Templeton Global Bond Fund is a sub-fund of the Luxembourg-registered SICAV, Franklin Templeton Investment Funds (FTIF). Source for data and information provided by Franklin Templeton Investments, as of the date of this presentation, unless otherwise noted. Benchmark related data provided by FactSet, as of the date of this presentation, unless otherwise noted.
FRANKLIN TEMPLETON INVESTMENT FUNDS Templeton Global Bond Fund Presenter Name Title/Department Name Date A sub-fund of the Luxembourg-domiciled SICAV Franklin Templeton Investment Funds (FTIF).
TEMPLETON GLOBAL BOND FUND 2 Agenda Franklin Templeton Investments Why Consider This Fund? Fund Overview Fund Performance and Results Review and Next Steps
Franklin Templeton Investments
TEMPLETON GLOBAL BOND FUND 4 Who Is Franklin Templeton Investments? An Investment Management Organisation Focusing on research & investment management with more than 400 investment professionals covering all major asset classes Serving the needs of investors worldwide with a dedicated team of investment professionals* Providing the resources, expertise, experience and commitment to ensure outstanding service to our clients Offering a broad range of investment strategies and vehicles *Shares of funds named in this presentation, represented by stated assets under management, are not registered in all jurisdictions and are not available for purchase by persons residing in all jurisdictions.
TEMPLETON GLOBAL BOND FUND 5 Franklin Templeton Investments Platforms A full range of investment capabilities from a broad breadth of investment management platforms Franklin Equity Group Templeton Emerging Markets Group FRANKLIN TEMPLETON INVESTMENTS Total Combined Assets Under Management (AUM) 1 : US$823,7 Billion EQUITY FIXED INCOME SPECIALISED STRATEGIES Templeton Global Equity Group Mutual Series Franklin Templeton Fixed Income Group 3 Franklin Templeton Local Asset Management Franklin Templeton Real Asset Advisors K2 Advisors Franklin Templeton Multi-Asset Strategies Established 1947 1987 1940 1949 1971 1993 1984 1994 1982 Focus Style US Equity Global Equity International Equity Growth, Value, Core/Hybrid Emerging Markets Equity Global Equity International Equity Global Equity International Equity US Equity Distressed Debt & Merger Arbitrage Global Fixed Income Regional Fixed Income Emerging Market Debt Core Value Core Value Deep Value Single Sector, Multi-Sector Global Equity and Fixed Income Regional Equity and Fixed Income Single-Country Equity and Fixed Income Multi-Sector, Single- or Multi-Region Global Private Real Estate Global Real Estate Securities Global Private Real Assets Multi-Sector, Multi-Region Hedge Fund-of- Funds Multi-Strategy Diversified Long-Short Global Macro Commodity Advisory Services Multi-Style, Multi-Region, Hedged Multi-Asset Fund-of-Funds Strategies Global Tactical Asset Allocation Multi-Style AUM US$158,2 Billion US$53,6 Billion US$105,3 Billion US$63,2 Billion US$362,4 Billion US$48,6 Billion US$4,6 Billion US$9,4 Billion US$28,7 Billion Source: Franklin Templeton Investments (FTI), as of 31 March 2013, unless otherwise noted. Assets under management (AUM) combines the US and non-us AUM of the investment management subsidiaries of the parent company, Franklin Resources, Inc. [NYSE: BEN], a global investment organization operating as Franklin Templeton Investments. AUM includes discretionary and advisory accounts, including pooled investment vehicles, separate accounts and other vehicles, as well as some accounts that may not be eligible for inclusion in composites as defined by the firm s policies. AUM may also include advisory accounts with or without trading authority. In addition, the Firm may provide asset allocation advisory services, and if the assets are not allocated to FTI products, then the assets are not included in AUM. Numbers may not equal 100% due to rounding. Please note that the table above does not include all affiliates under FTI. Franklin Templeton Multi-Asset Strategies (FTMAS) AUM as of 31 March 2013. FTMAS invests in various Franklin Templeton and external investment platforms; AUM for FTMAS is reported under each utilized investment platform, as well as for FTMAS. Each local asset manager may be considered as an entity affiliated with or associated to Franklin Templeton Investments by virtue of being wholly-owned subsidiaries, or other entities or joint ventures in which Franklin Resources, Inc., owns a partial interest, which may be a minority interest. Local asset management AUM includes AUM for Franklin Templeton Investments (ME) Limited and Balanced Equity Management Pty. Limited. Franklin Templeton Investments (ME) Limited and Balanced Equity Management Pty. Limited are both indirect wholly-owned subsidiaries of Franklin Resources, Inc. Please refer to the Important Disclosures slide for additional information.
