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Templeton Frontier Markets Fund to close

TheShadowTheShadow
edited May 2013 in Fund Discussions
http://www.sec.gov/Archives/edgar/data/916488/000091648813000020/p-20513frontiermarketssticke.htm

497 1 p-20513frontiermarketssticke.htm

096 P-2 05/13



SUPPLEMENT DATED MAY 23, 2013

TO THE PROSPECTUS DATED AUGUST 1, 2012

OF

TEMPLETON FRONTIER MARKETS FUND

(Templeton Global Investment Trust)


The prospectus is amended as follows:


The following paragraphs are added to the “Fund Summary” and “Fund Details” sections:


Effective at the close of market on June 28, 2013, the Fund is closed to all new investors with the exception of: (1) clients of discretionary investment allocation programs where such programs had investments in the Fund prior to the close of business on June 28, 2013, (2) participants in the Franklin Templeton 401(k) Retirement Plan, (3) funds within Franklin Templeton Fund Allocator Series for which the Fund is an approved underlying fund, and (4) participants in any 401(k) plan that is already a shareholder of the Fund. If you are an existing investor in the Fund on that date, you can continue to invest through exchanges and additional purchases. Re-registration of accounts held by existing investors, if required for legal transfer or administration reasons, will be allowed.



The Fund reserves the right to modify this policy at any time.



Comments

  • Sven
    I am not rushing to invest with Mark Mobius. His flagship Templeton Developing Market fund is only so so relative to the EM index. On top of the front-load and high expense ratio there are better alternatives, or simply Vanguard EM index.

    From risk standpoint it may be better to use a diversified EM fund and let the manager invest in both the emerging and frontier markets.
  • TheShadowTheShadow
    edited May 2013
    I have the Advisor shares in my Roth with brokerage. I may convert 1 share of the Advisor class into a regular account at a later time. Not many Frontier funds available besides Wasatch and Templeton.

    While Templeton has more AUM, is this an indication that other similar funds may close sooner rather than later, such as WAFMX? Wasatch has a tendency to close funds before they get too large.
  • Sven
    Reply to @TheShadow: I think the frontier market is small and there are fewer publicly trade stocks available for trading. What is available they are thinnly traded as reflected in MSCI frontier market index, FM. Only 46K FM shares are traded daily relative to 54,785K for EEM.
    etfdb.com/index/msci-frontier-markets-100-index/

    Closing early at low asset level is only way to invest in this part of world. Traditionally Wasatch close early in order to maintain their investment flexibility (moving in and out). At the same time the ER is higher than the average fund at small AUM. As I mentioned earlier, it is probably better to find a solid EM fund that have the mandate to invest broadly beyond EM and into some frontier market as well. Personally I like Thornburg Developing Market, THDIX. Other candidates are also mentioned in this WSJ article.
    online.wsj.com/article/SB10001424127887324266904578456813714582472.html




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