Franklin Templeton Investment Funds

Transcription

1 Valid as of 29 October 2010 PROSPECTUS Comprises the Singapore Prospectus registered on 29 October 2010 and the Luxembourg Prospectus dated November 2009 as amended by the Addenda dated April 2010 and October 2010 Franklin Templeton Investment s

2 FRANKLIN TEMPLETON INVESTMENT FUNDS INCORPORATED IN LUXEMBOURG Franklin Asian Flex Cap Franklin Biotechnology Discovery Franklin Euroland Core Franklin European Growth Franklin European Small-Mid Cap Growth Franklin Global Growth Franklin Global Real Estate Franklin Global Small-Mid Cap Growth Franklin Gold and Precious Metals Franklin High Yield Franklin Income Franklin India Franklin MENA Franklin Mutual Beacon Franklin Mutual Euroland Franklin Mutual European Franklin Mutual Global Discovery Franklin Natural Resources Franklin Real Return Franklin Strategic Income Franklin Technology Franklin Templeton Global Equity Strategies Franklin Templeton Global amental Strategies Franklin Templeton Global Growth and Value Franklin Templeton Japan Franklin U.S. Dollar Liquid Reserve Franklin U.S. Equity Franklin U.S. Focus Franklin U.S. Government Franklin U.S. Opportunities Franklin U.S. Small-Mid Cap Growth Franklin U.S. Total Return Franklin U.S. Ultra Short Bond Franklin World Perspectives Templeton Asian Bond Templeton Asian Growth Templeton Asian Smaller Companies Templeton BRIC Templeton China Templeton Eastern Europe Templeton Emerging Markets Bond Templeton Emerging Markets Templeton Emerging Markets Smaller Companies Templeton Euro Government Bond Templeton Euro High Yield Templeton Euro Liquid Reserve Templeton Euro Money Market Templeton Euroland Templeton European Corporate Bond Templeton European Templeton European Total Return Templeton Frontier Markets Templeton Global (Euro) Templeton Global Aggregate Bond Templeton Global Balanced Templeton Global Bond (Euro) Templeton Global Bond Templeton Global Equity Income Templeton Global Templeton Global High Yield Templeton Global Income Templeton Global Smaller Companies Templeton Global Total Return Templeton Growth (Euro) Templeton Korea Templeton Latin America Templeton Thailand Templeton U.S. Value SINGAPORE PROSPECTUS This Singapore Prospectus incorporates and is not valid without the attached Luxembourg prospectus dated November 2009 and its Addenda dated April 2010 and October 2010 for the Franklin Templeton Investment s (the Luxembourg Prospectus ). The Franklin Templeton Investment s (the Company ) is constituted outside Singapore. The Company is an investment company with limited liability organised as a société anonyme under the laws of the Grand Duchy of Luxembourg and is qualified as a société d'investissement à capital variable. The Company, being the offeror of shares in the above funds, has appointed Templeton Asset Management Ltd as its agent for service of process and as the Singapore representative (whose details appear in the directory of this Singapore Prospectus).

3 CONTENTS Paragraph Page Important Information... 3 Directory The Company The s And Classes Management And Administration Other Parties Investment Objective, Focus And Approach Of The s s Included Under The CPF Investment Scheme / SRS Scheme Fees And Charges Risk Factors Subscription For Shares Redemption Of Shares Exchange Of Shares Obtaining Price Information Suspension Of Valuation, Issue, Redemption And Exchange Of Shares Performance Of The s Soft Commissions Conflicts Of Interest Reports Certain Singapore Tax Considerations Queries And Complaints Other Material Information Appendix A Appendix B

4 IMPORTANT INFORMATION The collective investment schemes offered in this Singapore Prospectus, i.e., the Franklin Asian Flex Cap, Franklin Biotechnology Discovery, Franklin Euroland Core, Franklin European Growth, Franklin European Small-Mid Cap Growth, Franklin Global Growth, Franklin Global Real Estate, Franklin Global Small-Mid Cap Growth, Franklin Gold and Precious Metals,, Franklin High Yield, Franklin Income, Franklin India, Franklin MENA, Franklin Mutual Beacon, Franklin Mutual Euroland, Franklin Mutual European, Franklin Mutual Global Discovery, Franklin Natural Resources, Franklin Real Return, Franklin Strategic Income, Franklin Technology, Franklin Templeton Global Equity Strategies, Franklin Templeton Global amental Strategies, Franklin Templeton Global Growth and Value, Franklin Templeton Japan, Franklin U.S. Dollar Liquid Reserve, Franklin U.S. Equity, Franklin U.S. Focus, Franklin U.S. Government, Franklin U.S. Opportunities, Franklin U.S. Small-Mid Cap Growth, Franklin U.S. Total Return, Franklin U.S. Ultra Short Bond, Franklin World Perspectives, Templeton Asian Bond, Templeton Asian Growth, Templeton Asian Smaller Companies, Templeton BRIC, Templeton China, Templeton Eastern Europe, Templeton Emerging Markets Bond, Templeton Emerging Markets, Templeton Emerging Markets Smaller Companies, Templeton Euro Government Bond, Templeton Euro High Yield, Templeton Euro Liquid Reserve, Templeton Euro Money Market, Templeton Euroland, Templeton European Corporate Bond, Templeton European, Templeton European Total Return, Templeton Frontier Markets, Templeton Global (Euro), Templeton Global Aggregate Bond, Templeton Global Balanced, Templeton Global Bond (Euro), Templeton Global Bond, Templeton Global Equity Income, Templeton Global, Templeton Global High Yield, Templeton Global Income, Templeton Global Smaller Companies, Templeton Global Total Return, Templeton Growth (Euro), Templeton Korea, Templeton Latin America, Templeton Thailand and Templeton U.S. Value (together the s and each a ) are recognised schemes under the Securities and Futures Act, Chapter 289 of Singapore (the SFA ). A copy of this Singapore Prospectus has been lodged with and registered by the Monetary Authority of Singapore (the Authority ). The Authority assumes no responsibility for the contents of this Singapore Prospectus. The registration of this Singapore Prospectus by the Authority does not imply that the SFA or any other legal or regulatory requirements have been complied with. The Authority has not, in any way, considered the investment merits of the s. The date of registration of this Singapore Prospectus by the Authority is 29 October This Singapore Prospectus will be valid for a period of 12 months after the date of registration (i.e. up to and including 28 October 2011) and shall expire on 29 October This Singapore Prospectus relating to the s incorporates and is not valid without the Luxembourg Prospectus. Unless the context otherwise requires, terms defined in the Luxembourg Prospectus shall have the same meaning when used in this Singapore Prospectus except where specifically provided for in this Singapore Prospectus. This Singapore Prospectus may contain information which only applies to, or is relevant to, investors in Singapore and in the event of any inconsistency in the provisions between this Singapore Prospectus and the Luxembourg Prospectus, the provisions in this Singapore Prospectus shall prevail. Separate classes of shares ( Classes and each a Class ) are issued in relation to each. Only the Classes of Shares of the s listed in Paragraph 2 of this Singapore Prospectus are offered in this Singapore Prospectus. The other funds (if any) of the Company and other Classes of Shares of the s referred to in the Luxembourg Prospectus which are not listed in Paragraph 2 are currently not available for retail offer in Singapore. The directors of the Company (the Directors ) are responsible for the information contained in this Singapore Prospectus. To the best of the knowledge and belief of the Directors (who have taken all reasonable care to ensure that such is the case) the information contained in this Singapore Prospectus is in accordance with the facts and does not omit anything likely to affect the import of such information. The Directors accept responsibility accordingly. This Singapore Prospectus does not constitute an offer to anyone or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so. 3

