Increase in Leverage to the underlying Franklin Templeton funds

01 November 2016

We have been notified by Franklin Templeton Investments of increases in leverage that will affect the underlying funds into which some Friends Provident International funds invest. These changes were effective from September 2016 (the “Effective Date”).

This applies to the following funds:

  • R97 Templeton Asian Bond
  • L13 Templeton Emerging Markets Bond
  • L03 Templeton Global Total Return (EUR)
  • L04 Templeton Global Total Return (USD)
  • L05 Templeton Global Bond (EUR)
  • L06 Templeton Global Bond (USD)

The expected level of leverage for the underlying funds has changed as detailed in the following table:

  Expected level of leverage before Effective Date Expected level of leverage from Effective Date
Templeton Asian Bond                                         70%                                         200%
Templeton Emerging Markets Bond                                         100%                                         200%
Templeton Global Total Return                                         130%                                         200%
Templeton Global Bond                                         130%                                         200%

All other details of the underlying funds and the Friends Provident International funds remain unchanged.

Should you have any questions regarding these changes, please contact International Funds & Investments.