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Franklin Templeton to tighten fund liquidation threshold

Franklin Templeton to tighten fund liquidation threshold

Franklin Templeton is set to change the lower limit under which funds become no longer viable from below $20 million to below $50 million in assets, Citywire Selector has learned.

The new guidelines are set to be voted on at the annual general meeting of shareholders in the US group’s SICAV range, Franklin Templeton Investment Funds.

This proposal, which is due to be discussed at the November 30 meeting, will change the liquidation threshold from the existing level of below $20 million to below $50 million.

A spokesperson for Franklin Templeton said the change was designed to bring the company in-line with the liquidation limits being operated by its competitors.

JPM Asset Management currently runs a $30 million threshold on a number of its Luxembourg-domiciled range. It was due to a fall below this level the firm liquidated the JPM – Emerging Markets Ultra Diversified fund this month.

Of the 94 Luxembourg-domiciled Franklin Templeton funds currently tracked in the Citywire database, 21 are currently sitting below the $50 million assets level, according to Citywire data.

The spokesperson added that Franklin Templeton reviews its fund range regulaly but offered no further comment.

The announcement of planned tighter controls comes hot-on-the-heels of Franklin Templeton bolstering its Luxembourg-domiciled range, with the launch of the Templeton Global Currency fund earlier this month.

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