FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

More documents

Recommendations

Info

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS Main Risks of investing in the Fund The main risks of investing in Franklin Templeton Investment Funds—Templeton European Corporate Bond Fund are the following: • Counterparty risk • Credit risk • Credit-linked Securities risk • Derivative risk • Interest Rate Securities risk • Liquidity risk • Low-rated or Non Investment Grade Securities risk • Market risk • Swap Agreements risk Investor’s profile The Franklin Templeton Investment Funds—Templeton European Corporate Bond Fund is suitable for investors • seeking to maximize total investment return through a combination of interest income and capital appreciation; • planning to hold their investment for the medium to long term. Total Expense Ratio Not available yet. Past performance Not applicable. The costs and expenses for adding the new Funds will be completely amortised over the first five years from the new Funds’ launch. Amendment of the investment policy of existing Funds of the Company FRANKLIN TEMPLETON INVESTMENT FUNDS—FRANKLIN STRATEGIC INCOME FUND The Fund’s primary investment objective is to earn a high level of current income. As a secondary investment objective, the Fund seeks capital appreciation over the long term. The Fund invests principally in debt securities globally, including those in Emerging Markets. For the purpose of this Fund, debt securities shall include all varieties of fixed and floating rate income securities, including bank loans (through regulated investment funds), bonds, mortgage and other asset-backed securities and convertible securities. The Fund may invest up to 100% of its assets in low-rated and noninvestment grade debt securities of issuers worldwide. In order to seek to achieve its objective, the Fund may use various financial derivative instruments for hedging and efficient portfolio management as well as to enhance its investment return, subject to the investment restrictions more fully described in Appendix B. These financial derivative instruments may be dealt either in regulated markets or over-thecounter, and may include, inter alia, swaps (such as credit default swaps or total return swaps), forwards and cross forwards (either of which may result in negative currency exposures), futures contracts 112 Franklin Templeton Investment Funds
PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS (including those on government securities), as well as options. The Fund may invest up to 10% of its net assets in units of UCITS and other UCIs, up to 10% of its net assets in credit-linked securities and up to 10% of its total assets in securities in default and participate in mortgage dollar roll transactions. The Fund may also temporarily and/or on an ancillary basis, seek investment opportunities in other types of transferable securities such as preferred stock, common stock and other equity linked securities, warrants, securities and bonds convertible into common stock. Investment in Emerging Markets countries, in financial derivatives instruments, in securities in default and in non-investment grade securities are subject to a higher degree of risk as more fully described in the section “Risk Considerations”. The base currency of the Fund is U.S. dollar. FRANKLIN TEMPLETON INVESTMENT FUNDS—FRANKLIN GLOBAL REAL ESTATE (USD) FUND With effect from June 4, 2010, the non-U.S. dollar component of the portfolio will stop being hedged into US dollar. The investment policy of the Fund is henceforth amended and shall read as follows: The Fund’s investment objective is to maximise total investment return consisting of income and capital appreciation. The Investment Manager seeks to achieve its investment objective by investing in real estate investment trusts (“Real Estate Investment Trusts” or “REITs”) and other companies whose principal business is financing, dealing, holding, developing and managing real estate and which are located around the world. “REITs” are companies the shares of which are listed on a stock exchange, which invest a significant portion of their assets directly in real estate and which profit from a special and favourable tax regime. These investments of the Fund shall qualify as transferable securities. The Fund seeks to invest in companies across a wide range of real estate sectors and countries. Investments in REITs are subject to specific risks as described in the section “Risk Considerations”. The base currency of the Fund is U.S. dollar. FRANKLIN TEMPLETON INVESTMENT FUNDS—TEMPLETON GROWTH (EURO) FUND The Fund’s investment objective is capital appreciation. The Fund invests principally in the equity securities including common stocks and preferred stocks of companies located anywhere in the world, including Emerging Markets. Equity securities generally entitle the holder to participate in a company’s general operating results. The Fund also invests in American, European, and Global Depository Receipts. These are certificates issued typically by a bank or a trust company that give their holders the right to receive securities issued by a foreign or domestic company. Depositary Receipts do not eliminate currency and economic risks for underlying shares of a company operating in another country. Depending upon current market conditions, the Fund may also invest up to 25% of its net assets in debt securities of companies and governments located anywhere in the world. Debt securities represent an obligation of the issuer to repay a loan of money to it and generally provide for the payment of interest. These include bonds, notes (including equity-linked notes) and debentures. In choosing equity investments, the Investment Manager focuses on the market price of a company’s securities relative to its evaluation of the company’s long-term earnings, asset value and cash flow potential, as well as on other measures that the Investment Manager deems appropriate to determine a company’s value. Investments in Emerging Market countries are subject to a higher degree of risk, as described in the section “Risk Considerations”. The base currency of the Fund is Euro. The name of the Fund reflects the base currency of the Fund being in Euro and does not necessarily imply that any particular proportion of the Fund’s net invested assets is made in Euro. www.franklintempleton.lu 113
Page 1 and 2:
November 2009 PROSPECTUS Société
Page 3 and 4:
PROSPECTUS OF FRANKLIN TEMPLETON IN
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72: PROSPECTUS OF FRANKLIN TEMPLETON IN
Page 121: PROSPECTUS OF FRANKLIN TEMPLETON IN
Page 129: Mandatory Statement Applicable to a
show all

FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

Create successful ePaper yourself

Delete template?

Save as template?