TEMPLETON GLOBAL BOND FUND 6 Why Consider This Fund?
TEMPLETON GLOBAL BOND FUND 7 The Case for Global Fixed Income? Global bonds offer the potential for: 1. A broadening opportunity set 2. Growing scope and size 3. Diversification 4. Lower volatility potential 5. Wealth preservation As of 31 March 2013.
TEMPLETON GLOBAL BOND FUND 8 Global Bonds as an Asset Class Broadening Opportunity Set World Bond Market World (ex. US) Source: 2013 Citigroup. Citigroup Non-USD World Government Bond Index; US component of Citigroup World Government Bond Index. As of 31 March 2013.
TEMPLETON GLOBAL BOND FUND 9 Global Bond Market Growth Bond Market Debt of All Issuers $97.5 trillion*, as of 31 December 2011 Debt Outstanding (trillions of dollars) *Note: Excludes international organizations and offshore financial centers. Total is equal to $99.9 trillion, as of 31 March 2012. Source: Bank for International Settlements, Securities Statistics and Syndicated Loans, September 2012. Charts are for illustrative and discussion purposes only.
TEMPLETON GLOBAL BOND FUND 10 Global Bond Markets: Winners Rotate Annual Total Returns of the Top 10 Global Bond Markets 10-Year Period Ended 31 December 2012 Diversification does not guarantee a profit or protect against loss. Source: 2013 Morningstar, Inc. and Citigroup Index LLC 2012. All rights reserved. All country and Eurozone returns are from the Citigroup World Government Bond Index and Additional Markets, as of 31 December 2012. Eurozone as represented by the Citigroup EMU Government Bond Index (EGBI), which forms the euro sector of the Citigroup World Government Bond Index. Returns are based on Unhedged USD. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results. For illustrative purposes only.
TEMPLETON GLOBAL BOND FUND 11 Global Bond Markets: Winners Rotate Annual Total Returns of the Top 10 Global Bond Markets 10-Year Period Ended 31 December 2012 Diversification does not guarantee a profit or protect against loss. Source: 2013 Morningstar, Inc. and Citigroup Index LLC 2012. All rights reserved. All country and Eurozone returns are from the Citigroup World Government Bond Index and Additional Markets, as of 31 December 2012. Eurozone as represented by the Citigroup EMU Government Bond Index (EGBI), which forms the euro sector of the Citigroup World Government Bond Index. Returns are based on Unhedged USD. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results. For illustrative purposes only.
TEMPLETON GLOBAL BOND FUND 12 Global Bond Markets: Winners Rotate Annual Total Returns of the Top 10 Global Bond Markets 10-Year Period Ended 31 December 2012 Diversification does not guarantee a profit or protect against loss. Source: 2013 Morningstar, Inc. and Citigroup Index LLC 2012. All rights reserved. All country and Eurozone returns are from the Citigroup World Government Bond Index and Additional Markets, as of 31 December 2012. Eurozone as represented by the Citigroup EMU Government Bond Index (EGBI), which forms the euro sector of the Citigroup World Government Bond Index. Returns are based on Unhedged USD. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results. For illustrative purposes only.
TEMPLETON GLOBAL BOND FUND 13 Global Bond Markets: Winners Rotate Annual Total Returns of the Top 10 Global Bond Markets 10-Year Period Ended 31 December 2012 Diversification does not guarantee a profit or protect against loss. Source: 2013 Morningstar, Inc. and Citigroup Index LLC 2012. All rights reserved. All country and Eurozone returns are from the Citigroup World Government Bond Index and Additional Markets, as of 31 December 2012. Eurozone as represented by the Citigroup EMU Government Bond Index (EGBI), which forms the euro sector of the Citigroup World Government Bond Index. Returns are based on Unhedged USD. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results. For illustrative purposes only.
TEMPLETON GLOBAL BOND FUND 14 Global Bond Markets: Winners Rotate Annual Total Returns of the Top 10 Global Bond Markets 10-Year Period Ended 31 December 2012 Diversification does not guarantee a profit or protect against loss. Source: 2013 Morningstar, Inc. and Citigroup Index LLC 2012. All rights reserved. All country and Eurozone returns are from the Citigroup World Government Bond Index and Additional Markets, as of 31 December 2012. Eurozone as represented by the Citigroup EMU Government Bond Index (EGBI), which forms the euro sector of the Citigroup World Government Bond Index. Returns are based on Unhedged USD. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results. For illustrative purposes only.
