FRANKLIN TEMPLETON INVESTMENT FUNDS: SOCIÉTÉ D''''INVESTISSEMENT À CAPITAL VARIABLE 2011 potx

FRANKLIN TEMPLETON INVESTMENT FUNDS
SOCIÉTÉ D'INVESTISSEMENT À CAPITAL VARIABLE
UNAUDITED SEMI-ANNUAL
REPORT
R.C.S. B35177
DECEMBER 31, 2011
FRANKLIN TEMPLETON
INTERNATIONAL SERVICES S.A.
26, boulevard Royal
L-2449 Luxembourg
Tel:
(352) 46 66 67 1
Fax:
(352) 46 66 76
FTIF AR RGBR 12/11
FRANKLIN TEMPLETON INVESTMENT FUNDS
société d’investissement à capital variable
UNAUDITED SEMI-ANNUAL REPORT
FOR THE PERIOD ENDED DECEMBER 31, 2011
This report shall not constitute an offer or a solicitation of an offer to buy shares of Franklin Templeton Investment Funds (the
‘‘Company’’). Subscriptions are to be made on the basis of the current Explanatory Memorandum and its addenda accompanied
by a copy of the latest available audited report and, if published thereafter, the latest unaudited semi-annual report.
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Contents
General Information 3
Report of the Investment Managers 5
Fund Performance 6
Statement of Net Assets 8
Statement of Operations and Changes in Net Assets 20
Statistical Information 32
Notes to the Financial Statements 45

Franklin Asian Flex Cap Fund 72
Franklin Biotechnology Discovery Fund 74
Franklin Euroland Core Fund 76
Franklin European Core Fund 78
Franklin European Dividend Fund 80
Franklin European Growth Fund 82
Franklin European Small-Mid Cap Growth Fund 83
Franklin Global Growth Fund 85
Franklin Global Real Estate Fund 87
Franklin Global Small-Mid Cap Growth Fund 89
Franklin Gold and Precious Metals Fund 91
Franklin High Yield Fund 93
Franklin Income Fund 97
Franklin India Fund 102
Franklin MENA Fund 104
Franklin Natural Resources Fund 106
Franklin Real Return Fund 109
Franklin Strategic Income Fund 111
Franklin Technology Fund 120
Franklin U.S. Dollar Liquid Reserve Fund 122
Franklin U.S. Equity Fund 123
Franklin U.S. Focus Fund 125
Franklin U.S. Government Fund 126
Franklin U.S. Low Duration Fund 127
Franklin U.S. Opportunities Fund 132
Franklin U.S. Small-Mid Cap Growth Fund 134
Franklin U.S. Total Return Fund 136
Franklin World Perspectives Fund 142
Franklin Mutual Beacon Fund 148
Franklin Mutual Euroland Fund 152

Franklin Mutual European Fund 154
Franklin Mutual Global Discovery Fund 157
Franklin Templeton Global Allocation Fund 161
Franklin Templeton Global Equity Strategies Fund 167
Franklin Templeton Global Fundamental Strategies Fund 172
Franklin Templeton Global Growth And Value Fund 180
Franklin Templeton Japan Fund 184
Templeton Asian Bond Fund 187
Templeton Asian Growth Fund 189
Templeton Asian Smaller Companies Fund 191
Templeton Bric Fund 193
Templeton China Fund 195
Templeton Eastern Europe Fund 198
Templeton Emerging Markets Fund 200
Templeton Emerging Markets Balanced Fund 203
Templeton Emerging Markets Bond Fund 205
Templeton Emerging Markets Smaller Companies Fund 209
Templeton Euro Government Bond Fund 212
Templeton Euro High Yield Fund 213
Templeton Euro Liquid Reserve Fund 216
Templeton Euro Short Term Money Market Fund 217
Templeton Euroland Fund 218
Templeton European Fund 220
Templeton European Corporate Bond Fund 223
Templeton European Total Return Fund 225
Templeton Frontier Markets Fund 227
Templeton Global Fund 230
Templeton Global (Euro) Fund 233
Templeton Global Aggregate Bond Fund 236
Templeton Global Balanced Fund 238

Templeton Global Bond Fund 242
Templeton Global Bond (Euro) Fund 246
Templeton Global Equity Income Fund 248
Templeton Global High Yield Fund 250
Templeton Global Income Fund 255
Templeton Global Smaller Companies Fund 261
Templeton Global Total Return Fund 264
Templeton Growth (Euro) Fund 272
Templeton Korea Fund 276
Templeton Latin America Fund 277
Templeton Thailand Fund 279
Templeton U.S. Value Fund 280
Franklin Templeton Investments Office Directory 282
FRANKLIN TEMPLETON INVESTMENT FUNDS
All the Funds marked with “★” above are currently not authorised for public distribution in Hong Kong and
are not available to Hong Kong investors.
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société d’investissement à capital variable
26, boulevard Royal, L-2449 Luxembourg, Grand-Duchy of Luxembourg
(Registered with the registre de commerce et des sociétés, Luxembourg, under number B 35 177)
G I (  D , )
BOARD OF DIRECTORS
Chairman
The Honorable Nicholas F. Brady
Chairman and Chief Executive Ofcer
CHOPTANK PARTNERS, INC.
16 North Washington Street
Easton, MD 21601, U.S.A.
Directors
Duke of Abercorn KG

Director
TITANIC QUARTER
Barons Court
Omagh BT78 4EZ, Northern Ireland, U.K.
Vijay C. Advani
Executive Vice President-Global Advisory Services
FRANKLIN RESOURCES, INC.
One Franklin Parkway
San Mateo, CA 94403-1906, U.S.A.
Richard H. Frank
Chief Executive Ofcer
DARBY OVERSEAS INVESTMENTS, LTD
1133 Connecticut Avenue, NW, Suite 400
Washington DC 20036, U.S.A.
Mark G. Holowesko
President
HOLOWESKO PARTNERS LTD
Shipston House
Box N-7776, West Bay Street, Lyford Cay,
Nassau, Bahamas
James J. K. Hung
President and Chief Executive Officer
ASIA SECURITIES GLOBAL LTD
Room 63, 21st floor, New World Tower 1
18 Queen’s Road, Central
Hong Kong
Gregory E. Johnson
President and Chief Executive Officer
FRANKLIN RESOURCES, INC.
One Franklin Parkway

San Mateo, CA 94403-1906, U.S.A.
Geoffrey A. Langlands
Managing Partner
LANGLANDS CONSULTORIA Ltda
Avenida das Américas 500
Bloco 6, Sala 227 (Downtown)
Rio de Janeiro – RJ
CEP 22640-100, Brazil
Gregory E. McGowan
Executive Vice President and General Counsel
TEMPLETON WORLDWIDE, INC.
300 S.E. 2
nd
Street, 11
th
Floor
Fort Lauderdale, FL 33301, U.S.A.
Dr J. B. Mark Mobius
Executive Chairman
TEMPLETON’S EMERGING MARKETS GROUP
7 Temasek Boulevard, # 38-03 Suntec Tower One
Singapore 038987
David E. Smart
Director and Co-Chief Executive Officer
FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED
The Adelphi Building, 1-11 John Adam Street
London WC2N 6HT, England, U.K.
The Honourable Trevor G. Trefgarne
Chairman
ENTREPRISE GROUP LIMITED

11 High Street
Accra, Ghana
CONDUCTING OFFICERS:
William Lockwood
26, boulevard Royal, L-2449 Luxembourg
Grand-Duchy of Luxembourg
Denise Voss
26, boulevard Royal, L-2449 Luxembourg
Grand-Duchy of Luxembourg
REGISTERED OFFICE:
26, boulevard Royal, L-2449 Luxembourg
Grand-Duchy of Luxembourg
PRINCIPAL DISTRIBUTOR:
TEMPLETON GLOBAL ADVISORS LIMITED
P.O. Box N-7759, Lyford Cay, Nassau, Bahamas
INVESTMENT MANAGERS:
FRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED
5 Morrison Street
Edinburgh EH3 8BH, Scotland
U.K.
Franklin Templeton Investment Management Limited manages the following Funds:
Franklin Euroland Core Fund;
Franklin European Core Fund;
Franklin European Growth Fund*;
Franklin European Dividend Fund;
Franklin Templeton Global Allocation Fund¶
Franklin Templeton Global Equity Strategies Fund***
Franklin Templeton Global Fundamental Strategies Fund†
Franklin World Perspectives Fund****;
Templeton Euro Government Bond Fund;

Templeton Euro High Yield Fund**;
Templeton Euro Liquid Reserve Fund;
Templeton Euro Short Term Money Market Fund;
Templeton Euroland Fund;
Templeton European Corporate Bond Fund‡;
Templeton European Fund;
Templeton European Total Return Fund**;
Templeton Global Aggregate Bond Fund;
Templeton Global Balanced Fund**;
Templeton Global Equity Income Fund;
Templeton Global Fund; and
Templeton Global (Euro) Fund.
* Franklin Templeton Investment Management Limited has been appointed as Co-
Investment Manager of this Fund, together with Franklin Templeton Institutional LLC.
** Franklin Templeton Investment Management Limited has been appointed as Co-
Investment Manager of these Funds, together with Franklin Advisers, Inc.
*** Franklin Templeton Investment Management Limited has been appointed as Co-
Investment Manager of this Fund, together with (i) Franklin Advisers, Inc., (ii) Franklin
Mutual Advisers, LLC (iii) Templeton Asset Management Limited and (iv) Templeton
Global Advisors Limited.
**** Franklin Templeton Investment Management Limited has been selected and
appointed by the lead Investment Manager Franklin Advisers, Inc. as Co-Investment
Manager of this Fund together with (i) Franklin Templeton Investments Corp., (ii)
Franklin Templeton Investments Japan Limited, (iii) Franklin Templeton Investimentos
(Brasil) Ltda.and (iv) Franklin Templeton Investment Trust Management Co. Limited.
‡ Franklin Templeton Investment Management Limited has been appointed as Co-
Investment Manager for this Fund, together with (i) Franklin Templeton Institutional
LLC and (ii) Franklin Advisers, Inc.
¶ Franklin Templeton Investments Management Limited has been appointed as Co-
Investment Manager of this Fund, together with (i) Franklin Mutual Advisers LLC, (ii)

Franklin Templeton Institutional LLC, (iii) Templeton Asset Management Limited, (iv)
Templeton Global Advisors Limited, (v) Templeton Investment Counsel LLC and (vi)
Franklin Advisers, Inc.
† Franklin Templeton Investment Management Limited has been appointed as Co-
Investment Manager for this Fund, together with (i) Franklin Advisers, Inc., (ii)
Templeton Global Advisors Limited and (iii) Franklin Mutual Advisers, LLC.
TEMPLETON ASSET MANAGEMENT LIMITED
7 Temasek Boulevard
# 38-03 Suntec Tower One
Singapore 038987
Templeton Asset Management Limited manages the following Funds:
Franklin Templeton Global Allocation Fund*
Franklin Templeton Global Equity Strategies Fund**;
Templeton Asian Growth Fund;
Templeton Asian Smaller Companies Fund;
Templeton BRIC Fund;
Templeton China Fund;
Templeton Eastern Europe Fund;
Templeton Emerging Markets Fund;
Templeton Emerging Markets Balanced Fund†;
Templeton Emerging Markets Smaller Companies Fund;
Templeton Frontier Markets Fund;
Templeton Korea Fund;
Templeton Latin America Fund; and
Templeton Thailand Fund.
* Templeton Asset Management Limited has been appointed as Co-Investment
Manager of this Fund, together with (i) Franklin Mutual Advisers LLC, (ii) Franklin
Templeton Institutional LLC, (iii) Franklin Advisers, Inc, (iv) Templeton Global
Advisors Limited, (v) Templeton Investment Counsel LLC and (vi) Franklin Templeton
Investment Management Limited.

