Changes to the Investment Policy of Templeton China Fund
We have been notified by Franklin Templeton Investment Funds (“Franklin Templeton”) of its decision to amend the investment policy of its Templeton China Fund (the “Fund”).
AVAILABLE IN OUR DEFINED FUND RANGE PRODUCTS
The Fund, in its currency variants, features in our defined fund range products listed opposite.
CHANGE TO THE INVESTMENT POLICY
With effect from 8 March 2023 (the “Effective Date”), the investment policy will be amended to remove the 20% limit of investments in China A-Shares. Therefore, from the Effective Date, the fourth paragraph of the Fund’s investment policy will be amended as follows:
| Current | From Effective Date |
|---|---|
| The Fund may invest up to 20% of its net assets in aggregate in China A-Shares (through Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, through qualified foreign investor (QFI) portfolios, UCIs and any permissible means available to the Fund under prevailing laws and regulations) and in China B-Shares. | The Fund may invest up to 100% of its net assets in China A-Shares (through Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, through qualified foreign investor (QFI) portfolios, UCIs and any permissible means available to the Fund under prevailing laws and regulations) and up to 20% of its net assets in China B-Shares. For the avoidance of doubt, the Fund will not invest 70% or more of its net assets in China A-Shares solely via the QFI channel. |
Franklin Templeton has stated that there will be no material impact on the way the Fund is managed, its risk profile or SRRI (Synthetic Risk and Reward Indicator), nor on the fees charged. The new investment policy will be reflected in an updated version of the Fund prospectus following the Effective Date.
Plan owners do not need to take any action if they are happy to continue to invest in the Fund. However, they can switch and/or redirect any regular payment allocation to a different fund available to their plan, free of charge, should they wish to.
We have contacted impacted plan owners, or their appointed investment advisor; primarily by email, with letters sent by post to those who have requested such, or where we do not hold valid email details.
AVAILABLE IN OUR OPEN-ARCHITECTURE PRODUCTS
The Fund can be accessed through our portfolio bonds and will be subject to the changes detailed in the Franklin Templeton notification opposite.
For more information regarding Franklin Templeton Investment Funds visit: www.franklintempleton.lu