Franklin Mutual Global Discovery Fund Fund Manager Report

Franklin Templeton Investment Funds Equity LU0211331839 30 November 2016 Franklin Mutual Global Discovery Fund Fund Manager Report Fund Characteris...
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Franklin Templeton Investment Funds

Equity LU0211331839 30 November 2016

Franklin Mutual Global Discovery Fund Fund Manager Report

Fund Characteristics

Overview

Base Currency Total Net Assets (USD) Fund Inception Date Number Of Issuers Primary Benchmark Bloomberg Code - A(acc)

• In November, the MSCI World Index finished the month higher, led by a rally in the United States. European equity markets were generally lower in US-dollar terms, with political events overshadowing generally positive economic data. Investor anxiety in China rose due to tightening liquidity in the banking system.

USD 973,588,927 25.10.2005 96 MSCI World Index FMGDAAC LX

• Six of the 11 major sectors positively impacted fund performance on an absolute basis. The financials, energy and consumer discretionary sectors were the most significant contributors.

Fund Management

• The health care, telecommunication services and consumer staples sectors detracted.

Peter Langerman: United States Philippe Brugère-Trélat: United States Tim Rankin, CFA: United States

Ratings - A(acc) USD



Overall Morningstar Rating™:

Performance (As of 30 November 2016) Cumulative Performance (%) 1 Mth

3 Mths

YTD

1 Yr

3 Yrs

5 Yrs

10 Yrs

Since Incept (25.10.05)

Franklin Mutual Global Discovery Fund - A(acc) USD—NAV

2.40

2.77

6.53

3.75

-1.96

39.58

44.31

74.62

MSCI World Index USD

1.49

0.13

5.59

3.77

13.43

64.79

53.47

93.27

2

1

2

2

3

3

1

1

Morningstar Category—Global Large-Cap Value Equity Quartile

Calendar Year Returns (%) Franklin Mutual Global Discovery Fund - A(acc) USD (NAV)

26.86 27.37

34 15

MSCI World Index USD

6.53

5.59

-4

-6.18 -0.32

-3.43 5.50

2015

2014

14.72 16.54

-6.96 -5.02

9.15 12.34

30.79

19.88

-25.96 -40.33

10.94 9.57

18.61 20.65

-23 -42 YTD 2016

2013

Portfolio Allocation (%)

0

12

24

2012

2011

2010

2009

Sector Breakdown(% of Total)

36

Equity Fixed Income Cash & Cash Equivalents

48

60

72 89.16 2.52 8.32

0

5

10

Financials Information Technology Consumer Discretionary Health Care Consumer Staples Energy Industrials Materials Telecommunication Services Utilities Muni Securities Real Estate Cash & Cash Equivalents

2008

2007

2006

Geographic Breakdown (% of Total)

15

20 0 26.25 12.98 11.33 10.88 7.84 7.23 5.73 3.86 3.59 1.40 0.57 0.01 8.32

10

20

30

North America Europe Asia Mid-East/Africa Australia/New Zealand Cash & Cash Equivalents

40

50

60 51.86 32.91 5.10 1.81 0.00 8.32

For information related to the headings “Fund Characteristics”, “Portfolio Allocation”, “Sector Breakdown”, “Geographic Breakdown”, “Franklin Mutual Global Discovery Fund - A(acc) USD— NAV”, please see note regarding Fund Characteristics data and Fund Ratings on back page. Source: Franklin Templeton Investments, 30 November 2016. Past performance is not an indicator or a guarantee of future performance. The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details. Source for MSCI benchmark returns: FactSet Research System, Inc., as of 30 November 2016.

For Professional investor use only. Not to be distributed to retail investors.

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Franklin Mutual Global Discovery Fund

30 November 2016

Market Review

Portfolio Positioning

In November, the MSCI World Index finished the month higher, led by a rally in the United States. The immediate reaction by investors to the unexpected victory by Donald Trump in the US presidential election was generally negative: in the United States, stock futures fell dramatically overnight on 8 November. However, the United States and a number of other developed markets quickly turned positive, as attention turned to Republican control of both chambers of the US Congress and the White House, suggesting more business-friendly policies, potential tax reform and the possibility of fiscal stimulus.

