Franklin Templeton in Ucits IV fund merger

Merger1Franklin Templeton Investments has merged two fund umbrellas in Luxembourg and says this will bring economic benefits and allow investors to switch more easily between a greater choice of investments.

The firm has merged all four sub-funds from its Luxembourg-domiciled Sicav, the Franklin Templeton Strategic Allocation Funds (FTSAF) range, which no longer exists, into four receiving sub-funds.

The sub-funds are part of Franklin Templeton Investment Funds (FTIF), another Sicav.

Three of the four sub-funds are newly created.

The merger is a result of an update to Ucits IV regulations, which has removed restrictions on investments between sub-funds within the same fund umbrella.

The FTSAF range was created in 2006 as a separate fund umbrella to comply with Ucits regulations at the time and allow investment in FTIF, among other funds.

Some economic benefits are anticipated from reduced fund expenses by avoiding duplication of costs. Fund expenses such as audit, legal, registration, custody and reporting will be consolidated under a single umbrella structure within the FTIF range.

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