Automated Telephone System

Transcription

1 Automated Telephone System

2 Around-the-Clock Fund and Account Information Welcome to Franklin Templeton Investments automated telephone system for shareholders. 24-HOUR AUTOMATED TELEPHONE SYSTEM Shareholder Services... (800) Retirement Services.... (800) By using our automated system, you can: Obtain account information such as current or previous year-end share balance, account value and information about the most recent transactions in your mutual fund account(s). Exchange (within the same share class) between existing identically registered Franklin Templeton accounts. 1 Purchase shares with your pre-established bank account information. 2, 3 Redeem shares to the address listed on your account or to a pre-established bank account. Order fund deposit slips, money fund checks, previous year-end statements or copies of current account statements. Obtain fund price and performance figures. Maintain a personalized Watch List of fund prices and performance figures selected and stored under your Social Security number. Create or change your Customer Identification Number or Personal Identification Number. Please note, references to Franklin Templeton accounts or funds include Class A, B, C, R, Z and Advisor Class shares of Franklin, Templeton and Mutual Series funds. 2 Investors should carefully consider a fund s investment goals, risks, charges and expenses before investing. To obtain a prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/(800) , or visit franklintempleton.com. Please read the prospectus carefully before you invest or send money. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE This guide is intended only for Franklin Templeton shareholders who have previously received prospectuses for the funds in which they have invested. 1. Exchanges are not available for Class R shares. 2. New sales of Class B shares have been discontinued. Existing Class B shareholders may continue to reinvest dividends and exchange their shares for other B shares. 3. You must have a financial advisor to purchase Class C shares. Automated Telephone System franklintempleton.com 1

3 After entering your Customer Identification Number or Social Security Number and Personal Identification Number, you will be brought to the following menu: Main Telephone Menu A Word about Risk Press 1 1 ABC 2 Prices & performance information Fund prices and performance Your personal Watch List 4 Before You Call Our automated telephone system may require you to enter your account number and three-digit fund number. The fund number is located on your account statement to the left of the hyphen in your account number. In addition, fund names and their numbers are listed on pages 4 and 5 of this brochure. Press 2 1 ABC 2 DEF 3 GHI 4 Account information Combined account value Individual account access Current share balance Account dollar value (based on the fund s most recent net asset value [NAV] per share) Latest transactions Tax reporting information Transaction Information Previous year-end account balance Share balance Account dollar value (based on the fund s NAV per share for the last business day of the year) Account Access To protect your account from unauthorized access, you are required to create a four- to six-digit Personal Identification Number (PIN). A PIN is required to access your account information and to conduct account transactions. For system identification, you may create a Customer Identification Number (CIN) to use instead of your Social Security number, which is the default. To create or change your PIN or CIN, press 4 from the main menu. Please safeguard your PIN and CIN against unauthorized use. Press 3 1 ABC 2 DEF 3 Press 4 Press 5 O TUV 8 Account transactions 5 Redemptions Exchanges 6 Purchases Create or change your Customer Identification Number or Personal Identification Number Order account statements, money fund checks or deposit slips To speak with a service associate To return to the main menu Account Transactions If your investment objectives change, our automated telephone system permits Franklin Templeton shareholders to exchange shares (within the same class) between existing identically registered Franklin Templeton accounts, usually without paying any additional fees or charges. 6, 7 Use of the exchange program may be discontinued or modified by the funds at any time. Our automated telephone system also permits Franklin Templeton shareholders to purchase additional shares. In order to make a purchase, you must have pre-established bank account information on file from which to draw funds. 8,9 All mutual funds are subject to certain risks. Generally, investments offering the potential for higher returns are accompanied by a higher degree of risk. While stocks have historically outperformed other asset classes over the long term, they tend to fluctuate more dramatically over the short term. Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in a fund adjust to a rise in interest rates, a fund s share price may decline. The risks associated with higher-yielding, lower-rated securities (commonly called junk bonds) include higher risk of default, and in general, greater price swings. Foreign investing, especially in developing countries, has additional risks such as currency fluctuations and economic and political or social uncertainties. Other risks may include investments in specialized industry sectors such as the technology sector, which can be highly volatile. These and other risks are discussed in each fund s prospectus. Your financial advisor can help you determine which funds may be right for you. 4. A Watch List is a personalized list of fund prices and performance figures selected by a shareholder and stored under their Customer Identification Number or Social Security number. 5. All fund purchases are subject to a seven-day hold; therefore, not all account values may be available for immediate liquidation. 6. Exchanges are not available for Class R shares. 7. Exchanges between funds, while incurring no additional transaction fees, may nevertheless result in a taxable event. 8. Purchases are not permitted for Class B shares. 9. You must have a financial advisor to purchase Class C shares. 2 Automated Telephone System franklintempleton.com 3