TEMPLETON GLOBAL BOND FUND 15 Global Bonds for Diversification Discrete Annual Performance Source: Morningstar as of 31 December 2012, USD. Global Stocks represented by the MSCI World Index. Global Government Bonds represented by the JP Morgan Global Government Bond Index. Past performance is no guarantee of future performance. This should not be treated as investment advice or a recommendation to buy or sell. An index is unmanaged and one cannot invest directly in an index.
TEMPLETON GLOBAL BOND FUND 16 Investing in a Single Asset Class Can Be Volatile 30 April 2008 31 March 2013 Past performance is not a guide to future performance. Indexed Performance, 30 April 2008 to 31 March 2013, in USD. 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 Investment fund. Global Equities are represented by the MSCI World TR USD Index.
TEMPLETON GLOBAL BOND FUND 17 Adding Global Bonds Can Make a Difference 30 April 2008 31 March 2013 Past performance is not a guide to future performance. Indexed Performance, 30 April 2008 to 31 March 2013, in USD. 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 Investment fund. Global Equities are represented by the MSCI World TR USD Index. Global Bonds are represented by the Citigroup World Government Bond Index. The blended index was rebalanced on an annual basis.
TEMPLETON GLOBAL BOND FUND 18 Global Bonds for Potential Wealth Preservation Best and Worst Calendar Year Returns over 20 Years (1993 2012) GLOBAL STOCKS Worst 0% 7.4% Average Best GLOBAL BONDS Worst 0% Best 6.3% Average Source: Annual total returns for the period 1 January 1993 31 December 2012. Global Bonds are represented by the Citigroup World Government Bond Index. Global stocks are represented by the MSCI World TR USD Index. For illustrative purposes only. Past performance does not guarantee future results. Indexes are unmanaged and one cannot invest directly in an index.
TEMPLETON GLOBAL BOND FUND 19 Why Consider This Fund? Lead manager Michael Hasenstab, Ph.D., has over a 10-year track record investing in global bonds Access to investment research by over 150 fixed income professionals located in 11 global locations 1 Investments in 28 countries and 21 currencies around the world, providing global diversification to investors 1 Rated Platinum/V5 by Standard & Poor s 2 Overall Morningstar Rating 3 4 CLASSIFICATION: Global Bond Global Funds NUMBER OF FUNDS: 4 759 Past performance does not guarantee future results. 1. As of 31 March 2013. Portfolio holdings are subject to change. 2. Copyright 2013, Standard & Poor's, a division of The McGraw-Hill Companies Inc. All rights reserved. As of 31 March 2013. "V" represents volatility. Bond fund volatility gradings of V1 to V6 reflect S&P Capital IQ's current opinion of a fund's sensitivity to changing market conditions. A volatility grading evaluates a fund's sensitivity to interest rate movement, credit risk, investment diversification or concentration, liquidity, leverage and other factors. For the V1 to V4 categories, risk is considered relative to a portfolio composed of government securities denominated in the base currency of the fund. Rating for Class A(Mdis) USD. Please refer to the Important Disclaimers slides (38 and 39) for additional information on all rankings and ratings. 3. Source: 2013 Morningstar, Inc. All rights reserved. As of 31 March 2013. Rating for Class A(Mdis) USD. Please refer to the Important Disclaimers slides (38 and 39) for additional information on all rankings and ratings. 4. Source: Lipper, Inc., as of 31 March 2013. Rating for Class A(Mdis) USD. Please refer to the Important Disclaimers slides (38 and 39) for additional information on all rankings and ratings.
TEMPLETON GLOBAL BOND FUND 20 Templeton Global Bond Fund Fund Overview
TEMPLETON GLOBAL BOND FUND 21 An Opportunistic and Flexible Approach to Global Fixed Income Investing Global Expertise Long-Term, Fundamental Macro-Research Driven Opportunistic and Flexible Approach
TEMPLETON GLOBAL BOND FUND 22 Investment Philosophy
TEMPLETON GLOBAL BOND FUND 23 Investment Process Global Opportunities The above chart is for illustrative and discussion purposes only. 14
TEMPLETON GLOBAL BOND FUND 24 Franklin Templeton Fixed Income San Mateo (102) Calgary (5) New York (9) London (12) Dubai (3) Singapore (3) Seoul (7) Shanghai 1 (2) The Franklin Templeton Fixed Income Group consists of more than 150 investment professionals providing comprehensive coverage of potential alpha opportunities across sectors and around the world. 2 São Paulo (6) Mumbai (5) Franklin Templeton Fixed Income Group Offices Local Asset Management Offices Kuala Lumpur (2) 1. Includes individuals that are not employees of Franklin Resources, Inc. (FRI) or wholly owned subsidiaries of FRI. However, these individuals are part of our joint venture or strategic partnership relationships worldwide and are an integral component of our overall fixed income research efforts. 2.Investment professionals include portfolio managers, analysts and traders. As of 31 March 2013.
