ANNUAL REPORT - Franklin Templeton Investments

Templeton Growth Fund, Ltd.
NOTES TO FINANCIAL STATEMENTS
For the periods ended April 30, 2013 and 2012 (Continued)
5. Sales Charges (Continued)
of the original cost of the investor’s shares and how long the investor has held them, ranging from 3% to 0%. Up to 10% of an investor’s
investment in Series A (including A Hedged) shares may be redeemed in each calendar year without a redemption charge.
Under the deferred sales charge option, the Series A (including A Hedged) investors will pay a redemption fee to the Manager if they
redeem their shares within six years of purchasing them. This redemption fee is based on a declining percentage, ranging from 6% to
0%, of the original cost of the investor’s shares and how long the investor has held them. Series I shareholders negotiate a fee of up to
2% with their dealers.
6. Operating Expenses
The operating expenses of the Fund, which include, but are not limited to, legal, audit, custodial, registrar, fund administration and
the cost of financial statements and other reports, are the direct responsibility of the Fund. Brokerage commissions and taxes paid by
the Fund are not included in operating expenses, but are borne by the Fund and are reflected separately in the Statements of Operations.
The Manager pays certain of the operating expenses on behalf of the Fund and is then reimbursed by the Fund. The Manager
may waive or absorb certain expenses of the Fund. The decision to do so is reviewed regularly and determined at the sole discretion
of the Manager.
The portion of the operating expenses allocated to Series O investors may be absorbed by the Manager as part of its agreement with
the investors in those Series.
7. Other Expenses
The principal items in other expenses are rent, data communication charges and other overhead costs charged by the Manager.
8. Other Assets
The principal items in other assets are recoverable expenses from the Manager.
9. Other Liabilities
The principal item in other liabilities is Ontario capital tax liability.
10. Financial Risk Management
Risks arising from holding financial instruments are inherent in the Fund’s activities and are managed through a process of ongoing
measurement and monitoring. These financial risks may include, among others, market risk (including market price risk, currency
risk, and interest rate risk), liquidity risk and credit risk. These risks are moderated through careful selection of securities and other
financial instruments within the Fund’s investment guidelines by the Advisor. The risks are measured using a method that reflects the
expected impact on the results and net assets attributable to shareholders of the Fund from reasonably possible changes in the relevant
risk variables. Information about these risk exposures at the reporting date and risk management policies employed are disclosed
in Notes 10 (a) to (e).
(a)
Currency risk
The Fund holds assets and liabilities denominated in currencies other than its functional currency, and is therefore exposed to currency
risk as the values of such assets and liabilities will fluctuate due to changes in exchange rates.
The Advisor monitors the Fund’s currency risk position, and may enter into forward exchange contracts to manage foreign exchange
exposure and disclosed in the Fund’s Statement of Investments, if applicable.
The table below summarizes the Fund’s exposure to currency risk, where applicable. Amounts shown are based on the carrying value
of monetary and non-monetary assets, less liabilities. Where individual currencies held are less than 5% of net assets, that currency
has been included in “other”. The table also illustrates the expected increase or decrease in net assets had the functional currency
14 Templeton Growth Fund, Ltd.