At month-end, the fund’s investment in equities stood at 85.1% of assets, while the level of cash and cash equivalents was nearly 8.3%. We initiated a position in a US-based information technology consulting and business processes outsourcing company. At the same time, we exited a position in a US-based media company, trimmed a position in another media company and reduced our position in an insurance company. Compared to the benchmark, the fund was most overweight in the financials sector and most underweight in the industrials sector.

In the United States, cyclical sectors and industries perceived to benefit the most from the policies of the incoming administration and Republican Congress fared well in November, including financials, industrials and materials. Upbeat economic and corporate earnings figures provided additional support to stocks. Investor expectations of a December interest rate increase by the US Federal Reserve’s (Fed’s) Federal Open Market Committee (FOMC) climbed, driven by positive economic data and the potential for US fiscal stimulus to boost economic growth and inflation. At the same time, the US dollar rallied against many other currencies. European equity markets were generally lower in US-dollar terms, with political events overshadowing generally positive economic data. Besides the US election, polls in Italy ahead of a 4 December referendum vote indicated Prime Minister Renzi’s senate reform proposals would likely be rejected by voters, while a UK lower court ruled that Prime Minister Theresa May cannot begin the process of leaving the European Union without Parliament’s approval. In Japan, the November releases of third-quarter gross domestic product data and the October manufacturing purchasing managers’ index were positive, and the yen also weakened. Elsewhere in Asia, a political crisis in South Korea involving the prime minister weighed on the country’s equity market, and investor anxiety in China rose due to tightening liquidity in the banking system, following the government’s efforts to curb the decline of the yuan. Hopes of an oil production cut agreement by the Organization of the Petroleum Exporting Countries (OPEC), officially announced on the final day of the month, helped support global equity markets.

The fund had 2.5% of assets invested in distressed debt and approximately 4.1% in merger arbitrage. Merger and acquisition (M&A) activity continues to be strong, helping to support valuations. A combination of sluggish organic revenue growth, a limited number of ways to push operating margins higher, low interest rates and having many companies sitting on large sums of cash reserves stimulated activity. However, regulators globally continue to be more aggressive in their scrutiny of the potential negative effects of high market concentrations. We were disappointed to see regulators successfully sue to block the merger of Office Depot and Staples. Less surprising was the collapse of Halliburton’s attempt to acquire Baker Hughes, on antitrust grounds, or the largest failure, Pfizer’s withdrawal of an attempt to acquire Allergan in the face of the US Treasury Department’s new rules on tax inversions. We remain active in M&A arbitrage (investments in one or both of the companies involved that are constructed solely to benefit from deal completion) and are working hard to make sure the potential rewards are significant enough to outweigh the risks that exist in the current environment. Within the credit space, volatility remains at heightened levels. In our experience, patience will be rewarded, and the increase in global risk premiums will result in more opportunities. We have been focusing our efforts on a few areas: over-collateralised secured loans, short-dated debt obligations with ample liquidity or where potential asset sales exist, and longer-dated debt obligations trading at very significant discounts.

Performance Review and Contributors to Performance Six of the 11 major sectors (real estate, formerly a part of the financials sector, is now a separate sector) positively impacted fund performance on an absolute basis, led by a significant contribution from the financials sector. Within the sector, the banks industry provided the biggest boost; JPMorgan Chase was the fund’s top individual contributor, followed by Wells Fargo & Co., Citizens Financial Group and PNC Financial Services Group. The energy sector was a notable contributor, followed by consumer discretionary, industrials and materials. Marathon Oil, a US- based oil and gas exploration and production company, reported better-than-expected quarterly results in early November, and its shares rose further on the announcement of the OPEC agreement. Geographically, the United States was by far the largest contributor. Health care, telecommunication services and consumer staples weighed modestly on performance, while the utilities sector was a minor detractor. Medical device maker Medtronic was the fund’s leading individual detractor. Investors reacted negatively to a tepid set of quarterly results and downwardly revised guidance for 2017. Shares of Eli Lilly & Co., a US-based pharmaceutical company, dropped after it announced that its Alzheimer’s drug solanezumab failed in a large clinical trial. However, we believe Eli Lilly has a strong product and earnings growth outlook. Within the telecommunication services sectors, shares of Vodafone declined as investors continued to focus on the launch of a new competitor in India, a meaningful market for the company. Geographically, Germany was the most significant, albeit a modest, detractor.

