Changes to the underlying Franklin Templeton funds

30 March 2016

We have been notified by Franklin Templeton Investments of changes that will affect the underlying funds into which some Friends Provident International funds invest and that a new Prospectus has recently been published by Franklin Templeton Investment Funds (the “Company”). These changes were effective from 26 January 2016 and are;

Provisions for flexibility for investment via the Shanghai-Hong Kong Stock Connect Scheme (the “Connect Scheme”)

The Company has stated that they are updating the underlying funds offering documents to allow more flexibility for the underlying fund of Templeton Global to invest in eligible securities via the Shanghai-Hong Kong Stock Connect Scheme.

The Connect Scheme is a securities trading and clearing linked program developed by the Stock Exchange of Hong Kong, Hong Kong Exchanges and Clearing Limited, Shanghai Stock Exchange and China Securities Depository and Clearing Corporation Limited, with an aim to achieve mutual stock market access between mainland China and Hong Kong. 

Increase in the expected levels of leverage

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	40%	70%
Templeton Emerging Markets Bond	70%	100%
Templeton Global Total Return	100%	130%
Templeton Global Bond	110%	130%

All other details of the underlying funds and the Friends Provident International funds remain unchanged.  For further details of these changes, please refer to the Client letter.

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