Investment Policy changes of various Franklin Templeton funds

19 February 2020

1. J60 Templeton Emerging Markets
2. P58 Templeton BRIC

We have been notified by Templeton Asset Management Limited (“The Company”) of the upcoming investment policy change of the underlying funds of the Mirror Funds 1-2. These changes will come into effect from 18 March 2020 (the “Effective Date”). 

The Company have advised that the investment policies of the underlying funds of the Mirror Funds 1-2 will be amended to increase maximum exposure to investments in China A-Shares and China B-Shares from 10% to 20% per annum, with effect from the Effective Date.

To this respect, the following sentence in the underlying funds of the Mirror Funds 1-2 investment policies will be amended as follows:

“The Fund may invest up to 120% of its net assets in aggregate in China A-Shares (through the Shanghai-Hong Kong Stock Connect, or Shenzhen-Hong Kong Stock Connect, through qualified foreign institutional investor (QFII) portfolios, UCIs and/or any permissible means available to the Fund under prevailing laws and regulations) and in China B-Shares.”

The “China QFII risk” has been added to the lists of main risks pertaining to the underlying funds of the Mirror Funds 1-2, where needed.

The Company have further confirmed that there will be no material change or increase in the overall risk profile of the underlying funds of the Mirror Funds 1-2. Further, other than as stated, there will be no change to the operation and/or the manner in which the underlying funds of the Mirror Funds 1-2 are being managed.

 

Should you have any questions regarding these changes, please contact International Funds & Investments.