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Franklin Templeton Canada Announces Fee Reductions and Proposes Investment Objective Changes for Certain Funds and ETFs

·7 min read

Risk rating changes announced for certain funds and ETFs

TORONTO, May 17, 2022 /CNW/ - Franklin Templeton Canada today announced fee reductions and other pricing changes for certain funds and ETFs. Additionally, it has proposed adding sustainability considerations to the investment objectives of certain funds and ETFs to reflect each investment manager's commitment to sustainable investing. Risk rating changes were also announced for certain funds and ETFs.

Fee Reductions

Effective May 27, 2022, the management fee and/or administration fee of the fund series detailed in the table below will be reduced, which will result in a lower combined fee for each fund.










NEW FEES



Fund Name

Series


Mgmt.
Fee
%

Admin.
Fee
%

Combined
Fee
%


Fee
Reduction
%

Franklin Bissett Short Duration Bond Fund

A


0.75

0.10

0.85


-0.10

F


0.25

0.10

0.35


-0.10

O1


-

-

0.35


-0.10

O2


-

-

0.30


-0.10

O3


-

-

0.25


-0.05

Franklin Liberty Short Duration Bond ETF (FLSD)

-


-

-

0.30


-0.10

Franklin Quotential Diversified Income Portfolio

V4


1.335

0.15

1.485


-0.06

Templeton Global Balanced Fund

A / T /
T-USD


1.70

0.15

1.85


-0.23

F / FT


0.70

0.15

0.85


-0.23

1. Applies to the initial C$200,000 to 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.
4. Closed to new investors.

Other Pricing Changes

Effective May 27, 2022, the management fee waivers that currently apply to the series detailed in the table below will be eliminated, and the management fee and/or administration fee reduced by a corresponding amount. The combined fee will remain the same.




NEW FEES

Fund Name

Series


Mgmt.

Fee

%

Admin.

Fee

%

Combined
Fee

%

Franklin Bissett Canadian Balanced Fund

I


1.35

0.17

1.52

Franklin Bissett Canadian Equity Fund

I


1.28

0.15

1.43

Franklin ClearBridge Sustainable International Growth Fund

I


1.30

0.32

1.62

Franklin Martin Currie Sustainable Global Equity Fund

I - Hedged


1.30

0.33

1.63

Franklin Quotential Diversified Equity Portfolio

I


1.25

0.32

1.57

Franklin Quotential Diversified Income Portfolio

I


1.335

0.15

1.485

Franklin Quotential Growth Portfolio

I


1.20

0.23

1.43

Templeton Growth Fund

I


1.07

0.15

1.22

Proposed Investment Objective Changes for Certain Funds and ETFs

To better reflect each investment manager's commitment to sustainable investing, Franklin Templeton is proposing new investment objectives for certain funds and ETFs. Special meetings of investors will be held virtually on August 19, 2022, to vote on adding sustainability considerations to each investment objective below.

  • Franklin Global Aggregate Bond Fund – proposed investment objective: The fund seeks to maximize total return by investing primarily in debt instruments of issuers anywhere in the world, while following a sustainable investment approach. The fund may invest in these debt instruments directly, or indirectly by investing in units of Franklin Liberty Global Aggregate Bond ETF (CAD-Hedged).


  • Franklin Liberty Global Aggregate Bond ETF (CAD-Hedged) (FLGA) – proposed investment objective: The ETF seeks to maximize, consistent with prudent investment management, total return by investing primarily in debt instruments of issuers anywhere in the world, while following a sustainable investment approach.


  • Franklin Innovation Fund – proposed investment objective: The fund seeks capital appreciation by investing primarily in equity securities of issuers with maintainable innovation-driven growth prospects, while following a sustainable investment approach.


  • Franklin Innovation Active ETF (FINO) – proposed investment objective: The ETF seeks capital appreciation through exposure to equity securities of issuers with maintainable innovation-driven growth prospects, while following a sustainable investment approach, by investing directly in such securities and/or in units of Franklin Innovation Fund (or its successor fund).


