Franklin Templeton Distributors
is closing its small-cap growth fund and biotechnology fund to new investors.
The $11 billion Franklin Small-Cap Growth Fund
is closing on April 30, 2000 for those who do not already own shares. The fund will still be open to investors in an existing retirement plan account, wrap programs or investors who buy class C shares.
After the fund closes its name will be changed to Franklin Small-Cap Growth Fund I
and the Franklin Small Cap Growth Fund II
will be introduced a day later. The new fund will have the same portfolio management team and investment strategy as the existing fund but the individual securities will differ.
The Franklin Biotechnology Discovery Fund
, which has reached $500 million in assets closed to investors on February 7, 2000. There are no current plans to open a mirror fund, a spokesperson for Franklin Templeton said.
Franklin recently reopened the Franklin Balance Sheet Investment Fund
to new investors
(MFWire 2/1). The fund was closed to new investments in 1996, about six years
after it opened. The fund had an average annualized total return of 13.5%,
compared with a total return of 13.7% for all Small-Cap Value funds. However,
the fund has not outperformed the S&P 500 for the past 5 years.
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