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)
valuation was applied to the Funds where the pre-determined tolerances were exceeded, at which time the securities were classified as
Level 2 and subsequently reclassified as Level 1, when the fair value adjustment factors were no longer required.
As at December 31, 2012, due to market events, the decision was made to apply market level fair valuation policy which utilizes adjustment
factors from third party vendors and other accepted methodologies in accordance with the current Board approved procedures. The markets
affected by these events include, Australia, China, Singapore, Vietnam, Austria, Belgium, Finland, France, Germany, Ireland, Italy, Netherlands,
Norway, South Africa, Spain, United Kingdom and Brazil. Due to the events, securities within these markets have been transferred from Level 1
to Level 2 as at December 31, 2012. These securities have subsequently been transferred back to Level 1 after year end.
As at December 31, 2011, there were no significant market events to cause the pre-determined tolerances to be breached; hence there
were no transfers between Level 1 and Level 2 as at that date.
11. Broker Commissions
Commissions paid to brokers for portfolio transactions during the periods ended December 31, 2012 and 2011 are shown below.
A portion of commissions paid may include payment for goods and services that are used to assist with investment or trading decisions
such as investment research, analysis and reports (“research services”). Where ascertainable, the value of the research services included
in the commissions paid is listed in the table below.
December 31, 2012 December 31, 2011
Commissions Research Costs Commissions Research Costs
(000s) (000s) (000s) (000s)
Templeton Asian Growth Fund ................................ $ 448 $124 $ 475 $125
Templeton Canadian Balanced Fund ........................... 32 14 27 16
Templeton Canadian Stock Fund .............................. 37 16 115 17
Templeton EAFE Developed Markets Fund ...................... 312 104 375 113
Templeton Emerging Markets Fund ............................ 409 109 856 237
Templeton Frontier Markets Fund ............................. 444 88 33 10
Templeton Global Balanced Fund ............................. 56 14 67 12
Templeton Global Bond Fund ................................ — — — —
Templeton Global Smaller Companies Fund ..................... 2,150 747 2,605 935
Templeton International Stock Fund ........................... 939 376 762 323
Franklin Flex Cap Growth Fund ............................... 232 73 326 87
Franklin High Income Fund .................................. 899 — 917 —
Franklin Strategic Income Fund ............................... 570 — 462 —
Franklin U.S. Core Equity Fund ............................... 521 215 304 132
Franklin U.S. Rising Dividends Fund ........................... 54 26 70 39
Franklin World Growth Fund ................................. 296 115 346 137
Bissett All Canadian Focus Fund .............................. 164 39 227 48
Bissett Bond Fund ......................................... — — — —
Bissett Canadian Balanced Fund .............................. — — — —
Bissett Canadian Dividend Fund .............................. 406 123 267 63
Bissett Canadian Equity Fund ................................ 820 318 1,329 550
Bissett Canadian High Dividend Fund .......................... 1,245 432 1,094 437
Bissett Canadian Short Term Bond Fund ....................... — — — —
Bissett Corporate Bond Fund ................................. — — — —
Bissett Dividend Income Fund ................................ 120 42 68 29
Bissett Focus Balanced Fund ................................ 2 1 4 1
Bissett Microcap Fund ...................................... 205 21 315 46
Bissett Small Cap Fund ..................................... 466 111 606 196
Bissett Strategic Income Fund ................................ 52 10 1 —
Bissett U.S. Focus Fund ..................................... 105 8 203 2
Mutual Beacon Fund ....................................... 228 50 355 81
Mutual Global Discovery Fund ................................ 602 155 910 275
Franklin Templeton Canadian Core Equity Fund .................. 2,548 7 3,101 1
Franklin Templeton Canadian Large Cap Fund ................... 228 — 312 —
Franklin Templeton Global Blend Fund ......................... — — — —
Franklin Templeton Money Market Fund ........................ — — — —
Franklin Templeton Treasury Bill Fund ......................... — — — —
Franklin Templeton U.S. Money Market Fund .................... — — — —
Franklin Templeton Investments Funds 247