  • Franklin U.S. Opportunities Fund – proposed investment objective: The fund seeks capital appreciation by investing primarily in equity securities of U.S. issuers that demonstrate accelerating growth, increasing profitability, or above-average growth or growth potential compared to the overall economy, while following a sustainable investment approach.


  • Franklin Western Asset Core Plus Bond Fund – proposed investment objective: The fund seeks to maximize total return by investing primarily in investment-grade debt instruments of issuers anywhere in the world, while following a sustainable investment approach.


  • Franklin Western Asset Core Plus Bond Active ETF (FWCP) – proposed investment objective: The ETF maximizes total return through exposure to investment-grade debt instruments of issuers anywhere in the world, while following a sustainable investment approach, by investing directly in such instruments and/or in units of Franklin Western Asset Core Plus Bond Fund (or its successor fund).


  • Templeton Emerging Markets Fund – proposed investment objective: The fund seeks long-term capital appreciation by investing primarily in equities of issuers in emerging markets, while following a sustainable investment approach.


  • Templeton Global Balanced Fund – proposed investment objective: The fund seeks current income and long-term capital appreciation by investing primarily in debt instruments and equity securities of issuers anywhere in the world, while following a sustainable investment approach.

Investors of record as of June 20, 2022, will have access to the meeting materials via notice posted on Franklin Templeton'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. If approved by investors, the new investment objective for each fund or ETF will take effect on or around September 16, 2022.

Series Consolidations

Certain series of Templeton Global Balanced Fund as detailed in the table below will be consolidated on a tax-deferred basis into the corresponding series as of the close of business on August 19, 2022.

With the fee reductions noted above as well as the series consolidations below, investors in Templeton Global Balanced Fund will have access to the lowest fee in the respective series for which they meet the investment minimum.



Series To Be Consolidated

Continuing Series

PA

A

PF

F

PFT

FT

PT

T

PT-USD

T-USD

Risk Rating Changes for Certain Funds and ETFs

The risk rating changes below will be reflected in the renewed prospectus for each ETF and mutual fund, which will take effect today, May 17, 2022.

These changes are a result of the firm's annual renewal process and not the result of any alterations to the investment objectives, strategies or management of the funds.




Fund and ETF Name

Current Risk
Rating

New Risk
Rating

Franklin Bissett Canadian Dividend Fund

Low to Medium

Medium

Franklin FTSE U.S. Index ETF (FLAM)

Low to Medium

Medium

Franklin Liberty Core Balanced ETF (FLBA)

Low

Low to Medium

Franklin LibertyQT International Equity Index ETF (FLDM)

Medium

Low to Medium

Franklin Western Asset Core Plus Bond Active ETF (FWCP)

Low to Medium

Low

Franklin Western Asset Core Plus Bond Fund

Low to Medium

Low

Templeton Global Bond Fund

Low to Medium

Low

Templeton Growth Fund

Medium

Low to Medium

Risk Classification Methodology

The methodology used to determine the risk rating of each mutual fund or ETF is based on the CSA's Risk Classification methodology. A summary of this methodology and the investment objectives and strategies of each mutual fund or ETF can be found in the mutual funds' simplified prospectus or the ETFs' prospectus. The methodology is also available by contacting Franklin Templeton Canada's client service team at 1-800-387-0830 or service@franklintempleton.ca.

In accordance with the standardized Risk Classification Methodology mandated by the CSA, Franklin Templeton Canada reviews risk ratings annually, at a minimum, as well as when a mutual fund or ETF undergoes a material change.

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 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 boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately US$1.5 trillion (approximately CAN$1.9 trillion) in assets under management as of April 30, 2022. 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.

Copyright © 2022. Franklin Templeton. All rights reserved.

SOURCE Franklin Templeton Investments Corp.

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View original content: http://www.newswire.ca/en/releases/archive/May2022/17/c7801.html

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