** Templeton Asset Management Limited has been appointed as Co-Investment
Manager of this Fund, together with (i) Franklin Advisers, Inc., (ii) Franklin Mutual
Advisers, LLC, (iii) Franklin Templeton Investment Management Limited and (iv)
Templeton Global Advisors Limited.
† Templeton Asset Management Limited has been appointed as Co-Investment
Manager of this Fund, together with Franklin Advisers, Inc.
FRANKLIN ADVISERS, INC.
One Franklin Parkway
San Mateo, CA 94403-1906, U.S.A.
Franklin Advisers, Inc. manages the following Funds:
Franklin Asian Flex Cap Fund;
Franklin Biotechnology Discovery Fund;
Franklin Gold and Precious Metals Fund;
Franklin High Yield Fund;
Franklin Income Fund;
Franklin India Fund;
Franklin MENA Fund;
Franklin Natural Resources Fund;
Franklin Real Return Fund;
Franklin Strategic Income Fund;
Franklin Technology Fund;
Franklin Templeton Global Allocation Fund; (co-managed Ω)
Franklin Templeton Global Equity Strategies Fund**;
Franklin Templeton Global Fundamental Strategies Fund‡;
Franklin World Perspectives Fund¶;
Franklin U.S. Dollar Liquid Reserve Fund;
Franklin U.S. Equity Fund;
Franklin U.S. Focus Fund;
Franklin U.S. Government Fund;
Franklin U.S. Opportunities Fund;

Franklin U.S. Small-Mid Cap Growth Fund;
Franklin U.S. Total Return Fund;
Franklin U.S. Low Duration Fund;
Templeton Asian Bond Fund;
Templeton Emerging Markets Balanced Fund****
FRANKLIN TEMPLETON INVESTMENT FUNDS FRANKLIN TEMPLETON INVESTMENT FUNDS
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Templeton Emerging Markets Bond Fund;
Templeton Euro High Yield Fund*;
Templeton European Corporate Bond Fund***;
Templeton European Total Return Fund*;
Templeton Global Balanced Fund*;
Templeton Global Bond Fund;
Templeton Global Bond (Euro) Fund;
Templeton Global High Yield Fund;
Templeton Global Income Fund†; and
Templeton Global Total Return Fund.
* Franklin Advisers, Inc. has been appointed as Co-Investment Manager of these
Funds, together with Franklin Templeton Investment Management Limited.
** Franklin Advisers, Inc. has been appointed as Co-Investment Manager of this Fund,
together with (i) Franklin Mutual Advisers, LLC, (ii) Templeton Asset Management
Limited, (iii) Franklin Templeton Investment Management Limited and (iv) Templeton
Global Advisors Limited.
*** Franklin Advisers, Inc. has been appointed as Co-Investment Manager of this
Fund, together with (i) Franklin Templeton Investment Management Limited and (ii)
Franklin Templeton Institutional LLC.
****Franklin Advisers, Inc. has been appointed as Co-Investment Manager of this
Fund, together with Templeton Asset Management Limited.
‡ Franklin Advisers, Inc. has been appointed as Co-Investment Manager of this Fund,
together with (i) Franklin Mutual Advisers, LLC, (ii) Franklin Templeton Investment

Management Limited and (iii) Templeton Global Advisors Limited.
¶ Franklin Advisers, Inc. has been appointed as lead Investment Manager of this
Fund and has selected and appointed as Co-Investment Managers (i) Franklin
Templeton Investments Corp., (ii) Franklin Templeton Investments Japan Limited, (iii)
Franklin Templeton Investimentos (Brasil) Ltda., (iv) Franklin Templeton Investment
Management Limited and (v) Franklin Templeton Investment Trust Management Co.
Limited.
† Franklin Advisers, Inc. has been appointed as Co-Investment Manager of this Fund,
together with Templeton Global Advisors Limited.
Ω Franklin Advisers, Inc. has been appointed as Co-Investment Manager of this
Fund, together with (i) Franklin Mutual Advisers LLC, (ii) Franklin Templeton
Institutional LLC, (iii) Templeton Asset Management Limited, (iv) Templeton Global
Advisors Limited, (v) Templeton Investment Counsel LLC and (vi) Franklin Templeton
Investment Management Limited.
FRANKLIN TEMPLETON INSTITUTIONAL LLC
600 Fifth Avenue,
New York, NY 10020, U.S.A.
Franklin Templeton Institutional LLC manages the following Funds:
Franklin European Growth Fund**;
Franklin European Small-Mid Cap Growth Fund;
Franklin Global Growth Fund;
Franklin Global Real Estate Fund;
Franklin Global Small-Mid Cap Growth Fund;
Franklin Templeton Global Allocation Fund*
Franklin Templeton Global Growth and Value Fund; and
Templeton European Corporate Bond Fund***.
* Franklin Templeton Institutional LLC has been appointed as Co-Investment
Manager of this Fund, together with (i) Franklin Mutual Advisers LLC, (ii) Franklin
Advisers, Inc., (iii) Templeton Asset Management Limited, (iv) Templeton Global
Advisors Limited, (v) Templeton Investment Counsel LLC and (vi) Franklin Templeton

Investment Management Limited.
** Franklin Templeton Institutional LLC has been appointed as Co-Investment
Manager of this Fund, together with Franklin Templeton Investment Management
Limited.
*** Franklin Templeton Institutional LLC has been appointed as Co-Investment
Manager of this Fund, together with (i) Franklin Templeton Investment Management
Limited and (ii) Franklin Advisers, Inc.
TEMPLETON GLOBAL ADVISORS LIMITED
P.O. Box N-7759
Lyford Cay, Nassau, Bahamas
Templeton Global Advisors Limited manages the following Funds:
Franklin Templeton Global Equity Strategies Fund*;
Franklin Templeton Global Allocation Fund**;
Franklin Templeton Global Fundamental Strategies Fund†;
Templeton Global Income Fund***. and
Templeton Growth (Euro) Fund.
* Templeton Global Advisors Limited has been appointed as Co-Investment Manager
of this Fund, together with (i) Franklin Mutual Advisers, LLC, (ii) Templeton Asset
Management Limited, (iii) Franklin Templeton Investment Management Limited and
(iv) Franklin Advisers, Inc.
** Templeton Global Advisors Limited has been appointed as Co-Investment Manager
of this Fund, together with (i) Franklin Mutual Advisers LLC, (ii) Franklin Advisers,
Inc., (iii) Templeton Asset Management Limited, (iv) Franklin Templeton Institutional
LLC., (v) Templeton Investment Counsel LLC and (vi) Franklin Templeton Investment
Management Limited.
*** Templeton Global Advisers Limited has been appointed as Co-Investment
Manager of this Fund, together with Franklin Advisers Inc.
† Templeton Global Advisors Limited has been appointed as Co-Investment Manager
of this Fund, together with (i) Franklin Mutual Advisers, LLC, (ii) Franklin Templeton
Investment Management Limited and (iii) Franklin Advisers, Inc.

FRANKLIN TEMPLETON INVESTMENTS CORP.
200 King Street West, Suite 1500,
Toronto Ontario M5H 3T4, Canada
Franklin Templeton Investments Corp. manages the following Funds:
Franklin World Perspectives Fund*;
Templeton Global Smaller Companies Fund, and
Templeton U.S. Value Fund.
* Franklin Templeton Investments Corp. has been selected and appointed by the lead
Investment Manager Franklin Advisers, Inc. as Co-Investment Manager of this Fund
together with (i) Franklin Advisers, Inc., (ii) Franklin Templeton Investments Japan
Limited, (iii) Franklin Templeton Investimentos (Brasil) Ltda., (iv) Franklin Templeton
Investment Management Limited and (v) Franklin Templeton Investment Trust
Management Co. Limited.
FRANKLIN MUTUAL ADVISERS, LLC
101 John F. Kennedy Parkway
Short Hills, NJ 07078-2789, U.S.A
Franklin Mutual Advisers, LLC manages the following Funds:
Franklin Mutual Beacon Fund;
Franklin Mutual Euroland Fund;
Franklin Mutual European Fund;
Franklin Mutual Global Discovery Fund;
Franklin Templeton Global Allocation Fund*
Franklin Templeton Global Equity Strategies Fund†; and
Franklin Templeton Global Fundamental Strategies Fund‡.
* Franklin Mutual Advisers LLC has been appointed as Co-Investment Manager of
this Fund, together with (i) Franklin Advisers, Inc., (ii) Franklin Templeton Institutional
LLC, (iii) Templeton Asset Management Limited, (iv) Templeton Global Advisors
Limited, (v) Templeton Investment Counsel LLC and (vi) Franklin Templeton
Investment Management Limited.
† Franklin Mutual Advisers, LLC has been appointed as Co-Investment Manager of

this Fund, together with (i) Franklin Advisers, Inc., (ii) Templeton Asset Management
Limited, (iii) Franklin Templeton Investment Management Limited and (iv) Templeton
Global Advisors Limited.
‡ Franklin Mutual Advisers, LLC has been appointed as Co-Investment Manager of
this Fund, together with (i) Franklin Advisers, Inc., (ii) Templeton Global Advisors
Limited and (iii) Franklin Templeton Investment Management Limited.
FRANKLIN TEMPLETON INVESTMENTS JAPAN LIMITED
Kanematsu Building, 6th Floor
14-1, Kyobashi 2 – chome
Chuo-Ku, Tokyo, Japan
Franklin Templeton Investments Japan Limited manages the following Funds:
Franklin World Perspectives Fund*; and
Franklin Templeton Japan Fund.
* Franklin Templeton Investments Japan Limited has been selected and appointed by
the lead Investment Manager Franklin Advisers, Inc. as Co-Investment Manager of this
Fund together with (i) Franklin Templeton Investments Corp., (ii) Franklin Templeton
Investimentos (Brasil) Ltda., (iii) Franklin Templeton Investment Management Limited
and (iv) Franklin Templeton Investment Trust Management Co. Limited.
FRANKLIN TEMPLETON INVESTIMENTOS (Brasil) Ltda.
Avenue Brigadeiro Faria Lima 3311, 5o andar,
São Paulo 04538-133, Brazil
Franklin Templeton Investimentos (Brasil) Ltda manages the following Fund:
Franklin World Perspectives Fund*.
* Franklin Templeton Investimentos (Brasil) Ltda. has been selected and appointed by
the lead Investment Manager Franklin Advisers, Inc. as Co-Investment Manager of this
Fund together with (i) Franklin Templeton Investments Corp., (ii) Franklin Templeton
Investments Japan Limited, (iii) Franklin Templeton Investment Management Limited
and (iv) Franklin Templeton Investment Trust Management Co. Limited.
FRANKLIN TEMPLETON INVESTMENT TRUST MANAGEMENT
CO. LIMITED