5 The distribution of this Singapore Prospectus and the offering of the shares of the s (the Shares ) may be restricted in certain other jurisdictions and to certain persons. It is the responsibility of any persons wishing to make application for Shares pursuant to this Singapore Prospectus to inform themselves of and to observe all applicable laws and regulations of any relevant jurisdictions. Prospective subscribers for Shares should make themselves aware of the legal requirements with respect to such application and of any applicable taxes in the countries of their respective citizenship, residence or domicile. Statements made in the attached Luxembourg Prospectus are based on the laws and practice currently in force in the Grand Duchy of Luxembourg and are subject to changes in those laws and practice. The Company s constitution is set out in the Company s articles (the Articles ). All Shareholders of the s are entitled to the benefit of, are bound by and are deemed to have notice of, the provisions of the Articles, copies of which are available for inspection by investors, free of charge, from the office of the Singapore Representative at 7, Temasek Boulevard, #38-03, Suntec Tower One, Singapore during normal Singapore business hours. An investment in any carries with it a degree of risk. The value of Shares and the income from them, if any, may go down as well as up, and investors may not get back the amount invested. Investors should consider the risk factors set out in Paragraph 8 of this Singapore Prospectus and under the heading RISK CONSIDERATIONS in the Luxembourg Prospectus. The s may invest in financial derivative instruments for the purposes of hedging and/or efficient portfolio management. Some s may also invest in financial derivative instruments as part of their portfolio as described in their investment objective and policies. If a intends to engage in transactions involving the use of financial derivative instruments as part of its investment strategy, rather than on an occasional basis, this will be described in its investment objective and policies. All derivative investments will be made in accordance with APPENDIX B - INVESTMENT RESTRICTIONS in the Luxembourg Prospectus. Investors may wish to consult their independent financial adviser about the suitability of the s for their investment needs. All enquiries in relation to the s should be directed to the Singapore Representative at: 7 Temasek Boulevard #38-03 Suntec Tower One Singapore Telephone : (65) Fax : (65) query@franklintempleton.com.sg IMPORTANT: PLEASE READ AND RETAIN THIS SINGAPORE PROSPECTUS FOR FUTURE REFERENCE 4

6 DIRECTORY Franklin Templeton Investment s Registered Office: 26, boulevard Royal L-2449 Luxembourg Grand Duchy of Luxembourg Board of Directors The Honorable Nicholas F. Brady Gregory E. Johnson Dr. J. B. Mark Mobius Mark G. Holowesko Gregory E. McGowan Duke of Abercorn KG Vijay C. Advani Richard H. Frank David E. Smart The Honourable Trevor G. Trefgarne James J.K. Hung Geoffrey A. Langlands Investment Managers / Sub-Advisors (please refer to Paragraph 3.2 of this Singapore Prospectus for the list of s which each Investment Manager and Sub-Advisor is managing) Franklin Templeton Investment Management Limited 5 Morrison Street Edinburgh EH3 8BH, Scotland, U.K. Templeton Asset Management Ltd 7 Temasek Boulevard # Suntec Tower One Singapore Franklin Advisers, Inc. One Franklin Parkway San Mateo, CA , U.S.A. Franklin Mutual Advisers, LLC 101 John F. Kennedy Parkway Short Hills, NJ , U.S.A. Franklin Templeton Institutional, LLC 600 Fifth Avenue New York, NY U.S.A. Franklin Templeton Asset Management (India) Private Limited Wochardt Tower, Level 4 Bandra Kurla Complex Bandra - East Mumbai India 5

7 Franklin Templeton Investments Japan Limited Kanematsu Building, 6 th Floor 14-1, Kyobashi 2 - chome Chuo-Ku, Tokyo Japan Franklin Templeton Investments Corp. 1, Adelaide Street East, Suite 2101, Toronto Ontario M5C 3B8 Canada Franklin Templeton Investments Australia Limited Level 25, 360 Collins Street Melbourne Victoria 3000, Australia Templeton Global Advisors Limited P.O. Box N-7759 Lyford Cay Nassau Bahamas Custodian J.P. Morgan Bank Luxembourg S.A. European Bank & Business Centre 6 route de Trèves L-2633 Senningerberg Grand Duchy of Luxembourg Registrar and Transfer, Corporate, Domiciliary and Administrative Agent Franklin Templeton International Services S.A. 26, boulevard Royal L-2449 Luxembourg Grand Duchy of Luxembourg Auditors PricewaterhouseCoopers Sàrl 400, route d'esch B.P L-1014 Luxembourg Grand Duchy of Luxembourg Agent for Service of Process in Singapore and Singapore Representative Templeton Asset Management Ltd 7 Temasek Boulevard #38-03 Suntec Tower One Singapore Tel: (65) Fax: (65) query@franklintempleton.com.sg Legal Advisers as to Singapore Law Chan & Goh 50 Craig Road #02-01 Singapore

