Franklin Templeton Investments Proposes Changes to Canada's Quotential Program

TORONTO, May 9, 2013 /CNW/ - Franklin Templeton Investments Corp. today announced modifications to the proposed Quotential mergers, and a change to the investment objective and names of Quotential Global Growth Portfolio and Quotential Global Growth Corporate Class Portfolio. These changes will be voted on at special meetings of securityholders on or about September 16, 2013 in Toronto.

Mergers

If the mergers are approved by securityholders, the resulting five Quotential mandates will provide investors with a streamlined range of broader investment portfolios, making it easier for them to select a suitable portfolio based on their risk tolerance.

The mergers include:

  • Quotential Global Balanced Portfolio and Quotential Global Balanced Corporate Class Portfolio will be merged into Quotential Balanced Income Portfolio and Quotential Balanced Income Corporate Class Portfolio, respectively.
  • Quotential Canadian Growth Portfolio and Quotential Canadian Growth Corporate Class Portfolio will be merged into Bissett Canadian Equity Fund and Bissett Canadian Equity Corporate Class, respectively.
  • Quotential Maximum Growth Portfolio and Quotential Maximum Growth Corporate Class Portfolio will be merged into Quotential Global Growth Portfolio and Quotential Global Growth Corporate Class Portfolio, respectively.

The above mergers will be executed after the close of business on or around October 25, 2013, pending regulatory and investor approvals.

Investment Objective and Name Changes

Securityholders in Quotential Global Growth Portfolio and Quotential Global Growth Corporate Class Portfolio will be asked to vote on proposed investment objective changes. If approved, the new investment objective of the portfolios will be to seek long-term capital appreciation by investing primarily in a diversified mix of equity mutual funds, providing investors with a broader mix of investment ideas and geographic exposures. If this change in objective is approved, the names of Quotential Global Growth Portfolio and Quotential Global Growth Corporate Class Portfolio will change to Quotential Diversified Equity Portfolio and Quotential Diversified Equity Corporate Class Portfolio, respectively.

These changes will be implemented after the close of business on or around October 25, 2013, pending regulatory and investor approvals.

Securityholder Circular

Securityholders of Quotential Global Balanced Portfolio, Quotential Global Balanced Corporate Class Portfolio, Quotential Canadian Growth Portfolio, Quotential Canadian Growth Corporate Class Portfolio, Quotential Maximum Growth Portfolio, Quotential Maximum Growth Corporate Class Portfolio, Quotential Global Growth Portfolio, Quotential Global Growth Corporate Class Portfolio, Quotential Balanced Income Corporate Class Portfolio and Bissett Canadian Equity Corporate Class will receive an information circular in mid-August 2013 detailing the proposed mergers and change to the investment objective and names of Quotential Global Growth Portfolio and Quotential Global Growth Corporate Class Portfolio.

Series Closure

In addition, Series S in Quotential Canadian Growth Corporate Class will be closed to investments on May 13, 2013. It will be terminated on or around July 17, 2013 and shares will be liquidated at fair market value. Other Series within Quotential Canadian Growth Corporate Class will be merged as noted above, pending regulatory and investor approvals.

About Quotential, Corporate Class and Bissett

The Quotential program is a comprehensive investment solution combining Franklin Templeton's expertise across multiple asset classes within the Franklin, Templeton, Mutual Series and Bissett investment management groups. Co-managed by industry veterans Brent Smith and Stephen Lingard of Franklin Templeton Multi-Asset Strategies, the $8-billion Quotential program is backed by a global investment team dedicated to using a disciplined approach to multi-asset management, helping to mitigate risks and maximize returns for investors' portfolios.  

Quotential Balanced Income Corporate Class Portfolio, Quotential Global Balanced Corporate Class Portfolio, Quotential Global Growth Corporate Class Portfolio, Quotential Canadian Growth Corporate Class Portfolio, Quotential Maximum Growth Corporate Class Portfolio and Bissett Canadian Equity Corporate Class are part of Franklin Templeton's Corporate Class structure, which allows investors to switch between funds and portfolios while deferring any taxable dispositions until they redeem from the structure.

The $2-billion Bissett Canadian Equity mandate is co-managed by Garey Aitken and Tim Caulfield of Bissett Investment Management, part of Franklin Templeton Investments Corp. The Bissett team uses a disciplined growth-at-a-reasonable-price (GARP) investment style to deliver strong absolute, relative and risk-adjusted returns over time.

About Franklin Templeton Investments

Franklin Templeton Investments Corp. is a wholly owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust, Darby, Balanced Equity Management and K2 investment teams. The San Mateo, CA-based company has more than 65 years of investment experience and over US$847 billion (over C$853 billion) in assets under management as of April 30, 2013. For more information, please visit franklintempleton.ca.

SOURCE: Franklin Templeton Investments Corp.

For further information:

Media contact: 
Sarah Kingdon, Corporate Communications, Franklin Templeton Investments, 416.957.6191


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