TEMPLETON GLOBAL BOND FUND 25 Global Fixed Income Research Team 1. This unit is comprised of investment professionals located in affiliates and joint venture partners within Franklin Templeton Investments. The Local Asset Management Group is not a part of, but does share research with, Franklin Templeton Fixed Income Group. Investment professionals include portfolio managers, analysts and traders. As of 31 March 2013.
TEMPLETON GLOBAL BOND FUND 26 Templeton Global Bond Fund Investment Team An experienced team of 16 investment professionals with an average of 12 years of experience As of 31 March 2013. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. Investment professionals include portfolio managers, analysts and traders *Represents number of years of industry experience..
TEMPLETON GLOBAL BOND FUND 27 Templeton Global Bond Fund Fund Performance and Results A growing opportunity Growing scope and size Larger market than equities Global bonds offer the potential for: Performance High yields Diversification Relatively low volatility Currency appreciation
TEMPLETON GLOBAL BOND FUND 28 Historical Performance Templeton Global Bond Fund A(Mdis) USD as of 30 April 2013 Past performance does not guarantee future results. All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations. If they were, the fund's performance would have been lower. 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. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, performance may also be affected by currency fluctuations. Please visit franklintempleton.lu for current performance. The Fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the Prospectus for details. Indexes are unmanaged and one cannot invest directly in an index. Copyright 2013 Morningstar, Inc. All Rights Reserved. Morningstar data as of 31 March 2013, in the Fixed Income Global USD Based Morningstar Category. *Average Annual Returns. (USD)
TEMPLETON GLOBAL BOND FUND 29 Templeton Global Bond Fund A(Mdis) USD As of 31 December 2012 Calendar Year Returns (%) Past performance does not guarantee future results. All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations. If they were, the fund's performance would have been lower. 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. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, performance may also be affected by currency fluctuations. Please visit franklintempleton.lu for current performance.
TEMPLETON GLOBAL BOND FUND 30 Strong, Long-Term Risk/Return Track Record 5-Year Period as of 31 March 2013 Source: 2013 Morningstar, as of 31 March 2013. Global Government Bonds are represented by the JP Morgan Global Government Bond Index; US Bonds are represented by the Barclays US Aggregate Bond Index; US TIPS represented by the Barclays US Treasury TIPS Index; Emerging Market Bonds are represented by the JP Morgan Emerging Markets Bond Index Global; High Yield Bonds are represented by the Citigroup High Yield Index; Commodities are represented by the DJ UBS Commodity Index; REITs are represented by the FTSE NAREIT All REITs Index; US Stocks are represented by the S&P 500 Index; World Stocks are represented by the MSCI World Index; Hedge funds represented by the Credit Suisse Tremont Hedge Fund Index; Cash represented by the P&R 90-Day US Treasury Index. Indexes are unmanaged, and one cannot invest directly in an index. All Morgan Stanley Capital International (MSCI) data is provided as is. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with the MSCI data described herein. Copying or redistributing the MSCI data is strictly prohibited. The indices are unmanaged and therefore do not include the deduction of fees. An individual cannot invest directly in an index. STANDARD & POOR S, S&P and S&P 500 are registered trademarks of Standard & Poor s Financial Services LLC. Standard & Poor s does not sponsor, endorse, sell or promote any S&P index-based product. Volatility as measured by annualised standard deviation. Past performance does not guarantee future results.
