Franklin Templeton Investments Canada has introduced four new embedded fee series – Series PA, PA (Hedged), PT, and PT-USD – which come with preferred pricing and daily auto-switching for commission-based investors and advisors.
“We continue to look for ways to simplify our pricing structure,” said Franklin Templeton Investments Canada President and CEO Duane Green. “This new preferred pricing ensures that commission-based advisors always have their clients in the lowest priced option that they qualify for.”
With the new embedded-fee series, clients will be automatically switched from retail series units — Series A, A (Hedged), T and T-USD — to their corresponding lower-fee option of Series PA, PA (Hedged), PT and PT-USD once they reach at least $200,000 in assets. Auto-switches do not incur fees or trigger any taxable event.
The reduction in pre-tax management fees resulting from a switch to PA or PT units varies from 0.65% to 2.5%, depending on the fund; similarly, the decrease in pre-tax administration fees could be anywhere from 0.02% to 0.35%.
The Series PA and PT units are also offered with the same purchase options and sales commissions as those for Series A and T:
- Front end (up to 6%);
- Deferred sales charge (5%); and
- Low-load (2.5%)
The firm also offers an account linking feature under its Simplicity Pricing Program that’s designed for relatives extending beyond the parameters of a single household. By linking accounts of related investors (e.g., a parent’s TFSA, a minor child’s RESP, an adult child’s open account), clients can reach the minimum investment amount required for the Series PA and PT privileges. The switch in series will be applied to all linked accounts.
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