8 1. THE COMPANY The Company, Franklin Templeton Investment s, is an investment company with limited liability organised as a société anonyme under the laws of the Grand Duchy of Luxembourg and is qualified as a société d'investissement à capital variable. It is structured as an umbrella fund. More details on the Company can be found in APPENDIX C ADDITIONAL INFORMATION of the Luxembourg Prospectus. 2. THE FUNDS AND CLASSES Separate Classes of Shares are issued in relation to the s. The Company is currently offering to investors in Singapore for subscription the following Classes of Shares in the s:- Equity s No. Franklin Templeton Investment s 1. Franklin Asian Flex Cap 2. Franklin Biotechnology Discovery 3. Franklin Euroland Core 4. Franklin European Growth 5. Franklin European Small-Mid Cap Growth 6. Franklin Global Growth 7. Franklin Global Real Estate Base Currency Classes Alternative Currencies USD USD EUR EUR EUR USD USD A (acc) USD A (ydis) USD B (acc) USD C (acc) USD I (acc) USD I (ydis) USD N (acc) USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD A (acc) EUR I (acc) EUR N (acc) EUR A (acc) EUR I (acc) EUR N (acc) EUR A (acc) EUR I (acc) EUR N (acc) EUR A (acc) USD I (acc) USD N (acc) USD A (acc) USD A (qdis) USD B (qdis) USD C (qdis) USD I (acc) USD I (qdis) USD N (acc) USD N (qdis) USD SGD GBP SGD USD GBP USD GBP SGD EUR GBP SGD EUR Classes in Alternative Currencies A (acc) SGD A (ydis) GBP A (acc) SGD A (acc) USD I (acc) USD A (ydis) GBP A (acc) USD B (acc) USD I (acc) USD A (ydis) GBP A (acc) SGD A (acc) EUR I (acc) EUR N (acc) EUR A (acc) GBP A (qdis) SGD Hedged Classes A (acc) EUR-H1 I (acc) EUR-H1 A (acc) EUR-H1 A (ydis) EUR-H1 A (ydis) EUR-H2 N (acc) EUR-H1 7

9 No. Franklin Templeton Investment s 8. Franklin Global Small- Mid Cap Growth 9. Franklin Gold and Precious Metals Base Currency Classes Alternative Currencies USD USD A (acc) USD B (acc) USD I (acc) USD N (acc) USD A (acc) USD I (acc) USD I (ydis) USD N (acc) USD 10. Franklin India USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD 11. Franklin MENA USD A (acc) USD A (ydis) USD B (acc) USD C (acc) USD I (acc) USD I (ydis) USD N (acc) USD 12. Franklin Mutual Beacon 13. Franklin Mutual Euroland 14. Franklin Mutual European 15. Franklin Mutual Global Discovery USD EUR A (acc) USD A (ydis) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD Z (acc) USD A (acc) EUR I (acc) EUR N (acc) EUR A (acc) EUR A (ydis) EUR B (ydis) EUR C (acc) EUR I (acc) EUR I (ydis) EUR 8 EUR SGD HKD CHF EUR GBP SGD EUR GBP EUR SGD USD Classes in Alternative Currencies A (acc) EUR A (ydis) EUR N (acc) EUR A (acc) SGD A (acc) HKD A (acc) EUR A (ydis) EUR I (acc) EUR I (ydis) EUR N (acc) EUR A (ydis) GBP A (acc) SGD A (acc) EUR A (ydis) EUR I (acc) EUR A (ydis) GBP A (acc) EUR B (ydis) EUR I (acc) EUR N (acc) EUR A (acc) SGD A (acc) USD I (acc) USD EUR USD A (acc) USD USD B (acc) USD C (acc) USD N (acc) USD Z (acc) USD GBP A (ydis) GBP N (acc) EUR SGD A (acc) SGD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD Z (acc) USD CHF EUR GBP CHF A (acc) EUR A (ydis) EUR I (acc) EUR I (ydis) EUR N (acc) EUR A (ydis) GBP Hedged Classes A (acc) EUR-H1 A (ydis) EUR-H1 A (acc) CHF-H1 A (acc) EUR-H1 I (acc) EUR-H1 N (acc) EUR-H1 A (acc) EUR-H1 I (acc) EUR-H1 N (acc) EUR-H1 A (acc) CHF-H1 A (acc) EUR-H2 I (acc) EUR-H2 N (acc) EUR-H2 A (acc) CHF-H1

10 No. Franklin Templeton Investment s 16. Franklin Natural Resources 17. Franklin Technology 18. Franklin Templeton Global Equity Strategies 19. Franklin Templeton Global Growth and Value 20. Franklin Templeton Japan Base Currency Classes Alternative Currencies USD USD USD USD JPY A (acc) USD A (ydis) USD B (acc) USD C (acc) USD I (acc) USD A (acc) USD B (acc) USD C (acc) USD N (acc) USD A (acc) USD A (ydis) USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD A (acc) JPY EUR EUR EUR EUR SGD EUR USD GBP Classes in Alternative Currencies A (acc) EUR I (acc) EUR N (acc) EUR A (acc) EUR I (acc) EUR N (acc) EUR A (acc) EUR A (ydis) EUR I (acc) EUR X (acc) SGD A (acc) EUR A (ydis) EUR I (acc) EUR N (acc) EUR A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD A (ydis) GBP Hedged Classes A (acc) EUR-H1 21. Franklin U.S. Equity 22. Franklin U.S. Focus 23. Franklin U.S. Opportunities 24. Franklin U.S. Small- Mid Cap Growth USD USD USD USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD A (acc) USD I (acc) USD N (acc) USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD Z (acc) USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD SGD EUR SGD EUR EUR GBP SGD CHF A (acc) SGD A (acc) EUR I (acc) EUR N (acc) EUR A (acc) SGD A (acc) EUR A (ydis) EUR I (acc) EUR N (acc) EUR A (ydis) GBP A (acc) SGD A (acc) EUR-H1 I (acc) EUR-H1 A (acc) EUR-H1 I (acc) EUR-H1 N (acc) EUR-H1 A (acc) EUR-H1 I (acc) EUR-H1 A (acc) CHF-H1 9

