Franklin Euro Short-Term Money Market Fund

Summary of Fund Objective

The Fund qualifies as a short term money market fund and aims to maintain a high degree of capital preservation and liquidity whilst maximizing returns in the Euro currency by investing in a portfolio of high quality Euro dominated debt related securities, money market securities and cash denominated in Euro.

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 very short-term debt securities of superior quality and money market instruments issued in euro by any government or corporation worldwide. Such securities have historically proven to be highly stable and conservative in nature.
• Other significant risks include:
  Counterparty risk: the risk of failure of financial institutions or agents (when serving as a counterparty to financial contracts) to perform their obligations, whether due to insolvency, bankruptcy or other causes.
  Credit risk: the risk of loss arising from default that may occur if an issuer fails to make principal or interest payments when due. This risk is higher if the Fund holds low-rated, sub-investment-grade securities.
  Liquidity risk: the risk that arises when an asset cannot be sold on a timely basis due to security-specific factors or adverse market conditions, which may impact the Fund’s ability to meet redemption requests, particularly if they are increasing.

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.