For For Professional Professional investor investor use use only. only. Not Not to to be be distributed distributed to to retail retail investors. investors.

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Franklin Mutual Global Discovery Fund

30 November 2016

Portfolio Diversification (As of 30 November 2016) Contributors to Performance

Detractors from Performance

Security

% Contribution to NAV

Security

% Contribution to NAV

JPMORGAN CHASE & CO

0.25

MEDTRONIC INC

-0.20

BAKER HUGHES INC

0.24

A P MOLLER - MAERSK A/S

-0.15

MARATHON OIL CORP

0.23

ELI LILLY & CO

-0.15

Geographic Weightings (% of Total)

Sector Weightings (% of Total) Franklin Mutual Global Discovery Fund

Franklin Mutual Global Discovery Fund United States

Financials

51.62

United Kingdom

12.08

Information Technology

Netherlands

4.52

France

3.88

Germany

3.25

Switzerland

3.23

Consumer Staples Energy

China

2.32

South Korea

2.14

Denmark

2.00

Israel

1.81

Ireland

Consumer Discretionary

11.33

Health Care

10.88 7.84 7.23

Industrials

5.73 3.86

1.66

Telecommunication Services

3.59

Utilities

Italy

1.18 1.10

Hong Kong

0.63

Canada

0.24

1.40

Muni Securities

0.57

Real Estate

0.01

Cash & Cash Equivalents

8.32 0

12.98

Materials

Finland

Cash & Cash Equivalents

26.25

20

40

60

80

8.32 0

6

12

18

24

30

36

Top Ten Holdings Security

Industry

MERCK & CO INC

Pharmaceuticals, Biotechnology & Life Sciences

2.27

MICROSOFT CORP

Software & Services

2.04

ROYAL DUTCH SHELL PLC

Energy

2.04

TIME WARNER INC

Media

1.90

ELI LILLY & CO

Pharmaceuticals, Biotechnology & Life Sciences

1.72

NN GROUP NV

Insurance

1.71

AMERICAN INTERNATIONAL GROUP INC

Insurance

1.69

SYMANTEC CORP

Software & Services

1.68

XL GROUP LTD

Insurance

1.66

CITIGROUP INC

Banks

1.63

Total

% of Total

18.32

Source for the above figures: FactSet Research System, Inc. as of 30 November 2016. Index statistics calculated by FactSet Research Systems, Inc. Profile data is calculated as a percentage of total. Holdings of the same issuer have been combined. Source for the Fund’s “Geographic Weightings” and “Sector Weightings” above: Franklin Templeton Investments as of 30 November 2016. Holdings of the same issuer have been combined. Weightings as percent of total assets. For the “Top Ten Holdings” above, please note that top ten holdings information is historical and may not reflect current or future fund characteristics. All holdings are subject to change. Holdings of the same issuers have been combined. The information provided is not a recommendation to purchase, sell, or hold any particular security. The securities identified do not represent the fund’s entire holdings and in the aggregate may represent only a small percentage of such holdings. There is no assurance that securities purchased will remain in the fund, or that securities sold will not be repurchased. The portfolio manager for the Fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the top 10 holdings list.

For For Professional Professional investor investor use use only. only. Not Not to to be be distributed distributed to to retail retail investors. investors.

