printmgr file - Templeton

STATEMENTS OF NET ASSETS
As at December 31, 2012 and 2011
2012 2011
(000s) (000s)
Assets
Investment in securities — at fair value
Cash
$ 493,909 $ 536,399
Canadian 89 —
Foreign
Receivables
51,628 24,968
Held in Trust 857 960
Investment securities sold 1,671 1,194
Capital units sold 112 418
Interest and withholding tax 6,316 7,337
Unrealized gain on derivatives 1,615 8,711
Other assets (Note 8) 22 18
Total assets
Liabilities
Payables
556,219 580,005
Investment securities purchased 6,614 5,984
Capital units redeemed 23 240
Management fees 75 59
Foreign capital taxes payable 92 119
Accrued expenses 80 70
Unrealized loss on derivatives 2,882 1,770
Total liabilities 9,766 8,242
Net assets $ 546,453 $ 571,763
Total net assets per series (000s)
Series A $44,533 $28,883
Series F 5,242 2,477
Series I 1,066 142
Series O 495,612 540,261
Number of units outstanding (Note 3)
Series A 6,397,540 4,410,425
Series F 683,748 346,028
Series I 93,549 13,280
Series O 57,311,747 67,732,822
Net assets per unit — CAD
Series A $6.96 $6.55
Series F 7.67 7.16
Series I 11.39 10.68
Series O 8.65 7.97
Net assets per unit — USD
Series A $7.01 $6.43
Series F 7.72 7.03
Series I 11.47 10.49
Series O 8.71 7.82
Cost of investments held (000s) $477,039 $544,393
Signed on behalf of Franklin Templeton Investments Corp.
(Signed) DON REED
Director
Franklin Strategic Income Fund
(Signed) GHION SHEWANGZAW
Director
STATEMENTS OF OPERATIONS
For the periods ended December 31, 2012 and 2011
2012 2011
(000s) (000s)
Investment income
Dividends (net of foreign taxes withheld (000s) —
2012 — $0; 2011 — $1) $ 32 $ 25
Income (loss) on derivatives
Interest (net of foreign taxes withheld (000s) —
172 251
2012 — $243; 2011 — $468) 32,569 34,850
Total investment income
Expenses
32,773 35,126
Management fees (Note 4(a)) 701 556
Transfer agent fees (Note 4(c)) 143 111
Custodian fees 9 12
Legal fees 8 3
Audit fees 25 25
Unitholder reporting costs 15 10
Independent review committee fees 1 1
Registration fees 19 19
Other expenses (Note 7) 93 88
Total expenses 1,014 825
Expenses waived/paid by Manager (Note 6) (277) (149)
Net expenses 737 676
Net investment income (loss) 32,036 34,450
Realized and unrealized gain (loss) on
investments and transaction costs
Net realized gain (loss) on investments and
derivatives
Net realized and/or unrealized foreign exchange
1,569 (6,222)
gain (loss)
Net change in unrealized appreciation
(depreciation) in value of investments and
25,871 (4,660)
derivatives 16,656 (921)
Transaction costs (Note 11) (569) (462)
Net gain (loss) on investments 43,527 (12,265)
Increase (decrease) in net assets from operations $ 75,563 $ 22,185
Increase (decrease) in net assets from operations
per series (000s)
Series A $3,750 $376
Series F 415 105
Series I 36 (1)
Series O 71,362 21,705
Increase (decrease) in net assets from operations
per unit
Series A $0.73 $0.09
Series F 0.89 0.24
Series I 1.07 (0.09)
Series O 1.10 0.31
The accompanying notes are an integral part of these financial statements.
98 Franklin Templeton Investments Funds