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)
Bissett U.S. Focus Fund
December 31, 2012 December 31, 2011
As % of
As % of
Currency Amount net assets Amount net assets
(000s) (000s)
USD .................................................... $148,755 100.00% 161,760 101.58%
$148,755 100.00% $161,760 101.58%
Impact on net assets from 5% currency movement ............... $ 7,438 $ 8,088
Mutual Beacon Fund
December 31, 2012 December 31, 2011
As % of
As % of
Currency Amount net assets Amount net assets
(000s) (000s)
USD .................................................... $ 38,287 20.17% 47,857 16.81%
Other .................................................... 8,691 4.58% 24,717 8.68%
$ 46,978 24.75% $ 72,574 25.49%
Impact on net assets from 5% currency movement ............... $ 2,349 $ 3,629
Mutual Global Discovery Fund
December 31, 2012 December 31, 2011
As % of
As % of
Currency Amount net assets Amount net assets
(000s) (000s)
USD .................................................... $121,666 13.52% 124,356 12.71%
Other .................................................... 78,877 8.77% 132,432 13.53%
$200,543 22.29% $256,788 26.24%
Impact on net assets from 5% currency movement ............... $ 10,027 $ 12,839
(b) Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of interest bearing
financial instruments. The portfolio advisors monitor overall interest rate sensitivity on a daily basis.
The tables below summarize all interest bearing financial instruments (excluding overnight term deposits) held by the respective Fund
which is subject to interest rate risk, categorized by the earlier of contractual re-pricing or maturity dates of the instrument. The tables
illustrate the increase or decrease expected in net assets for the Fund had the interest rates lowered or risen by 25 basis points, assuming
all other variables remain constant. Actual results may differ from this sensitivity analysis and the difference could be material.
December 31, 2012
Less Than 1-3 3-5 >5
Interest Rate
1 year years years years Total Sensitivity
(000s) (000s) (000s) (000s) (000s) (000s)
Templeton Canadian Balanced Fund ............................ $ 231 $ 3,112 $ 6,411 $ 15,723 $ 25,476 $ 424
Templeton Global Balanced Fund .............................. 4,019 3,698 4,165 9,645 21,527 288
Templeton Global Bond Fund .................................. 621,061 370,584 136,978 390,025 1,518,648 8,320
Franklin High Income Fund ................................... — 6,040 30,510 142,316 178,866 1,744
Franklin Strategic Income Fund ................................ 64,464 52,805 77,830 295,520 490,619 3,335
Bissett Bond Fund .......................................... 21,676 320,508 561,904 1,673,315 2,577,403 43,525
Bissett Canadian Short Term Bond Fund ......................... 23,489 131,275 129,929 137,536 422,229 2,818
Bissett Corporate Bond Fund .................................. 507 21,510 20,565 91,782 134,364 2,019
Bissett Dividend Income Fund ................................. — 13,860 6,684 75,020 95,564 1,531
Bissett Focus Balanced Fund .................................. — 11 451 2,253 2,715 44
Bissett Strategic Income Fund ................................. 154 2,101 2,143 7,985 12,383 206
Franklin Templeton Canadian Large Cap Fund .................... 1,625 — — — 1,625 2
Franklin Templeton Investments Funds 233