TEMPLETON GLOBAL BOND FUND 31 Portfolio Characteristics Templeton Global Bond Fund A(Mdis) USD As of 30 April 2013 Portfolio Weighted Average Credit Quality A Average Duration 1.48 Yrs Average Weighted Maturity 2.44 Yrs Yield to Maturity 3.58% Current Yield 4.35% Past performance does not guarantee future results. All portfolio characteristics are historical and are subject to change. Where a fund invests in emerging markets, this investment can be more risky than an investment in developed markets. Source: Franklin Templeton. The average credit quality (ACQ) rating may change over time. The portfolio itself has not been rated by an independent rating agency. The letter rating, which may be based on bond ratings from different agencies, is provided to indicate the average credit rating of the portfolio s underlying bonds and generally ranges from AAA (highest) to D (lowest). The ACQ is determined by assigning a sequential integer to all credit ratings AAA to D, taking a simple, asset-weighted average of debt holdings by market value and rounding to the nearest rating. An ACQ is not a statistical measurement of the portfolio s default risk and is provided for informational purposes only. Derivative positions and unrated securities are not reflected in the ACQ
TEMPLETON GLOBAL BOND FUND 32 Investing in Countries From Around the World Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
TEMPLETON GLOBAL BOND FUND 33 A Variety of Foreign Currencies Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
TEMPLETON GLOBAL BOND FUND 34 Spanning the Credit Quality Spectrum Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Ratings shown are assigned by one or more Nationally Recognized Statistical Credit Rating Organizations ('NRSRO'), such as Standard & Poor's, Moody's and Fitch. The ratings are an indication of an issuer's creditworthiness and typically range from AAA or Aaa (highest) to D (lowest). When ratings from all three agencies are available, the middle rating is used; when two are available, the lowest rating is used; and when only one is available, that rating is used. Foreign government bonds without a specific rating are assigned the country rating provided by an NRSRO, if available. If listed, the NR category consists of rateable securities that have not been rated by an NRSRO; the N/A category consists of nonrateable securities (e.g., equities). Cash and equivalents (defined as bonds with stated maturities, or that can be redeemed at intervals, of seven days or less) as well as derivatives are excluded from this breakdown. As a result, the chart does not reflect the fund's total net assets.
TEMPLETON GLOBAL BOND FUND 35 Review and Next Steps Why Templeton Global Bond Fund? Global reach Unique approach Invest with a pioneer and leader in global fixed income investing Why Now? Global opportunities are expanding Added portfolio diversification Proven track record Suitable for Investors Seeking: Income and capital appreciation with lower volatility than stocks A complement to existing fixed income products due to benchmark unconstrained approach Exposure to global bond and currency markets Next Steps Present and discuss this fund with your clients as a potential investment to help complement a well diversified portfolio
TEMPLETON GLOBAL BOND FUND 36 IMPORTANT DISCLOSURES Copyright 2013 Franklin Templeton Investments. All rights reserved. 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 full or simplified prospectus of FTIF, 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 no 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 full and simplified prospectus. Special risks may be associated with a fund s investment in certain types of securities, asset classes, sectors, markets, currencies or countries and in the fund s possible use of derivatives. These risks are more fully described in the Fund s prospectus and should be read closely before investing. 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. Performance figures are not based on audited financial statements and assume reinvestment of interest and dividends. References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. When comparing the performance of FTIF with a benchmark index, it is important to note that the securities in which FTIF invests may be substantially different than those represented by the benchmark index. Furthermore, an investment in FTIF represents an investment in a managed investment company in which certain charges and expenses, including management fees, are applicable. These changes and expenses are not applicable to indices. Lastly, please note that indices are unmanaged and 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. 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. Please ensure your client reads the prospectus before deciding to invest. A copy of the latest prospectus, the annual report and semi-annual report, if published thereafter can be found, on our website www.franklintempleton.lu 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 76. Issued by Franklin Templeton International Services S.A. 