed on an exchange) is not approved, it will be terminated at the close of business on or around August 11, 2023, with the net assets of the fund being returned to its investors. Mutual fund series A, F and O will still be added to the continuing fund.

Investors of record at the close of business on May 12, 2023, will have access to the meeting materials via notices posted on Franklin Templeton Canada's website, which will provide more details relating to the proposed changes. Investors are strongly encouraged to vote in advance of the proxy voting deadline via any of the methods described in the meeting materials. Investors are encouraged to speak to their financial advisor about these changes. Franklin Templeton Canada's client service team is also available between 8 a.m. and 6 p.m. EDT at 1-800-387-0830 or service@franklintempleton.ca.

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 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 offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately US$1.4 trillion (approximately CAN$1.9 trillion) in assets under management as of February 28, 2023. For more information, please visit franklintempleton.ca and connect with Franklin Templeton on Twitter, Facebook and LinkedIn, and read the Beyond Bulls & Bears blog.

Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the prospectus and fund facts/ETF facts document before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently. Past performance may not be repeated.

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SOURCE Franklin Templeton Investments Corp.