12 Youido-dong, Youngdungpo-gu,
Seoul, Korea
Franklin Templeton Investment Trust Management Co. Limited manages the following
Fund:
Franklin World Perspectives Fund*.
* Franklin Templeton Investment Trust Management Co. Limited has been selected and
appointed by the lead Investment Manager Franklin Advisers, Inc. as Co-Investment
Manager of this Fund together with (i) Franklin Templeton Investments Corp., (ii)
Franklin Templeton Investments Japan Limited, (iii) Franklin Templeton Investimentos
(Brasil) Ltda. (iv) Franklin Templeton Investment Management Limited and.(v)
Templeton International Counsel LLC.
TEMPLETON INVESTMENT COUNSEL, LLC
300 Southeast 2nd Street
Ft. Lauderdale, FL33301, U.S.A.
Templeton Investment Counsel, LLC manages the following Fund:
Franklin Templeton Global Allocation Fund*.
* Templeton Investment Counsel LLC has been appointed as Co-Investment Manager
of this Fund, together with (i) Franklin Mutual Advisers LLC, (ii) Franklin Templeton
Institutional LLC, (iii) Templeton Asset Management Limited, (iv) Templeton Global
Advisors Limited, (v) Franklin Advisers, Inc. and (vi) Franklin Templeton Investment
Management Limited.
CUSTODIAN, LISTING AGENT AND PRINCIPAL PAYING AGENT:
J.P. MORGAN BANK LUXEMBOURG S.A.
European Bank and Business Centre
6 Route de Trèves, L-2633 Senningerberg
Grand-Duchy of Luxembourg
REGISTRAR AND TRANSFER, CORPORATE,
DOMICILIARY AND ADMINISTRATIVE AGENT:
FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.A.
26, boulevard Royal, L-2449 Luxembourg

Grand-Duchy of Luxembourg
AUDITOR:
PRICEWATERHOUSECOOPERS S.à r.l.
400, route d’Esch, B.P. 1443, L-1014 Luxembourg
Grand-Duchy of Luxembourg
LEGAL ADVISERS:
ELVINGER, HOSS & PRUSSEN
2, place Winston Churchill, B.P. 425, L-2014 Luxembourg
Grand-Duchy of Luxembourg
G I (  D , ) ()
FRANKLIN TEMPLETON INVESTMENT FUNDS
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R   I M
The six months under review continued to be dominated by sovereign debt concerns in Europe. As for the European economy,
growth was tepid at best, and several market participants feared that the region might tumble into recession in early 2012.
Europe’s weakness and mounting domestic economic problems has led to a slowdown in growth in Asia, especially China, and in
other parts of the world. Tellingly, Brazil’s economy registered no quarterly growth in gross domestic product for the third quarter
of 2011. In India, as in Brazil, slowing growth together with still-elevated inflation has generated fears of a period of “stagflation”.
At the same time, although the U.S. economy grew by just 1.8% in the third quarter of 2011, data indicators in the U.S. suggested
some improvement in economic prospects there.
Improvements in the macroeconomic picture, combined with U.S. corporations’ solid earnings and strong cash balances meant
that, in a generally lackluster period for global stocks, U.S. equities tended to outperform. This outperformance reflected the U.S.’s
status as a perceived safe haven in times of stress (a status that also benefited U.S. Treasuries and the U.S. dollar against the euro in
the six months under review) as well as the ability of U.S. companies to wring profits from their businesses by reducing costs and
boosting productivity. This U.S. outperformance broke a long spell of significant superior performance by emerging markets. In
the final months of 2011, emerging-market stocks underperformed quite significantly, whereas their previous strength had brought
about a marked decline in U.S. stock valuations.
On the fixed-income side, in spite of some well-founded forecasts, U.S. Treasuries continued to perform relatively better than
risk assets. Notwithstanding a downgrading of U.S. sovereign debt by Standard & Poor’s at the beginning of August 2011, yields
stayed below 2% for 10-year paper for much of the period under review. Longer-dated Treasuries did even better as yields dropped

in response to a renewed bond-buying program by the U.S. Federal Reserve, which began in August. Corporate debt issued by
companies with sound fundamentals have consistently seemed to offer better medium- and long-term value, in our view, yet they
were volatile in the six months under review, and yield spreads widened somewhat over benchmark government bonds, especially
for noninvestment-grade debt. Financial bond issues have been rather indiscriminately hurt due to their association with European
sovereign debt.
Amid so much economic uncertainty, commodities and gold prices have experienced volatility. Commodity prices surged in
the first half of calendar 2011, but moved broadly lower during the six months under review, although the prices of oil and
agricultural products maintained part of their gains from the early part of 2011. While disappointing for commodities investors
and commodity-based economies, the recent drop in prices (even if temporary) has helped boost the purchasing power of U.S.
consumers. However, the drop in the euro against the U.S. dollar has neutralized the positive effect of a fall in global commodity
prices for Europeans and for consumers in a number of Asian countries. Gold also started to lose some of its luster as a safe-haven
asset, hitting a six-month trough at the end of December 2011, as investors seemed to prefer the much greater liquidity offered by
the U.S. dollar, and as traders, including banks, sought to raise cash.
One conundrum for much of the period was the continued resilience of the euro in the face of the political and fiscal crises
besetting the eurozone. This conundrum seemed close to being resolved toward the end of the six months under review, as the
euro lost ground to the U.S. dollar. The U.S. currency also showed signs of stabilizing against other developed-nation currencies.
However, the gradual, controlled appreciation of the Chinese yuan has stalled recently as inflation pressures lessened in China and
growth slowed. In addition, the Swiss central bank intervened to cap the Swiss franc’s strong rise against the euro, and next, the
Bank of Japan sold the yen in large quantities in a bid to stave off the appreciation of the Japanese currency. Like the U.S. dollar,
the yen has benefited from a “flight to quality”, but its strong rise against the euro and smaller rise against the U.S. dollar has been
hurting Japan’s already low growth prospects.
However, some chinks of light have also appeared. Toward the end of calendar 2011, the European authorities mapped out a
path toward a more disciplined fiscal framework for the eurozone and the European Central Bank made available €490 billion in
loans at very low interest rates for banks. This money helped ease the severe funding pressure that European banks were under,
and may help to stabilize sovereign bond markets, at least for a while. Prolonged weakness of the euro could help at least the more
competitive European economies to export their way to recovery.
It may well turn out that so much bad news has been priced into financial markets that participants may be pleasantly surprised,
especially if central banks and governments become increasingly aggressive in their attempts to stabilize economies and if the U.S.
continues to recover. In these circumstances, in our view it would seem wise to expect at least some dimming of the rally in U.S.
Treasuries and a rise in bond yields, especially as the inflationary consequences of “quantitative easing” become more apparent.

Prices that already factor in low growth (or even recession), together with strong balance sheets and the disappearance of risky
merger activity, could make corporate debt appear more attractive on both sides of the Atlantic.
At the same time, we remain conscious that risks abound, not least in Europe, where a relapse into recession (however mild)
currently remains a strong possibility, and where markets are expected to absorb a high volume of government debt issuance in the
months ahead. Finally, while we see solid reasons to believe that the Chinese authorities have the wherewithal to manage China’s
transition to slightly slower but healthier and more sustainable growth, the ongoing deflation of the property bubble and ongoing
social pressures will need to be monitored.
THE INVESTMENT MANAGERS
January, 2012
The information stated in this report represents historical data and is not an indication of future results.
FRANKLIN TEMPLETON INVESTMENT FUNDS
6 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 7
Franklin Asian Flex Cap Fund 15 Nov 06 USD (17.5) (16.2) 55.2 10.3 – 15.8
Franklin Biotechnology Discovery Fund 3 Apr 00 USD (2.2) 9.6 42.9 27.9 25.6 11.9
Franklin Euroland Core Fund 28 Nov 08 EUR (16.1) (14.7) 14.4 – – 15.3
Franklin European Core Fund 29 Jul 11 EUR – – – – – (4.0)
Franklin European Dividend Fund 29 Jul 11 EUR – – – – – (1.9)
Franklin European Growth Fund 29 Dec 00 EUR (4.0) (7.3) 66.8 2.1 11.5 (7.1)
Franklin European Small Mid Cap Growth Fund 3 Dec 01 EUR (11.1) (17.6) 52.6 (10.5) 76.0 77.0
Franklin Global Growth Fund 29 Dec 00 USD (16.5) (11.3) 50.2 (9.3) 31.7 (1.5)
Franklin Global Real Estate Fund 29 Dec 05 USD (12.0) (7.0) 31.0 (35.8) – (20.4)
Franklin Global Small Mid Cap Growth Fund 15 Apr 02 USD (13.2) (13.1) 55.7 2.1 – 93.4
Franklin Gold & Precious Metals Fund 30 Apr 10 USD (13.9) (24.6) – – – (2.0)
Franklin High Yield Fund 1 Mar 96 USD (0.3) 3.7 65.6 24.6 80.8 115.6
Franklin Income Fund 1 Jul 99 USD (3.6) 1.8 52.8 10.8 80.3 97.9
Franklin India Fund 25 Oct 05 USD (28.7) (31.6) 56.8 14.8 – 92.9
Franklin MENA Fund 16 Jun 08 USD (8.5) (15.4) 2.2 – – (58.1)
Franklin Mutual Beacon Fund 7 Jul 97 USD (7.3) (2.6) 37.4 (17.4) 26.6 94.0
Franklin Mutual Euroland Fund 14 Oct 08 EUR (17.9) (16.8) 11.2 – – 7.0
Franklin Mutual European Fund* 3 Apr 00 EUR (9.2) (8.2) 24.2 (17.5) 38.4 38.4

Franklin Mutual Global Discovery Fund 25 Oct 05 USD (13.6) (7.0) 21.7 0.0 – 24.3
Franklin Natural Resources Fund 12 Jul 07 USD (16.3) (12.7) 78.5 – – (5.4)
Franklin Real Return Fund 30 Apr 10 USD (2.6) (0.4) – – – 3.0
Franklin Strategic Income Fund 12 Jul 07 USD (1.8) 1.6 37.5 – – 26.8
Franklin Technology Fund 3 Apr 00 USD (10.9) (5.6) 83.7 30.9 30.1 (32.2)
Franklin Templeton Global Allocation Fund 29 Jul 11 USD – – – – – (8.3)
Franklin Templeton Global Equity Strategies Fund 15 May 08 USD (17.4) (13.8) 29.1 – – (13.1)
Franklin Templeton Global Fundamental Strategies Fund 25 Oct 07 USD (10.8) (4.9) 24.7 – – (2.6)
Franklin Templeton Global Growth and Value Fund 9 Sep 02 USD (15.6) (10.9) 39.2 (13.2) – 67.5
Franklin Templeton Japan Fund 1 Sep 00 JPY (14.9) (16.9) (21.8) (64.8) (40.6) (59.4)
Franklin U.S. Dollar Liquid Reserve Fund 1 Jun 94 USD (0.1) (0.2) (0.5) 5.3 14.1 59.0
Franklin U.S. Equity Fund 1 Jul 99 USD (6.0) (3.9) 37.6 (3.6) 12.6 52.9
Franklin U.S. Focus Fund 15 May 08 USD (7.7) (3.5) 64.1 – – (1.2)
Franklin U.S. Government Fund 28 Feb 91 USD 3.4 6.2 16.8 31.0 55.5 160.9
Franklin U.S. Low Duration Fund 29 Aug 03 USD (0.2) 0.2 6.3 7.9 – 17.3
Franklin U.S. Opportunities Fund 3 Apr 00 USD (8.7) (3.9) 64.3 15.1 46.8 (28.2)
Franklin U.S. Small-Mid Cap Growth Fund 29 Dec 00 USD (11.4) (4.4) 70.9 7.3 39.6 21.7
Franklin U.S. Total Return Fund 29 Aug 03 USD 1.2 4.9 37.6 24.9 – 44.2
Franklin World Perspectives Fund 14 Oct 08 USD (12.6) (9.6) 48.7 – – 29.5
Templeton Asian Bond Fund 25 Oct 05 USD (5.1) (0.6) 36.5 37.4 – 67.4
Templeton Asian Growth Fund 30 Jun 91 USD (16.2) (14.9) 124.6 45.0 398.9 225.1
Templeton Asian Smaller Companies Fund 14 Oct 08 USD (14.8) (15.6) 134.4 – – 145.9
Templeton BRIC Fund 25 Oct 05 USD (25.4) (26.9) 54.6 (10.6) – 46.4
F P  B C
P C  D , 
FRANKLIN TEMPLETON INVESTMENT FUNDS
Launch
Date
Base
Currency

