printmgr file - Templeton

Franklin Templeton Investments Funds
NOTES TO FINANCIAL STATEMENTS For the periods ended December 31, 2012 and 2011 (Continued)
1. Organization (Continued)
Effective February 11, 2010, each of Templeton International Stock Fund, Templeton Global Balanced Fund and Templeton Global Smaller
Companies Fund may invest up to 7.5% of its net assets in Templeton China Opportunities Fund (“TCOF”), a sub-fund of Franklin Templeton
Selected Markets Funds (“FTSMF”), an open-end investment company organized under the laws of Luxembourg as a Société d’Investissement
à Capital Variable. TCOF is managed by Templeton Investment Counsel, LLC, an affiliate of the Manager. TCOF’s portfolio will be
managed in accordance with the investment restrictions applicable to a UCITS, an undertaking for collective investment in transferable
securities, which are substantially similar to those that govern each Fund in Canada. The principal distributor and administrator agent of
FTSMF is an affiliate of the Manager.
The financial statements of each Fund include the Statement of Investments as at December 31, 2012, and the Statements of Net Assets
as at December 31, 2012 and December 31, 2011, if the Fund was in existence at the time. The Statements of Operations and Changes in
Net Assets for each Fund are for the years ended December 31, 2012 and 2011, except for Funds established during either period, in
which case the period is from commencement of operations (inception date) to December 31.
(b) Fund Events
Effective June 18, 2012, Templeton Global Income Fund was renamed Templeton Global Balanced Fund.
Effective June 18, 2012, Mutual Discovery Fund was renamed Mutual Global Discovery Fund.
Bissett Strategic Income Fund was launched on December 19, 2011 and commenced offering of Series A, F, I and O units on
December 29, 2011.
Templeton Frontier Markets Fund was launched on July 11, 2011 and commenced offering of Series O units on July 18, 2011.
Effective June 24, 2011, Bissett Income Fund was renamed Bissett Canadian High Dividend Fund.
On June 20, 2011, Franklin World Growth Fund commenced the offering of Series A and F units in CAD and USD, as well as Series T units
in CAD on June 24, 2011.
Effective June 24, 2011, following regulatory and unitholder approvals, Bissett Multinational Growth Fund was merged with Franklin World
Growth Fund. For details of the merger refer to Note 14 (c).
2. Summary of Significant Accounting Policies
These financial statements are prepared in accordance with Canadian generally accepted accounting principles (“GAAP”). The significant
accounting policies are as follows:
(a) Designation of financial assets and liabilities — For the purpose of measuring and recognizing financial assets and liabilities, the
following designations have been made: All investments, including derivatives, if any, are initially recognized at fair value and are
designated as held for trading. Accrued interest, distributions and dividends receivable, amounts receivable for capital units sold and
securities sold, and other assets are designated as loans and receivables and reported at cost or amortized cost. Amounts payable for
securities purchased and capital units redeemed, management fees payable, distributions payable, accrued expenses and other
liabilities, are designated as other financial liabilities and reported at amortized cost.
(b) Valuation of investments — The Canadian Institute of Chartered Accountants (“CICA”) Handbook Section 3855, “Financial
Instruments — Recognition and Measurement”, requires that the fair value of financial instruments traded in active markets be
measured at closing bid price for long positions and closing ask price for short positions for financial statement reporting purposes
(“net assets”). The Canadian Securities Administrators allow investment funds to calculate the daily net asset value for the purpose of
processing unitholder transactions using the last traded price for the day as fair value of financial instruments traded in an active
market, which is referred to as a “trading net asset value”. As a result, the net assets per unit for financial reporting purposes may
differ from the trading net asset value. This measurement difference does not affect the Funds’ unitholder transactions. The Funds’
trading net asset values are disclosed in Note 13 (a).
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