Franklin Templeton Canada Implements Fee Cuts for Small Cap Fund

Franklin Templeton Canada Announces Fee Reductions

Investors in the Franklin ClearBridge Canadian Small Cap Fund will soon benefit from reduced fees. Franklin Templeton Canada has confirmed that the management and administration fees will be lowered by up to 35 basis points across various series of the fund, marking an important move in response to competitive market dynamics.

Fund Highlights and Performance

The Franklin ClearBridge Canadian Small Cap Fund, recognized for its impressive performance with a 4-star Morningstar rating, has consistently outperformed both the Canadian Small/Mid-Cap Equity category and the S&P/TSX Small Cap TRI over several periods, including 1, 3, and 5 years.

Commitment to Active Management

Under the management of the Calgary-based ClearBridge Investments team, the fund's approach is grounded in a disciplined investment process. Dennis Tew, head of Distribution and Business Strategy, emphasized the team's commitment to focusing on high-conviction small-cap investments, which has been pivotal to the fund's sustained success.

Details of the Fee Adjustments

Starting March 1, 2025, the fee structure is expected to be more attractive to both new and existing investors. The specifics of the fee adjustments highlight a forward-thinking strategy to enhance investor relations and foster long-term growth.

New Fee Structure

The new fee structure includes competitive management fees, reflecting the organization’s flexible approach to fund management. A comprehensive overview of the adjusted fees has been provided, demonstrating Franklin Templeton's commitment to maintaining competitive pricing.

Fee Waivers in Other Funds

In addition to the fee reductions for the Canadian Small Cap Fund, Franklin Templeton Canada has also announced the extension of fee waivers for its Low Volatility High Dividend Index ETF suite, with management fees waived by an additional 15 basis points until June 30, 2026.

Impact on Distribution Frequency

Moreover, effective March 31, 2025, the distribution frequencies will be adjusted. For instance, the Franklin International Low Volatility High Dividend Index ETF (FLVI) will shift from a monthly to a quarterly distribution schedule, aligning better with investor expectations for periodic income.

Management Insights

Ahmed Farooq, Senior Vice President and Head of Retail ETF Distribution, expressed confidence in their low-cost ETF offerings, asserting they are designed to yield sustainable dividends while managing overall portfolio risk effectively.

Franklin Templeton’s Legacy in Investment Management

With an extensive history of over 30 years in Canadian small-cap investments, Franklin Templeton Canada continues to leverage global capabilities from locations worldwide. The firm operates with the historical context of Franklin Resources, Inc. (NYSE: BEN), which serves clients across 150 countries and boasts a robust asset management strategy.

Multifaceted Investment Solutions

Franklin Templeton’s expertise spans various asset classes, offering tailored strategies in fixed income, equity, and alternatives, making it a preferred choice for investors seeking diversified portfolios.

Frequently Asked Questions

What are the new fees for the Franklin ClearBridge Canadian Small Cap Fund?

The new fee structure will reduce management fees by up to 35 basis points starting March 1, 2025.

Who manages the Franklin ClearBridge Canadian Small Cap Fund?

The fund is managed by the Calgary-based ClearBridge Investments team, led by Garey Aitken and Michael Richmond.

What changes are happening to distribution frequencies?

The distribution frequency for FLVI will change from monthly to quarterly, starting March 31, 2025.

Is Franklin Templeton Canada lowering fees for other funds?

Yes, fee waivers have been extended for the Low Volatility High Dividend Index ETFs, reducing management fees by 15 basis points.

How long has Franklin Templeton Canada been in the investment business?

Franklin Templeton Canada has a strong legacy, with over 30 years of experience in managing Canadian small-cap investments.

About The Author

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