FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS
or in a particular country or countries, may not take place on every Valuation Day. Furthermore, trading
may take place in various foreign markets on days that are not Valuation Days and on which the Fund’s
net asset value is not calculated. Thus, the calculation of the Shares’ net asset value does not take place
contemporaneously with the determination of the prices of many of the portfolio securities used in the
calculation and, if events materially affecting the values of these foreign securities occur, the securities will
be valued at fair value as determined and approved in good faith by or under the direction of the Board
of Directors.
Suspension of Calculation of Net Asset Value
1. The Company may suspend the determination of the net asset value of the Shares of any particular Fund
and the issue and redemption of the Shares and the exchange of Shares from and to such Fund during:
(a) any period when any of the principal stock exchanges or markets of which any substantial portion
of the investments of the Company attributable to such Class of Shares from time to time are quoted
is closed otherwise than for ordinary holidays, or during which dealings therein are restricted or
suspended;
(b) the existence of any state of affairs which constitutes an emergency as a result of which disposal
or valuation of assets owned by the Company attributable to such Class of Shares would be
impracticable;
(c) any breakdown in the means of communication normally employed in determining the price or
value of any of the investments of any particular Class of Shares or the current price or values on
any stock exchange or market; or
(d) any period when the Company is unable to repatriate funds for the purpose of making payments due
on redemption of such Shares or any period when the transfer of funds involved in the realisation
or acquisition of investments or payments due on redemption of such Shares cannot, in the opinion
of the Board of Directors, be effected at normal rates of exchange;
(e) any period when the net asset value of Shares of any Class of the Company may not be determined
accurately.
2. Any such suspension shall be publicised by the Company and shall be notified to Shareholders requesting
redemption or exchange of their Shares by the Company at the time of the filing of the irrevocable
written request for such redemption or exchange.
Allocation of Assets and Liabilities
The Board of Directors shall establish a pool of assets for the Shares of each Fund in the following manner:
1. (a) the proceeds from the issue of Shares of each Class of each Fund shall be applied in the books of the
Company to the pool of assets established for that Fund, and the assets and liabilities and income
and expenditure attributable thereto shall be applied to such pool;
(b) where any asset is derived from another asset, such derivative asset shall be applied in the books of
the Company to the same pool as the assets from which it was derived and in each revaluation of
an asset, the increase or diminution in value shall be applied to the relevant pool;
(c) where the Company incurs a liability which relates to any asset of a particular pool or to any
action taken in connection with an asset of a particular pool, such liability shall be allocated to
the relevant pool;
(d) in the case where any asset or liability of the Company cannot be considered as being attributable
to a particular pool, such asset or liability shall be equally divided between all the pools or, as in so
far as justified by the amounts, shall be allocated to the pools pro rata to the net asset value of the
relevant pool;
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