11 No. Franklin Templeton Investment s 25. Franklin World Perspectives 26. Templeton Asian Growth 27. Templeton Asian Smaller Companies Base Currency Classes Alternative Currencies USD USD USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD A (acc) USD A (ydis) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD Z (acc) USD A (acc) USD A (ydis) USD B (acc) USD I (acc) USD 28. Templeton BRIC USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD X (acc) USD Z (acc) USD 29. Templeton China USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD 30. Templeton Eastern Europe 31. Templeton Emerging Markets EUR USD EUR GBP EUR GBP SGD CHF HKD EUR GBP SGD EUR GBP SGD HKD EUR GBP SGD Classes in Alternative Currencies A (acc) EUR I (acc) EUR A (ydis) GBP I (ydis) GBP A (acc) EUR A (ydis) EUR I (acc) EUR N (acc) EUR A (ydis) GBP A (acc) SGD X (acc) SGD A (acc) HKD A (acc) EUR B (acc) EUR I (acc) EUR A (ydis) GBP I (ydis) GBP A (acc) SGD A (acc) EUR A (ydis) EUR I (acc) EUR I (ydis) EUR N (acc) EUR A (ydis) GBP A (acc) SGD A (acc) HKD A (ydis) EUR A (ydis) GBP A (acc) SGD A (acc) EUR GBP A (ydis) GBP A (ydis) EUR USD A (acc) USD B (ydis) EUR B (acc) USD C (acc) EUR C (acc) USD I (acc) EUR Z (acc) USD N (acc) EUR X (acc) EUR SGD A (acc) SGD A (acc) USD A (ydis) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD EUR SGD N (acc) EUR A (acc) SGD Hedged Classes A (acc) EUR-H1 I (acc) EUR-H1 I (ydis) EUR-H2 N (acc) EUR-H1 Z (ydis) EUR-H1 A (acc) CHF-H1 I (acc) CHF-H1 A (acc) EUR-H1 I (acc) EUR-H1 10

12 No. Franklin Templeton Investment s 32. Templeton Emerging Markets Smaller Companies 33. Templeton Euroland 34. Templeton European 35. Templeton Frontier Markets 36. Templeton Global (Euro) 37. Templeton Global Equity Income Base Currency Classes Alternative Currencies USD EUR EUR USD EUR USD A (acc) USD A (ydis) USD C (acc) USD I (acc) USD N (acc) USD A (acc) EUR A (ydis) EUR B (ydis) EUR C (acc) EUR I (acc) EUR I (ydis) EUR N (acc) EUR A (acc) EUR A (ydis) EUR C (acc) EUR I (acc) EUR EUR GBP USD USD Classes in Alternative Currencies A (acc) EUR I (acc) EUR A (ydis) GBP B (acc) USD C (acc) USD A (acc) USD A (ydis) USD C (acc) USD N (acc) USD N (acc) EUR SGD A (acc) SGD A (acc) USD A (ydis) USD B (acc) USD C (acc) USD I (acc) USD X (acc) USD A (acc) EUR A (ydis) EUR I (acc) EUR N (acc) EUR A (acc) USD A (qdis) USD B (qdis) USD C (qdis) USD I (acc) USD N (acc) USD 38. Templeton Global USD A (acc) USD A (ydis) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD 39. Templeton Global Smaller Companies 40. Templeton Growth (Euro) USD EUR A (acc) USD A (ydis) USD B (acc) USD C (ydis) USD I (acc) USD N (acc) USD A (acc) EUR A (ydis) EUR EUR GBP SGD EUR USD EUR SGD JPY SGD EUR SGD EUR A (acc) EUR B (acc) EUR I (acc) EUR N (acc) EUR A (ydis) GBP I (ydis) GBP A (acc) SGD B (acc) USD A (acc) EUR A (qdis) SGD I (qdis) JPY A (acc) SGD C (acc) EUR A (acc) SGD Hedged Classes A (acc) EUR-H1 N (acc) EUR-H1 Z (ydis) EUR-H1 I (acc) EUR-H2 A (acc) EUR-H2 11

13 No. Franklin Templeton Investment s Base Currency Classes Alternative Currencies C (acc) EUR I (acc) EUR I (ydis) EUR N (acc) EUR 41. Templeton Korea USD A (acc) USD C (acc) USD I (acc) USD N (acc) USD 42. Templeton Latin America 43. Templeton Thailand 44. Templeton U.S. Value USD USD USD A (acc) USD A (ydis) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD Z (acc) USD A (acc) USD B (acc) USD I (acc) USD N (acc) USD A (acc) USD B (acc) USD C (acc) USD I (acc) USD N (acc) USD USD SGD Classes in Alternative Currencies A (acc) USD A (ydis) USD I (ydis) USD A (acc) SGD Hedged Classes EUR A (ydis) EUR I (ydis) EUR-H2 GBP SGD SGD EUR GBP A (ydis) GBP A (acc) SGD A (acc) SGD A (acc) EUR A (ydis) EUR I (acc) EUR A (ydis) GBP I (ydis) GBP A (acc) EUR-H1 I (acc) EUR-H1 Balanced s No. Franklin Templeton Investment s Base Currency Classes Alternative Currencies 1. Franklin Income USD A (mdis) USD B (mdis) USD C (acc) USD C (mdis) USD I (acc) USD N (acc) USD Z (acc) USD 2. Franklin Templeton Global amental Strategies 3. Templeton Global Balanced 4. Templeton Global Income USD USD USD A (acc) USD A (ydis) USD B (acc) USD C (acc) USD A (acc) USD A (qdis) USD B (acc) USD C (qdis) USD I (acc) USD SGD EUR EUR SGD Classes in Alternative Currencies A (acc) EUR A (ydis) EUR I (acc) EUR A (acc) EUR N (acc) EUR A (acc) SGD A (acc) USD EUR A (acc) EUR A (qdis) USD SGD A (qdis) SGD Hedged Classes A (mdis) SGD-H1 A (acc) EUR-H1 N (acc) EUR-H1 A (acc) EUR-H1 I (acc) EUR-H1 N (acc) EUR-H1 12

14 No. Franklin Templeton Investment s Base Currency Classes Alternative Currencies B (qdis) USD C (qdis) USD I (acc) USD N (acc) USD Z (acc) USD HKD Classes in Alternative Currencies A (acc) HKD A (qdis) HKD Hedged Classes Fixed Income s No. Franklin Templeton Investment s 1. Franklin High Yield 2. Franklin Real Return 3. Franklin Strategic Income 4. Franklin U.S. Government 5. Franklin U.S. Total Return Base Currency Classes Alternative Currencies USD A (acc) USD A (mdis) USD B (mdis) USD C (acc) USD I (mdis) USD I (acc) USD N (acc) USD SGD Classes in Alternative Currencies Hedged Classes A (mdis) SGD-H1 USD A (acc) USD EUR A (ydis) EUR-H1 USD USD USD A (acc) USD A (mdis) USD B (mdis) USD C (mdis) USD I (acc) USD Z (acc) USD A (acc) USD A (mdis) USD AX (acc) USD B (acc) USD B (mdis) USD C (acc) USD I (acc) USD I (mdis) USD N (acc) USD N (mdis) USD Z (acc) USD A (acc) USD A (mdis) USD B (acc) USD B (mdis) USD C (mdis) USD I (acc) USD I (mdis) USD N (mdis) USD EUR SGD HKD A (acc) EUR A (mdis) EUR A (acc) HKD A (mdis) HKD A (mdis) SGD-H1 13

