The Colorado Plan of Reorganization is a legal arrangement between Franklin Gold Fund and Franklin Gold and Precious Metals Fund that aims to outline the strategy for reorganizing the two entities. It typically involves a comprehensive restructuring plan to address any financial challenges or changes in the market. The plan may encompass various types of reorganizations, each serving a unique purpose: 1. Merger: One type of reorganization involves merging Franklin Gold Fund and Franklin Gold and Precious Metals Fund into a single entity. This consolidation allows for streamlining operations, reducing costs, and achieving synergies between the two funds. 2. Asset Acquisition: In certain cases, the Colorado Plan of Reorganization may entail the acquisition of specific assets or holdings from one fund by the other. This strategic move can bolster the combined fund's portfolio by adding valuable assets or diversifying its holdings. 3. Share Conversion: Another approach is converting the shares of Franklin Gold Fund and Franklin Gold and Precious Metals Fund into a new class of shares. This conversion may introduce changes in share class structures, investment strategies, or fees, aligning the two funds more effectively. 4. Liquidation: In some instances, the plan might propose the liquidation of one of the funds. This option could be considered if one fund is no longer viable or if its assets are better suited for distribution to the shareholders of the other fund. 5. Cross-Holding Rebalancing: The Colorado Plan of Reorganization may involve rebalancing the cross-holdings between Franklin Gold Fund and Franklin Gold and Precious Metals Fund. This rebalancing aims to optimize the allocation of assets between the two funds, ensuring a more efficient and diversified investment approach. Throughout the Colorado Plan of Reorganization, various factors such as market conditions, investor interests, regulatory requirements, and financial considerations are carefully evaluated to determine the most suitable reorganization strategy. The ultimate goal is to create a stronger, more sustainable investment vehicle that maximizes value for the shareholders of Franklin Gold Fund and Franklin Gold and Precious Metals Fund.