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Franklin Mutual Global Discovery Fund

30 November 2016

Portfolio Diversification (continued) Portfolio Characteristics Price to Earnings (12-mo Trailing)

Price to Book Value

Price to Cash Flow

Dividend Yield

Market Cap (USD Millions)

Franklin Mutual Global Discovery Fund

16.85x

1.43x

7.26x

2.77%

74,527

MSCI World Index

21.76x

2.18x

11.78x

2.54%

91,159

Investment Outlook As we approach 2017, sentiment in financial markets appears to have turned more positive. We believe the shift is driven by a repricing of growth and inflation expectations due to the expected economic policy priorities of President-elect Trump and the Republican-controlled Congress, along with reasonably positive economic and earnings data from the United States and Europe. In our view, however, the turn in investor attitudes is not deeply rooted and could change quickly, particularly if expectations for rapid policy progress give way to the reality of politics in Washington DC. Rhetoric around trade may also raise investor concerns periodically. In addition, sources of investor uncertainty during 2016 are not entirely behind us, including the relative strength of the US and broader global economies, future actions by major central banks and the supply-and-demand fundamentals for crude oil prices, as well as the potential for politically driven uncertainty stemming from the incoming Trump administration and a number of national elections in Europe, to name but a few. In the United States and Europe, economic and corporate earnings data have been fairly positive. The early December release of US employment data for November showed another steady increase in non- farm payrolls, while an early December update on the eurozone labour market showed the unemployment rate had fallen below 10% for the first time since 2009. Manufacturing activity may be improving, as the Institute for Supply Management’s manufacturing index covering November rose, while the eurozone manufacturing purchasing managers’ index for November reached its best level since early 2014. Recent manufacturing data from China and Japan have also been more positive. Corporate earnings among constituents of the S&P 500 Index posted a year-over-year increase in the third quarter, the first gain in more than a year, and corporate earnings in Europe generally beat expectations in terms of revenues and profits. In another sign that US financial market sentiment has shifted, investors appear to be comfortable with the prospect of interest rate hikes by the FOMC. The FOMC’s “dot plot” chart, which captures the interest rate outlook of individual committee members, shows a subdued pace of interest rate increases in 2017 and the longer term, which may help ease investor concern about the potential impacts of Fed action. In addition, recent history shows that it may not take much in the way of negative events to keep the Fed from acting. However, if the central bank manages to follow through with a progression of gradual rate hikes in the near to mid-term, we believe that many financial companies currently dealing with razor-thin net interest margins would likely benefit.

temporary caretaker government will likely be formed to fill the political vacuum at a time when Italy’s banking industry needs to execute capital raises in order to address the high level of non- performing loans. If recapitalisationo efforts fail, a functional government would be necessary to hammer out potential bail-in or bail-out plans. It is important to highlight that not all the political news out of Europe is ominous. On 4 December, voters in Austria resoundingly rejected the far-right candidate presidential candidate. In Germany, Prime Minister Angela Merkel decided to run again, and her political coalition enjoys strong electoral support. In France, we were pleasantly surprised by the victory of reform-minded and pro-business candidate Francois Fillon in the centre-right party’s presidential primary. With regard to crude oil, we expect a gradual rebalancing of supply and demand, a process that will be accelerated if the 30 November OPEC agreement is adhered to. As the rebalancing occurs, we believe prices could move somewhat higher, although continued significant volatility is quite likely, based primarily upon the various geopolitical and security factors at play on the supply side. Despite the uncertainties that still exist, we remain focused on the future by searching for opportunities to increase or initiate positions in companies with attractive risk/reward profiles that appear to be unduly sold off amid bouts of volatility.

Investment Objective The Fund aims to achieve capital appreciation by investing primarily in equity securities of companies of any nation that the investment manager believes are available at market prices less than their intrinsic value. The Fund primarily invests in mid and large-cap companies with a market capitalisation around or greater than 1.5 billion U.S. dollars. To a lesser extent, the Fund may also invest in distressed securities and merger arbitrage situations.

Investment Philosophy The Mutual Series team takes a unique value approach to investing, seeking companies believed to be trading at a substantial discount to their intrinsic business value. To bring out the true worth of an undervalued company, the team looks for catalysts such as corporate restructuring, sale of non-core assets, spin-offs, share buybacks and new management teams. Often the stocks included in Mutual Series Funds are out of favor with investors, overlooked by the investment community or involve complicated restructuring stories.

