FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS
TEMPLETON ASIAN BOND FUND
The Fund’s principal investment objective is to maximise, consistent with prudent investment management,
total investment return consisting of a combination of interest income, capital appreciation and
currency gains.
Under normal market conditions, the Fund principally invests in a portfolio of fixed and floating rate
debt securities and debt obligations of governments and/or government- related issuers located throughout
Asia. The Fund may also invest in debt securities of corporate issuers and in securities or structured
products where the security is linked to or derives its value from another security, assets or currencies of
any Asian country. The Fund may purchase debt obligations issued by governments and supranational
entities organised or supported by several national governments. The Fund may also purchase mortgageand
asset- backed securities, convertible bonds, and invest in financial derivative instruments for hedging
and 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. Use of financial derivative instruments may result in negative exposures in a specific yield
curve/duration or currency. The Fund may invest in investment grade and non- investment grade debt
securities issued by Asian issuers including securities in default.
The Fund may invest up to 33% of its total assets, either directly or through the use of financial
derivative instruments, in fixed and floating rate debt securities and debt obligations of governments,
government- related or corporate issuers located outside Asia which are impacted by economic or
financial dynamics in Asia.
The Fund may also participate in mortgage dollar roll transactions.
Investment in Emerging Market countries, in derivative instruments, in mortgage- and asset- backed
securities, in non- investment grade securities as well as in securities in default are subject to a higher degree
of risk, as described in the section “Risk Considerations”.
The base currency of the Fund is U.S. dollar.
TEMPLETON ASIAN GROWTH FUND
The Fund applies the traditional Templeton investment method. The stock selection approach is bottomup,
long- term value- oriented with strong emphasis on diligence and discipline. Its investment objective is
long term capital appreciation, which it seeks to achieve through investing primarily in equity securities
listed in Asia.
The Fund may also invest in equity securities, which are listed on recognised exchanges in capital markets
of the Asia Region (excluding Australia, New Zealand and Japan). The Asia Region includes but is not
limited to the following countries: Hong Kong, India, Indonesia, Korea, Malaysia, People’s Republic of
China, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan and Thailand. Under normal market
conditions, the Fund invests primarily in common stocks.
Since the investment objective is more likely to be achieved through an investment policy that is flexible
and adaptable, the Fund may seek investment opportunities in other types of transferable securities,
including fixed income securities.
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 U.S. dollar.
TEMPLETON ASIAN SMALLER COMPANIES FUND
The Fund’s principal investment objective is to provide long- term capital appreciation.
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