templeton euroland fund - ing.be · ment style of templeton is based on a disciplined and flexi-...

TEMPLETON EUROLAND FUNDAccess to the best opportunities in Eurozone countriesA sub-fund of Franklin Templeton Investment Funds, a Luxembourg-registered SICAV

WHY INVEST IN EQUITIES OF EUROZONE COUNTRIES?1

Eurozone offers favourable macroeconomic environment

The Euro is at historic low levels to the dollar. Austerity is largely behind the Eurozone. While rising inflation offers the potential of rising corporate earnings.

Attractive valuations

Europe offers attractive valuations against developed markets, the US and historical valuations. 75% of European company’s revenues are derived from developed markets.

Monetary Support

The European Central Bank continues to demonstrate its commitment to promote economic activity in the euro zone. Massive loans to banks, repurchasing plans and QE. All these measures should support the European economy.

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TEMPLETON EUROLAND FUND

INVESTMENT OBJECTIVE AND POLICY

The Fund’s investment objective is capital appreciation through a policy of investing in equity and debt obligations of any issuer in a member country of the European Monetary Union, including corporations and governments, whether denominated in euro or relevant national currency, and in stock or debt obligations denominated in euro of any other issuer.

ACCESS TO THE BEST OPPORTUNITIES IN EUROZONE COUNTRIES

BENEFITS

• An undervalued securities-centered approach. The invest-ment style of Templeton is based on a disciplined and flexi-ble long-term approach that focuses on undervalued stocks, and based on Sir John Templeton’s management principles.

• A proven investment process. The process consists of 5 steps: identifying undervalued securities, depth funda-mental analysis, approval by the team of the shares to be integrated into the portfolio, portfolio construction using ‘discount’ shares and regular portfolio monitoring and risk management.

RISKS

• Currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations.

• Liquidity risk: the risk that arises when adverse market conditions affect the ability to sell assets when necessary. Reduced liquidity may have a negative impact on the price of the assets.

See the Fund’s prospectus and, where available, the relevant Key Investor Information Document for all risks.

1 Source: Factset as at 30 June 2017.

Please consult the latest prospectus and the Key Investor Information Document before deciding to invest.

INVESTMENT PROCESSTempleton’s investment philosophy is built upon a disciplined, yet flexible, long-term approach to value-oriented investing. This time-tested approach is based on three tenets:

Value

Research of equities, after analysis, that are, according to the management team, being exchanged at a too low a price compared to the intrinsic value of the company.

Patience

Security prices can fluctuate more wide-ly than underlying security values. In our opinion, market efficiencies should recognise and correct these security prices over time.

Bottom-Up2

Identification through rigorous funda-mental analysis of a company’s business to determine what we consider its eco-nomic worth based on future earnings, cash flow3 or asset value potential.

TECHNICAL DATAInvestment vehicleSub-fund of the Luxembourg-registered SICAV Franklin Templeton Investment Funds

ISIN codesAccumulation - A(acc)EUR: LU0093666013Distribution – A(Ydis)EUR: LU0229941660

Share class currencyA(acc)EUR: EuroA(Ydis)EUR: Euro

Fund launch date8 January 1999

Share class launch dateA(acc)EUR: 8 January 1999A(Ydis)EUR: 25 October 2005

Fund DurationUndefined

Risk classification

Subscription feeMaximum 5.75% (Please speak to your distributor and consult the fee grid)

Redemption fee 0%Exceptional contingent deferred sales charge of 1% may be required during a takeover of an investment of more than $ 1 million in the first 18 months. See the prospectus for more details

Total Annual Management fee4 1.5%

T.O.B. (applicable only in case of redemption)Accumulation shares: 1.32%, (max. EUR 4000)

Ongoing costs5 A(acc)EUR: 1.84%A(Ydis)EUR: 1.83%

Withholding taxThe physical person investing in the Fund will be subject to the with- hold-ing tax rate of 30% on dividends distri-bution (distributions share) and/or on

the gain when redeeming accumulating shares (capitalization and/or distribu-tion share) in one or several sub-funds holding more than 25% in debt securi-ties or more than 10% in debt securities if the physical person acquired the shares (accumulating and distributing share) from January 1st, 2018. The Tem-pleton Euroland Fund is not subject to capital gains taxation of 30%

