Templeton Emerging Markets Smaller Companies Fund

Franklin Templeton Investment Funds

Summary of Fund Objective

The Fund aims to achieve long-term capital appreciation by investing primarily in equity securities and depository receipts of small-cap companies registered or performing a substantial part of their business in emerging markets or holding a substantial part of their participations in small-cap companies registered in emerging markets. Emerging markets small cap companies are those having a market capitalisation at the time of initial purchase within the range of the market capitalisations of companies included in the MSCI Emerging Markets Small Cap Index (Index).

Investor Profile

  • Seeking capital appreciation by investing in emerging markets small cap securities.
  • Planning to hold their investment for the medium to long term.

Chetan Sehgal: The Technology Transformation

An overview of our thinking on emerging markets from Chetan Sehgal, Director of Portfolio Management, Franklin Templeton Emerging Markets.

Key Points

  • A technological transformation is taking place in emerging markets
  • Buying sustainable earnings at a discount to the market
  • Addressing environmental, social and governance (ESG) factors

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MANAGEMENT

Chetan Sehgal

  • Singapore
  • Years With Firm: 24
  • Years Of Experience: 24

What are the Key Risks?

The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments.

  • The Fund invests mainly in the equity securities of smaller companies in emerging markets. Such securities have historically been subject to significant price movements, frequently to a greater extent than equity markets globally. As a result, the performance of the Fund can fluctuate considerably over time.
  • Other significant risks include: currency risk, emerging markets risk, liquidity risk, operational risk, Shanghai-Hong Kong Stock Connect risk.
For full details of all of the risks applicable to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin Templeton Investment Funds.