Franklin Templeton Canada announced today the upcoming closure of three funds: the Franklin Global Quality Dividend Fund (FLGB), the Franklin International Multifactor Equity Fund (FLDM), and the Franklin Western Asset Plus Core Bond Fund, including its ETF series (FWCP). The closure is set to take place around December 4, 2024.
Fund Subscription Halt
As of the close of business today, Franklin Templeton Canada will no longer accept any new subscriptions for FLGB, FLDM, or FWCP. These funds will continue to be listed on the Toronto Stock Exchange (TSX) until they are voluntarily delisted, expected around the market close on November 29, 2024.
Transition of Fund Assets
On November 25, 2024, or around that date, Franklin Templeton Canada will sell and convert the ETF portfolios into cash. The remaining assets, after settling liabilities and obligations, will be distributed in cash to fund unitholders on December 5, 2024, or thereabouts. Unitholders can choose to sell or redeem their shares before the market close on November 29, 2024, ahead of the voluntary delisting.
New Purchase Restrictions
Effective today, the A, F, and O series of the Franklin Western Asset Plus Core Bond Fund will cease to accept purchases from both new and existing investors. Those wishing to switch to another Franklin Templeton fund or redeem their investments before the fund dissolution are advised to consult their financial advisor and submit their instructions by December 3, 2024. Franklin Templeton’s customer service team is also available for assistance at 1-800-897-7281.
Asset Transfer Process
On December 4, 2024, all investors holding A, F, or O series shares of the Franklin Western Asset Plus Core Bond Fund in registered accounts will have their investments transferred to the corresponding series of the Franklin Canadian Money Market Fund. Investors holding the fund in other accounts will see their investments liquidated at fair market value, with proceeds sent to the investor or their broker.
Regular Fund Review
Franklin Templeton Canada regularly reviews its fund lineup and has decided to close these three funds as part of this process.
Investors will receive a formal notice regarding the fund closures at least 60 days before the effective date. No redemption fees, acquisition fees, or other costs associated with the fund dissolution will be charged to investors, as these expenses will be covered by Franklin Templeton Canada.
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