Swing Pricing6 Max 2% of the original net asset value

Minimum investment amount$5000 or the equivalent in the relevant share class currency

Investor ProfileThe compartment may appeal to Investors looking to:• capital appreciation by investing in

undervalued equity securities issued by the member countries of the Euro-pean Monetary Union

• invest for the medium to long term

2 Bottom-up approach: seeks out investment opportunities primarily on the basis of intensive analysis of individual securities or issuers, as opposed to a “top down” approach, where macro-economic and market trend analyses drive the stock selection process.3 Cash Flow: in accounting, cash flow represents the amount of cash earned during a period. It is calculated by adding net income after taxes to non-cash charges such as depreciation, amortization and extraordinary charges to reserves. It is sometimes used as an indicator of the likelihood that a company will pay dividends.4 Total annual management fee includes annual management fees (1.00%) and annual maintenance fees (0.5% maximum). For more information, please consult the SICAV prospectus.5 The ongoing costs are based on expenses for the year ending 31 December 2017. This figure may vary from year to year.6 A swing pricing mechanism may be adopted to protect the interests of shareholders of the fund. A Fund may indeed suffer dilution of the net asset value per share due to investors buying or selling shares in a fund at a price that does not reflect dealing and other costs that arise when security trades are undertaken by the investment manager.

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Any complaints can be directed to our customer service ([email protected]) or to the external mediator ([email protected])The net asset values can be found in the newspapers L’Echo or De Tijd. A copy of the latest prospectus, and, if available for this product, the Key Investor Information Document, the annual report and semi-annual report, if published there-after, can be found in French or Dutch on our website www.ftidocuments.com or can be obtained, free of charge, from the financial service RBC Investor Services Belgium S.A. or Franklin Templeton International Services, S.à r.l.– Belgium branch – 28 avenue Marnix, 1000 Brussels - Tel: +32 2 289 62 00 - Fax: +32 2 289 62 19.

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Lower risk Potentially lower rewards

Higher risk Potentially higher rewards




INVESTMENT TEAM Equities of Eurozone countries Templeton Global Equity Group

The fund is managed by the Templeton Global Equity Team, specialized invest-ment teams of Franklin Templeton Invest-ments.

• Templeton Global Equity Group uses a time-tested invest-ment approach based on our philosophy of value, patience and bottom-up stock selection.

• The team employs about 40 portfolio managers and analysts with an average experience of more than 18 years, providing access to local resources and facilitating relationships with local contacts.

• Dylan Ball, ACA, based in Edinburgh, is the lead portfolio manager of the fund and joined the company 10 years ago. Heather Arnold, CFA, and Peter M. Moeschter, CFA, are the back-up managers of the fund.

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Franklin Templeton Investments is a global investment man-ager with over 70 years of experience in managing mutual funds. The company, founded in 1947 and listed on the New York and San Francisco stock exchanges, has over 9200 em-ployees (including over 650 portfolio managers, analysts and traders) in 33 countries. At the core of our business are mul-tiple world-class investment management groups – Franklin, Templeton, Franklin Mutual Series, the Franklin Templeton Fixed Income Team, local asset management groups – each operating independently and offering their distinct perspec-tives to financial advisors and their clients.

Supported by a single global platform for risk management, operations and client service, they offer investors the exper-tise of many with the strength of one.

Unless otherwise stated, the source for all information in this document is Franklin Templeton Investments.

© 2018. Franklin Templeton Investments. All rights reserved.

Subscriptions to shares of the Luxembourg-domiciled SICAV Franklin Templeton Investment Funds (“the Fund”) can only be made on the basis of the current prospectus, and, where available, the relevant Key Investor Information Document, accompa-nied by the latest available audited annual report and the latest semi-annual report if published thereafter.

Please consult your financial advisor for more information on the Belgian tax regime and before deciding to invest. The finan-cial service is provided by RBC Investor Services Belgium S.A., Boulevard Du Roi Albert II 37, B-1030 Schaerbeek.

Issued by Franklin Templeton International Services, S.à r.l. - Supervised by the Commission de Surveillance du Secteur Financier.

Would you like to obtain more detailed information on this compartment (historical performance, asset allocation...), please visit our website www.franklintempleton.be or contact the financial service in Belgium.

Last update: January 2018.

Franklin Templeton International Service S.à.r.l. Succursale belge28, avenue Marnix 1000 Brussels

Dylan Ball

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