4 Fund Names and Numbers FRANKLIN FUNDS A B C R Advisor Adjustable U.S. Gov t. Securities Alabama Tax-Free Income All Cap Value Arizona Tax-Free Income Balance Sheet Investment Balanced Biotechnology Discovery 402 California High Yield Municipal California Insured Tax-Free Income California Int.-Term Tax-Free Income California Tax-Exempt Money Fund 125 California Tax-Free Income Colorado Tax-Free Income Connecticut Tax-Free Income Convertible Securities Double Tax-Free Income DynaTech Equity Income Federal Int.-Term Tax-Free Income Federal Ltd.-Term Tax-Free Income 154 Federal Tax-Free Income Flex Cap Growth Floating Rate Daily Access Florida Tax-Free Income Focused Core Equity Georgia Tax-Free Income Global Real Estate Gold and Precious Metals Growth Growth Opportunities FRANKLIN FUNDS, cont d. A B C R Advisor High Income High Yield Tax-Free Income Income India Growth Insured Tax-Free Income International Growth International Small Cap Growth Kentucky Tax-Free Income 172 Large Cap Equity Large Cap Value Ltd. Maturity U.S. Gov t. Securities Louisiana Tax-Free Income Low Duration Total Return Maryland Tax-Free Income Massachusetts Tax-Free Income Michigan Tax-Free Income MicroCap Value MidCap Value Minnesota Tax-Free Income Missouri Tax-Free Income Money Fund 111 Natural Resources New Jersey Tax-Free Income New York Insured Tax-Free Income New York Int.-Term Tax-Free Income New York Tax-Exempt Money Fund 131 New York Tax-Free Income North Carolina Tax-Free Income Ohio Tax-Free Income Oregon Tax-Free Income Pennsylvania Tax-Free Income Real Estate Securities Real Return Rising Dividends Small Cap Growth Small Cap Value Small-Mid Cap Growth Strategic Income Strategic Mortgage Portfolio 157 Tax-Exempt Money Fund 114 Tennessee Municipal Bond 420 Total Return U.S. Government Securities Utilities Virginia Tax-Free Income MUTUAL SERIES FUNDS FRANKLIN FUNDS, cont d. A B C R Z Advisor Beacon European Financial Services Global Discovery International Quest Recovery Shares The fund number for Franklin Income Fund Class B1 is Effective 5/1/09, Mutual Discovery Fund changed its name to Mutual Global Discovery Fund. The fund s investment goal and strategy remain unchanged. 12. Effective 5/1/09, Mutual Qualified Fund changed its name to Mutual Quest Fund. The fund s investment goal and strategy remain unchanged. BRIC China World Developing Markets Trust Emerging Markets Small Cap Foreign Foreign Smaller Companies Frontier Markets Global Bond Global Long-Short Global Opportunities Trust Global Smaller Companies Global Total Return Growth Income International Bond World FRANKLIN TEMPLETON FUNDS TEMPLETON FUNDS A B C R Advisor Corefolio Allocation Founding Funds Allocation Perspectives Allocation Conservative Target Growth Target Moderate Target Hard Currency Money Fund Retirement Target Retirement Target Retirement Target Retirement Target Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. A fund s investment return and principal value will change with market conditions, and you may have a gain or loss when you sell your shares. Please call Franklin Templeton Investments at (800) DIAL BEN/(800) or visit franklintempleton.com for the most recent month-end performance. 4 Automated Telephone System franklintempleton.com 5

