FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

03.01.2015 Views

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS • The Company has obtained recognition for marketing its Shares in various European countries (in addition to the Grand Duchy of Luxembourg): Austria, Belgium, the Republic of Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, the Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom. The registration of the Shares of the Company in any jurisdiction does not require any authority to approve or disapprove the adequacy or accuracy of this Prospectus or the securities portfolios held by the Company. Any statement to the contrary is unauthorised and unlawful. • The most recent audited annual and unaudited semi- annual reports of the Company, which are available at the registered office of the Company, form an integral part of this Prospectus. • The distribution of this Prospectus in some jurisdictions may require the translation of this Prospectus into the languages specified by the regulatory authorities of those jurisdictions. In case of inconsistency between the translated and the English version of this Prospectus, the English version shall prevail. • The Prospectus shall be kept up- to-date and shall be made available on the internet site: www.franklintempleton.lu, the internet site of Franklin Templeton share distributors or upon request at the registered office of the Company. Summary of Main Features The information set out under this heading is a summary of the principal features of the Company and should be read in conjunction with the full text of this Prospectus. Structure The Company is incorporated in Luxembourg under the laws of the Grand Duchy of Luxembourg as a société anonyme and qualifies as a société d’investissement à capital variable (“SICAV”). The Funds Shares are offered or in issue in the various Funds, Classes and currencies as more fully described in the section “Classes of Shares” and as listed in Appendix G. The Board of Directors may authorise the creation of additional Funds in the future with different investment objectives, subject to the amendment of this Prospectus. The assets of each Fund are exclusively available to satisfy the rights of Shareholders and of creditors which have arisen in connection with the creation, operation or liquidation of that Fund. For the purpose of the relations as between Shareholders, each Fund will be deemed to be a separate entity. Investment Objective The Company aims to provide investors with a choice of Funds investing in a wide range of transferable securities and other permitted assets on a worldwide basis and featuring a diverse array of investment objectives, including capital growth and income. The overall objective of the Company is to seek to minimise investment exposure through diversification and to provide Shareholders with the benefit of a portfolio managed by Franklin Templeton Investments according to its successful time-tested investment selection methods. Types of Shares The Board of Directors of the Company has resolved that no additional Shares in physical bearer form will be issued. The provisions set forth in this Prospectus in relation to physical bearer Shares are applicable as long as physical bearer Shares are in issue. All Shares are issued in registered form. Registered Shares are issued in uncertificated form unless certificates are requested. Shares can be either distribution Shares or accumulation Shares. The following table states the types of Shares available: ii Franklin Templeton Investment Funds

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS Types of Shares Share names Dividends frequency Accumulation Shares Distribution Shares A (acc), AX (acc), B (acc), C (acc), I (acc), N (acc), X (acc) and Z (acc) A (Mdis), AX (Mdis), B (Mdis), C (Mdis), I (Mdis), N (Mdis), X (Mdis) and Z (Mdis) A (Qdis), AX (Qdis), B (Qdis), C (Qdis), I (Qdis), N (Qdis), X (Qdis) and Z (Qdis) No distribution of dividends shall be made but the net income attributable will be reflected in the increased value of the Shares Under normal circumstances it is anticipated that distribution will be made monthly (following the end of each calendar month) Under normal circumstances it is anticipated that distribution will be made quarterly (following the end of each calendar quarter) A (Ydis), AX (Ydis), B (Ydis), C (Ydis), I (Ydis), N (Ydis), X (Ydis) and Z (Ydis) Under normal circumstances it is anticipated that distribution will be made yearly (in December each year, further to the resolution of the shareholders at the Annual General Meeting) Class A Shares, Class AX Shares, Class I Shares, Class N Shares, Class X Shares and Class Z Shares may be available through clearing systems linked through Clearstream Banking S.A. (“Clearstream”) or Euroclear Belgium SA/NV as operator of the Euroclear system (“Euroclear”). The Classes of Shares mainly differ in the types of charges, which are imposed on them and in their dividend policy. Further details of these Classes of Shares and the charges relating to them are set out in the sections “Classes of Shares” and “Investment Management Fees and Sales Charge Structure”. In certain limited circumstances, other Classes of Shares may also be offered in certain Funds, as described in that section. The Board of Directors of the Company may decide to offer or issue in any Fund any of the existing Class of Shares which terms and conditions are more fully described in the section “Classes of Shares” and “Investment Management Fees and Sales Charge Structure”, including Alternative Currency Class of Shares in any other currency than the Fund base currency, Hedged Share Classes as well as Share Classes with different dividends frequency. Shareholders will be informed of the issue of such Shares upon publication of the net asset value per Share of such Class of Shares as described in the section “Publication of Share Prices”. As regards Alternative Currency Class of Shares, the net asset value of such Class will be calculated and published in the Alternative Currency and subscription proceeds for such Classes are to be paid by investors, and redemption proceeds are paid to redeeming Shareholders in such Alternative Currency. In respect of Alternative Currency Classes of Shares offered in South Korea Won (KRW), subscription or redemption payment will be made in KRW, as neither the Company nor the Registrar and Transfer, Corporate and Domiciliary Agent will arrange for the currency conversion. Before investing in a specific Class of Shares of any Fund, investors should ensure that such Class best suits their needs and should consider the local tax implications subject to their personal circumstances and local tax laws. Investors are recommended to contact a tax advisor or their financial advisor for further information. Purchase of Shares The Company has appointed Templeton Global Advisors Limited to act as Principal Distributor to organise and oversee the marketing and distribution of Shares. The Principal Distributor may engage sub- distributors, intermediaries, dealers and/or professional investors (who may be affiliates of Franklin Templeton Investments and who may receive part of the maintenance charges, servicing charges or other similar fees). The Principal Distributor has therefore appointed Franklin Templeton International Services S.A. to act as the Company’s Distribution Controller to monitor the appointment and activities of the sub- distributors. Moreover, the Board of Directors of the Company decided that, when required by the relevant legal, regulatory and/or tax environment applicable to some particular countries where the Shares of the Company are or will be offered, the duties of organising and overseeing the marketing and distribution of Shares, or the distribution of Shares itself, currently dedicated on a worldwide basis to the Principal Distributor of the Company, may be allocated to such other entities (who may be affiliates of Franklin Templeton Investments) directly appointed by the Company from time to time. www.franklintempleton.lu iii

