FTIF Templeton Global Bond Fund

FTIF Templeton Global Bond Fund

The STRATEGY Investment Goal FTIF Templeton Global Bond Fund seeks to maximize total return, with a combination of interest income, capital appreciation and currency gains by investing in fixed income securities worldwide. 1] 2] Disciplined Investment Approach The fund is managed by the Franklin Templeton Global/ International Bond Team which follows an well-defined investment process which is outlined below: Franklin Templeton's global economic outlook research puts the investment in context. Analysts perform macroeconomic analysis and determine the interest rate and exchange rate implications of their global economic outlook, resulting in target cash, duration, exchange rate and emerging markets exposure. For developed countries, this is followed by the analysis of the yield curve and horizon (future) returns. The resulting output is the Fund's geographical allocation. Analysis of emerging countries follows a similar process of economic and sovereign credit analysis with subsequent yield curve analysis. The final product is a portfolio consistent with the team's cash and spread duration target weightings for each developed and emerging country, and the credit fundamentals of each country's market bond issuer. Value-enhancing features to the investment management process set the Franklin Templeton Fixed Income Group apart from its competitors Close contact and access to high level government officials who are visited on a periodic basis throughout the year. Global research effort, with a dedicated team of thirteen investment professionals, close investment interaction with over 100 other fixed-income investment professionals, and access to offices in 29 countries provides the necessary global research coverage. Long track record since 1986 of managing global bond portfolios under a similar investment process. Growth of a USD100,000 Investment 1 FTIF Templeton Global Bond Fund Class A (dis) in USD - February 28, 1991 - March 31, 2007 300000 260000 220000 180000 140000 100000 MAY LOSE VALUE NO BANK GUARANTEE

The BENEFITS High Credit Quality The analysts and portfolio mangers are responsible for evaluating and monitoring credit risk on a regular basis. At a security level, the Fund invests mainly in investment grade bonds. Our credit rating restrictions include at least 75% focus on investment grade, and therefore up to 25% of total assets non-investment grade. The weighted average credit quality of the fund is A+ as of March 31, 2007. Broad Diversification - Across Many Countries And Currencies Global diversification can play an important role in fixed income investing offering investors exposure to a wide variety of yield curves and growth scenarios. FTIF Templeton Global Bond Fund invests in bonds issued by companies, governments and government agencies around the world. The Fund invested in 26 countries and 24 different currencies at March 31, 2007. Portfolio Breakdown - Top 10 Countries 2 As of March 31, 2007 Portfolio Breakdown - Top 10 Currencies 2 As of March 31, 2007 Potential to Generate Excess Returns Through Currency Gains Fluctuations in the value of developed country currencies versus the U.S. dollar have an important impact on returns. Fund managers invest mainly in government bonds (different currencies) through macro-economic analysis framework which might help investors earn interest, capital gains and currency gains. 1. Source: S&P Micropal as of March 31, 2007. Current performance may be lower or higher than the performance date quoted. For current performance go to www.templetonoffshore.com. Past performance does not guarantee future results. 2. Source: Franklin Templeton Investments as of March 31, 2007. The Ten Largest Holdings represent the Fund's ten largest holdings as of the date indicated and is subject to change. These securities do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that investment in the securities listed was or will be profitable. Diversification does not eliminate the risk of loss. 3. Source: Standard & Poor's Fund Services as of March 31, 2007. S&P Information is Copyright 2007, Standard & Poor's, a division of The McGraw-Hill Companies, Inc. Standard & Poor's including its subsidiary corporations ( S&P ) is a division of The McGraw-Hill Companies, Inc. Reproduction of S&P Star Ratings and S&P Fund Management Ratings in any form is prohibited except with the prior permission of S&P. Because of the possibility of human or mechanical error by S&P's sources, S&P or others, S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. S&P GIVES NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of S&P Star Ratings and S&P Fund Management Ratings. Standard & Poor's Fund Services. Standard & Poor's Fund Star Ratings provide a graphical representation of the risk-return profile of a fund, calculated over three years. They are designed to assist investors in evaluating the performance of a fund and the consistency of that performance relative to other funds in the sector (and is therefore not suitable for comparing funds in different sectors). It is calculated using a fund's monthly performance relative to its sector average for each of the 36 months over the three years to date. The average and volatility of these 36 numbers is used to calculate a fund's star rating, from 1 star to 5 stars. Stars are reviewed on a monthly basis. Top 10% 5 stars, top 11-30% 4 stars, top 31-50% 3 stars, next 25% 2 stars, bottom 25%. Note: In the U.S., different ratings bands are used. 4. Source: 2007 Morningstar UK, Ltd. 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. Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Morningstar Rating is for the A share class only; other classes may have different performance characteristics.

