Templeton Global Bond Fund N(acc) USD

Transcription

1 Franklin Templeton Investment Funds Templeton Global Bond Fund Global Fixed Income Fund Fact Sheet HSBC - the No Subscription Fee Series For the source and calculation basis of Fund information, please refer to the *Explanatory Notes section. Fund Overview Base Currency for Fund Total Net Assets (USD) USD 26,266 Millions Fund Inception Date Number of Holdings 239 Benchmark Morningstar Category * Summary of Investment Objective JP Morgan Global Government Bond Index Global Bond The Fund aims to maximise total investment return consisting of a combination of interest income, capital appreciation and currency gains by investing principally in a portfolio of fixed or floating rate debt securities and debt obligations issued by government or government-related issuers worldwide. Fund Management* Michael Hasenstab, PhD: United States Sonal Desai, PhD: United States Ratings - N(acc) USD Overall Morningstar Rating *: Asset Allocation* Risk Considerations The Fund may invest in emerging market securities which are exposed to higher risk of economic, political and regulatory changes that may pose additional risk to the Fund. The Fund may invest up to 100% of their total net assets in structured products, mortgage- and asset-backed securities and derivatives (such as credit default swaps, forwards and options), and is subject to significant liquidity and counterparty default risks. The Fund may invest in defaulted debt securities on which the issuers are not currently making interest payment, and as a result may be subject to liquidity and counterparty default risks. The Fund may invest in non-investment grade debt securities, and as a result may be subject to liquidity and counterparty default risks. The Fund's value may be affected by exchange control regulations and changes in exchange rates. The Fund may invest extensively in financial derivative instruments for hedging purposes as well as investment purposes which may expose the Fund to the potential for significant losses and as a result may be subject to counterparty and volatility risk. The Fund may at its discretion pay dividend out of the capital of the Fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund s capital or payment of dividends effectively out of the Fund s capital (as the case may be) may result in an immediate reduction of the net asset value per share. This investment involves risks which may result in loss of part or entire amount of your investment. Before you decide to invest, you should make sure the intermediary has explained to you that the Fund is suitable to you. Investors should not only base on this marketing material alone to make investment decisions. Performance* Performance over 5 Years in Share Class Currency (%) Templeton Global Bond Fund N(acc) USD 120 JP Morgan Global Government Bond Index % Fixed Income Cash & Cash Equivalents Share Class Information 80 12/10 06/11 12/11 06/12 12/12 06/13 12/13 06/14 12/14 06/15 12/15 Performance in Share Class Currency (%) Cumulative 3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Since Incept N(acc) USD Benchmark in USD Calendar Year Performance in Share Class Currency (%) N(acc) USD Benchmark in USD Top Holdings* (% of Total) Security Name Government of Poland, Strip, 1/25/ Government of Mexico, senior note, M, 5.00%, 6/15/ Government of Hungary, senior note, 6.375%, 3/29/ Korea Monetary Stabilization Bond, senior note, 2.46%, /02/16 Government of Malaysia, senior note, 3.394%, 3/15/ Nota Do Tesouro Nacional, 10.00%, 1/01/ Korea Monetary Stabilization Bond, senior note, 2.07%, /02/16 Korea Treasury Bond, senior note, 3.00%, 12/10/ Government of Mexico, 7.25%, 12/15/ Government of Poland, FRN, 5.15%, 1/25/ Fund Measures Average Credit Quality* A- Average Duration Years Average Weighted Maturity 2.46 Years Yield to Maturity 5.22% Standard Deviation (5 Yrs) 8.29 Fees Dividends Fund Identifiers Max. Sales Mgmt. Max. Dist. Switching Last Paid Last Paid Share Class Incept Date NAV TER (%) Charge (%) Fee (%) Fee (%) Charge (%) Date Amount ISIN N(acc) USD USD N/A N/A LU fti-hk@franklintempleton.com Web