PROSPECTUS OF FRANKLIN <strong>TEMPLETON</strong> <strong>INVESTMENT</strong> <strong>FUNDS</strong><br />

• The Company has obtained recognition for marketing its Shares in various European countries (in<br />

addition to the Grand Duchy of Luxembourg): Austria, Belgium, the Republic of Cyprus, the Czech<br />

Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Ireland, Italy, Latvia,<br />

Lithuania, the Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland<br />

and the United Kingdom. The registration of the Shares of the Company in any jurisdiction does not<br />

require any authority to approve or disapprove the adequacy or accuracy of this Prospectus or the<br />

securities portfolios held by the Company. Any statement to the contrary is unauthorised and unlawful.<br />

• The most recent audited annual and unaudited semi- annual reports of the Company, which are available<br />

at the registered office of the Company, form an integral part of this Prospectus.<br />

• The distribution of this Prospectus in some jurisdictions may require the translation of this Prospectus<br />

into the languages specified by the regulatory authorities of those jurisdictions. In case of inconsistency<br />

between the translated and the English version of this Prospectus, the English version shall prevail.<br />

• The Prospectus shall be kept up- to-date and shall be made available on the internet site:<br />

www.franklintempleton.lu, the internet site of Franklin Templeton share distributors or upon<br />

request at the registered office of the Company.<br />

Summary of Main Features<br />

The information set out under this heading is a summary of the principal features of the Company and<br />

should be read in conjunction with the full text of this Prospectus.<br />

Structure<br />

The Company is incorporated in Luxembourg under the laws of the Grand Duchy of Luxembourg as a<br />

société anonyme and qualifies as a société d’investissement à capital variable (“SICAV”).<br />

The Funds<br />

Shares are offered or in issue in the various Funds, Classes and currencies as more fully described in the<br />

section “Classes of Shares” and as listed in Appendix G.<br />

The Board of Directors may authorise the creation of additional Funds in the future with different<br />

investment objectives, subject to the amendment of this Prospectus.<br />

The assets of each Fund are exclusively available to satisfy the rights of Shareholders and of creditors<br />

which have arisen in connection with the creation, operation or liquidation of that Fund. For the purpose<br />

of the relations as between Shareholders, each Fund will be deemed to be a separate entity.<br />

Investment Objective<br />

The Company aims to provide investors with a choice of Funds investing in a wide range of transferable<br />

securities and other permitted assets on a worldwide basis and featuring a diverse array of investment<br />

objectives, including capital growth and income. The overall objective of the Company is to seek to<br />

minimise investment exposure through diversification and to provide Shareholders with the benefit of a<br />

portfolio managed by Franklin Templeton Investments according to its successful time-tested investment<br />

selection methods.<br />

Types of Shares<br />

The Board of Directors of the Company has resolved that no additional Shares in physical bearer form will<br />

be issued. The provisions set forth in this Prospectus in relation to physical bearer Shares are applicable as<br />

long as physical bearer Shares are in issue. All Shares are issued in registered form. Registered Shares are<br />

issued in uncertificated form unless certificates are requested. Shares can be either distribution Shares or<br />

accumulation Shares. The following table states the types of Shares available:<br />

ii<br />

Franklin Templeton Investment Funds

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