FRANKLIN STRATEGIC MORTGAGE PORTFOLIO

Form Type: 497

Filing Date: 2024-12-13

Corporate Action: Liquidation

Type: Update

Accession Number: 000174177324004600

Comments: On December 12, 2024, the Board of Trustees of Franklin Strategic Mortgage Portfolio approved a proposal to liquidate and dissolve the Fund, with an anticipated liquidation date on or about February 21, 2025. The liquidation may be expedited if there are no shares outstanding in the Fund before this date. The Fund will be closed to new investors as of the close of market on January 15, 2025, though existing investors can continue making exchanges and additional purchases. Certain categories of investors can still open new accounts past this date. Accounts will be liquidated on the Liquidation Date, with proceeds distributed to shareholders. For taxable accounts, liquidation proceeds will typically be treated as a sale of shares, potentially incurring a taxable gain or loss. Shareholders are advised to consult tax advisers for personalized guidance and to consider their options prior to the liquidation.

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Form Type: 497K

Filing Date: 2024-12-13

Corporate Action: Liquidation

Type: New

Accession Number: 000174177324004601

Comments: On December 12, 2024, the Board of Trustees approved a proposal to liquidate and dissolve Franklin Strategic Mortgage Portfolio. The expected liquidation date is on or about February 21, 2025, but it may occur sooner if there are no shares outstanding. After January 15, 2025, the Fund will close to new investors, although existing investors with open accounts can still make additional investments. Certain categories of investors may be allowed to open new accounts. Shareholders will receive liquidation proceeds on the Liquidation Date, which may lead to taxable gains or losses. Shareholders should consult tax advisers for personal implications and financial advisors for investment options.

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