FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank
FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank
FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank
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PROSPECTUS OF FRANKLIN <strong>TEMPLETON</strong> <strong>INVESTMENT</strong> <strong>FUNDS</strong><br />
Qualified investments concerned are investments made either as a lump sum or through cumulative<br />
orders of the investor, his spouse, his children and/or grandchildren if they are under the age of 18. For<br />
the purpose of the application of the qualified investments rules, shareholdings in other investment funds<br />
offered by Franklin Templeton Investments may be combined at the investor’s request. Information on<br />
the investment funds which Shares may be combined, and details of the procedure, terms and conditions<br />
applicable may be obtained from the Transfer Agent upon request. Shares issued as a result of qualified<br />
investment are not available in global certificate form.<br />
- Maintenance Charge<br />
In addition, a maintenance charge of up to 0.50% per annum of the applicable net assets is deducted and<br />
paid to the Principal Distributor in order to compensate the Principal Distributor for any expense incurred<br />
by it in connection with Shareholders liaison and administration of the Shares. The Principal Distributor<br />
may, from time to time, pay a part of the maintenance charge to various sub- distributors, intermediaries,<br />
investors or particular groups of investors.<br />
Class B Shares<br />
The price at which Class B Shares will be offered is the net asset value per Share next determined after the<br />
purchase order is received, as defined herein. Purchases of Class B Shares are not subject to an initial sales<br />
charge. However, Class B Shares are subject to a CDSC if an investor redeems Shares within four (4) years<br />
of purchase. The CDSC for these Class B Shares is based on the net asset value of the Shares being redeemed<br />
or their net asset value when purchased, whichever is less. The net asset value of the Shares being redeemed<br />
will be used as a basis for the calculation of the CDSC in respect of Shares sold through specific authorised<br />
Canadian distributors and shall be specified in documentation to be provided by these distributors to<br />
investors prior to subscription. There is no CDSC on Shares acquired through reinvestment of dividends.<br />
To keep the CDSC as low as possible, each time a request to sell Shares is placed, any Shares in the<br />
Shareholder’s account not subject to a CDSC will be sold first. If there are not enough of these to meet<br />
the request, additional Shares will be sold in the order they were purchased. The amount of the CDSC is<br />
calculated by multiplying the following percentages by the net asset value of the Shares being redeemed<br />
or their net asset value when purchased whichever is less. The following table sets for the rate of CDSC<br />
applicable to redemptions of Class B Shares:<br />
Years Since Purchase<br />
CDSC<br />
Less than one year 4.00%<br />
Equal or more than one year but less than two years 3.00%<br />
Equal or more than two years but less than three years 2.00%<br />
Equal or more than three years but less than four years 1.00%<br />
Equal or more than four years 0.00%<br />
In determining the applicability and rate of any CDSC, it will be assumed in a redemption of Class B<br />
Shares that, first, a redemption will be made of those Shares representing reinvestment of dividends and<br />
then of the remaining Shares held by the Shareholder for the longest period of time, employing the current<br />
value of the Shares being sold or their net asset value when purchased, whichever is less. The holding period<br />
for the purposes of applying a CDSC on Class B Shares of a particular Fund acquired through an exchange<br />
of Class B Shares from another Fund having Class B Shares will be measured from the date that such Class B<br />
Shares were initially acquired in the other Fund. These determinations will result in any CDSC being<br />
imposed at the lowest possible rate.<br />
Class B Shares of a Fund can only be exchanged (see section “Exchange of Shares”) into Class B Shares of<br />
a Fund which continues to issue Class B Shares. Shareholders should be aware that this restriction may<br />
limit their possibility to acquire Shares of another Fund through exchange because Class B Shares are not<br />
available in all Funds and the further issue of Class B Shares of any Fund may be suspended at any time<br />
by the Board of Directors.<br />
62 Franklin Templeton Investment Funds