Franklin Templeton Distributors said it will change the name and investment focus of the
Franklin Gold Fund. The fund will be changed from Franklin Gold Fund to
Franklin Gold and Precious Metals Fund, effective April 10, 2000. Along with the name change its classification will be switched from diversified to non-diversified.
The fund will be refocused to permit investments, primarily in equity securities, in companies that mine, process or deal in gold and other precious metals, such as platinum, palladium and silver.
Changing from a diversified to a non-diversified fund will allow the managers to hold more than 5% in some investments.
The
focus change is a response in the decline of gold prices which has also lead to a consolidation of companies in the industry. A letter to the board of directors said, "The declining gold price over the past few years has resulted in a decline in the number of investible companies that meet the liquidity requirements of the fund."
Martin Wiskemann, who co-manages the fund said, "The restriction hindered the fund's ability to compete with its non-diversified peers, given the limited number of companies available in the gold sector. These changes will improve our ability to manage the fund in the best interests of our shareholders."
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