The Mutual Series team frequently acts as owners and takes an active interest in the companies in which it invests. Through its own bottom-up Political events across Europe are overshadowing the positive stream of data. The outcome of Italy’s referendum vote was not a surprise, and the lack proprietary research, the team tries to identify securities that have the dynamics to appreciate in value regardless of market movements. of widespread market upheaval is reassuring. However, Renzi’s resignation may create political uncertainty that may be problematic for Italy’s banks. A

For information related to the heading “Portfolio Characteristics” above, please see note regarding Fund Characteristics data on back page. Source: Franklin Templeton Investments, 30 November 2016. Past performance is not an indicator or a guarantee of future performance.

For For Professional Professional investor investor use use only. only. Not Not to to be be distributed distributed to to retail retail investors. investors.

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Franklin Mutual Global Discovery Fund

30 November 2016

Portfolio Management Team Peter Langerman is the chairman, president and CEO of Franklin Mutual Series. He is a co-portfolio manager of the Franklin Mutual Shares Fund, the Franklin Mutual Global Discovery Fund and related strategies. Mr. Langerman initially joined Heine Securities Corporation (predecessor of Franklin Mutual Advisers, LLC) in June 1986. He served as CEO of Franklin Mutual Series beginning in 1998 and as the chairman of the fund boards beginning in 2001, before leaving in 2002 to serve as the director of New Jersey’s Division of Investment, overseeing employee pension funds. He rejoined Franklin Mutual Series in 2005. Prior to 1986, Mr. Langerman was employed by Weil, Gotshal & Manges, one of the country’s foremost specialists in large corporate bankruptcies and reorganizations. Mr. Langerman began his professional career in 1977 serving on the audit staff of Arthur Young and Company, where he earned his CPA designation. Mr. Langerman graduated magna cum laude from Yale University, and holds a B.A. in Russian Studies. He earned an M.A. in accounting from New York University Graduate School of Business and his Juris Doctor degree from Stanford University Law School. Mr. Langerman is a member of the Board and Executive Committee of UJC Metrowest (New Jersey) and heads its investment committee. He serves on the national board of the All Stars Project and the advisory board of the Weinberg Center for Corporate Governance at the University of Delaware. In 2010 Mr. Langerman was selected to serve as one of three trustees of the AIG Credit Facility Trust, which held the U.S. government’s controlling interest in American International Group. In 2011, the trust was terminated as part of the successful recapitalization of AIG.

For For Professional Professional investor investor use use only. only. Not Not to to be be distributed distributed to to retail retail investors. investors.