6
Months
%
1
Year
%
3
Years
%
5
Years
%
10
Years
%
Since
Launch
%
6 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 7
F P  B C
P C  D ,  ()
Templeton China Fund 1 Sep 94 USD (19.9) (18.3) 56.9 26.9 291.6 133.0
Templeton Eastern Europe Fund 10 Nov 97 EUR (33.1) (40.0) 48.7 (43.9) 105.5 119.8
Templeton Emerging Markets Balanced Fund 29 Apr 11 USD (13.8) – – – – (14.4)
Templeton Emerging Markets Bond Fund 5 Jul 91 USD (6.7) (1.6) 64.6 45.5 161.2 609.1
Templeton Emerging Markets Fund 28 Feb 91 USD (16.5) (15.9) 67.0 0.7 199.5 211.2
Templeton Emerging Markets Smaller Companies Fund 18 Oct 07 USD (25.4) (28.1) 80.1 – – (32.1)
Templeton Euro Government Bond Fund 8 Jan 99 EUR 1.9 1.6 7.3 9.1 31.9 35.0
Templeton Euro High Yield Fund 17 Apr 00 EUR (5.5) (2.8) 62.9 4.5 55.1 26.9
Templeton Euro Liquid Reserve Fund 1 Jun 94 EUR 0.2 0.7 4.2 6.7 15.5 17.9

Templeton Euro Short Term Money Market Fund 23 Oct 09 EUR 0.4 0.7 – – – 1.1
Templeton European Fund† 8 Jan 99 EUR (13.9) (9.1) 8.3 (40.5) (11.7) 13.9
Templeton European Corporate Bond Fund 30 Apr 10 EUR (2.2) (1.1) – – – (1.5)
Templeton European Fund† 17 Apr 91 EUR (11.0) (7.6) 20.2 (33.6) (9.1) (6.3)
Templeton European Total Return Fund 29 Aug 03 EUR (1.6) (0.9) 20.2 (3.3) – 9.8
Templeton Frontier Markets Fund 14 Oct 08 USD (20.3) (23.8) 37.7 – – 32.5
Templeton Global (Euro) Fund 26 Apr 91 EUR (7.4) (7.3) 23.2 (30.4) (14.6) 144.8
Templeton Global Aggregate Bond Fund 29 Oct 10 USD (5.1) (0.8) – – – (3.7)
Templeton Global Balanced Fund 1 Jun 94 USD (12.0) (5.7) 21.1 (9.3) 57.0 137.6
Templeton Global Bond (Euro) Fund 29 Aug 03 EUR 1.2 2.1 18.4 22.5 – 35.8
Templeton Global Bond Fund 28 Feb 91 USD (7.0) (3.1) 28.5 53.0 172.4 355.7
Templeton Global Equity Income Fund 27 May 05 USD (14.4) (10.2) 19.0 (28.9) – (5.1)
Templeton Global Fund 28 Feb 91 USD (18.5) (11.3) 22.6 (27.3) 31.0 165.5
Templeton Global High Yield Fund 27 Sep 07 USD (4.0) 0.2 55.2 – – 21.2
Templeton Global Income Fund 27 May 05 USD (10.4) (6.6) 31.8 9.4 – 38.9
Templeton Global Smaller Companies Fund 8 Jul 91 USD (26.3) (25.6) 52.7 (32.0) 54.8 187.4
Templeton Global Total Return Fund 29 Aug 03 USD (6.4) (1.1) 52.4 63.4 – 136.9
Templeton Growth (Euro) Fund 9 Aug 00 EUR (3.5) (3.6) 36.8 (25.2) (8.8) (6.7)
Templeton Korea Fund 8 May 95 USD (28.9) (26.4) 46.9 (22.1) 70.1 (44.7)
Templeton Latin America Fund‡ 28 Feb 91 USD (18.5) (22.5) 84.3 27.0 447.7 320.7
Templeton Thailand Fund 20 Jun 97 USD (7.2) (5.6) 142.4 56.7 370.0 47.1
Templeton U.S. Value Fund 29 Aug 03 USD (13.9) (11.4) 36.8 (30.5) – 4.4
Data source
Performance – Franklin Templeton Investments
* The inception date is for the primary class A (Acc) EUR, however the sub-fund originally launched on April 3, 2000.
† The inception date is for the primary class A (Acc) EUR, however the sub-fund originally launched on April 17, 1991.
‡ Fund performance prior to Sept 1996 excluded from calculation because a different portfolio allocation strategy was in use.
Apart from the above mentioned exceptions, all of the figures above are for Class A distribution “A(dis)” Shares with all income reinvested (total
return) in base currency. Where Class A(dis) Shares are not in issue, Class A accumulation “A(acc)” Shares are shown. Information on other share
classes is available on request. This report does not constitute or form part of any offer of shares or an invitation to apply for shares. Subscriptions

are to be made on the basis of the current simplified prospectus accompanied by the current full prospectus and its addendum as the case may be,
a copy of the latest available audited annual report and, if published thereafter, the latest unaudited semi-annual report. The price of shares and
income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is no guarantee of
future performance. Currency fluctuations may affect the value of investments.
FRANKLIN TEMPLETON INVESTMENT FUNDS
Launch
Date
Base
Currency
6
Months
%
1
Year
%
3
Years
%
5
Years
%
10
Years
%
Since
Launch
%
All the Funds marked with “★” above are currently not authorised for public distribution in Hong Kong and are not available to
Hong Kong investors.
8 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 9

ASSETS
Investment in securities at market value (note 2(b)) 122,205,680,650 15,208,747 132,265,913 23,456,272 3,357,571
Cash 4,909,029,486 183,515 25,671,918 702,691 5,846
Time deposits and repurchase agreements (note 19) 1,193,009,655 – – – –
Amounts receivable on sale of investments 613,762,661 239,658 79,417 – –
Amounts receivable on subscriptions 401,720,907 27,966 1,456,418 200,493 –
Interest and dividends receivable, net 1,137,571,256 5,647 – 5,098 5,214
Other receivables 14,775,960 2,275 – 33,793 755
Unrealised profit on forward foreign exchange contracts (note 4) 356,653,927 – – – –
Unrealised profit on futures contracts (note 7) 72,497 – – – –
Unrealised profit on credit default swap contracts (note 5) 3,933,198 – – – –
TOTAL ASSETS 130,836,210,197 15,667,808 159,473,666 24,398,347 3,369,386
LIABILITIES
Amounts payable on purchases of investments 108,952,317 – 226,350 – –
Amounts payable on redemptions 382,399,938 28,579 414,182 63,574 –
Bank overdraft 6,352,091 – – – –
Unrealised loss on forward foreign exchange contracts (note 4) 112,320,220 – – – –
Unrealised loss on interest rate swap contracts (note 6) 631,323,695 – – – –
Unrealised loss on futures contracts (note 7) 34,247 – – – –
Option contracts at market value (note 8) 154,209 – – – –
Investment management fees payable (note 3) 97,039,618 12,966 122,928 16,418 2,451
Taxes and expense payable 255,265,391 66,919 144,149 19,006 6,259
TOTAL LIABILITIES 1,593,841,726 108,464 907,609 98,998 8,710
TOTAL NET ASSETS 129,242,368,471 15,559,344 158,566,057 24,299,349 3,360,676
THREE YEAR ASSET SUMMARY
June 30, 2011 149,396,147,607 20,687,634 134,126,169 29,083,141 –
June 30, 2010 88,411,687,219 29,920,224 74,572,597 20,658,937 –
June 30, 2009 47,048,939,530 29,819,379 70,628,479 17,234,474 –
S  N A
 D , 

TOTAL Franklin
Asian
Flex Cap
Fund
Franklin
Biotechnology
Discovery
Fund
Franklin
Euroland
Core
Fund
Franklin
European
Core
Fund*
(USD) (USD) (USD) (EUR) (EUR)
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
*These Funds were launched on July 29, 2011
8 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 9
The accompanying notes form an integral part of these financial statements
5,425,407 294,219,250 211,288,441 88,078,635 118,417,464 55,742,573 185,275,664
109,299 16,143,302 7,602,115 237,932 2,496,074 69,883 8,103,417
– – – 2,300,000 – 3,500,000 –
– 216,276 820,201 152,374 27,087 202,620 910,000
43,853 2,154,409 1,210,132 115,606 339,606 66,781 160,832
15,706 699,771 703,849 30,351 497,338 244,895 241,332
834 68,256 80,323 15,633 2,545 11,616 –
– – – – – – –

– – – – – – –
– – – – – – –
5,595,099 313,501,264 221,705,061 90,930,531 121,780,114 59,838,368 194,691,245
– 1,622,684 97,062 – – 9,796 1,856,421
– 1,013,001 326,850 31,379 450,250 96,490 188,802
– – – – – – –
– – – 167,369 135,655 – 51,049
– – – – – – –
– – – – – – –
– – – – – – –
3,664 231,322 158,885 62,999 103,011 50,351 136,947
6,763 240,761 161,719 64,720 197,018 67,590 110,631
10,427 3,107,768 744,516 326,467 885,934 224,227 2,343,850
5,584,672 310,393,496 220,960,545 90,604,064 120,894,180 59,614,141 192,347,395

– 391,908,724 362,431,476 125,272,812 159,982,185 80,420,038 81,271,337
– 249,493,564 252,497,144 57,266,803 64,793,655 36,904,320 5,565,752
– 31,894,597 59,920,404 32,915,531 19,258,439 28,541,329 –
S  N A
 D ,  ()
Franklin
European
Dividend
Fund*
Franklin
European
Growth
Fund
Franklin European
Small-Mid

Cap Growth
Fund
Franklin
Global Growth
Fund
Franklin
Global
Real Estate
Fund
Franklin
Global Small-Mid
Cap Growth
Fund
Franklin
Gold and
Precious Metals
Fund
(EUR) (EUR) (EUR) (USD) (USD) (USD) (USD)
FRANKLIN TEMPLETON INVESTMENT FUNDS
10 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 11
ASSETS
Investment in securities at market value (note 2(b)) 3,139,416,555 1,149,826,317 1,091,495,029 53,940,198 375,271,037
Cash 94,476,200 14,404,392 3,102,007 4,208,999 20,750,391
Time deposits and repurchase agreements (note 19) – – 43,000,000 – –
Amounts receivable on sale of investments 13,009,834 1,665,000 9,513,922 127 2,421,129
Amounts receivable on subscriptions 22,027,829 8,280,260 6,121,686 64,560 3,496,734
Interest and dividends receivable, net 64,655,962 14,619,943 – – 240,284
Other receivables – 12,861 8,638 774 –
Unrealised profit on forward foreign exchange contracts (note 4) 696,937 95,552 – – –
Unrealised profit on futures contracts (note 7) – – – – –