2 Templeton Global Bond Fund For the source and calculation basis of Fund information, please refer to the *Explanatory Notes section. Composition of Fund* Templeton Global Bond Fund JP Morgan Global Government Bond Index Geographic % of Total Mexico / 0.00 South Korea / 0.00 Malaysia / 0.00 Brazil / 0.00 Poland 7.61 / 0.00 Indonesia 6.74 / 0.00 Hungary 5.39 / 0.00 Ukraine 4.59 / 0.00 ST Cash and Cash Equivalents 7.84 / 0.00 Others 9.32 / Currency % of Total US Dollar / Mexican Peso / 0.00 South Korean Won / 0.00 Malaysian Ringgit / 0.00 Brazilian Real / 0.00 Polish Zloty 7.61 / 0.00 Indonesian Rupiah 6.74 / 0.00 Japanese Yen / EURO / Others 9.21 / Important Information Unless stated otherwise, all information is as of the publishing date of this document. Source: Franklin Templeton Investments. Franklin Templeton Investments (Asia) Limited is the issuer of this document. This document is neither an offer nor solicitation to purchase shares of the fund; applications for shares may only be made on forms of application available with the Offering Documents. Investments are subject to investment risks, fund value may go up as well as down and past performance is not an indicator nor a guarantee of future performance. The investment returns are denominated in fund currency. Investors investing in funds denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal. Investors should read carefully the Offering Documents (including the section 'Risk Considerations') for the relevant risks associated with the investment in the fund before investing. Distribution of this document may be restricted in certain jurisdictions. This document does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom it is unlawful to distribute such a report or make such an offer or solicitation. This document has not been reviewed by the Securities and Futures Commission of Hong Kong. *Explanatory Notes Performance: Performance information is based on the stated share class only, in Fund Currency, NAV to NAV, taking into account of dividend reinvestments and capital gain or loss. Morningstar Category : Copyright Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is provided for reference purposes only. Past performance is no guarantee of future results. Fund Management: In the case of portfolio managers who are CFA Charterholders, CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. Ratings: Copyright Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is provided for reference purposes only. Past performance is no guarantee of future results. Top Holdings: These securities do not represent all of the securities purchased, sold or recommended for clients, and the reader should not assume that investment in the securities listed was or will be profitable. The portfolio manager for the Fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the top holdings list. Average Credit Quality: The average credit quality (ACQ) rating may change over time. The portfolio itself has not been rated by an independent rating agency. The letter rating, which may be based on bond ratings from different agencies (or internal ratings for unrated bonds, cash and equivalents), is provided to indicate the average credit rating of the portfolio's underlying investments and generally ranges from AAA (highest) to D (lowest). For unrated bonds, cash and equivalents, ratings may be assigned based on the ratings of the issuer, the ratings of the underlying holdings of a pooled investment vehicle, or other relevant factors. The ACQ is determined by assigning a sequential integer to all credit ratings AAA to D, taking a simple, asset-weighted average of investments by market value and rounding to the nearest rating. The risk of default increases as a bond's rating decreases, so the ACQ provided is not a statistical measurement of the portfolio's default risk because a simple, weighted average does not measure the increasing level of risk from lower-rated bonds. The ACQ may be lower if cash and equivalents are excluded from the calculation. The ACQ is provided for informational purposes only. Derivative positions are not reflected in the ACQ. Fees: HSBC will collect 1% administration fee for redemption takes place within the first year of investment. The fee is calculated by either the initial subscription price or the current redemption price, whichever is lower. Switching transaction within HSBC the No Subscription Fee Series across fund houses is free of charge. An administration fee of 1% and a distribution fee of 1% % p.a. may apply. Asset Allocation/Composition of Fund: Due to rounding, the sum of portfolio may not equal 100% Franklin Templeton Investments. All rights reserved.