5

Franklin Mutual Global Discovery Fund

30 November 2016

Explanatory Notes CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. Fund Characteristics: Source: FactSet. Price to Earnings (12-mo Trailing) measures the current price to earnings ratio (P/E) relative to the trailing 12 months of reported earnings. The Price to Earnings, Price to Cash Flow and Price to Book Value calculations shown herein use harmonic means. Values less than 0.01 (i.e. negative value) are excluded and values in excess of 200x are capped at 200x. Yields above 100% are also excluded. For the benchmarks, no limits are applied to these ratios in keeping with the benchmark’s calculation methodology. Market capitalization statistics are indicated in the base currency for the portfolio presented. Yield figures quoted should not be used as an indication of the income to be received. Fund Ratings: © Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fund performance data include reinvested dividends, and is net of management fees. Sales charges, other commissions, taxes and other relevant costs to be paid by the investor are not included. Disclaimers: Due to data limitations all equity holdings are assumed to be the primary equity issue (usually the ordinary or common shares) of each security’s issuing company. This methodology may cause small differences between portfolio’s reported characteristics and the portfolio’s actual characteristics. In practice, Franklin Templeton’s portfolio managers invest in the class or type of security which they believe is most appropriate at the time of purchase. The market capitalization figures for both the portfolio and the benchmark are the security level, not aggregated up to the main issuer. The dividend yield quoted here should not be used as an indication of the income to be received from this portfolio. Top Security Contributors and Top Security Detractors are holdings based on the last one month period for rolling months or on the last three months period for quarter end months. These securities do not represent all the securities purchased, sold or recommended for advisory clients, and the reader should not assume that investment in the security listed was or will be profitable. Holdings are subject to change, holdings of the same issuer have been combined. The information provided is not a recommendation to purchase, sell or hold any particular security. The security identified does not represent the Fund’s entire holdings and in the aggregate, may represent a small percentage of such holdings. There is no assurance that security purchased will remain in the Fund, or that security sold will not be repurchased. Performance figures are not based on audited financial statements and assume reinvestment of interest and dividends. When comparing the performance of Franklin Templeton Investment Funds (the “Fund”) with a benchmark index, it is important to note that the securities in which Franklin Templeton Investment Funds invests may be substantially different than those represented by the benchmark index. Furthermore, an investment in Franklin Templeton Investment Funds represents an investment in a managed investment company in which certain charges and expenses, including management fees, are applicable. These charges and expenses are not applicable to indices. Lastly, please note that indices are unmanaged and are not available for direct investment. Certain data and other information shown have been supplied by outside sources. While we consider that information to be reliable, we give no assurance that such data and information is accurate or complete. The indices are provided only to show the investment environment during the specific periods shown. The performance of each index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund. The indices include a greater number of securities than those held in the Fund. An index is unmanaged and one cannot invest directly in an index. Past performance is not an indicator or a guarantee of future performance. In addition, it should not be assumed that any securities mentioned were or will prove to be profitable. For the most current information on the fund, please contact your Franklin Templeton marketing representative. Stocks mentioned in this report are not a solicitation to purchase those stocks, and are examples of some stocks which performed well. Not all stocks in the portfolio performed as well. All MSCI data is provided “as is.” The portfolio described herein is not sponsored or endorsed by MSCI. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with the MSCI data or the portfolio described herein. Copying or redistributing the MSCI data is strictly prohibited. This document is intended to be of general interest only and does not constitute legal or tax advice nor is it an offer for shares or invitation to apply for shares of the Luxembourg-domiciled SICAV Franklin Templeton Investment Funds (FTIF). Nothing in this document should be construed as investment advice. Opinions expressed are the author’s at publication date and they are subject to change without prior notice. Given the rapidly changing market environment, Franklin Templeton Investments disclaim responsibility for updating this material. Subscriptions to shares of FTIF can only be made on the basis of the current prospectus and where available, the relevant Key Investor Information Document, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. The value of shares in FTIF and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. An investment in FTIF entails risks which are described in FTIF’s prospectus and where available, in the relevant Key Investor Information Document. No shares of FTIF may be directly or indirectly offered or sold to nationals or residents of the United States of America. Shares of FTIF are not available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any plans to invest. Any research and analysis contained in this document has been procured by Franklin Templeton Investments for its own purposes and is provided to you only incidentally. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a fund’s holding at any one time. References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. An index is unmanaged and one cannot invest directly in an index. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund. A copy of the latest prospectus and where available, the relevant Key Investor Information Document, the annual report and semi-annual report, if published thereafter can be found, on our website www.ftidocuments.com or can be obtained, free of charge, from Franklin Templeton International Services S.A. - Professional of the Financial Sector under the supervision of the Commission de Surveillance du Secteur Financier - 8A, rue Albert Borschette, L-1246 Luxembourg- Tel: +352-46 66 67-1 - Fax: +352-46 66 67. In the U.S., this publication is made available to you for informational purposes only by Templeton/Franklin Investment Services, Inc. 100 Fountain Parkway, St. Petersburg, Florida 33716. Tel: (800) 239- 3894 (USA Toll-Free), (877) 389-0076 (Canada Toll-Free), and Fax: (727) 299-8736. Investments are not FDIC insured; may lose value; and are not bank guaranteed. Distribution outside the U.S. may be made by Templeton Global Advisors Limited or other sub-distributors, intermediaries, dealers or professional investors that have been engaged by Templeton Global Advisors Limited to distribute shares of the Fund in certain jurisdictions. This is not an offer to sell or a solicitation of an offer to purchase securities in any jurisdiction where it would be illegal to do so. © 2016 Franklin Templeton Investments. All rights reserved.

© 2016 Franklin Templeton Investments. All rights reserved. For Professional investor use only. Not to be distributed to retail investors.

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