15 No. Franklin Templeton Investment s 6. Franklin U.S. Ultra Short Bond 7. Templeton Asian Bond 8. Templeton Emerging Markets Bond 9. Templeton Euro Government Bond 10. Templeton Euro High Yield 11. Templeton European Corporate Bond Base Currency Classes Alternative Currencies USD USD USD EUR EUR EUR A (mdis) USD AX (acc) USD B (acc) USD B (mdis) USD C (mdis) USD I (acc) USD N (mdis) USD A (acc) USD A (mdis) USD B (mdis) USD C (mdis) USD I (acc) USD N (acc) USD N (mdis) USD Z (acc) USD A (acc) USD A (qdis) USD A (mdis) USD B (qdis) USD B (mdis) USD C (acc) USD I (acc) USD I (qdis) USD N (acc) USD Z (acc) USD A (ydis) EUR I (acc) EUR N (acc) EUR A (acc) EUR A (ydis) EUR A (mdis) EUR B (mdis) EUR I (acc) EUR I (ydis) EUR I (mdis) EUR N (acc) EUR A (acc) EUR A (ydis) EUR I (acc) EUR I (ydis) EUR N (acc) EUR N (ydis) EUR EUR SGD Classes in Alternative Currencies Hedged Classes A (acc) EUR A (acc) EUR-H1 A (mdis) EUR I (acc) EUR-H1 I (acc) EUR I (mdis) EUR N (acc) EUR A (mdis) SGD A (mdis) SGD-H1^ CHF A (acc) CHF-H1 I (acc) CHF-H1 EUR A (qdis) EUR A (ydis) EUR-H1 I (acc) EUR-H1 GBP A (qdis) GBP I (qdis) GBP-H1 CHF USD A (mdis) USD B (mdis) USD A (acc) CHF-H1 14

16 No. Franklin Templeton Investment s 12. Templeton European Total Return 13. Templeton Global Aggregate Bond 14. Templeton Global Bond (Euro) 15. Templeton Global Bond 16. Templeton Global High Yield Base Currency Classes Alternative Currencies EUR USD EUR USD USD A (acc) EUR A (mdis) EUR A (ydis) EUR C (acc) EUR I (acc) EUR I (mdis) EUR I (ydis) EUR N (acc) EUR N (mdis) EUR A (acc) USD A (mdis) USD I (acc) USD N (acc) USD A (acc) EUR A (ydis) EUR I (acc) EUR N (acc) EUR A (acc) USD A (mdis) USD AX (acc) USD B (mdis) USD C (mdis) USD I (acc) USD N (acc) USD Z (acc) USD A (acc) USD A (mdis) USD I (acc) USD USD EUR GBP CHF USD EUR GBP SGD HKD CHF AUD EUR GBP Classes in Alternative Currencies A (mdis) USD C (mdis) USD A (acc) EUR A (mdis) EUR I (acc) EUR N (acc) EUR B (acc) USD A (acc) EUR A (mdis) EUR A (ydis) EUR I (acc) EUR I (mdis) EUR I (ydis) EUR N (acc) EUR A (mdis) GBP I (mdis) GBP Hedged Classes A (acc) EUR-H1 A (ydis) EUR-H1 I (acc) EUR-H1 I (qdis) EUR-H1 N (acc) EUR-H1 A (qdis) GBP-H1 I (qdis) GBP-H1 I (acc) CHF-H1 A (acc) EUR-H1 A (mdis) EUR-H1 A (ydis) EUR-H1 I (acc) EUR-H1 I (ydis) EUR-H1 N (acc) EUR-H1 N (mdis) EUR-H1 N (ydis) EUR-H1 Z (ydis) EUR-H1 A (mdis) GBP-H1 I (mdis) GBP-H1 A (mdis) SGD A (mdis) SGD-H1 A (acc) HKD A (mdis) HKD A (acc) CHF-H1 I (acc) CHF-H1 A (mdis) AUD-H1 A (acc) EUR A (mdis) EUR I (acc) EUR N (acc) EUR A (mdis) GBP 15

17 ^ No. Franklin Templeton Investment s 17. Templeton Global Total Return Base Currency Classes Alternative Currencies USD A (acc) USD A (mdis) USD B (acc) USD B (mdis) USD C (mdis) USD I (acc) USD N (acc) USD Z (acc) USD EUR GBP SGD HKD Classes in Alternative Currencies A (acc) EUR A (mdis) EUR A (ydis) EUR I (acc) EUR I (mdis) EUR I (ydis) EUR N (acc) EUR A (mdis) GBP I (mdis) GBP Hedged Classes A (acc) EUR-H1 A (mdis) EUR-H1 A (ydis) EUR-H1 I (acc) EUR-H1 I (ydis) EUR-H1 N (acc) EUR-H1 N (mdis) EUR-H1 N (ydis) EUR-H1 Z (ydis) EUR-H1 A (mdis) GBP-H1 I (mdis) GBP-H1 A (mdis) SGD A (mdis) SGD-H1 A (acc) HKD A (mdis) HKD CHF I (mdis) CHF A (acc) CHF-H1 I (acc) CHF-H1 AUD A (mdis) AUD-H1 This Share Class will be launched on 8 December 2010 (or such other date as may be determined by the Board of Directors). Money Market s / Liquid Reserve s * No. Franklin Templeton Investment s 1. Franklin U.S. Dollar Liquid Reserve 2. Templeton Euro Liquid Reserve 3. Templeton Euro Money Market Base Currency Classes Alternative Currencies USD EUR EUR A (acc) USD A (mdis) USD B (mdis) USD C (acc) USD I (acc) USD N (acc) USD A (acc) EUR A (ydis) EUR I (acc) EUR N (acc) EUR A (acc) EUR I (acc) EUR N (acc) EUR * Classes in Alternative Currencies Hedged Classes This Share Class will be available for subscription on such date as the Board may determine from time to time. In respect of the Classes of Shares:- (acc) means no distribution of dividends shall be made but the net income attributable will be reflected in the increased value of the Shares; (mdis) means under normal circumstances, it is anticipated that distribution will be made monthly (following the end of each calendar month); (qdis) means under normal circumstances, it is anticipated that distribution will be made quarterly (following the end of each calendar quarter); and 16

