FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS
• the composition of the index is sufficiently diversified,
• the index represents an adequate benchmark for the market to which it refers,
• it is published in an appropriate manner.
The limit laid down in the subparagraph above is raised to 35% where it proves to be justified
by exceptional market conditions in particular in regulated markets where certain transferable
securities or money market instruments are highly dominant provided that investment up to
35% is only permitted for a single issuer.
(vii)
where any Fund has invested in accordance with the principle of risk spreading in transferable
securities and money market instruments issued or guaranteed by any EU Member State, its
local authorities, or public international bodies of which one or more EU Member States are
members or by any other State of the OECD, the Company may invest 100% of the assets of
any Fund in such securities provided that such Fund must hold securities from at least six
different issues and securities from one issue must not account for more than 30% of that
Fund’s assets.
e) The Company or any Fund may not invest in voting shares of companies allowing it to exercise a
significant influence in the management of the issuer. Further, the Company may acquire no more
than (i) 10% of the non-voting shares of any single issuing body, (ii) 10% of the debt securities of
any single issuing body, (iii) 25% of the units of any single collective investment undertaking, (iv)
10% of the money market instruments of any single issuing body. However, the limits laid down
under (ii), (iii) and (iv) may be disregarded at the time of acquisition if, at that time, the gross amount
of the bonds or of the money market instruments or the net amount of the instruments in issue
cannot be calculated.
The limits under this section e) shall not apply to (i) transferable securities or money market
instruments issued or guaranteed by a Member State of the E.U., its local authorities, or public
international bodies of which one or more Member States of the E.U. are members or by any other
State, nor to (ii) shares held by the Company in the capital of a company incorporated in a State
which is not a Member State of the E.U. investing its assets mainly in the securities of issuing bodies
having their registered offices in that State, where under the legislation of that State such a holding
represents the only way in which the Company can invest in the securities of issuing bodies of that
State, provided that, however, the Company, in its investment policy, complies with the limits laid
down in Articles 43 and 46 and in paragraphs (1) and (2) of Article 48 of the Law relating to
collective investment undertakings.
f) (i) Unless otherwise provided in the investment policy of a specific Fund, each Fund will not
invest more than 10% of its net assets in UCITS and other UCIs.
(ii)
In the case restriction f) (i) above is not applicable to a specific Fund, as provided in its
investment policy, such Fund may acquire units of UCITS and/or other UCIs referred to in
paragraph 1. a) (vi), provided that no more than 20% of a Fund’s net assets be invested in
the units of a single UCITS or other UCI.
For the purpose of the application of this investment limit, each compartment of a UCITS
and/or other UCI with multiple compartments is to be considered as a separate issuer provided
that the principle of segregation of the obligations of the various compartments vis- à-vis
third parties is ensured.
(iii)
(iv)
Investments made in units of UCIs other than UCITS may not in aggregate exceed 30% of
the net assets of a Fund.
When a Fund invests in the units of UCITS and/or other UCIs linked to the Company by
common management or control, or by a substantial direct or indirect holding, no subscription
or redemption fees may be charged to the Company on account of its investment in the units
of such other UCITS and/or UCIs.
74 Franklin Templeton Investment Funds