Unrealised profit on credit default swap contracts (note 5) – – – – –
TOTAL ASSETS 3,334,283,317 1,188,904,325 1,153,241,282 58,214,658 402,179,575
LIABILITIES
Amounts payable on purchases of investments – 3,328,913 – 200,187 3,802,651
Amounts payable on redemptions 13,515,754 6,714,872 5,712,273 138,508 6,078,342
Bank overdraft – – – – –
Unrealised loss on forward foreign exchange contracts (note 4) – – 109,001 186,670 7,642
Unrealised loss on interest rate swap contracts (note 6) – – – – –
Unrealised loss on futures contracts (note 7) – – – – –
Option contracts at market value (note 8) – – – – –
Investment management fees payable (note 3) 2,171,985 835,901 983,511 59,444 314,233
Taxes and expense payable 3,449,740 1,200,486 1,344,549 82,466 330,170
TOTAL LIABILITIES 19,137,479 12,080,172 8,149,334 667,275 10,533,038
TOTAL NET ASSETS 3,315,145,838 1,176,824,153 1,145,091,948 57,547,383 391,646,537
THREE YEAR ASSET SUMMARY
June 30, 2011 3,732,281,743 1,280,943,588 1,796,873,179 82,585,108 490,921,697
June 30, 2010 2,681,403,357 653,230,165 1,024,275,135 95,002,312 104,946,439
June 30, 2009 1,870,189,148 397,970,744 610,549,176 17,944,197 37,802,931
S  N A
 D ,  ()
Franklin
High
Yield
Fund
Franklin
Income
Fund
Franklin
India
Fund

Franklin
MENA
Fund

Franklin
Natural
Resources
Fund
(USD) (USD) (USD) (USD) (USD)
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
10 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 11
The accompanying notes form an integral part of these financial statements
16,712,929 353,430,342 512,828,685 306,606,300 685,476,502 13,764,828 2,426,481,913
1,480,986 69,216,705 27,019,712 – 26,527,029 333,448 57,397,745
– – – – – – –
155,000 7,366,832 1,535,541 66,670,000 3,096,558 159,481 6,680,000
– 2,008,071 1,371,555 4,032,361 1,247,003 134,138 25,513,372
81,738 5,285,454 85,681 – 1,132,342 17,418 8,647,528
– 289,630 85,409 102,774 77,892 – 30,030
34,702 1,297,988 – – – – –
– – – – – – –
46,770 2,209,857 – – – – –
18,512,125 441,104,879 542,926,583 377,411,435 717,557,326 14,409,313 2,524,750,588
94,474 7,786,654 802,248 – – 309 701,356
99,789 476,762 2,186,630 2,555,305 1,786,673 – 7,529,239
– – – 1,191 – – –
– – – – 173,748 249,335 18,461
– – – – – – –
– – – – – – –

– – – – – – –
11,699 246,552 454,251 81,906 569,929 12,004 1,235,404
23,260 554,472 493,315 262,877 591,829 23,828 1,840,758
229,222 9,064,440 3,936,444 2,901,279 3,122,179 285,476 11,325,218
18,282,903 432,040,439 538,990,139 374,510,156 714,435,147 14,123,837 2,513,425,370

19,811,267 404,005,632 702,719,617 365,836,976 886,610,311 21,838,086 1,979,331,386
4,638,420 191,900,788 264,049,900 267,260,935 665,871,864 8,945,646 2,498,161,733
– 90,479,128 89,066,631 332,851,770 328,454,736 3,908,033 2,393,496,020
S  N A
 D ,  ()
Franklin
Real
Return
Fund
Franklin
Strategic
Income
Fund
Franklin
Technology
Fund
Franklin
U.S. Dollar
Liquid Reserve
Fund
Franklin
U.S.
Equity
Fund

Franklin
U.S.
Focus
Fund
Franklin
U.S.
Government
Fund
(USD) (USD) (USD) (USD) (USD) (USD) (USD)
FRANKLIN TEMPLETON INVESTMENT FUNDS
12 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 13
ASSETS
Investment in securities at market value (note 2(b)) 504,548,480 2,304,697,842 94,729,541 82,916,165 45,035,841
Cash 28,237,296 39,900,170 52,048 5,642,372 2,054,901
Time deposits and repurchase agreements (note 19) – – – – –
Amounts receivable on sale of investments 2,900,702 1,618,682 3,677,295 838,218 301,011
Amounts receivable on subscriptions 2,046,293 6,724,963 1,636,957 990,762 5,466
Interest and dividends receivable, net 3,246,557 680,337 27,732 642,171 61,319
Other receivables 537,229 108,286 832 67,092 4,681
Unrealised profit on forward foreign exchange contracts (note 4) 687,743 – – 232,693 –
Unrealised profit on futures contracts (note 7) 5,000 – – – –
Unrealised profit on credit default swap contracts (note 5) 1,120,851 – – 195,329 –
TOTAL ASSETS 543,330,151 2,353,730,280 100,124,405 91,524,802 47,463,219
LIABILITIES
Amounts payable on purchases of investments 7,666,444 – 149,581 12,477,873 89,089
Amounts payable on redemptions 229,212 4,877,594 357,851 129,844 15,807
Bank overdraft – – – – –
Unrealised loss on forward foreign exchange contracts (note 4) – 936,141 – – –
Unrealised loss on interest rate swap contracts (note 6) – – – – –
Unrealised loss on futures contracts (note 7) – – – – –

Option contracts at market value (note 8) – – – – –
Investment management fees payable (note 3) 284,291 1,845,701 81,548 45,228 35,919
Taxes and expense payable 340,348 1,840,598 105,280 86,586 48,096
TOTAL LIABILITIES 8,520,295 9,500,034 694,260 12,739,531 188,911
TOTAL NET ASSETS 534,809,856 2,344,230,246 99,430,145 78,785,271 47,274,308
THREE YEAR ASSET SUMMARY
June 30, 2011 305,940,938 2,707,293,531 125,613,097 71,795,236 51,187,415
June 30, 2010 156,448,721 879,151,288 37,277,528 56,575,483 32,889,202
June 30, 2009 91,095,674 452,577,568 24,424,393 27,699,155 26,153,247
S  N A
 D ,  ()
Franklin
U.S. Low
Duration
Fund*
Franklin
U.S.
Opportunities
Fund
Franklin U.S.
Small Mid-Cap
Growth
Fund
Franklin
U.S. Total
Return
Fund
Franklin
World
Perspectives

Fund
(USD) (USD) (USD) (USD) (USD)
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
*This Fund had its name changed on September 16, 2011 (previously Franklin U.S. Ultra Short Bond Fund)
**This Fund was launched on July 29, 2011
12 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 13
The accompanying notes form an integral part of these financial statements
863,537,763 6,684,761 2,226,862,512 972,147,146 23,806,892 57,103,620 547,494,187
1,262,137 834,344 255,479 664,196 1,751,921 1,038,821 13,788,905
9,343,290 – 183,772,218 32,066,706 – 2,000,000 –
15,201,756 35,323 11,693,764 8,864,025 228,466 124,352 21,617,348
4,979,056 – 5,070,099 1,797,088 – 42,922 637,907
1,686,107 10,073 5,908,109 2,261,845 83,314 118,576 3,449,695
453,493 11,633 2,375,961 352,546 1,896 11,164 151,991
3,340,811 – 8,355 – – – –
61,704 – – – 5,793 – –
– – – – – – –
899,866,117 7,576,134 2,435,946,497 1,018,153,552 25,878,282 60,439,455 587,140,033
1,453,612 2,793 2,173,683 825,065 15,007 53,351 390,058
3,440,782 5,392 7,101,838 3,415,080 – 123,770 396,322
– – – – – – –
– – – 806,942 56,116 204,182 1,434,603
– – – – – – 1,564,625
– – – – – – –
50,760 – – 76,293 – 1,764 25,392
720,345 6,323 1,833,186 782,141 19,678 63,763 495,318
1,788,794 10,812 2,684,251 1,105,533 28,769 71,481 1,219,538
7,454,293 25,320 13,792,958 7,011,054 119,570 518,311 5,525,856
892,411,824 7,550,814 2,422,153,539 1,011,142,498 25,758,712 59,921,144 581,614,177

1,209,141,565 8,667,182 3,077,629,369 1,535,091,327 – 72,485,262 675,413,199
1,208,336,071 9,222,542 2,591,062,545 860,956,429 – 55,677,687 458,235,313
1,106,317,603 14,446,829 2,540,051,273 768,426,316 – 48,381,115 414,325,706
S  N A
 D ,  ()
Franklin
Mutual
Beacon
Fund
Franklin
Mutual
Euroland
Fund
Franklin
Mutual
European
Fund
Franklin
Mutual
Global Discovery
Fund
Franklin
Templeton Global
Allocation
Fund**
Franklin
Templeton
Global Equity
Strategies Fund
Franklin

Templeton Global
Fundamental
Strategies Fund
(USD) (EUR) (EUR) (USD) (USD) (USD) (USD)
FRANKLIN TEMPLETON INVESTMENT FUNDS
14 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 15
ASSETS
Investment in securities at market value (note 2(b)) 85,508,174 11,795,246,700 3,761,643,480 14,491,786,361 158,267,513
Cash 1,436,001 276,646,945 240,712,649 2,727,506 18,585,087
Time deposits and repurchase agreements (note 19) – – 75,000,000 335,000,000 –
Amounts receivable on sale of investments 81,499 49,340 65,517,979 1,894,492 3,460
Amounts receivable on subscriptions 24,933 14,524,145 13,401,263 35,312,335 1,748,011
Interest and dividends receivable, net 89,043 9,428,247 47,379,054 5,447,053 91,414
Other receivables 30,667 55,909 684,390 178,608 163
Unrealised profit on forward foreign exchange contracts (note 4) – – – – –
Unrealised profit on futures contracts (note 7) – – – – –
Unrealised profit on credit default swap contracts (note 5) – – – – –
TOTAL ASSETS 87,170,317 12,095,951,286 4,204,338,815 14,872,346,355 178,695,648
LIABILITIES
Amounts payable on purchases of investments – – 799,568 1,796 927,512
Amounts payable on redemptions 126,689 103,552,287 9,725,313 39,423,588 1,518,628
Bank overdraft – – – – –
Unrealised loss on forward foreign exchange contracts (note 4) – – 60,880,557 12,430,036 –
Unrealised loss on interest rate swap contracts (note 6) – – 18,685,186 – –
Unrealised loss on futures contracts (note 7) – – – – –
Option contracts at market value (note 8) – – – – –
Investment management fees payable (note 3) 49,725 8,615,145 2,498,123 15,082,131 177,122
Taxes and expense payable 88,966 15,134,435 18,423,456 20,746,167 203,416
TOTAL LIABILITIES 265,380 127,301,867 111,012,203 87,683,718 2,826,678
TOTAL NET ASSETS 86,904,937 11,968,649,419 4,093,326,612 14,784,662,637 175,868,970

THREE YEAR ASSET SUMMARY
June 30, 2011 111,341,009 7,525,055,818 4,220,249,357 17,848,692,584 206,440,565
June 30, 2010 64,486,472 7,225,256,114 2,279,041,816 10,393,185,887 37,740,758
June 30, 2009 41,662,310 11,648,307,443 306,350,532 5,003,281,807 9,190,269
S  N A
 D ,  ()
Franklin
Templeton
Global Growth
and Value Fund
Franklin
Templeton
Japan
Fund
Templeton
Asian
Bond
Fund
Templeton
Asian
Growth
Fund
Templeton
Asian Smaller
Companies
Fund
(USD) (JPY) (USD) (USD) (USD)
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
14 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 15