18 (ydis) means under normal circumstances, it is anticipated that distribution will be made yearly (normally in July/August each year). Class I Shares and Class X Shares may only be offered to institutional investors (as defined in the Luxembourg Prospectus). The Classes of Shares mainly differ in the types of charges imposed on them and in their dividend policy. Please refer to the sections MANAGEMENT, COMPANY AND SALES CHARGE STRUCTURE and DIVIDEND POLICY in the Luxembourg Prospectus for details. Note: The other funds (if any) of the Company and other Classes of Shares of the s referred to in the Luxembourg Prospectus which are not listed in the table above are currently not available for retail offer in Singapore. 3. MANAGEMENT AND ADMINISTRATION 3.1 Directors The Board of Directors is responsible for the Company s management and administration, and has appointed the Investment Managers mentioned below. 3.2 Investment Managers / Sub-Advisors No. Investment Manager Sub-Advisor 1. Franklin Asian Flex Cap Franklin Advisers, Inc. Franklin Templeton Asset Management (India) Private Limited 2. Franklin Biotechnology Discovery Franklin Advisers, Inc Franklin Euroland Core Franklin Templeton Investment Management Limited 4. Franklin European Growth Franklin Templeton Institutional, LLC and Franklin Templeton Investment Management Limited (as Co- Investment Managers) 5. Franklin European Small-Mid Cap Growth Franklin Templeton Institutional, LLC - 6. Franklin Global Growth Franklin Templeton Institutional, LLC - 7. Franklin Global Real Estate Franklin Templeton Institutional, LLC - 8. Franklin Global Small-Mid Cap Growth 9. Franklin Gold and Precious Metals Franklin Templeton Institutional, LLC - Franklin Advisers, Inc Franklin High Yield Franklin Advisers, Inc Franklin Income Franklin Advisers, Inc Franklin India Franklin Advisers, Inc. Franklin Templeton Asset Management (India) Private Limited 13. Franklin MENA Franklin Advisers, Inc Franklin Mutual Beacon Franklin Mutual Advisers, LLC Franklin Mutual Euroland Franklin Mutual Advisers, LLC Franklin Mutual European Franklin Mutual Advisers, LLC Franklin Mutual Global Discovery Franklin Mutual Advisers, LLC Franklin Natural Resources Franklin Advisers, Inc Franklin Real Return Franklin Advisers, Inc

19 No. Investment Manager Sub-Advisor 20. Franklin Strategic Income Franklin Advisers, Inc Franklin Technology Franklin Advisers, Inc Franklin Templeton Global Equity Strategies 23. Franklin Templeton Global amental Strategies 24. Franklin Templeton Global Growth and Value Franklin Advisers, Inc., Franklin Mutual Advisers, LLC, Templeton Asset Management Ltd and Templeton Global Advisors Limited (as Co- Investment Managers) Franklin Advisers, Inc., Franklin Mutual Advisers, LLC and Templeton Global Advisors Limited (as Co- Investment Managers) Franklin Templeton Institutional, LLC Franklin Templeton Japan Franklin Templeton Investments Japan Limited 26. Franklin U.S. Dollar Liquid Reserve Franklin Advisers, Inc Franklin U.S. Equity Franklin Advisers, Inc Franklin U.S. Focus Franklin Advisers, Inc Franklin U.S. Government Franklin Advisers, Inc Franklin U.S. Opportunities Franklin Advisers, Inc Franklin U.S. Small-Mid Cap Growth Franklin Advisers, Inc Franklin U.S. Total Return Franklin Advisers, Inc Franklin U.S. Ultra Short Bond Franklin Advisers, Inc Franklin World Perspectives Franklin Advisers, Inc Templeton Asian Bond Franklin Advisers, Inc Templeton Asian Growth Templeton Asset Management Ltd Templeton Asian Smaller Companies Templeton Asset Management Ltd Templeton BRIC Templeton Asset Management Ltd Templeton China Templeton Asset Management Ltd Templeton Eastern Europe Templeton Asset Management Ltd Templeton Emerging Markets Bond 42. Templeton Emerging Markets 43. Templeton Emerging Markets Smaller Companies 44. Templeton Euro Government Bond Franklin Advisers, Inc. - Templeton Asset Management Ltd - Templeton Asset Management Ltd - Franklin Templeton Investment Management Limited 45. Templeton Euro High Yield Franklin Advisers, Inc. and Franklin Templeton Investment Management Limited (as Co-Investment Managers) 46. Templeton Euro Liquid Reserve Franklin Templeton Investment Management Limited

20 No. Investment Manager Sub-Advisor 47. Templeton Euro Money Market Franklin Templeton Investment Management Limited 48. Templeton Euroland Franklin Templeton Investment Management Limited 49. Templeton European Corporate Bond Franklin Templeton Investment Management Limited, Franklin Templeton Institutional, LLC and Franklin Advisers, Inc. (as Co- Investment Managers) 50. Templeton European Franklin Templeton Investment Management Limited 51. Templeton European Total Return Franklin Templeton Investment Management Limited and Franklin Advisers, Inc. (as Co-Investment Managers) 52. Templeton Frontier Markets Templeton Asset Management Ltd Templeton Global (Euro) Franklin Templeton Investments Corp Templeton Global Aggregate Franklin Templeton Investment Bond Management Limited Templeton Global Balanced Franklin Templeton Investment Management Limited and Franklin - Advisers, Inc. (as Co-Investment Managers) 56. Templeton Global Bond (Euro) Franklin Advisers, Inc Templeton Global Bond Franklin Advisers, Inc Templeton Global Equity Income Franklin Templeton Investment Management Limited Franklin Templeton Investments Australia Limited 59. Templeton Global Franklin Templeton Investment Management Limited Templeton Global High Yield Franklin Advisers, Inc Templeton Global Income Franklin Advisers, Inc. and Templeton Asset Management Ltd (as Co- Investment Managers) 62. Templeton Global Smaller Companies 63. Templeton Global Total Return Franklin Templeton Investments Corp. - Franklin Advisers, Inc. 64. Templeton Growth (Euro) Templeton Global Advisors Limited Templeton Korea Templeton Asset Management Ltd Templeton Latin America Templeton Asset Management Ltd Templeton Thailand Templeton Asset Management Ltd Templeton U.S. Value Franklin Templeton Investments Management Limited - - Franklin Templeton Investment Management Limited Franklin Templeton Institutional, LLC 19

