Franklin Templeton spokesman Bill Weeks declined to disclose the terms of the deal.
HSBC is unloading the funds which total $110 million in assets as it exits the U.S. fixed-income market, Mr. Weeks said. HSBC will continue to offer money market funds.
According to the filing, Franklin Templeton plans to merge the four fixed-income funds two core-plus funds, an intermediate duration fund and a New York tax-free bond fund with two of its own funds, the Franklin Total Return fund and the New York Intermediate Tax-Free Income fund.
The proposal still must be approved by HSBC fund shareholders, who will meet in late August.
Franklin Templeton had more than $168 billion in fixed-income assets under management as of April 30, Mr. Weeks said.