The accompanying notes form an integral part of these financial statements
1,899,275,154 1,824,630,032 456,891,429 968,145,905 29,346,044 5,679,664,395 235,870,130
– 859,929 10,132,647 320,889 1,064,222 229,461,863 2,950,966
132,000,000 43,500,000 – 107,000,000 – – –
12,234,884 2,121 4,607,665 451,606 101,773 17,139,732 363,398
4,460,661 7,851,762 1,174,825 3,470,724 552,941 22,313,168 160,373
5,963,577 775,591 523,880 977,174 196,829 103,020,866 236,376
– 149 374,218 1,580 3,370 990,120 –
– – – – – – –
– – – – – – –
– – – – – – –
2,053,934,276 1,877,619,584 473,704,664 1,080,367,878 31,265,179 6,052,590,144 239,581,243
1,853,756 3,425,019 1,870,279 990,862 792,507 2,529,122 206
4,127,974 4,225,512 2,154,465 1,393,380 58,877 13,356,686 1,519,497
5,666,177 – – – – – –
1,032,827 – – 594,484 11,251 14,745,139 –
– – – – – 19,804,462 –
– – – – – – –
– – – – – – –
2,793,569 2,174,625 622,383 1,436,041 23,619 4,682,100 321,492
2,561,110 1,441,079 840,563 2,192,677 32,414 14,491,415 579,921
18,035,413 11,266,235 5,487,690 6,607,444 918,668 69,608,924 2,421,116
2,035,898,863 1,866,353,349 468,216,974 1,073,760,434 30,346,511 5,982,981,220 237,160,127
2,971,841,661 2,414,132,792 805,406,537 1,319,323,235 25,318,344 6,783,106,769 445,033,992
2,611,189,819 936,951,071 711,325,555 1,007,586,053 – 4,111,146,203 295,588,749
1,707,702,485 670,340,808 418,499,527 938,247,442 – 1,082,133,643 168,712,514
S  N A
 D ,  ()
Templeton
BRIC

Fund
Templeton
China
Fund
Templeton
Eastern
Europe
Fund
Templeton
Emerging
Markets
Fund
Templeton
Emerging Markets
Balanced
Fund
Templeton
Emerging
Markets Bond
Fund
Templeton
Emerging
Markets Smaller
Companies Fund
(USD) (USD) (EUR) (USD) (USD) (USD) (USD)
FRANKLIN TEMPLETON INVESTMENT FUNDS
16 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 17
ASSETS
Investment in securities at market value (note 2(b)) 21,979,131 422,412,259 111,745,679 51,871,175 119,896,854
Cash 722,488 47,405,803 23,013,643 17,482,436 1,398,401

Time deposits and repurchase agreements (note 19) – – – – –
Amounts receivable on sale of investments – – – 3,000,000 –
Amounts receivable on subscriptions 102,531 1,735,089 844,080 171,580 120,087
Interest and dividends receivable, net 498,424 11,743,611 361,155 142,132 14,892
Other receivables – – – 11,576 191,711
Unrealised profit on forward foreign exchange contracts (note 4) – – – – –
Unrealised profit on futures contracts (note 7) – – – – –
Unrealised profit on credit default swap contracts (note 5) – – – – –
TOTAL ASSETS 23,302,574 483,296,762 135,964,557 72,678,899 121,621,945
LIABILITIES
Amounts payable on purchases of investments – – – – –
Amounts payable on redemptions 23,855 1,974,511 3,022,954 259,826 349,124
Bank overdraft – – – – –
Unrealised loss on forward foreign exchange contracts (note 4) – 6,639,308 – – –
Unrealised loss on interest rate swap contracts (note 6) – – – – –
Unrealised loss on futures contracts (note 7) – – – – –
Option contracts at market value (note 8) – – – – –
Investment management fees payable (note 3) 9,501 318,470 32,855 12,914 95,521
Taxes and expense payable 29,145 449,982 100,730 21,440 174,556
TOTAL LIABILITIES 62,501 9,382,271 3,156,539 294,180 619,201
TOTAL NET ASSETS 23,240,073 473,914,491 132,808,018 72,384,719 121,002,744
THREE YEAR ASSET SUMMARY
June 30, 2011 17,918,215 600,780,057 107,876,410 41,550,098 130,959,835
June 30, 2010 18,498,000 400,893,844 107,927,433 24,421,190 132,622,294
June 30, 2009 16,836,124 260,178,626 95,182,412 – 136,356,941
S  N A
 D ,  ()
Templeton
Euro Government
Bond

Fund
Templeton
Euro
High Yield
Fund
Templeton
Euro
Liquid Reserve
Fund
Templeton
Euro Short
Term Money
Market Fund*
Templeton
Euroland
Fund
(EUR) (EUR) (EUR) (EUR) (EUR)
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
*This Fund had its name changed on July 1, 2011 (previously Templeton Euro Money Market Fund)
16 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 17
The accompanying notes form an integral part of these financial statements
95,126,290 12,864,671 48,959,118 754,299,720 858,717,801 493,006,216 19,526,071
3,804,511 482,686 2,388,385 24,039,930 – 5,928,969 2,705,971
– – – – – – –
45 – – 27,823 5,687,930 – 186
423,437 16,069 169,233 3,286,903 4,048,891 3,168,725 473,444
214,886 356,696 1,161,039 543,920 1,769,806 1,058,338 225,970
124,344 776 13,948 101,191 462,083 267,064 2,299
– – 25,466 – – – –

– – – – – – –
– – – – – – –
99,693,513 13,720,898 52,717,189 782,299,487 870,686,511 503,429,312 22,933,941
– – – 3,451,644 8,420 – 1,787,994
277,982 15,093 191,703 1,878,034 1,322,913 260,270 –
– – – – 11,487 – –
– 3,193 – 3,279,220 – 15,195 110,251
– – – – – – –
– 26,460 – – – – –
– – – – – – –
82,531 5,649 33,044 975,751 690,626 414,122 7,421
113,864 11,682 113,735 842,161 1,359,865 593,977 17,913
474,377 62,077 338,482 10,426,810 3,393,311 1,283,564 1,923,579
99,219,136 13,658,821 52,378,707 771,872,677 867,293,200 502,145,748 21,010,362
125,715,499 14,348,471 58,152,467 1,094,274,372 1,114,814,642 557,576,009 17,891,005
117,182,884 10,850,259 70,690,229 355,478,066 925,156,864 542,441,391 –
144,814,010 – 89,996,188 10,932,543 1,002,383,266 472,030,578 –
S  N A
 D ,  ()
Templeton
European
Fund
Templeton
European
Corporate Bond
Fund
Templeton
European
Total Return
Fund

Templeton
Frontier
Markets
Fund
Templeton
Global
Fund
Templeton
Global
(Euro)
Fund
Templeton
Global
Aggregate Bond
Fund
(EUR) (EUR) (EUR) (USD) (USD) (EUR) (USD)
FRANKLIN TEMPLETON INVESTMENT FUNDS
18 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 19
S  N A
 D ,  ()
Templeton
Global
Balanced
Fund
Templeton
Global
Bond
Fund
Templeton
Global

Bond (Euro)
Fund
Templeton
Global
Equity Income
Fund
Templeton
Global High
Yield
Fund
(USD) (USD) (EUR) (USD) (USD)
ASSETS
Investment in securities at market value (note 2(b)) 588,346,663 37,853,826,921 404,546,727 72,216,853 110,148,216
Cash 11,110,471 2,773,518,691 30,420,532 622,420 16,565,768
Time deposits and repurchase agreements (note 19) 6,000,000 100,000,000 – – –
Amounts receivable on sale of investments – 244,401,286 – 73 1,693,165
Amounts receivable on subscriptions 467,827 90,480,140 2,358,530 91,771 1,930,198
Interest and dividends receivable, net 2,740,385 475,498,061 5,475,406 221,557 2,117,416
Other receivables 235,566 1,250,230 46,973 63,997 6,856
Unrealised profit on forward foreign exchange contracts (note 4) – 156,181,715 – – 249,749
Unrealised profit on futures contracts (note 7) – – – – –
Unrealised profit on credit default swap contracts (note 5) – – – – 360,391
TOTAL ASSETS 608,900,912 41,695,157,044 442,848,168 73,216,671 133,071,759
LIABILITIES
Amounts payable on purchases of investments 153 25,404,930 – – 972,332
Amounts payable on redemptions 716,137 122,354,003 1,326,278 43,779 213,427
Bank overdraft – – – – –
Unrealised loss on forward foreign exchange contracts (note 4) 3,086,737 – 1,982,830 – –
Unrealised loss on interest rate swap contracts (note 6) – 439,201,436 – – 169,557
Unrealised loss on futures contracts (note 7) – – – – –

Option contracts at market value (note 8) – – – – –
Investment management fees payable (note 3) 410,720 25,670,054 276,072 61,581 87,923
Taxes and expense payable 1,827,994 105,781,675 1,598,551 191,314 257,751
TOTAL LIABILITIES 6,041,741 718,412,098 5,183,731 296,674 1,700,990
TOTAL NET ASSETS 602,859,171 40,976,744,946 437,664,437 72,919,997 131,370,769
THREE YEAR ASSET SUMMARY
June 30, 2011 737,827,793 46,361,614,603 428,415,072 95,190,839 141,925,489
June 30, 2010 658,907,869 26,724,456,688 347,872,646 90,904,876 57,991,912
June 30, 2009 647,982,642 9,472,784,421 137,972,094 99,738,750 9,856,828
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
18 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 19
436,768,778 145,869,647 20,338,177,238 4,441,283,197 91,718,758 3,035,959,465 149,115,083 13,776,049
– 288,563 856,759,403 40,285,585 165,157 – 314,561 488,935
– 4,000,000 – 37,814,476 1,000,000 2,000,000 8,500,000 –
929,044 769,424 66,249,703 219,952 202,012 124 58 100,000
996,962 171,331 70,336,507 4,345,024 309,424 13,122,468 828,512 197,657
2,783,859 100,116 320,632,870 9,854,055 22,371 8,406,784 – 7,951
143,549 5,668 1,838,823 1,237,638 1,522 180,959 – –
1,248,096 – 192,544,166 – – – – –
– – – – – – – –
– – – – – – – –
442,870,288 151,204,749 21,846,538,710 4,535,039,927 93,419,244 3,059,669,800 158,758,214 14,570,592
246 51,027 13,647,895 – 10 – 2,914,296 –
1,173,563 1,538,131 76,275,396 3,847,656 430,059 8,880,624 967,234 42,895
617,591 – – – – 55,645 – –
– – – 9,896 – 410,651 – 5,912
– – 151,898,429 – – – – –
– – – – – – – –
– – – – – – – –

315,011 125,051 13,543,808 3,716,259 129,404 3,424,119 207,756 11,784
804,954 421,386 41,876,146 7,437,647 1,215,863 3,090,376 196,007 24,156
2,911,365 2,135,595 297,241,674 15,011,458 1,775,336 15,861,415 4,285,293 84,747
439,958,923 149,069,154 21,549,297,036 4,520,028,469 91,643,908 3,043,808,385 154,472,921 14,485,845
522,353,073 272,029,353 22,403,862,469 4,766,968,040 141,639,288 4,013,788,231 180,851,751 26,110,650
186,043,619 237,574,862 9,247,942,075 4,490,061,960 82,332,757 3,000,450,731 149,863,578 30,343,326
97,979,719 125,392,526 2,481,854,834 3,583,682,816 74,580,646 2,234,440,086 118,376,363 16,843,928
S  N A
 D ,  ()
Templeton
Global
Income
Fund
Templeton
Global Smaller
Companies
Fund
Templeton
Global Total
Return
Fund
Templeton
Growth
(Euro)
Fund
Templeton
Korea
Fund
Templeton
Latin

