FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS
FRANKLIN TEMPLETON INVESTMENT FUNDS—FRANKLIN REAL RETURN FUND
Investment Objective and Policies
The Fund’s investment objective is to achieve, consistent with prudent investment management, total
return that exceeds the rate of inflation over an economic cycle.
In order to achieve the highest level of real return (total return less the estimated cost of inflation),
the Fund seeks to allocate its assets, under normal market conditions, in inflation indexed securities
of all type such as US and non US inflation-indexed securities, investment grade and high-yield fixedincome
securities issued by governments, corporations and municipal issuers.
Inflation-indexed securities are fixed-income securities that are structured to provide protection against
inflation. The value of the security’s principal or the interest income paid on the security is adjusted to
track changes in an official inflation measure. The US Treasury uses the Consumer Price Index for Urban
Consumers as the inflation measure. Inflation-indexed securities issued by a non-US government are
generally adjusted to reflect a comparable inflation index, calculated by that government.
The Fund seeks to achieve its objective by also investing in mortgage and other asset-backed securities,
short-term fixed-income securities as well as equity securities with high correlation to broad measures
of inflation, including shares of real estate investment trusts (REITs) and/or companies in the natural
resources sector.
The Fund may also utilise financial derivative instruments for investment purposes. These financial
derivative instruments may be dealt either in regulated markets or over-the-counter, and may include,
inter alia, swaps (such as credit default swaps or total return swaps), forwards and cross forwards,
futures contracts (including those on government securities), as well as options.
The base currency of the Fund is U.S. dollar.
Investment Manager
Franklin Advisers, Inc. has been appointed Investment Manager pursuant to an Investment Management
Agreement dated April 30, 2010 entered into between the Company and Franklin Advisers, Inc.
Classes of Shares
The Shares of the Fund are:
Class
Fund/Class
No Fund Name and Class Currency ISIN Code Launch date
1126 Franklin Real Return Fund Class A (acc) USD USD LU0496367250 April 30, 2010
1127 Franklin Real Return Fund Class A (Ydis) EUR-H1 EUR LU0498738086 April 30, 2010
Further details of these Classes of Shares and the charges relating to them are available under section
“Share Classes—Sales Charge Structure” of the current full prospectus of the Company.
For Class A Shares, a maintenance charge of up to 0.50% per annum of the applicable average net asset
value is deducted and paid to the Principal Distributor in order to compensate the Principal Distributor
for any expenses incurred by it in connection with Shareholders liaison and administration of the Shares.
This charge is accrued daily and is deducted and paid monthly to the Principal Distributor. The maintenance
charge paid to the Principal Distributor may be used to defray certain charges for individual investors
or for particular groups of investors.
Other applicable charges are described under section “Share Classes—Sales Charge structure” of the
current full prospectus of the Company.
At launch date, Shares of the Fund will be offered at USD 10 plus an initial sales charge of up to 6.5%
of the total amount invested for Class A Shares.
From launch date onwards, Shares of the Fund are and will be offered at the applicable net asset value
per Share, plus an initial sales charge of up to 6.5% of the total amount invested for Class A Shares.
www.franklintempleton.lu 109