21 Franklin Templeton Investment Management Limited Franklin Templeton Investment Management Limited, originally incorporated in 1985, is an indirect but whollyowned subsidiary of Franklin Resources Inc. Franklin Templeton Investment Management Limited provides both equity and fixed income investment advisory services and has provided investment advisory services to various Franklin Templeton funds since Franklin Templeton Investment Management Limited, based in Scotland, is part of the Templeton Global Equity Group and adheres strictly to its value-oriented, bottom-up approach to stock selection. As of 31 August 2010, Franklin Templeton Investment Management Limited has approximately US$12,605.3 million worth of assets under management. Templeton Asset Management Ltd Templeton Asset Management Ltd is an indirectly wholly owned subsidiary of Franklin Resources, Inc., which operates as Franklin Templeton Investments ( FTI ), a global investment organisation with over 60 years of investing experience. As of 31 August 2010, FTI, through its subsidiaries, reported month end assets under management of US$600.4 billion and has offices in over 30 countries and employs more than 7,800 staff. Franklin Templeton Investments is made up of four renowned names in the investment management industry - Franklin, Templeton, Mutual Series and Fiduciary Trust, each with its own unique investment style and specialization. FTI is able to capitalize on the investment and research expertise of investment professionals worldwide to achieve consistently superior performance in the long-term. Franklin Resources, Inc., listed on the New York Stock Exchange, is currently one of the largest publicly traded U.S. asset managers in terms of both assets under management and market capitalization. Franklin Templeton Investments marked its presence in Singapore with the set up of a research office in Templeton Asset Management Ltd was officially incorporated in September 1992 and was registered as an Investment Advisor with the Authority under the now repealed Securities Industry Act. Templeton Asset Management Ltd currently holds a Capital Markets Services Licence for fund management issued by the Authority pursuant to the Securities and Futures Act. Templeton Asset Management Ltd has been credited for providing innovative and creative investment products to the Singapore investing public since it pioneered Singapore s first umbrella and feeder fund, Franklin Templeton s, in Subsequently, it went on to launch the first emerging markets fund, the first life sciences fund and the first U.S. government securities fund in Singapore within a span of 5 years. Templeton Asset Management Ltd manages US$42,931.7 million of assets as of 31 August Franklin Advisers, Inc Based in San Mateo, California, Franklin Advisers, Inc. was formed in 1985 and is best known as a fixed income and money market specialist. Franklin Advisers, Inc. is a leading fixed income manager in the U.S., and forms part of the Franklin Fixed Income Group which was one of the pioneers in the development of U.S. Government Securities funds in the 1970s. The Franklin Fixed Income Group also introduced America s first state-specific and double tax-free income fund in In addition to its fixed income capabilities, Franklin Advisers, Inc. is also renowned for its expertise in U.S. equities, particularly in utilizing the growth style in equity investing. The Franklin Equity Group manages various sector-focused portfolios including financial services, biotechnology and utilities. The Franklin Equity Group and the Franklin Fixed Income Group adopt a synergistic approach by leveraging on each other s research and analysis to provide a more comprehensive coverage of their respective areas. Franklin Advisers Inc. has managed collective investment schemes since As of 31 August 2010, Franklin Advisers, Inc. manages about US$300,321.6 million worth of assets. Franklin Mutual Advisers, LLC Franklin Mutual Advisers, LLC, formed in 1999 in the United States of America, is known for its expertise in the U.S. and European equity markets, specializing in identifying special situation investments. Its opportunistic and deep-value style of investing for its Mutual Series s focuses on stocks trading at a deep discount to asset 20

22 value, companies in the midst of change such as mergers and acquisitions, and securities that are distressed or even in bankruptcy. The managers from Franklin Mutual Advisers, LLC are also known for promoting shareholder activism and being involved in the management of the organisations that they hold so as to effect positive change in these organisations. Franklin Mutual Advisers, LLC has been managing the underlying Franklin Mutual Beacon since As of 31 August 2010, Franklin Mutual Advisers, LLC has approximately US$55,011.4 million of assets under management. Franklin Templeton Institutional, LLC Franklin Templeton Institutional, LLC, formerly FTI Institutional, LLC until 1 October 2003, was formed on 9 October Franklin Templeton Institutional, LLC is registered as an investment adviser with the Securities & Exchange Commission in the United States. The registration was approved on 13 November As of 31 August 2010, Franklin Templeton Institutional, LLC has US$4,960 million of assets under management. Franklin Templeton Asset Management (India) Private Limited Franklin Templeton Asset Management (India) Private Limited was incorporated in India on 6 October Franklin Templeton Asset Management (India) Private Limited was approved by the Securities & Exchange Board of India to act as an Asset Management Company on 19 February As of 31 August 2010, Franklin Templeton Asset Management (India) Private Limited has US$9,115.2 million of assets under management. Franklin Templeton Investments Japan Limited Franklin Templeton Investments Japan Limited, formerly Templeton Investment Management Co., Ltd, was incorporated in September 1996 in Tokyo, Japan. It merged with Fiduciary Trust International, Inc., which is a wholly owned indirect subsidiary of Franklin Resources, Inc. Franklin Templeton Investments Japan Limited is registered in Japan as Franklin Templeton Investments Kabushiki Kaisha. Its purpose is to conduct investment advisory business and investment trust business with respect to domestic and foreign securities. Franklin Templeton Investments Japan Limited is registered as an investment advisor in Japan. As of 31 August 2010, Franklin Templeton Investments Japan Limited has US$210.1 million of assets under management. Franklin Templeton Investments Corp. Franklin Templeton Investments Corp is an Ontario, Canada corporation formed via the amalgamation of Franklin Templeton Investments Corp, Bisset & Associates Investment Management Ltd and FTI Acquisition Inc., in December Franklin Templeton Investments Corp was incorporated in October Franklin Templeton Investments Corp is registered in all Canadian provinces and one territory as an adviser and as a mutual fund dealer with the Ontario Securities Commission and Alberta Securities Commission. It provides investment advisory, portfolio management, distribution, and administrative serves under various management agreements with the funds in Canada and with private and institutional accounts. Franklin Templeton Investments Corp is registered as an Investment Adviser with the US Securities & Exchange Commission in December Franklin Templeton Investments Corp is a wholly-owned indirect subsidiary of Franklin Resources, Inc. As of 31 August 2010, Franklin Templeton Investments Corp has US$12,808.9 million of assets under management. Franklin Templeton Investments Australia Limited Franklin Templeton Investments Australia Limited, formerly Templeton Investment Management (Australia) Limited until 28 February 2001, holds an Australian Financial Services Licence issued by Australian Securities and Investments Commission and a company incorporated in Australia under Australian Corporations Law. It is an investment manager and adviser to several funds and accounts. Franklin Templeton Investments Australia Limited is an indirect wholly-owned subsidiary of Franklin Resources, Inc. Franklin Templeton Investments Australia Limited manages US$996 million of assets as of 31 August Templeton Global Advisors Limited Templeton Global Advisors Limited, formerly Templeton, Galbraith & Hansberger, Ltd., is a Bahamian corporation located in Nassau, Bahamas. Templeton Global Advisors Limited is registered as an investment adviser with the SEC under the Investment Advisers Act of 1940 and with the Securities Commission of the 21

