Fund Times: Openings, Closings, & Manager Changes
Franklin, Wasatch, Strong, Vanguard, Invesco, USAA, and others.
Franklin Changes Fund's Name, Mandate
You can take the state out of the fund's name, but you can't take the fund out of the state. Franklin California Growth (FKCGX) will drop the name of the Golden State from its title and start calling itself the Franklin Flex Cap Growth Fund in September. The offering also will reduce the percentage of assets it's required to keep in California to 51% from 80%.
Regulations and marketing considerations drove the change. The SEC now requires funds to keep 80% of their assets in securities that are consistent with their names. Since the fund has occasionally let cash and non-California holdings build to more than 10% each, Franklin thought it would err on the safe side and give the fund a more ambiguous name. Financial advisors and brokers who peddle the fund also have said it was hard to convince people from the rest of the country to buy a California-focused fund, even though it has a terrific long-term record.
Dan Culloton has a position in the following securities mentioned above: VGPMX. Find out about Morningstar’s editorial policies.