FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS
Class X Shares
Class X Shares are only offered to institutional investors as defined from time to time by the guidelines
or recommendations of the competent Luxembourg financial supervisory authority, in certain limited
circumstances at the discretion of the Company or the Investment Manager and its affiliates.
No initial charge and no management fees will be payable by an investor on the acquisition of Class X
Shares (instead a fee will be paid to the Investment Manager or affiliates under an agreement).
Class Z Shares
Class Z Shares may be offered in certain limited circumstances for distribution in certain countries and/or
through certain sub- distributors, dealers and/or professional investors at the discretion of the Principal
Distributor, in which case any local supplement to this Prospectus or marketing material, including that
used by the relevant intermediaries, will refer to the possibility and terms to subscribe for Class Z Shares.
Class Z Shares will be offered at the applicable net asset value per Share next determined after the
purchase order is received. Purchases of Class Z Shares are not subject to an initial sales charge, CDSC
nor any maintenance, distribution or servicing charge.
Other Company Charges and Expenses
Templeton Global Advisors Limited, a Bahamian corporation, acts as Principal Distributor of the Shares.
The Principal Distributor may be entitled to receive any applicable initial sales charge, of up to 6.50% of
the total amount invested. The initial charge shall in no case exceed the maximum permitted by the laws,
regulations and practice of any country where the Shares are sold.
The Principal Distributor may enter into contractual arrangements with various sub- distributors,
intermediaries, dealers and/or professional investors for the distribution of Shares outside the United States
of America. Payments of fees or commissions to various sub- distributors, dealers or other intermediaries
may be made out of the maintenance charges, servicing charges or other similar fees normally paid to the
Principal Distributor, when such payments are expected to enhance the quality of the distribution or other
services provided to the Shareholders, including but not limited to the improvement of the communication
of ongoing information to Shareholders, the transaction processing or other shareholder and/or
administrative services.
As remuneration for the services rendered to the Company as Custodian of the Company, J.P. Morgan
Bank Luxembourg S.A. will receive an annual fee depending of the nature of the investments of the
different Funds of the Company in a range from 0.01% to 0.14% of the net asset values of the assets of
the different Funds. Such fee will be calculated and accrued daily and will be paid monthly in arrears to
the Custodian by the Company.
Franklin Templeton International Services S.A. in its respective capacities of Registrar and Transfer,
Corporate, Domiciliary and Administrative Agent will receive as remuneration a maximum annual fee of
0.20% of the net asset value of the Company plus an additional fixed amount per Shareholder account at
the relevant Class level over a one (1) year period. Such fees will be calculated and accrued daily and will
be paid monthly in arrears to Franklin Templeton International Services S.A. by the Company.
Such fees do not include normal banking and brokerage fees and commissions on transactions relating to
the assets and liabilities of the Company as well as any reasonable out- of-pocket expenses incurred in
connection with the Company, and chargeable to the Company and fees for other services as agreed
from time to time. The amounts effectively paid will be shown in the Company’s financial statements.
The Company bears its other operational costs including, but not limited to, the costs of buying and
selling underlying securities, governmental and regulatory charges, legal and auditing fees, insurance
premiums, interest charges, reporting and publication expenses, postage, telephone and facsimile
expenses. All expenses are estimated and accrued daily in the calculation of the net asset value of each
Fund. The Company may, from time to time, pay certain fees to various sub- distributors, intermediaries,
66 Franklin Templeton Investment Funds