In order to mitigate product duplication, Franklin Templeton Mutual Fund is merging Franklin India Balanced Fund into FT India Balanced Fund and FT India Gilt Fund into Templeton India Government Securities Fund (TGSF). This duplication arose when Franklin Templeton acquired Pioneer ITI Mutual Fund in March 2002, as both AMCs had some products with similar investment objectives.
The sales of the units of Franklin India Balanced and FT India Gilt Fund will stand suspended with effect from June 9, 2004. The investment objectives and asset allocation of FT India Balanced will remain the same post-merger. However, the merger in case of gilt fund will be as stated below:
Introduction of Long-term Plan
On July 9, 2004, Templeton India GSF (TGSF) will introduce an additional plan called Long-term Plan. Then on the same day, the Investment plan of the FT India Gilt Fund will be merged with the new plan (Long-term Plan). The units in the Long Term Plan of TGSF will be available at NAV of the Investment Plan of FT India Gilt Fund on that date and the Long Term Plan will continue to track the performance of the FT India Gilt Fund since its inception. No load is being charged on the transaction to the investors of Investment Plan of FT India Gilt Fund.
The Long Term Plan will have three options, viz. Quarterly Dividend (Payout & re-investment) Option, Growth Option and Bonus Option. Thus, all the three options under the Investment Plan of FT India Gilt Fund will be merged with the respective options of Long Term Plan. In normal circumstances, the average maturity of the securities in the plan will be over 3 years.
Merger of FT India Gilt Fund-Liquid Plan into TGSF-Treasury Plan
On July 9, Investors of FTIGF- Liquid Plan would become investors of TGSF- Treasury Plan (TP) as described below:
1. The Monthly Dividend Option of Liquid Plan is proposed to be merged into the TGSF-TP-Dividend Option
2. The Growth Option under the merging Plan i.e. Liquid Plan of the merging scheme(FTIGF) is proposed to be merged into the TGSF-TP-Growth Option
3. The Bonus Option under the Liquid Plan of the merging scheme FTIGF will cease to exist.
Renaming of existing TGSF Plan to TGSF- Composite Plan
The existing TGSF with two plans namely Growth Plan and Dividend Plans will be renamed as TGSF- Composite Plan w.e.f July 9, 2004. This being just a change of name of the existing plan, there will not be any change in the fundamental attributes of the plan.
The TGSF scheme after merger will have following plans:
1. Long Term Plan with Quarterly Dividend (Payout & Reinvestment) Option, Growth
Option and Bonus Option
2. Composite Plan with Growth and Dividend Options
3. Treasury Plan with Monthly Dividend Option with reinvestment facility and Growth Option.
4. PF Plan -- The plans will have separate portfolios. However, the Composite Plan and PF Plan will have a common portfolio.
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