Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund

Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund Review

Fund objective

Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund aims to achieve long-term capital appreciation by investing primarily in small cap companies incorporated in the Asia region (except Japan) or whose principal business activity is in the Asia region. Asian 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 AC Asia ex-Japan Small Cap Index (Index).  If the market capitalisation of companies allowed by the Index falls below USD 2 billion, a security held by the Fund will only qualify for additional purchases if its market capitalisation does not exceed USD 2 billion.  The Fund has the flexibility to invest in transferable equity and fixed income securities of issuers worldwide.

Investment Strategy

Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund will invest primarily in equity securities of small cap companies (under USD 2 billion in market capitalisation at time of purchase) registered under the laws of, or doing significant business in, Asia (excluding Japan). It may also invest, amongst others, in (i) participatory notes, or (ii)  equity and debt securities of issuers worldwide.

Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund may invest in derivatives for the purposes of hedging and/or efficient portfolio management. The Fund may invest up to 10% of its net assets in aggregate in China A-Shares (through Shanghai-Hong Kong or Shenzhen-Hong Kong Stock Connect) and in China B-Shares.

Who is Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund suitable for?

Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund is only suitable for investors who:

• seek capital appreciation
• seek to invest in equity securities of small cap companies located in the Asia region
• plan to hold their investment for the medium to long-term

Dividend or Income payout frequency: N.A.

For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.

What are the key risks of Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund?

The value of Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.

Some of the key risks associated with Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund are described below:

Market and Credit Risks

• Your investments are subject to equity market risks in Asia
• Investing in emerging markets involve certain risks
• Your investments are subject to currency movements risks

Liquidity Risks

• Fund liquidity may be affected during exceptional circumstances
• The Fund is not listed

Product-Specific Risks

• You are exposed to risks associated with small and mid-sized companies

Investment Fees and Charges

For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.

Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.

Where can I get more details about Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund

• Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund Fact Sheet (Open in New Window)
• Franklin Templeton Investments – Franklin Templeton Asian Smaller Companies Fund Product Highlight Sheet (Open in New Window)
• Speak to a licensed licensed financial adviser

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