The RESULTS FTIF Templeton Global Bond Fund S&P FUND STARS RATING 3 MORNINGSTAR RATING TM4 As of March 31, 2007, Standard & Poor s and Morningstar awarded the FTIF Templeton Global Bond Fund Class A shares a fivestar S&P Rating a five-star overall Morningstar Rating TM respectively. A fund s overall rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics. Average Annual Total Returns - Class A (dis) in USD 5 Periods Ended March 31, 2007 YTD 1 Year 3 Years 5 Years 10 Years Since Annualized Annualized Annualized Inception FTIF Templeton Global Bond Fund 1.95 11.73 7.35 12.86 6.95 7.15 JP Morgan Global Government Bond Index 1.19 7.64 2.66 8.90 5.87 6.70 Annual Total Returns - Class A (dis) in USD 5 2006 2005 2004 2003 2002 2001 2000 1999 FTIF Templeton Global Bond Fund 13.08-3.75 13.72 20.81 19.05 1.70-3.75-6.48 Fund Highlights As of March 31, 2007 FTIF Templeton Global Bond Fund Inception Date Category Benchmark Base Currency Portfolio Manager Investment Objective S&P Fund Management Rating 6 Fund Size Dividend Distribution February 28, 1991 Fixed Income - Global USD Based JP Morgan Global Government Bond Index USD Michael Hasenstab, San Mateo, California Maximize total return with of a combination of interest income, capital appreciation and currency gains by investing in fixed income securities worldwide. AA/V5 USD 5,464 Billion Monthly 5. Source: Standard & Poor s Micropal as of March 31, 2007. Indices are unmanaged and contain significantly more stock than those held in the Fund. 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. Current performance may be lower or higher than the performance date quoted. For current performance go to www.templetonoffshore.com. Past performance does not guarantee future results. 6. Source: Standard & Poor's Fund Services as of March 31, 2007. Standard & Poor's Fund Management Ratings are based on a frequently updated evaluation of quantitative (historic performance, volatility, and portfolio construction) and qualitative (management, corporate status and investment process) factors that contribute to longterm performance. Only funds with a track record of at least two years can apply for a rating and only 20% of the funds' analysed achieve one of the three following Fund Management Ratings. AAA: The fund demonstrates the highest standards of quality in its sector based on its investment process and management's consistency of performance as compared to funds with similar objectives. AA: The fund demonstrates very high standards of quality in its sector based on its investment process and management's consistency of performance as compared to funds with similar objectives. A: The fund demonstrates high standards of quality in its sector based on its investment process and management's consistency of performance as compared to funds with similar objectives.

Franklin Templeton Investments 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. RELIABILITY YOU CAN TRUST At Franklin Templeton Investments, we seek to consistently provide investors with exceptional risk-adjusted returns over the long term, as well as the reliable, accurate and personal service that has helped us become one of the most trusted names in financial services. Templeton introduces its first global mutual fund 1954 Mutual Series, known for value investing since 1949, joins Franklin Templeton 1996 1947 Franklin is founded and introduces its first funds the following year 1992 Templeton joins Franklin 2006 Franklin Templeton Investments continues to expand globally, managing assets for investors around the world

Maximizing Franklin Templeton s broad fixed income research capability, FTIF Templeton Global Bond Fund employs the same research process as: - FTIF Templeton Asian Bond Fund - FTIF Templeton Emerging Markets Bond Fund - FTIF Templeton Global Total Return Fund THE BEST INVESTMENT MAY BE AN INVESTMENT REPRESENTATIVE Many investors feel overwhelmed by the sheer volume of investment choices available today. An investment representative can help you define your needs and narrow the search for investments that can help meet your unique financial objectives. The guidance and advice of an experienced professional can prove invaluable as you put together your individual investment plan. Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a free prospectus, please call sales and marketing at 1-800-233-9796. Investors need to read the prospectus carefully before investing. Not all funds mentioned may be available for sale through your firm. FTIF Templeton Global Bond Fund is a sub-fund of Franklin Templeton Investment Funds, Luxembourg - registered SICAV. This material does not constitute or form part of an offer for shares or an invitation to apply for shares of the Franklin Templeton Investment Funds ( FTIF ). Subscriptions for shares of FTIF can only be made on the basis of FTIF current Prospectus and accompanied by a copy of the latest available audited annual report and, if subsequently published, the latest unaudited semi-annual report. The prices of shares and income from them can go down as well as up, and investors may not get back the full amount invested. Past performance is no guarantee of future performance. Currency fluctuation may affect the value of overseas investments. An investment in FTIF entails risks which are described in the Prospectus. No shares of FTIF may be directly or indirectly offered or sold to nationals or residents of the United States of America. In emerging markets, the risks can be greater than in developed markets. Please consult your financial advisor before deciding to invest. Any research and analysis contained in this material has been procured by Franklin Templeton Investments for its own purposes and is provided to you only incidentally. Any views expressed are the views of the investment manager and do not constitute or form part of legal or tax advice or an offer for shares or an invitation to apply for shares of FTIF. 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. A copy of the FTIF prospectus and/or the latest financial reports can be obtained from Franklin Templeton Investments Offshore, 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. GBONDBE 03/07 Franklin Templeton Investments Offshore 100 Fountain Parkway, St. Petersburg, FL 33716-1205 800/239-3894 USA Toll Free 877/389-0076 Canada Toll Free 727/299-8736 Fax templetonoffshore.com