America
Fund
Templeton
Thailand
Fund
Templeton
U.S.
Value
Fund
(USD) (USD) (USD) (EUR) (USD) (USD) (USD) (USD)
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
20 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 21
S  O  C  N A
F  P  D , 
TOTAL Franklin
Asian
Flex Cap
Fund
Franklin
Biotechnology
Discovery
Fund
Franklin
Euroland
Core
Fund
Franklin
European
Core

Fund*
(USD) (USD) (USD) (EUR) (EUR)
149,396,147,607 20,687,634 134,126,169 29,083,141 –
(1,791,933,015) – – – –
147,604,214,592 20,687,634 134,126,169 29,083,141 –

449,900,758 107,190 84,017 107,148 25,497
2,304,531,533 – 300 – –
2,732,205 247 59 1,485 365
27,622,495 – – 130,807 –
1,081,166 – – – –
2,693,074 – 121 36 –
2,788,561,231 107,437 84,497 239,476 25,862
611,562,574 84,190 668,543 97,623 11,692
160,270,838 29,943 200,656 25,769 2,828
28,671,945 3,483 32,835 2,846 540
33,760,448 5,570 1,383 2,759 295
3,757,973 7,054 10,361 4,691 3,813
324,293 117 703 23 –
54,158,948 – – – –
170,663,984 19,912 280,138 19,370 2,715
2,694,220 – – – –
35,001,855 54,633 19,420 – –
20,677,344 379 18,495 – –
90,330,094 6,037 43,663 7,414 3,255
19,952,058 2,186 16,265 3,223 337
1,231,826,574 213,504 1,292,462 163,718 25,475
(2,513,941) (8,575) – – (2,515)
1,229,312,633 204,929 1,292,462 163,718 22,960
1,559,248,598 (97,492) (1,207,965) 75,758 2,902

23,473,481 (746,934) 7,534,666 (707,119) 760
(3,088,763,450) – – – –
232,609 – – – –
920,626 – – – –
(6,621,028) – – – –
(83,901,851) (7,485) 1,112 83 (13,526)
(1,595,411,015) (851,911) 6,327,813 (631,278) (9,864)
(15,520,902,437) (2,676,713) (9,711,162) (3,912,194) (123,607)
537,687,944 – – – –
41,775 – – – –
(28,314) – – – –
5,306,275 – – – –
(583,232,636) – – – –
(648,916,506) (305) 49 4,769 121

(17,805,454,914) (3,528,929) (3,383,300) (4,538,703) (133,350)
38,801,952,843 1,863,973 105,986,954 3,229,258 3,493,930
(37,586,294,727) (3,424,294) (78,163,766) (2,963,251) –
278,900 (736) – (82) 96
1,215,937,016 (1,561,057) 27,823,188 265,925 3,494,026
(1,772,328,223) (38,304) – (511,014) –

(556,391,207) (1,599,361) 27,823,188 (245,089) 3,494,026
129,242,368,471 15,559,344 158,566,057 24,299,349 3,360,676
24.68% (81.55)% (6.01)% 14.98%
NET ASSETS AT THE BEGINNING OF THE PERIOD
Currency translation adjustment
INCOME
Dividends (net of withholding taxes)
Interest on bonds (net of withholding taxes)

Bank interest
Securities lending (note 9)
Interest on swaps
Sundry income
TOTAL INCOME
EXPENSES
Investment management fees (note 3)
Administration and transfer agency fees
Subscription tax (note 10)
Custodian fees
Audit, printing and publishing expenses
Bank charges
Interest expenses on swaps
Class A(dis) and Class A(acc) shares’ maintenance charges (note 13)
Class AX(acc) shares’ maintenance charges (note 13)
Class B(dis) and Class B(acc) shares’ maintenance and service charges (note 13)
Class C(dis) and Class C(acc) shares’ maintenance and service charges (note 13)
Class N(dis) and Class N(acc) shares’ distribution charges (note 13)
Other charges
TOTAL EXPENSES
Expenses reimbursement (note 16)
NET EXPENSES
NET PROFIT/(LOSS) FROM INVESTMENTS
Net realised profit/(loss) on sale of investments
Net realised profit/(loss) on forward foreign exchange contracts
Net realised profit/(loss) on futures contracts
Net realised profit on options contracts
Net realised (loss) on credit default swap contracts
Net realised profit/(loss) on foreign exchange transactions
NET REALISED PROFIT/(LOSS) FOR THE PERIOD

Change in net unrealised appreciation/(depreciation) on:
Investments
Forward foreign exchange contracts
Financial futures contracts
Options contracts
Credit default swap contracts
Interest rate swap contracts
Foreign exchange transactions
NET INCREASE/(DECREASE) IN NET
ASSETS AS A RESULT OF OPERATIONS

MOVEMENT OF CAPITAL
Issue of shares
Redemption of shares
Equalisation (note 12)
Dividends paid/accumulated (note 18)
NET INCREASE/(DECREASE) IN NET ASSETS
AS A RESULT OF MOVEMENT IN CAPITAL
NET ASSETS AT THE END OF THE PERIOD
Portfolio Turnover Ratio (note 21)
The accompanying notes form an integral part of these financial statements
*These Funds were launched on July 29, 2011
FRANKLIN TEMPLETON INVESTMENT FUNDS
20 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 21
S  O  C  N A
F  P  D ,  ()
Franklin
European
Dividend
Fund*

Franklin
European
Growth
Fund
Franklin European
Small-Mid
Cap Growth
Fund
Franklin
Global Gowth
Fund
Franklin
Global
Real Estate
Fund
Franklin
Global Small-Mid
Cap Growth
Fund
Franklin
Gold and
Precious Metals
Fund
(EUR) (EUR) (EUR) (USD) (USD) (USD) (USD)
– 391,908,724 362,431,476 125,272,812 159,982,185 80,420,038 81,271,337
– – – – – – –
– 391,908,724 362,431,476 125,272,812 159,982,185 80,420,038 81,271,337

56,783 3,547,477 2,799,206 830,934 1,696,890 712,699 758,842
– – – – – – 19

524 29,076 30,685 631 631 693 –
– – – – – – –
– – – – – – –
– 60 – 4,164 – 789 –
57,307 3,576,613 2,829,891 835,729 1,697,521 714,181 758,861
14,836 1,485,253 1,096,587 426,821 684,475 335,770 736,114
3,884 365,160 292,675 125,573 186,616 85,722 202,978
617 57,691 34,903 11,739 31,921 15,091 26,488
316 42,086 35,146 7,451 8,277 7,178 9,526
3,827 11,818 11,131 19,875 12,833 7,357 12,089
– 516 1,566 102 39 44 697
– – – – – – –
2,793 439,019 306,152 81,510 219,739 147,283 184,814
– – – – – – –
– – 408 – 69,285 12,590 –
– – – – 100,446 – –
3,344 338,262 131,394 35,425 121,292 34,522 85,228
410 40,767 34,024 13,474 18,825 8,796 18,388
30,027 2,780,572 1,943,986 721,970 1,453,748 654,353 1,276,322
(1,997) – – (14) – – –
28,030 2,780,572 1,943,986 721,956 1,453,748 654,353 1,276,322
29,277 796,041 885,905 113,773 243,773 59,828 (517,461)
(39,023) (6,167,897) (5,243,970) (2,558,536) (1,589,675) 4,020,187 302,921
– – – (1,011,851) (1,952,407) – (3,197,183)
– – – – – – –
– – – – – – –
– – – – – – –
(2,608) 283,512 137,186 (55,348) 49,415 1,430 134,948
(12,354) (5,088,344) (4,220,879) (3,511,962) (3,248,894) 4,081,445 (3,276,775)
99,650 (13,419,573) (31,811,861) (18,596,444) (17,632,432) (14,484,623) (31,822,005)

– – – (232,631) (873,305) – (306,305)
– – – – – – –
– – – – – – –
– – – – – – –
– – – – – – –
330 27,946 41,417 (238,138) (873,127) (7,846) (307,816)

87,626 (18,479,971) (35,991,323) (22,579,175) (22,627,758) (10,411,024) (35,712,901)
5,492,332 87,057,440 40,186,810 23,304,230 21,039,861 10,709,044 188,383,976
(7,661) (145,363,533) (141,038,136) (34,865,012) (36,932,423) (20,699,775) (41,608,405)
12,375 (61,625) (164,902) (28,338) (7,549) (3,291) 13,388
5,497,046 (58,367,718) (101,016,228) (11,589,120) (15,900,111) (9,994,022) 146,788,959
– (4,667,539) (4,463,380) (500,453) (560,136) (400,851) –

5,497,046 (63,035,257) (105,479,608) (12,089,573) (16,460,247) (10,394,873) 146,788,959
5,584,672 310,393,496 220,960,545 90,604,064 120,894,180 59,614,141 192,347,395
11.37% (6.73)% (76.67)% (18.61)% (21.54)% (44.30)% (89.08)%
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
22 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 23
3,732,281,743 1,280,943,588 1,796,873,179 82,585,108 490,921,697
– – – – –
3,732,281,743 1,280,943,588 1,796,873,179 82,585,108 490,921,697

322,960 11,057,865 7,450,392 423,787 1,851,674
136,188,240 28,665,455 – – 45
– 127 16,479 16 –
– – – – –
– – – – –
256,805 77,903 – 1,830 –

136,768,005 39,801,350 7,466,871 425,633 1,851,719
13,242,364 5,142,974 7,014,021 391,168 2,010,949
4,242,248 1,462,092 1,760,162 92,975 504,297
735,261 300,546 296,759 10,031 85,321
50,311 27,739 653,094 65,419 10,752
86,383 35,011 42,838 16,282 17,196
19,219 3,995 989 5,909 670
– – – – –
4,764,137 2,230,112 2,530,893 79,376 756,239
– – – – –
5,631,697 1,320,009 406,916 3,122 63,307
193,840 529,980 104,542 35 96,758
386,337 331,154 1,037,538 37,628 177,326
410,092 145,275 184,006 17,525 54,447
29,761,889 11,528,887 14,031,758 719,470 3,777,262
– – (54,028) (5,215) –
29,761,889 11,528,887 13,977,730 714,255 3,777,262
107,006,116 28,272,463 (6,510,859) (288,622) (1,925,543)
6,880,953 19,929,747 (2,540,793) (2,489,907) (5,876,866)
(2,735,189) (1,165,492) (1,764,618) (888,653) (267,011)
– – – – –
– – – – –
– – – – –
(89,136) (171,698) (1,055,648) (87,214) (119,079)
111,062,744 46,865,020 (11,871,918) (3,754,396) (8,188,499)
(149,225,963) (106,603,187) (481,303,711) (3,246,205) (77,014,724)
1,742,881 (196,116) 40,067 (284,207) (50,939)
– – – – –
– – – – –
– – – – –

– – – – –
(308,717) (106,208) 359 (284,167) (23,130)

(36,729,055) (60,040,491) (493,135,203) (7,568,975) (85,277,292)
821,431,327 418,315,099 394,176,903 22,333,905 381,041,005
(1,092,185,184) (433,872,613) (552,615,692) (38,883,912) (395,038,873)
(452,672) (55,929) (48,775) (49,397) –
(271,206,529) (15,613,443) (158,487,564) (16,599,404) (13,997,868)
(109,200,321) (28,465,501) (158,464) (869,346) –