3 Product Key Facts Franklin Templeton Investment Funds Templeton Global Bond Fund Last updated: 30 March 2015 This statement provides you with key information about this product. This statement is a part of the offering document. You should not invest in this product based on this statement alone. Quick facts Management company: Franklin Templeton International Services S.à r.l. Investment manager: Franklin Advisers, Inc., United States of America (internal delegation) Custodian: J.P. Morgan Bank Luxembourg S.A. Base currency: USD Financial year end of this Fund: 30 June Dealing frequency: Every Hong Kong Business Day Minimum Investment: USD 1,000 [initial] and USD 500 [subsequent purchases] or equivalent Ongoing charges over a year # : Class A (Mdis) AUD-H1: 1.40% Class A (Mdis) EUR: 1.39% Class A (Mdis) EUR-H1: 1.40% Class A (Mdis) GBP-H1: 1.40% Class A (Mdis) HKD: 1.39% Class A (Mdis) SGD-H1: 1.39% Class A (Mdis) USD: 1.39% Class A (acc) EUR-H1: 1.41% Class A (acc) HKD: 1.39% Class A (acc) USD: 1.39% Class B (Mdis) USD: 2.90% Class N (acc) USD: 2.09% # The ongoing charges figures are based on the semi-annual financial statements for the period ended 31 December These figures may vary from year to year. Dividend policy: Dividends, if declared, will be reinvested unless indicated by you in the application form to be paid out. Subject to any legal and regulatory requirements, the Fund may at its discretion pay dividends out of the capital or out of gross income of the Fund while paying all or part of the Fund s fees and expenses out of the capital of the Fund, which results in effectively paying dividends out of capital. The Fund may amend such distribution policy subject to the SFC s prior approval and by giving not less than one month s prior notice to investors. Any distributions involving payment of dividends out of the Fund s capital or payment of dividends effectively out of the Fund s capital (as the case may be) may result in an immediate reduction of the net asset value per share. What is this product? This is a fund constituted in the form of a mutual fund. It is domiciled in Luxembourg and its home regulator is Commission de Surveillance du Secteur Financier ( CSSF ). Franklin Templeton Investment Funds - Templeton Global Bond Fund 1

4 Objective and Investment Strategy Templeton Global Bond Fund (the Fund ) aims to maximise total investment return by achieving an increase in the value of its investments, earning income and profiting from currency movement over the medium to long term. The Fund invests principally in: debt securities of any quality (including non-investment grade securities) issued by governments and government-related entities worldwide The Fund may also invest in: debt securities of any quality issued by corporations located in any country debt securities of supranational entities, organized or supported by several national governments, such as the European Investment Bank The Fund may invest extensively in financial derivative instruments for hedging, efficient portfolio management and/or investment purposes to manage the risks of the portfolio and gain exposure to certain asset classes, currencies, or position on the yield curve (long maturities vs. short maturities), or to exchange fixed rate obligations with floating rate obligations. The financial derivative instruments in which the Fund may invest include swaps (such as credit default swaps or fixed income related total return swaps), futures contracts, and foreign currency forward contracts, including cross currency forwards where one currency is hedged into another through an intermediate third currency or where one currency is used as a proxy for hedging another currency (e.g. using the Canadian dollar as a proxy for the U.S. dollar). The expected level of leverage for the Fund is 90% of the net asset value of the Fund. The expected level of leverage is an estimate only and may be subject to higher leverage levels when cross currency positions or negative positions, which may be held to hedge against market risk or eliminate or reduce undesired investment risk in the portfolio, are a larger portion of the portfolios. The leverage calculation method used is the sum of notionals*. *The level of leverage is measured as the sum of notionals of all financial derivative contracts entered into by the Fund expressed as a percentage of the Fund s net asset value. This methodology does not: (i) make a distinction between financial derivative instruments that are used for investment or hedging purposes; (ii) allow the netting of derivative positions; (iii) take into account the derivative underlying assets volatility or make a distinction between short-dated & long-dated assets; and (iv) consider the delta for option contracts, so there is no adjustment for the likelihood that any option contract will be exercised. What are the key risks? Investment involves risks. Please refer to the offering document for details including the risk factors. Economic, political and regulatory risks: Such risks are prevalent in any market, especially emerging markets. For example, legal and regulatory risks from investments in countries with unclear and changing laws or the lack of established or effective avenues for legal redress, the Fund may be subject to more restrictive regulatory regimes potentially preventing the Fund from making the fullest possible use of the investment limits. The Fund may also be Franklin Templeton Investment Funds - Templeton Global Bond Fund 2

