Liquidation - Franklin Global Listed Infrastructure Fund
The fund will be closed by way of liquidation on 17 January 2020. In preparation for the closure, the fund has now closed to subscriptions.
Impacts on
these guided-architecture products
Impacts on
open-architecture products including
- PIMS
- Choice
- Select
Reason for the liquidation
The decision to formally close the fund by way of liquidation on Friday 17 January 2020 ("the liquidation date") comes as a result of the departure of the dedicated portfolio management team for the fund.
After careful analysis and review, the Board of Directors at Franklin Templeton has decided to exit the Listed Infrastructure strategy as they have no alternative nor other portfolio management team within Franklin Templeton that is able to pursue the strategy.
The fund will continue to be managed by the current portfolio management team until the liquidation date. In preparation for the liquidation, the fund has closed to subscriptions. Requests to redeem shares will be accepted by Franklin Templeton until the close of business on 16 January 2020.
Action to be taken for open-architecture plan owners
Portfolio bond investors in the fund can instruct a redemption before the dealing cut-off date should they wish to. If we do not hear from them, we will pay their liquidated proceeds into the cash account on their bond following the liquidation date in January. Franklin Templeton estimate that under normal market conditions, liquidation proceeds should be returned to shareholders within 10 business days from the liquidation date.
Action to be taken for guided-architecture plan owners
We have closed the liquidating fund to new business and switches in because the fund will no longer accept subscriptions. In order to facilitate the continued investment of any regular payments of plan owners, it has been necessary to take immediate action. We have introduced an alternative infrastructure fund to the range and have switched investor’s holdings, and redirected any regular payment allocation, into this fund with effect 8 November 2019.
The alternative fund is the M&G Global Listed Infrastructure fund (“the receiving fund”) which sits within the same investment category as the liquidating fund.
| Liquidating fund and ISIN | Receiving fund and ISIN |
|---|---|
| Franklin Global Listed Infrastructure A Acc EUR LU0909058058 | M&G (Lux) Global Listed Infrastructure A Acc EUR LU1665237704 |
| Franklin Global Listed Infrastructure A Acc USD LU0909057837 | M&G (Lux) Global Listed Infrastructure A Acc USD LU1665236995
|
We have written to our guided-architecture plan owners, or their appointed investment adviser, who are impacted by the liquidation informing them of the action we have taken and their option for switching to a different fund if they prefer. Servicing financial advisers will receive a sample of the letter for their information. Sample letters can be found opposite.
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For more information about M&G visit www.mandg.lu