Structured investment products explained

Please forward this error screen to 75. Franklin Templeton Investments is one of the world’s largest asset management structured investment products explained with more than 65 years of investment experience and have offices in over 35 countries.

We offer Hong Kong investors a range of over 50 funds, which invest across different market sectors, geographies, asset classes and investment styles. Please select your investor type on the right hand side. These investments involve significant liquidity and counterparty default risks which may result in loss of part or entire amount of your investment. Some sub-funds may invest in defaulted debt securities on which the issuers are not currently making interest payment and in securities of companies undergoing restructuring. These investments are subject to significant liquidity and counterparty default risks. Some sub-funds may invest in emerging market securities which are exposed to higher risk of economic, political and regulatory changes that may pose additional risk to the sub-funds.

Some sub-funds may invest primarily in a single market or sector or in small-sized companies. These investments are subject to higher concentration risk and are more volatile than funds following a more diversified policy. Some sub-funds may invest extensively in financial derivative instruments for hedging purposes as well as investment purposes which may expose the sub-funds to the potential for significant losses and as a result may be subject to counterparty and volatility risk. Some sub-funds may invest in investment funds, i. Underlying Funds, which will be subject to the risks associated with such Underlying Funds. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment.

Investors should not invest in the Fund unless the intermediary who sells it to you has advised you that it is suitable for you and has explained how it is consistent with your investment objectives. A sub-fund apply an actively managed asset allocation approach and could experience losses if the Manager’s judgment about markets, future volatility, interest rates, industries, sectors and regions prove to be incorrect. A sub-fund may invest in non-investment grade debt securities, and as a result may be subject to liquidity and counterparty default risks. The sub-funds may invest in emerging market securities which are exposed to higher risk of economic, political and regulatory changes that may pose additional risk to the sub-funds.

The sub-funds’ value may be affected by exchange control regulations and changes in exchange rates. Investors should not invest in the sub-funds unless the intermediary who sells them to you has advised you that they are suitable for you and has explained how they are consistent with your investment objectives. The Master Fund may invest in debt securities and money market instruments, and as a result may be subject to interest rate risk caused by movements in interest rates. The Master Fund may invest in low-rated or non-investment grade debt securities, and as a result may be subject to liquidity and counterparty default risks, which may result in loss of part or entire amount of your investment. The Master Fund may invest in emerging market securities. These investments are subject to higher risk of economic, political and regulatory changes, thus posing additional risk to the Company. The Master Fund may invest in debt securities that are not readily marketable or may be subject to restrictions on resale.

These investments may be subject to liquidity risk. The Fund may at its discretion pay dividends out of the capital or out of gross income of the Fund while paying all or part of the Fund’s fees and expenses out of the capital of the Fund, which results in effectively paying dividends out of capital. Investors should not invest in the Company unless the intermediary who sells it to you has advised you that it is suitable for you and has explained how it is consistent with your investment objectives. The Fund invests in emerging market securities which are exposed to higher risk of economic, political and regulatory changes that may pose additional risk to the Fund.

The Fund invests primarily in a single market and is subject to higher concentration risk and as a result may be more volatile than funds following a more diversified policy. The Fund’s value may be affected by exchange control regulations and changes in exchange rates. Investors should not invest in the funds unless the intermediary who sells it to you has advised you that it is suitable for you and has explained how it is consistent with your investment objectives. The Fund seeks long-term appreciation of assets by investing primarily in A-Shares publicly issued and listed according to laws within China. China, cash equivalent assets, and other types of securities permitted by CSRC. The Fund is subject to risks associated with MRF arrangement, including quota restrictions, eligibility requirements, Mainland China tax risk and different market practices. The Fund invests primarily in securities related to the Mainland China market and is subject to higher concentration risk and as a result may be more volatile than funds following a more diversified policy.