(380,406,850) (44,078,944) (158,646,028) (17,468,750) (13,997,868)
3,315,145,838 1,176,824,153 1,145,091,948 57,547,383 391,646,537
(26.30)% (41.47)% (40.82)% (103.44)% (117.42)%
NET ASSETS AT THE BEGINNING OF THE PERIOD
Currency translation adjustment
INCOME
Dividends (net of withholding taxes)
Interest on bonds (net of withholding taxes)
Bank interest
Securities lending (note 9)
Interest on swaps
Sundry income
TOTAL INCOME
EXPENSES
Investment management fees (note 3)
Administration and transfer agency fees
Subscription tax (note 10)
Custodian fees
Audit, printing and publishing expenses
Bank charges

Interest expenses on swaps
Class A(dis) and Class A(acc) shares’ maintenance charges (note 13)
Class AX(acc) shares’ maintenance charges (note 13)
Class B(dis) and Class B(acc) shares’ maintenance and service charges (note 13)
Class C(dis) and Class C(acc) shares’ maintenance and service charges (note 13)
Class N(dis) and Class N(acc) shares’ distribution charges (note 13)
Other charges
TOTAL EXPENSES
Expenses reimbursement (note 16)
NET EXPENSES
NET PROFIT/(LOSS) FROM INVESTMENTS
Net realised profit/(loss) on sale of investments
Net realised profit/(loss) on forward foreign exchange contracts
Net realised profit/(loss) on futures contracts
Net realised profit on options contracts
Net realised (loss) on credit default swap contracts
Net realised profit/(loss) on foreign exchange transactions
NET REALISED PROFIT/(LOSS) FOR THE PERIOD
Change in net unrealised appreciation/(depreciation) on:
Investments
Forward foreign exchange contracts
Financial futures contracts
Options contracts
Credit default swap contracts
Interest rate swap contracts
Foreign exchange transactions
NET INCREASE/(DECREASE) IN NET
ASSETS AS A RESULT OF OPERATIONS

MOVEMENT OF CAPITAL

Issue of shares
Redemption of shares
Equalisation (note 12)
Dividends paid/accumulated (note 18)
NET INCREASE/(DECREASE) IN NET ASSETS
AS A RESULT OF MOVEMENT IN CAPITAL
NET ASSETS AT THE END OF THE PERIOD
Portfolio Turnover Ratio (note 21)
S  O  C  N A
F  P  D ,  ()
Franklin
High Yield
Fund
Franklin
Income
Fund
Franklin
India
Fund
Franklin
MENA
Fund
Franklin
Natural
Resources
Fund
(USD) (USD) (USD) (USD) (USD)
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
22 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 23

19,811,267 404,005,632 702,719,617 365,836,976 886,610,311 21,838,086 1,979,331,386
– – – – – – –
19,811,267 404,005,632 702,719,617 365,836,976 886,610,311 21,838,086 1,979,331,386

21,791 632,297 608,570 – 4,853,185 246,570 –
127,793 9,366,514 1,000 205,041 151 – 43,069,150
– 391 – 10 – – –
– – – – – – –
10,222 816,775 – – – – –
250 5,106 111,981 12,458 564,522 200 –
160,056 10,821,083 721,551 217,509 5,417,858 246,770 43,069,150
73,291 1,434,922 2,841,062 564,622 3,505,154 106,010 6,346,267
23,915 515,302 675,538 265,939 878,053 29,151 2,521,348
5,147 94,525 121,284 20,488 146,125 3,863 438,847
1,051 33,205 5,338 6,559 10,379 644 27,123
6,599 16,677 20,678 15,316 25,197 7,521 54,672
58 5,313 3,777 3,680 1,658 1,338 7,582
– – – – – – –
38,289 643,172 1,104,092 127,655 1,164,172 14,542 1,527,994
– – – – – – 592,495
– 296,499 41,470 164,717 99,188 – 1,066,971
– 446,564 65,046 150,577 142,515 – 332,039
21,144 150,321 394,888 175,435 495,139 50,442 660,075
2,300 48,970 76,796 46,124 95,321 2,945 247,792
171,794 3,685,470 5,349,969 1,541,112 6,562,901 216,456 13,823,205
(29,235) (355,785) – (599,034) – – (172,436)
142,559 3,329,685 5,349,969 942,078 6,562,901 216,456 13,650,769
17,497 7,491,398 (4,628,418) (724,569) (1,145,043) 30,314 29,418,381
33,617 1,565,097 (5,535,439) – (21,135,521) (85,091) 4,119,780
(263,098) (1,243,500) – – (2,523,598) (1,351,627) (108,261)

– – – – – – –
– – – – – – –
(76,500) (4,587,687) – – – – –
(5,077) (103,260) (7,347) (19) 31,564 41,717 (544)
(293,561) 3,122,048 (10,171,204) (724,588) (24,772,598) (1,364,687) 33,429,356
(580,766) (17,844,599) (77,569,350) (57,834) (36,868,450) (2,089,032) 36,305,224
(58,500) 2,808,897 – – (1,077,175) (384,499) (34,922)
– – – – – – –
– – – – – – –
66,059 3,219,044 – – – – –
– – – – – – –
(147,091) (284,643) 4,130 – (1,039,784) (385,181) (34,959)

(1,013,859) (8,979,253) (87,736,424) (782,422) (63,758,007) (4,223,399) 69,664,699
5,736,674 129,674,857 264,520,207 454,076,733 214,790,680 22,533,675 1,285,373,980
(6,044,099) (85,276,783) (340,513,261) (444,621,131) (322,417,937) (26,005,363) (790,552,564)
(1,859) 117,373 – – (8,050) (18,002) 756,983
(309,284) 44,515,447 (75,993,054) 9,455,602 (107,635,307) (3,489,690) 495,578,399
(205,221) (7,501,387) – – (781,850) (1,160) (31,149,114)

(514,505) 37,014,060 (75,993,054) 9,455,602 (108,417,157) (3,490,850) 464,429,285
18,282,903 432,040,439 538,990,139 374,510,156 714,435,147 14,123,837 2,513,425,370
(108.84)% (40.38)% (81.81)% N/A (14.57)% (78.97)% (8.62)%
S  O  C  N A
F  P  D ,  ()
Franklin
Real
Return
Fund
Franklin

Strategic
Income
Fund
Franklin
Technology
Fund
Franklin
U.S. Dollar
Liquid Reserve
Fund
Franklin
U.S. Equity
Fund
Franklin
U.S.
Focus
Fund
Franklin
U.S.
Government
Fund
(USD) (USD) (USD) (USD) (USD) (USD) (USD)
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDSFRANKLIN TEMPLETON INVESTMENT FUNDS
24 Unaudited Semi-Annual Report www.franklintempleton.lu www.franklintempleton.lu Unaudited Semi-Annual Report 25
305,940,938 2,707,293,531 125,613,097 71,795,236 51,187,415
– – – – –
305,940,938 2,707,293,531 125,613,097 71,795,236 51,187,415

– 4,629,227 191,066 1,119 355,300

3,201,404 714 24 1,155,858 –
136 – – – 128
– – – – –
– – – 86,376 –
– 154,755 1,920 54 –
3,201,540 4,784,696 193,010 1,243,407 355,428
1,230,320 11,062,668 502,776 254,739 214,672
432,840 2,721,463 137,192 87,285 55,135
102,865 446,506 21,712 14,793 8,347
8,027 39,423 1,759 3,246 5,556
13,879 65,105 8,597 7,796 8,154
2,704 8,599 187 444 90
69,755 – – – –
405,412 3,741,942 167,414 61,890 55,122
67,395 – – – –
42,294 257,145 60,608 25,055 275
109,718 457,763 41,859 23,800 227
231,586 1,071,642 73,154 50,927 61,294
41,453 291,407 13,240 8,781 6,066
2,758,248 20,163,663 1,028,498 538,756 414,938
(199,882) (1,043) – (56,828) (3,962)
2,558,366 20,162,620 1,028,498 481,928 410,976

643,174 (15,377,924) (835,488) 761,479 (55,548)
686,920 (38,451,353) (3,902,533) 873,506 (550,871)
– (17,579,264) – (110,667) –
(84,928) – – 105,174 –
– – – – –
(627,655) – – (417,346) –
510,485 (89,817) – (14,637) 1,986

1,127,996 (71,498,358) (4,738,021) 1,197,509 (604,433)
(2,788,623) (185,333,274) (10,226,854) (1,000,953) (5,911,529)
687,743 (8,325,023) – 346,845 –
5,000 – – (12,977) –
– – – – –
1,120,851 – – 272,911 –
– – – – –
(40,117) (8,314,049) – (4,095) (13,160)
112,850 (273,470,704) (14,964,875) 799,240 (6,529,122)
325,266,623 976,684,070 50,065,159 36,441,616 5,393,692
(95,762,784) (1,066,276,651) (61,283,236) (29,477,774) (2,666,361)
81,310 – – 3,144 3,056
229,585,149 (89,592,581) (11,218,077) 6,966,986 2,730,387
(829,081) – – (776,191) (114,372)

228,756,068 (89,592,581) (11,218,077) 6,190,795 2,616,015
534,809,856 2,344,230,246 99,430,145 78,785,271 47,274,308
79.95% (19.41)% (98.00)% 229.12% 34.09%
NET ASSETS AT THE BEGINNING OF THE PERIOD
Currency translation adjustment
INCOME
Dividends (net of withholding taxes)
Interest on bonds (net of withholding taxes)
Bank interest
Securities lending (note 9)
Interest on swaps
Sundry income
TOTAL INCOME
EXPENSES
Investment management fees (note 3)

Administration and transfer agency fees
Subscription tax (note 10)
Custodian fees
Audit, printing and publishing expenses
Bank charges
Interest expenses on swaps
Class A(dis) and Class A(acc) shares’ maintenance charges (note 13)
Class AX(acc) shares’ maintenance charges (note 13)
Class B(dis) and Class B(acc) shares’ maintenance and service charges (note 13)
Class C(dis) and Class C(acc) shares’ maintenance and service charges (note 13)
Class N(dis) and Class N(acc) shares’ distribution charges (note 13)
Other charges
TOTAL EXPENSES
Expenses reimbursement (note 16)
NET EXPENSES
NET PROFIT/(LOSS) FROM INVESTMENTS
Net realised profit/(loss) on sale of investments
Net realised profit/(loss) on forward foreign exchange contracts
Net realised profit/(loss) on futures contracts
Net realised profit on options contracts
Net realised (loss) on credit default swap contracts
Net realised profit/(loss) on foreign exchange transactions
NET REALISED PROFIT/(LOSS) FOR THE PERIOD
Change in net unrealised appreciation/(depreciation) on:
Investments
Forward foreign exchange contracts
Financial futures contracts
Options contracts
Credit default swap contracts
Interest rate swap contracts

Foreign exchange transactions
NET INCREASE/(DECREASE) IN NET
ASSETS AS A RESULT OF OPERATIONS

MOVEMENT OF CAPITAL
Issue of shares
Redemption of shares
Equalisation (note 12)
Dividends paid/accumulated (note 18)
NET INCREASE/(DECREASE) IN NET ASSETS
AS A RESULT OF MOVEMENT IN CAPITAL
NET ASSETS AT THE END OF THE PERIOD
Portfolio Turnover Ratio (note 21)
S  O  C  N A
F  P  D ,  ()
Franklin
U.S. Low
Duration
Fund*
Franklin
U.S.
Opportunities
Fund
Franklin U.S.
Small-Mid Cap
Growth
Fund
Franklin
U.S. Total
Return

Fund
Franklin
World
Perspectives
Fund
(USD) (USD) (USD) (USD) (USD)
The accompanying notes form an integral part of these financial statements
FRANKLIN TEMPLETON INVESTMENT FUNDS
* This Fund had its name changed on September 16, 2011 (previously Franklin U.S. Ultra Short Bond Fund)
**This Fund was launched on July 29, 2011