Templeton Emerging Markets Smaller Companies Fund

Franklin Templeton Investment Funds

Summary of Fund Objective

The Fund aims to achieve long-term capital appreciation by investing primarily in equity securities and depository receipts of small-cap companies registered or performing a substantial part of their business in emerging markets or holding a substantial part of their participations in small-cap companies registered in emerging markets. Emerging markets 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 Emerging Markets Small Cap Index (Index).

The fund aims to achieve capital appreciation by investing in small-cap companies in emerging market companies or in companies that derive a significant share of revenue from emerging markets.

It concentrates on companies with a market cap of under US$2 milion.

This fund is designed to build on the promise inherent in small-cap emerging market stocks, which have significantly outperformed developed market equivalents in the past five years.

Despite their strong performance, emerging market small-caps remain under-researched and therefore overlooked by other investors, providing interesting opportunities for a group with vast global research capabilities like Templeton.

An experienced emerging markets management team. The Templeton Emerging Markets Group has local presence that spans five continents. The team's regional presence and knowledge of local languages, regulations and accounting standards allows them to scour markets for rare investment opportunities inaccessible and under-researched by some peers, in a market space with attractive growth potential.


Chetan Sehgal

  • Singapore
  • Years With Firm: 25
  • Years Of Experience: 28

Vikas Chiranewal

  • Singapore
  • Years With Firm: 14
  • Years Of Experience: 16

Krzysztof Musialik

  • Warsaw
  • Years With Firm: 14
  • Years Of Experience: 14

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 the equity securities of smaller companies in emerging markets. Such securities have historically been subject to significant price movements, frequently to a greater extent than equity markets globally. As a result, the performance of the Fund can fluctuate considerably over time.
  • Other significant risks include:
    Foreign Currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations.
    Emerging markets risk: the risk related to investing in countries that have less developed political, economic, legal and regulatory systems, and that may be impacted by political/economic instability, lack of liquidity or transparency, or safekeeping issues.
    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.
    Chinese Market risk: In addition to typical risks linked to Emerging Markets, investments in China are subject to economic, political, tax and operational risks specific to the Chinese Market. Please also refer to the prospectus for China QFII risk, Bond Connect risk and Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect risk.
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.