Fund merger – Templeton Thailand Fund
Franklin Templeton has announced its intention to merge its Templeton Thailand Fund into the Templeton Asian Growth Fund with effect from 13 December 2019.
Impacts on
these guided-architecture products
Impacts on
open architecture products including
- PIMS
- Choice
- Select
Following a review of its Templeton Thailand Fund ("the merging fund"), Templeton has decided to merge the fund with its Templeton Asian Growth Fund ("the receiving fund"). It has explained the reason for the merger is that Thailand’s economy faces several structural challenges, including a high household debt and rapidly aging population, which its Board believes could dampen long term growth and reduce the opportunity set for investors in Thai equities. Comparatively, it believes the Asia ex-Japan region provides a larger opportunity set, with several economies benefiting from stronger structural tailwinds than Thailand and thus more attractive growth potential in the medium to long term. It has also pointed to the cheaper fee structure on the receiving fund as a reason why it believes the merger is in the best interest of its shareholders.
Action to be taken for Open-architecture policyholders
On the merger date, holdings will automatically transfer to the receiving fund as detailed in the Templeton notification document opposite.
Action to be taken for Guided-architecture policyholders
We have now closed the merging fund to new business and switches in with immediate effect. Existing investors can continue to invest in the merging fund until Wednesday 4 December 2019, at which point holdings will be automatically switched, and any regular premium allocation redirected, into the receiving fund.
The default receiving fund proposed by Templeton as part of the merger is not in our fund range, so we have selected the alternative receiving fund as it has a similar investment objective and risk profile to the merging fund, with lower fund charges.
We have written to our guided-architecture policyholders, or their appointed investment adviser, who are impacted by the merger informing them of the action we will be taking and their option for switching to a new fund if they prefer. Servicing financial advisers will receive a sample of the letter for their information.
| Fund name | Product affected | Merger date | Merger action |
|---|---|---|---|
| Templeton Thailand A Acc USD - LU0078275988 | Quantum, Oracle, Paragon, Quantum Malaysia, Regular Savings Plan & Regular Savings Plan Malaysia. | 13 December 2019 | Holdings will be switched into Fidelity Thailand A Acc USD - LU1224710803 |
You can view samples of the policyholder and investment adviser mailings opposite, along with the Templeton notification.
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For more information about Franklin Templeton funds visit www.franklintempleton.lu