FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS
Class C Shares
The price at which Class C Shares will be offered is the net asset value per Class C Share next determined
after the purchase order is received, as defined herein. Purchases of Class C Shares are not subject to an
initial sales charge. However, Class C Shares are subject to a CDSC of 1.00% if an investor redeems Shares
within one (1) year of purchase. The CDSC for these Class C Shares is based on the net asset value of the
Shares being redeemed (exclusive of reinvestments) or their net asset value when purchased whichever is
less. The net asset value of the Shares being redeemed will be used as a basis for the calculation of the
CDSC in respect of Shares sold through specific authorised Canadian distributors and shall be specified
in documentation to be provided by these distributors to investors prior to subscription. To keep the
CDSC as low as possible, each time a request to sell Shares is placed, any Shares in the Shareholder’s
account not subject to a CDSC will be sold first. If there are not enough of these Shares to meet the
request, additional Shares will be sold in the order they were purchased. The amount of the CDSC is
calculated by multiplying the CDSC rate by the net asset value of the Shares being redeemed or their net
asset value when purchased whichever is less.
Class C Shares of a Fund can only be exchanged into Class C Shares of a Fund which issues Class C Shares.
Shareholders should be aware that this restriction may limit their possibility to acquire Shares of another
Fund through exchange because Class C Shares are not available in all Funds and the further issue of
Class C Shares of any Fund may be suspended at any time by the Board of Directors.
Amounts assessed as a CDSC are paid to the Principal Distributor, or such other party as the Company
may from time to time appoint to defray distribution costs incurred by the Principal Distributor or such
other party. The CDSC may be waived in whole or in part by the Principal Distributor and/or such other
party, as appointed from time to time by the Company, at its discretion either for individual investors or
for particular groups of investors. The Company has committed to pay to the Principal Distributor or the
relevant third party the CDSC at the aforementioned rate net of any taxes. In case any taxes would be
payable on said amounts, the amount of CDSC would be increased in a manner to ensure that the agreed
amounts are paid net to the Principal Distributor or relevant third party. The Directors have, at the date
of this Prospectus, no reason to believe that any taxes are due or levied on the CDSC.
Investors should note that a redemption of Shares may take place at a price that is more or less than the
Shareholder’s original acquisition cost, depending upon the net asset value of the Shares at the time of
redemption compared to the Shareholder’s acquisition cost and, with respect to Class C Shares, upon the
imposition of any applicable CDSC.
- Servicing Charge
In addition, in the case of Class C Shares, and during the first year of investment, a service charge of 1.08%
per annum of the applicable average net asset value is deducted and paid to the Principal Distributor and/or
other party (as described above), in order to compensate the Principal Distributor and/or other party for
any financing costs and expenses incurred by it in connection with sales of Class C Shares. This charge
is accrued daily and is deducted and paid monthly to the Principal Distributor and/or other party. The
Company has committed to pay to the Principal Distributor or the relevant third party the Servicing
Charge at the aforementioned rate net of any taxes. In case any taxes would be payable on said amounts,
the amount of Servicing Charge would be increased in a manner to ensure that the agreed amounts are
paid net to the Principal Distributor or relevant third party. The Directors have, at the date of this
Prospectus, no reason to believe that any taxes are due or levied on the Servicing Charge.
- Maintenance Charge
In addition, in respect of Class C Shares and as from the second and subsequent years of investment, a
maintenance charge of 1.08% per annum of the applicable average net asset value is deducted and paid
to the Principal Distributor, in order to compensate the Principal Distributor for any expenses incurred by
it in connection with Shareholders liaison and administration of the Shares. This charge is accrued daily
and is deducted and paid monthly to the Principal Distributor.
64 Franklin Templeton Investment Funds