Franklin Templeton implements auto-switch, reduces fee

Starting Dec. 12, 2016, Franklin Templeton Investments Corp. is implementing monthly automatic switching, making it easier for investors to receive preferred pricing.

For fee-based accounts, when clients reach a balance of $100,000 or more, they’ll be automatically switched to the corresponding simplicity pricing series, where applicable. For commission-based accounts, advisors will be notified on a monthly basis when they have a client who reaches a balance of $200,000 or more, so they can move the client into the lower-fee series.

Read: Mackenzie Investments lowers management fees, automates conversions

Launched in October 2016, Franklin Templeton’s simplicity pricing program includes lower investment minimums for certain series, expanded dealer compliance support, simpler series naming conventions and asset class pricing alignment. It also provides account linking, which may help clients access preferred pricing in fee-based and commission-based accounts more quickly.

In late December, advisors will begin receiving the monthly notifications indicating which of their commission-based clients are eligible for the preferred pricing series or when fee-based clients have been automatically moved to the preferred pricing fund series.

Franklin Templeton has also reduced the management fee for Franklin Quotential Balanced Growth Portfolio and Franklin Quotential Balanced Growth Corporate Class Portfolio, managed by Franklin Templeton Solutions. The management fee for Series O/OT and Series PF/PFT will be reduced by 0.05% for clients with $200,000 or more in assets. The reductions for Series O/OT is retroactive to October 3, 2016, and for Series PF/PFT is effective December 6, 2016.

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Also read: Franklin Templeton offers new liquid alt fund

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.