23 Bahamas. The initial SEC registration date is September 22, As of 31 August 2010, Templeton Global Advisors Limited has US$38,792.3 million of assets under management. Investment Co-Managers The Franklin World Perspectives aims to achieve its investment objectives through the careful selection of two or more investment co-managers (the Investment Co-Managers ) by the Investment Manager. Such Investment Co-Managers may or may not be part of Franklin Templeton Investments. The Investment Manager may also from time to time take part in managing the assets of the. The Investment Manager will be responsible for the selection and appointment of two or more Investment Co- Managers in respect of the to delegate all or part of the day-to-day conduct of its investment management responsibilities and investment advisory services in respect of some or all of the assets of the. The Investment Manager shall allocate the assets of the between the Investment Co-Managers in such proportions as it shall, at its discretion, determine suitable to achieve the s objective. The Investment Manager remains responsible for the activities of the Investment Co-Managers in respect of the delegated investment management functions of the. The Investment Manager will monitor the performance of the Investment Co-Managers in respect of the in order to assess the need, if any, to make changes/replacements. The Investment Manager may appoint or replace Investment Co-Managers in respect of the at any time in accordance with any applicable regulations or notice periods. The Investment Manager is responsible for the selection of the Investment Co-Managers, the monitoring of the performance of the Investment Co-Managers and the monitoring of the risk management process implemented at the level of each Investment Co-Managers. The Investment Co-Managers may be replaced without prior notice to the shareholders. The list of the Investment Co-Managers having acted for the during the period under review is disclosed in the semi-annual and annual reports of the Company. The list of Investment Co-Managers effectively managing the shall be made available upon request and free of charge at the registered office of the Company. The Investment Co-Managers may seek advice from other investment advisory companies affiliated to Franklin Templeton Investments. 4. OTHER PARTIES 4.1 The Singapore Representative Templeton Asset Management Ltd has been appointed by the Company to act as the Company s local agent in Singapore to accept service of process on behalf of the Company Templeton Asset Management Ltd has also been appointed by the Company to act as the representative for each (the Singapore Representative ) for the purposes of the SFA, and to carry out and provide certain administrative and other functions and services in respect of each. 4.2 Registrar and Transfer, Corporate, Domiciliary and Administrative Agent As the Registrar and Transfer, Corporate, Domiciliary and Administrative Agent, the Franklin Templeton International Services S.A. is responsible for processing the issue, redemption and exchange of Shares, the maintenance of accounting records and all other administrative functions ( Administrator ) as required by the laws of the Grand Duchy of Luxembourg. The Singapore Representative acts as the Administrator s agent in Singapore to provide the with registrar agent services in relation to the Singapore Shareholders. A copy of the register of Shareholders is kept at the registered office of the Singapore Representative at 7 Temasek Boulevard, #38-03 Suntec Tower One, Singapore and is available for inspection by investors, free of charge, during normal Singapore business hours. 4.3 Custodian J.P. Morgan Bank Luxembourg S.A. has been appointed Custodian of the Company s assets. 22

24 4.4 Auditors The auditors of the Company are PricewaterhouseCoopers Sàrl. 5. INVESTMENT OBJECTIVE, FOCUS AND APPROACH OF THE FUNDS Franklin Asian Flex Cap Investment Objective, Focus and Approach The s investment objective is capital appreciation. The invests principally in equity securities including common stock, preferred stock and convertible securities, as well as in warrants, participatory notes, and depository receipts of (i) companies registered in the Asia Region (excluding Japan), (ii) companies which perform a predominant part of their business in the Asia Region (excluding Japan), and (iii) holding companies which hold a predominant part of their participations in companies referred to in (i) and (ii), all of them across the entire market capitalization spectrum from small- to large-cap companies. The Asia Region includes but is not limited to the following countries/locations: Hong Kong, India, Indonesia, Korea, Malaysia, People s Republic of China, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan and Thailand. In addition, the may invest in all other types of transferable securities, including equity and fixed income securities of issuers worldwide. Franklin Biotechnology Discovery The s investment objective is to seek capital appreciation. The invests principally in equity securities of biotechnology companies and discovery research firms located in the U.S. and other countries and to a lesser extent in debt securities of any type of issuers worldwide. For the s investment purposes, a biotechnology company is one that has at least 50% of its earnings derived from biotechnology activities, or at least 50% of its assets devoted to such activities based on the company s most recent fiscal year. Biotechnology activities are research, development, manufacture, and distribution of various biotechnological or biomedical products, services and processes. This may include companies involved with genomics, genetic engineering, and gene therapy. It also includes companies involved in the application and development of biotechnology in areas such as health care, pharmaceuticals and agriculture. To the extent that the invests in debt securities, it generally buys securities that are rated investment grade or unrated securities that it determines to be of comparable quality. Investment grade debt securities are rated in the top four ratings categories by independent rating organisations such as Standard & Poor s Corporation or Moody s Investors Service, Inc. The anticipates that under normal conditions, it will invest more of its assets in U.S. securities than in those of any other single country although the may have more than 50% of its total assets in non-u.s. securities. The Investment Manager may take a temporary defensive cash position when it believes the securities trading markets or the economies of countries where the invests are experiencing excessive volatility or prolonged general decline, or other adverse conditions. Franklin Euroland Core The s investment objective is capital appreciation. The seeks to achieve its investment objective by investing principally in the equity securities of companies of any market capitalisation in Euroland countries. In selecting equity investments, the Investment Manager employs an active, bottom-up fundamental research process to search for individual securities believed to possess superior risk-return characteristics, taking into account both future growth potential and valuation considerations. The principally invests its net assets in the securities of issuers incorporated or having their principal business activities in Euroland countries (i.e. countries having adopted the Euro as their national currency, the member states of the European Monetary Union). To ensure eligibility for the French Plan d Epargne en Actions (PEA), the invests at least 75% of its total assets in equity securities issued by companies which have their head office in the European Union. Since the investment objective is more likely to be achieved through an investment policy that is flexible and adaptable, the may also seek investment opportunities in other types of transferable securities, which do not fulfil the requirements set out above. 23