5 adversely affected by changes in market and/or economic and political conditions, and in legal, regulatory and tax requirements. Eurozone risk: The Fund may invest in the Eurozone. Mounting sovereign debt burdens (e.g. any sovereigns within the Eurozone, which default on their debts, may be forced to restructure their debts and faced difficulties in obtaining credit or refinancing) and slowing economic growth among European countries, combined with uncertainties in European financial markets, including feared or actual failures in the banking system and the possible break-up of the Eurozone and Euro currency, may adversely affect interest rates and the prices of securities across Europe and potentially other markets as well. These events may increase volatility, liquidity and currency risks associated with investments in Europe. The aforesaid economic and financial difficulties in Europe may spread across Europe and as a result, a single or several European countries may exit the Eurozone or a sovereign within the Eurozone may default on its debts. In any event of the break-up of the Eurozone or Euro currency, the Fund may be exposed to additional operational or performance risks. While the European governments, the European Central Bank, and other authorities are taking measures (e.g. undertaking economic reforms and imposing austerity measures on citizens) to address the current fiscal conditions, these measures may not have the desired effect and therefore the future stability and growth of Europe is uncertain. The performance and value of the Fund may be adversely affected should there be any adverse credit events (e.g. downgrade of the sovereign credit rating or default or bankruptcy of any Eurozone countries). Interest rate securities risk: Interest rates changes tend to be driven by prevailing economic, political and regulatory conditions as well as issuer-specific factors, impacting longer term securities more than short-term securities. While changes in interest rates may affect the Fund s interest income, such changes may positively or negatively affect the net asset value of the Fund s shares on a daily basis. A fixed income security s value will generally increase in value when interest rates fall and decrease in value when interest rates rise. Movements in interest rates may adversely affect a fixed income security s value and the Fund s net asset value. Conditions in the banking sector may also adversely affect interest rates and the prices of fixed income securities. Credit risk and sovereign debt risk: The Fund may invest in debt obligations issued by governments and corporates. Investment in sovereign debts issued or guaranteed by governments as well as in corporate issues involves a high degree of risk, as default can occur if the government or corporate entity is not able or willing to repay the principal and/or interest when due. Fixed income securities are also exposed to the risk of being downgraded, which can adversely affect and/or result in a substantial loss to the Fund. Additional risks for sovereign debt include the unilateral rescheduling of sovereign debt by the issuer and the limited legal recourses available against a sovereign issuer, which may adversely affect the Fund. Low-rated, unrated or non-investment grade securities risk: The Fund may invest in lower rated, unrated or non-investment grade securities where the risk of failure to pay interest and/or principal is greater vs. higher rated securities, which may result in a substantial loss to the Fund. Foreign currency risk: The Fund will typically invest to a significant degree in securities that are denominated in currencies other than the base currency of the Fund, exposing its investments to changes in foreign exchange rates and the possibility of exchange control regulations. The Fund may seek to hedge currency exposure, which can limit the potential for currency gains, or take a currency position for investments purposes, which can result in Franklin Templeton Investment Funds - Templeton Global Bond Fund 3

6 substantial loss to the Fund. To the extent that the Fund seeks to hedge or protect against currency exchange risk, there is no guarantee that hedging or protection will be achieved, and the value of the Fund may be adversely affected. Liquidity risk: The Fund may not be able to easily sell securities due to adverse market conditions or reduced value or creditworthiness of issuers in which it invests. Requests for redemption of shares, which are not listed, may be deferred or suspended. Reduced liquidity due to these factors may have an adverse impact on the net asset value of the Fund and on the ability of the Fund to meet redemption requests in a timely manner. Derivative risk: The Fund may invest in financial derivatives or structured products such as credit-linked securities, swaps (including credit default swaps and fixed income related total return swaps), futures, forwards, and options for hedging or investment purposes, or for efficient portfolio management (to reduce risk or cost). Derivative instruments involve cost, may be volatile, and may involve a leverage effect. A small investment in derivatives may give rise to material market exposure and result in higher risk than the initial investment, which may cause substantial loss to the Fund. The risk of loss to the Fund for a swap transaction on a net basis may equal the entire amount that the Fund is entitled to receive if the counterparty that owes that amount defaults or is otherwise unwilling or unable to make the payment that is owed to the Fund. The Fund does set aside cash or assets to meet future obligations related to derivatives. Performance and value of derivative instrument depend, at least in part, on the performance or value of the underlying asset. Risks include delivery failure, default by other party or the inability to close out a position because the trading market becomes illiquid. In addition, with respect to the use of derivatives for hedging, efficient portfolio management or investment purposes, there can be no assurances that the use of derivatives for these intended purposes will be achieved. Counterparty risk: When over-the-counter (OTC) or other bilateral contracts are entered into (such as OTC derivatives, repurchase agreements, security lending etc.), the Fund may find itself exposed to risks arising from the solvency of its counterparties and from their ability to respect the condition of these contracts and the Fund/investors may be adversely impacted. Volatility risk: Financial derivative instruments tend to be more volatile and less liquid than underlying investments to which they relate, which can have an adverse impact on the Fund. Dividend policy risk: The Fund s dividend policy allows for payment of dividends out of capital or effectively out of capital. Where this is done, it amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund s capital or payment of dividends effectively out of the Fund s capital (as the case may be) may result in an immediate reduction of the net asset value per share. Franklin Templeton Investment Funds - Templeton Global Bond Fund 4