5 Glossary Adjusted Yield: Represents what a fund s yield would have been if the fund s manager had not agreed in advance to waive all or a portion of the fund s management fees and/or to reduce expenses. Average Annual Total Return (standardized): Represents the average annual change in value of an investment over specified periods and assumes reinvestment of dividends and capital gains at net asset value. Figures for Class A reflect the current, maximum initial sales charge; for Class B and Class C, the contingent deferred sales charge, as applicable (Class B and Class C shares do not have an initial sales charge); Class Z and Advisor Class shares have no sales charges nor Rule 12b-1 fees; Class R shares have no sales charges, but do have a Rule 12b-1 fee. If a fund s sales charge structure was changed during the period reported, historical performance information has been restated to reflect the current, maximum initial sales charge. Except as noted, total return figures may not fully reflect a fund s current Rule 12b-1 fees, which are generally included only from the date of the plan s implementation and will 13, 14, 15, 16, 17, 18 affect future performance. Class A, Class B, 19 Class C, Class R, Class Z and Advisor Class Shares: Funds may offer more than one share class. The principal differences are the sales charges and expenses associated with each class, and investors should read the applicable prospectus for details. Class Z, Class R and Advisor Class shares are offered to certain eligible investors only. If a fund has only one share class, it is considered Class A. Customer Identification Number (CIN): For system identification and to access account information, you may create a Customer Identification Number (CIN) to use instead of your Social Security number, which is the default. To create or change your CIN, press 4 from the main menu. Distributions: All mutual funds, regardless of performance, must distribute to shareholders any net realized gains from the sale of individual securities in their portfolios. Mutual funds, depending upon their investment goal and strategy, may also make ordinary income distributions as well. To receive the distribution, you must have been a shareholder of the fund on the record date. Distributions are paid on the payment date. 20 Equivalent Taxable Yield: Yield necessary from a taxable investment that, on an after-tax basis, is equal to the yield of a tax-free investment. Unless otherwise stated, the equivalent taxable yield is based on the current, maximum combined regular federal and, if applicable, state and local personal income tax rate. Your actual personal income tax rates and equivalent taxable yields may differ. 21 Fund Number: Three-digit number that identifies Class A, Class B, Class C, Class R, Class Z or Advisor Class shares of Franklin Templeton funds. Net Asset Value (NAV) per Share: Market value of one share of a mutual fund on a given day. It is calculated by adding the value of all the fund s assets, deducting its liabilities, and dividing the result by the number of fund shares outstanding. Performance: In assessing a fund s overall performance, an investor should consider average annual total return figures in association with the yield figure. Yield generally refers to net current income the fund receives on its portfolio securities, whereas total return generally includes dividends or interest reinvested and appreciation or depreciation of the principal amount invested. Personal Identification Number (PIN): To protect your account from unauthorized access, you are required to create a four-to-six-digit Personal Identification Number (PIN). A PIN is required to access your account information and to conduct account transactions. To create or change your PIN, press 4 from the main menu. Public Offering Price: The share price at which mutual fund shares are offered for sale to the public. The public offering price represents the NAV plus any applicable initial sales charges. Seven-Day Annualized Yield: Reflects the interest income per share earned by a money market fund s investments for the last seven days, calculated as an annual percentage rate. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. Watch List: A personalized list of fund prices and performance figures selected by a caller and stored under their Social Security number. Funds may be added or deleted from this list at any time. This feature eliminates the need to enter each fund number individually to obtain fund price and performance information. Yield: Annualization of a mutual fund s total net investment income per share earned for the 30-day period ended on the last day of the month, divided by the maximum offering price per share on the last day of the month. Information is available around-the-clock, seven days a week. 13. Performance for Advisor Class is calculated as follows: (a) for periods prior to the class s inception date, figures reflect the fund s Class A performance, excluding the effect of Class A s maximum initial sales charge, but including the effect of Class A expenses, including Rule 12b-1 fees; and (b) for periods after the class s inception date, figures reflect actual Advisor Class performance, including deductions of all fees and expenses applicable only to that class. 14. Performance figures for Class A, B, C and R shares of each Mutual Series fund are a restatement of the original Class Z shares (Advisor Class is the original class for Mutual Recovery) to include each class s current maximum initial and contingent deferred sales charge as applicable. Restated figures also include Rule 12b-1 fees for each share class, as applicable, as though in effect from the fund s inception. 15. Performance figures for Class R shares are calculated as follows: for periods prior to the class s inception date, figures reflect the fund s Class A performance, excluding the effect of Class A s maximum initial sales charge, and including the Rule 12b-1 rate differential between Class A and Class R; and for periods after the class s inception date, figures reflect actual Class R performance, including deductions of all fees and expenses applicable to that class. 16. Performance figures for Franklin Income Fund Class B: prior to 11/1/01, the fund offered a Class B share with lower Rule 12b-1 expenses. Figures shown reflect a restatement of the old Class B performance to include the Rule 12b-1 fee applicable to this Class B as though it were in effect from the inception of the old Class B shares. 17. On 8/8/03, Templeton China World Fund converted from a closed-end fund to an open-end fund. Returns shown are a restatement of the closed-end fund s performance to include both the Rule 12b-1 fees and the current sales charges applicable to each as though in effect from the fund s inception. 18. Performance figures for Franklin Large Cap Equity Fund and Franklin International Small Cap Growth Fund are a restatement of the original share class (which was offered without a sales charge and Rule 12b-1 expenses). 19. New sales of Class B shares have been discontinued. Existing Class B shareholders may continue to reinvest dividends and exchange their shares for other B shares. 20. Distributions will vary depending on the funds income and any profits realized from the sale of securities in the funds portfolios. Past distributions are not indicative of future trends. 21. Income distributions from Franklin tax-free and municipal bond funds are generally exempt from regular federal income tax, and may also be exempt from state and local income taxes, depending on the fund and the shareholder s state of residence. Alternative minimum taxes may apply. Distributions of capital gains, if any, are generally taxable. Investors are encouraged to consult with their tax advisors regarding income tax laws and how they may apply to their individual circumstances. 6 Automated Telephone System franklintempleton.com 7

6 Gain From Our Perspective Franklin Templeton s distinct multi-manager structure combines the specialized expertise of three world-class investment management groups Franklin, Templeton and Mutual Series. Specialized Expertise Each of our portfolio management groups operates autonomously, relying on its own research and staying true to the unique investment disciplines that underlie its success. Franklin. Founded in 1947, Franklin is a recognized leader in fixed income investing and also brings expertise in growth- and value-style U.S. equity investing. Templeton. Founded in 1940, Templeton pioneered international investing and, in 1954, launched what has become the industry s oldest global fund. Today, with offices in over 25 countries, Templeton offers investors a truly global perspective. Mutual Series. Founded in 1949, Mutual Series is dedicated to a unique style of value investing, searching aggressively for opportunity among what it believes are undervalued stocks, as well as arbitrage situations and distressed securities. True Diversification Because our management groups work independently and adhere to different investment approaches, Franklin, Templeton and Mutual Series funds typically have distinct portfolios. That s why our funds can be used to build truly diversified allocation plans covering every major asset class. Franklin Templeton Distributors, Inc. One Franklin Parkway San Mateo, CA (800) DIAL BEN (800) franklintempleton.com GOF BATS 07/09