FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS
the Channel Islands, the Isle of Man and the dependent or associated territories in the Caribbean, have
also introduced measures equivalent to information reporting or, during the above transitional period,
withholding tax.
The Savings Directive has been implemented in Luxembourg by a law dated June 21, 2005 (the “Law”).
Dividends distributed by a Fund will be subject to the Savings Directive and the Law if more than 15% of
such Fund’s assets are invested in debt claims (as defined in the Law) and proceeds realised by Shareholders
on the redemption or sale of Shares in a Fund will be subject to the Savings Directive and the Law if more
than 40% (25% from January 1, 2011) of such Fund’s assets are invested in debt claims (such Funds,
hereafter “Affected Funds”).
The applicable withholding tax will be at a rate of 20% from July 1, 2008 until June 30, 2011 and 35%
from July 1, 2011 onwards.
Consequently, if in relation to an Affected Fund a Luxembourg paying agent makes a payment of
dividends or redemption proceeds directly to a Shareholder who is an individual resident or deemed
resident for tax purposes in another EU Member State or certain of the above mentioned dependent or
associated territories, such payment will, subject to the next paragraph below, be subject to withholding
tax at the rate indicated above.
No withholding tax will be withheld by the Luxembourg paying agent if the relevant individual either (i) has
expressly authorised the paying agent to report information to the tax authorities in accordance with the
provisions of the Law or (ii) has provided the paying agent with a certificate drawn up in the format
required by the Law by the competent authorities of his State of residence for tax purposes.
The Fund reserves the right to reject any application for Shares if the information provided by any prospective
investor does not meet the standards required by the Law as a result of the Savings Directive.
The list of Funds falling within the scope of the Savings Directive and the Law is made public at the
registered office of the Company and is available at the offices of the Principal Distributor and the Transfer
Agent. This information may also be available on the Internet site: http://www.franklintempleton.lu
The foregoing is only a summary of the implications of the Savings Directive and the Law, is based on
the current interpretation thereof and does not purport to be complete in all respects. It does not constitute
investment or tax advice and investors should therefore seek advice from their financial or tax adviser
on the full implications for themselves of the Savings Directive and the Law.
United Kingdom
The Company shall apply annually for certification as a “distributing fund” within the meaning of
Schedule 27 of the UK Income and Corporation Taxes Act 1988 in respect of certain distribution Share
Classes offered by the Company. A list of Share Classes that will be included in the application is available
at the registered office of the Company. This information may also be available on the Internet site:
http://www.franklintempleton.co.uk.
Investors should consult their professional advisers as to the possible tax or other consequences of buying,
holding, transferring or selling any of the Company’s Shares under the laws of their countries of citizenship,
residence and domicile.
Meetings and Reports
The Annual General Meeting of Shareholders is held at the registered office of the Company on November 30
in each year or, if such day is not a bank business day in Luxembourg, on the Luxembourg bank business
day immediately preceding the 30th day of November. Notices of all meetings will be published in the
following newspapers: d’Wort and Mémorial, Recueil des Sociétés et Associations (the “Mémorial”) and
such other newspapers as the Board of Directors shall from time to time determine and will be sent to the
holders of registered Shares by post at least eight (8) calendar days prior to the meeting at their addresses
68 Franklin Templeton Investment Funds