7 How has the Fund performed? 30.0% 20.0% 18.8% 16.4% 10.0% 13.1% 10.9% 7.4% 11.7% 0.0% 1.2% 1.1% -3.8% -3.1% -10.0% -20.0% The performance of the Fund in these years was achieved under circumstances that no longer apply. The investment policy was changed in 2008 and Past performance information is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividends reinvested. These figures show by how much class A (Mdis) USD increased or decreased in value during the calendar year being shown. Class A (Mdis) USD is the SFC-authorized share class with the longest history in the Fund. Performance data has been calculated in USD, including ongoing charges and excluding subscription fee and redemption fee you might have to pay. Fund launch date: 28 February 1991 Class A (Mdis) USD launch date: 28 February 1991 Is there any guarantee? This Fund does not have any guarantees. You may not get back the full amount of money you invest. Franklin Templeton Investment Funds - Templeton Global Bond Fund 5

8 What are the fees and charges? Charges which may be payable by you You may have to pay the following fees when dealing in the shares of the Fund. Class A Class B Class N Subscription fee (Initial sales charge) Up to 5.00% of N/A Up to 3.00% of the subscription the subscription amount amount Switching fee (Switching charge) 1.00% of the N/A N/A value of the shares being switched Redemption fee (Redemption charge) N/A Up to 4.00% N/A Ongoing fees payable by the Fund The following expenses will be paid out of the Fund. They affect you because they reduce the return you get on your investments. Annual rate (as a % of the Fund s net asset value) Class A Class B Class N Management fee (Investment management fee)* 0.75% 0.75% 0.75% Custodian fee Up to 0.140% Up to 0.140% Up to 0.140% Performance fee N/A N/A N/A Administration fee N/A N/A N/A Maintenance charge Up to 0.30% Up to 0.75% N/A Servicing charge N/A 1.06% N/A Distribution charge N/A N/A Up to 1.25% Registrar and Transfer, Corporate, Domiciliary and Up to % Up to % Up to % Administrative Agent fee + Additional fixed amount per Shareholder account at Up to USD 30 Up to USD 30 Up to USD 30 each Class level per annum per annum per annum *The current annual management fee may be increased up to the maximum level permitted by the constitutive document of the Fund by giving one month s prior notice to the shareholders. Other fees You may have to pay other fees when dealing in the shares of the Fund. Franklin Templeton Investment Funds - Templeton Global Bond Fund 6

9 Additional Information You generally buy and redeem shares at the Fund s next determined net asset value (NAV) after the Hong Kong Representative, Franklin Templeton Investments (Asia) Limited, receives your request in good order on or before 4p.m. Hong Kong time being the dealing cut-off time. Certain intermediaries may impose an earlier dealing cut-off time. The net asset value of this Fund is calculated and the price of shares published daily in South China Morning Post and Hong Kong Economic Times. Information about prices may also be obtained on the internet at The compositions of the dividends (i.e. the relative amounts paid out of (i) net distributable income and (ii) capital) for the last 12 months are made available by the Investment Manager/Hong Kong Representative on request and also on the Hong Kong Representative s website. Investors may obtain the past performance information of other share classes offered to Hong Kong investors from the Hong Kong Representative's website at Investors may obtain information on the intermediaries by calling the Hong Kong Representative at (852) or visiting the Hong Kong Representative's website at The website mentioned above has not been reviewed by the Securities and Futures Commission ( SFC ). Important If you are in doubt, you should seek professional advice. The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy or completeness. Issuer of this statement: Franklin Templeton Investments (Asia) Limited Franklin Templeton Investment Funds - Templeton Global Bond Fund 7