Templeton China World Fund Proposes Reorganization with Developing Markets Trust

The plan seeks to lower fees and boost growth opportunities by merging the funds.

October 02, 2024

Shareholders Asked to Approve Reorganization Plan:

The Templeton China World Fund is seeking shareholder approval for a proposed reorganization with the Templeton Developing Markets Trust. A Special Meeting of Shareholders is scheduled for October 14, 2024, during which a vote on the plan will take place. The reorganization, if approved, will result in the transition of the China World Fund shareholders into the Developing Markets Trust. The fund’s Board of Trustees has thoroughly reviewed the proposal and is urging shareholders to cast their votes in favor of the plan.

According to the filing, the proposed reorganization is intended to enhance the value of shareholders’ investments. One of the primary benefits is the decrease in fees and anticipated reduction in overall operating expenses, potentially offering a more cost-effective structure for investors. Additionally, the transition would provide the China World Fund shareholders with exposure to a fund with a larger asset size and prospects for long-term growth.

The Developing Markets Trust will continue to be managed by its current portfolio managers, maintaining its existing investment goals and strategies. The reorganization is positioned as a strategic step to leverage the strengths of both funds while ensuring continuity in management and investment approach.

The fund's management is actively encouraging shareholders to participate in the voting process to ensure their voices are heard. Shareholders can cast their votes through multiple channels: by phone, internet, or by mailing a signed proxy card. The filing stresses the importance of timely voting and notes that the shareholder base is predominantly retail investors, whose participation is crucial to the decision-making process.

Proxy Solicitation Assistance and Voting Deadlines

To facilitate the voting process, Templeton China World Fund has engaged Morrow Sodali Fund Solutions (MSFS) to assist with proxy solicitation. Shareholders may receive calls from MSFS representatives to provide guidance on voting and ensure that all shareholder interests are adequately represented.

If shareholders have any questions regarding the reorganization plan or need assistance with voting, they are encouraged to contact MSFS directly for support. The proxy statement provides detailed information about the proposal and the implications for current shareholders. Voting is open until the date of the special meeting, and the outcome will determine the future direction of the fund and its relationship with the Developing Markets Trust.

Implications of Shareholder Approval

If the reorganization is approved, the assets and liabilities of the China World Fund will be transferred to the Developing Markets Trust, and shareholders will receive equivalent shares in the new fund. This move is expected to streamline operations and foster growth by creating a unified entity with stronger market positioning. However, shareholders are encouraged to review the proposal details carefully to make an informed decision that aligns with their investment goals.

The Board of Trustees is optimistic about the benefits the reorganization will provide and emphasizes the advantages of joining a larger fund with decreased fees and broader market exposure. Shareholders are reminded of the importance of voting and actively participating in this pivotal decision for the fund's future.