Fee reductions for Canadian government bond fund and proposed mergers for ActiveQuant funds also announced
TORONTO, March 13, 2024 /CNW/ - Franklin Templeton Canada today announced fee reductions of 27 basis points for its Franklin Multi-Asset ETF Portfolios making it amongst the lowest fees for competitors offering multi-asset ETFs. With a five-year track record, the three ETF portfolios are actively managed using a dynamic asset allocation and ETF selection process tapping into passive equity and active fixed income ETFs. The portfolios are managed by the Franklin Templeton Investment Solutions team, which manages approximately C$100 billion in assets globally. Franklin Templeton Canada has managed multi-asset solutions in Canada since 1996.
Fee Reductions for Multi-Asset ETF Portfolios
Effective April 1, 2024, the management fees for Franklin Conservative Income ETF Portfolio, Franklin Core ETF Portfolio and Franklin Growth ETF Portfolio will be reduced for each fund series detailed in the table below.
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| NEW FEES |
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Fund Name | Series |
| Mgmt.
Fee
% | Admin.
Fee
% | Combined
Fee
% |
| Fee
Reduction
% |
Franklin Conservative Income ETF Portfolio | A / T |
| 0.88 | 0.10 | 0.98 |
| -0.27 |
F / FT |
| 0.13 | 0.10 | 0.23 |
| -0.27 |
O1,2,3 |
| - | - | 0.23 |
| -0.27 |
Franklin Core ETF Portfolio | A / T |
| 1.13 | 0.10 | 1.23 |
| -0.27 |
F / FT |
| 0.13 | 0.10 | 0.23 |
| -0.27 |
O1,2,3 |
| - | - | 0.23 |
| -0.27 |
Franklin Growth ETF Portfolio | A / T |
| 1.13 | 0.10 | 1.23 |
| -0.27 |
F / FT |
| 0.13 | 0.10 | 0.23 |
| -0.27 |
O1,2,3 |
| - | - | 0.23 |
| -0.27 |
1. Applies to the first C$2.5 million invested in the fund.
2. Applies to the next C$2.5 million invested in the fund.
3. Applies to any amount in excess of C$5 million invested in the fund. |
Fee Reductions for Canadian Government Bond Fund
Effective April 1, 2024, the management fees for Franklin Bissett Canadian Government Bond Fund will be reduced for each fund series detailed in the table below.
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| NEW FEES |
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Fund Name | Series |
| Mgmt.
Fee
% | Admin.
Fee
% | Combined
Fee
% |
| Fee
Reduction
% |
Franklin Bissett Canadian Government Bond Fund | A |
| 0.65 | 0.10 | 0.75 |
| -0.20 |
F |
| 0.15 | 0.10 | 0.25 |
| -0.20 |
O1 |
| - | - | 0.25 |
| -0.20 |
O2 |
| - | - | 0.25 |
| -0.10 |
1. Applies to the first C$2.5 million invested in the fund.
2. Applies to the next C$2.5 million invested in the fund. |
Proposed Mergers for ActiveQuant Funds
Franklin Templeton Canada is proposing the tax-deferred mergers of Franklin ActiveQuant Canadian Fund and Franklin ActiveQuant U.S. Fund into Franklin Bissett Canadian Equity Fund and Franklin U.S. Rising Dividends Fund, respectively. The proposed mergers will be voted on at a special meeting of investors to be held on May 31, 2024, in Toronto. If approved, the mergers will be implemented at the close of business on or around June 14, 2024.
In anticipation of the proposed mergers, Franklin ActiveQuant Canadian Fund and Franklin ActiveQuant U.S. Fund will be closed to new investments at the close of business today, March 13, 2024.
If the merger of Franklin ActiveQuant Canadian Fund or Franklin ActiveQuant U.S. Fund is not approved, that fund will be terminated at the close of business on or around June 21, 2024.
Investors in Franklin ActiveQuant Canadian Fund and Franklin ActiveQuant U.S. Fund will vote at the series level due to the different fee structures in Franklin Bissett Canadian Equity Fund and Franklin U.S. Rising Dividends Fund. If any of the series level votes are not approved by investors on May 31, 2024, that series will be terminated at the close of business on or around June 7, 2024.
Investors that hold Franklin ActiveQuant Canadian Fund or Franklin ActiveQuant U.S. Fund will be able to access the information circular detailing the proposed mergers on Franklin Templeton's website on or around April 26, 2024.
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 1,400 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and approximately US$1.6 trillion (approximately CAN$2.2 trillion) in assets under management as of February 29, 2024. For more information, please visit franklintempleton.ca and connect with Franklin Templeton on X (formerly known as Twitter), Facebook and LinkedIn, and read the Beyond Bulls & Bears blog.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or fund facts document before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
SOURCE Franklin Templeton Investments Corp.
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