printmgr file - Templeton

Franklin Templeton Investments Funds
NOTES TO FINANCIAL STATEMENTS For the periods ended December 31, 2012 and 2011 (Continued)
10. Financial Risk Management (Continued)
(a) Currency risk
Certain Funds hold assets and liabilities denominated in currencies other than their functional currency, and are therefore exposed to currency
risk as the values of such assets and liabilities will fluctuate due to changes in exchange rates.
The portfolio advisors monitor the Funds’ currency risk position, and may enter into forward exchange contracts to manage foreign
exchange exposure as described in Note 2 and disclosed in the respective Funds’ Statement of Investments, as applicable.
The tables below summarize the Funds’ exposure to currency risk, where applicable. Amounts shown are based on the carrying value of
monetary and non-monetary assets, less liabilities. The tables below do not include a Fund when it holds less than 5% of its net assets in
foreign currencies. For those Funds included below, when individual currencies held are less than 5% of net assets, that currency has
been included in “other”. The tables also illustrate, for each respective Fund, the expected increase or decrease in net assets had the functional
currency strengthened or weakened by 5% in relation to all foreign currencies, with all other variables held constant. Actual results
may differ from this sensitivity analysis and the difference could be material.
Templeton Asian Growth Fund
December 31, 2012 December 31, 2011
As % of
As % of
Currency Amount net assets Amount net assets
(000s) (000s)
HKD .................................................... $120,816 38.33% 58,701 32.52%
IDR ..................................................... 28,414 9.01% 8,553 4.74%
INR ..................................................... 22,785 7.23% 18,950 10.50%
KRW .................................................... 12,774 4.05% 10,076 5.58%
PKR..................................................... 24,196 7.68% 12,475 6.91%
THB .................................................... 39,380 12.49% 25,395 14.07%
USD .................................................... 41,211 13.07% 28,606 15.85%
Other .................................................... 23,552 7.47% 10,907 6.04%
$313,128 99.33% $173,663 96.21%
Impact on net assets from 5% currency movement ............... $ 15,656 $ 8,683
Templeton Canadian Balanced Fund
December 31, 2012 December 31, 2011
Currency Amount
As % of
net assets Amount
As % of
net assets
(000s) (000s)
Other .................................................... $ 2,320 2.37% 6,541 5.69%
$ 2,320 2.37% $ 6,541 5.69%
Impact on net assets from 5% currency movement ............... $ 116 $ 327
Templeton Canadian Stock Fund
December 31, 2012 December 31, 2011
As % of
As % of
Currency Amount net assets Amount net assets
(000s) (000s)
Other .................................................... $ 3,137 3.55% 8,419 8.11%
$ 3,137 3.55% $ 8,419 8.11%
Impact on net assets from 5% currency movement ............... $ 157 $ 421
228 Franklin Templeton Investments Funds