Franklin California Tax-Exempt Money Fund to reorganize as ultra-short

By Tali Rackner

Norfolk, Va., Oct. 30 – The Franklin California Tax-Exempt Money Fund plans to close to new investors and reorganize into a new ultra-short fund, according to a 497 filing with the Securities and Exchange Commission.

Effective at the close of market on Dec. 10, the fund will be closed to all new investors. Existing investors in the fund can continue to invest through exchanges and additional purchases until March 11, 2016.

The new fund is expected to follow an ultra-short bond strategy. It is not expected to be a money market fund and is not expected to try to maintain a stable net asset value of $1 per share.

San Mateo, Calif.-based Franklin Advisers, Inc. serves as the funds' investment manager.

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