FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS
When dividends of USD 250 (or currency equivalent) or less cannot be paid to a registered Shareholder
due to missing data or if the cheque issued is not cashed in due time, the Company or the Transfer Agent
reserves the right to automatically re- invest such dividends and any subsequent dividends to be paid in
the subscription of further distribution Shares of the Fund and Class to which such dividends relate until
receipt of instructions in good order from the Shareholder.
If a dividend has been declared but not paid on a bearer Share, and no coupon has been tendered for such
dividend within a period of five (5) years, the Company will, as it is entitled to do under the laws of the
Grand Duchy of Luxembourg, declare the dividend forfeited and such unpaid dividend will accrue for the
benefit of the relevant Fund.
In respect of each dividend declared, the Board of Directors of the Company may determine if, and to
what extent, such dividend is to be paid out of realised and unrealised capital gains regardless of capital
losses, increased or decreased, as the case may be, by the portion of net investment income and capital
gains attributable to Shares issued and to Shares repurchased.
It should be remembered that dividend distributions are not guaranteed, that the Company’s Funds do
not pay interest and that the price of Shares in the Company’s Funds and any income earned on the Shares
may go down as well as up. It should also be remembered that any dividend distribution lowers the value
of the Shares in the Company’s Funds by the amount of the distribution. Future earnings and investment
performance can be affected by many factors, including changes in exchange rates, not necessarily within
the control of the Company, its Directors, officers or any other person. No guarantees as to future
performance of, or future return from, the Company can be given by the Company itself, or by any
Director or officer of the Company, by Franklin Templeton Investments, or any of its worldwide
affiliates, or by any of their directors, officers or employees.
The Company’s Funds use an accounting practice known as equalisation, by which a portion of the proceeds
from sales and costs of redemption of Shares, equivalent on a per Share basis to the amount of undistributed
net investment income on the date of the transaction, is credited or charged to undistributed income. As a
result, undistributed net investment income per Share is unaffected by sales or redemptions of Shares.
However, in respect of any Fund offering only accumulation Shares, the Board of Directors reserves the
right not to apply equalisation.
Management and Administration
The Board of Directors is responsible for the Company’s management and administration.
Conducting Officers
The Board of Directors of the Company has appointed the Conducting Officers mentioned in the section
“General Information” to conduct the business of the Company.
The Conducting Officers shall conduct the business of the Company and, more specifically, shall have the
duty to ensure that the different service providers to which the Company has delegated certain functions
(comprising the Investment Managers, the Registrar and Transfer, Corporate, Domiciliary and Administrative
Agent and the Principal Distributor) perform their functions in compliance with the Law relating to collective
investment undertakings, the articles of incorporation of the Company, this Prospectus and the provisions
of the contracts which have been entered into between the Company and each of them. The Conducting
Officers shall also ensure compliance of the Company with the investment restrictions (Appendix B) and
oversee the implementation of the Funds’ investment objectives and policies.
The Conducting Officers shall report to the Board of Directors of the Company on a quarterly basis and
inform the Board of Directors of any non- compliance of the Company with the investment restrictions.
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