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), and Fax: (727) 299-8736. Investments are not FDIC insured; may lose value; and are not bank guaranteed. Additional Information for Investment Platform Overview Slide: FTI AUM includes AUM for Rensburg Fund Management Limited, a wholly-owned subsidiary of Franklin Resources, Inc. Franklin Equity Group (formerly Franklin Global Advisers), a unit of Franklin, combines the expertise of the Franklin Advisers, Inc., and Fiduciary Global Advisors equity teams (with origins dating back to 1947 and 1931, respectively). Franklin Templeton Fixed Income Group, a unit of Franklin, combines the expertise of the Franklin Advisers, Inc., and Fiduciary Trust Company International fixed income teams (originating in 1970 and 1973, respectively). Franklin Templeton Real Asset Advisors originated in 1984 as the global real estate team of Fiduciary Trust Company International. FTMAS is a global investment management group dedicated to multi-strategy solutions and is comprised of individuals from various registered entities within Franklin Resources, Inc. Certain individuals based in Canada that advise FTMAS mandates are part of the Fiduciary Trust Company of Canada, a wholly-owned subsidiary of Franklin Resources, Inc., that originated in 1982. FTMAS was formed in 2007 to combine the research and oversight of all multi-strategy investment solutions offered by Franklin Resources, Inc. Additional Information Regarding Morningstar, Lipper and Standard & Poor s Fund Ratings for the Why Consider This Fund Slide: Morningstar Ratings: 2013 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.) A Fund's overall rating is derived from a weighted average of the 3-, 5- and 10-year (if applicable) rating metrics. Morningstar Rating is for the A share class only; other classes may have different performance characteristics. Lipper Leaders: Source, Lipper, Inc. Lipper ratings for Total Return reflect funds historical total return performance relative to peers as of 31 March 2013. Lipper ratings for Consistent Return reflect funds historical riskadjusted returns, adjusted for volatility, relative to peers as of 31 March 2013. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return and Consistent Return over three-, five- and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leader or receive a score of 5, the next 20% receive a score of 4, the middle 20% receive a score of 3, the next 20% receive a score of 2 and the lowest 20% receive a score of 1. Templeton Global Bond Fund, in Lipper s Global Bond classification, received the following overall rating. Total Return: received a value of 5. Consistent Return: received a value of 5. Lipper ratings are not intended to predict future results and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader 2013, Reuters. All rights reserved. Standard & Poor s Ratings: Source: Standard & Poor s Fund Services, www.standardpoors.com 31 March 2013. 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 long-term performance. Only funds with a track record of at least two years can apply for a rating and only 20% of the funds analyzed achieve one of the three following Fund Management Ratings. A Fund demonstrates the highest (AAA), very high standards of (AA), or high standards of (A) quality in its sector based on its investment process and management s consistency of performance as compared to funds with similar objectives.
TEMPLETON GLOBAL BOND FUND 37 IMPORTANT DISCLOSURES (cont d.) Austria: Issued by Franklin Templeton Investment Management Limited (FTIML) or the branch of FTIML in Germany. Dubai: Issued by the branch of Franklin Templeton Investment Management Limited (FTIML) in Dubai. FTIML is authorized and regulated by the Dubai Financial Services Authority. This document/marketing material is directed at Professional Clients. Investor can obtain the prospectus or any other offering documents from Franklin Templeton Investment Management Limited Dubai Branch, The Gate, East Wing, Level 2, Dubai International Financial Centre, P.O. Box 506613, Dubai, U.A.E., Tel.: +9714-4284100 Fax: +9714-4284140. France: Issued by Franklin Templeton France S.A. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.fr or which can be obtained, free of charge, from Franklin Templeton France S.A., 16 18 avenue Georges V, F-75008 Paris, France. Germany: Issued by the Franklin Templeton Investment Services GmbH. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.de or which can be obtained, free of charge, from Franklin Templeton Investment Services GmbH, Mainzer Landstraße 16, D-60325 Frankfurt am Main, Germany. Hong Kong: Issued by Franklin Templeton Investments (Asia) Limited. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.com.hk or which can be obtained, free of charge, from Franklin Templeton Investments (Asia) Limited, 17/F, Chater House, 8 Connaught Road Central, Hong Kong. Italy: Issued by Franklin Templeton Italia Sim S.p.A. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.it or which can be obtained, free of charge, from Franklin Templeton Italia Sim S.p.A, Corso Italia, 1 Milan, 20122, Italy Korea: Issued by Franklin Templeton Investment Trust Management Company Limited (FTITMC) in Korea. Profit and loss from management for the collective investment products are imputed to the investors. Investors should consider a fund s objectives, risks, and charges and expenses before investing. This collective investment product is not insured by the Korea Deposit Insurance Corporation under the Depositor Protection Act. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.co.kr or which can be obtained, free of charge, from Franklin Templeton Investment Trust Management Co., Ltd., 3rd Floor, CCMM Building, 12 Youido-Dong, Youngdungpo-Gu, Seoul, Korea 150-968. Luxembourg: Issued by Franklin Templeton International Services S.A. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.lu or which can be obtained, free of charge, from Franklin Templeton International Services S.A., 26 Boulevard Royal, L-2449 Luxembourg. Romania: Issued by the Bucharest branch of Franklin Templeton Investment Management Limited ( FTIML ) registered with CNVM under no. PJM05SSAM/400001/14.09.2009, which is regulated in Romania by the Romanian National Securities Commission ( CNVM ) and authorized and regulated in the UK by the Financial Conduct Authority. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.ro or which can be obtained, free of charge, from Franklin Templeton Investment Management Limited Bucharest Branch, 78-80 Buzesti Street, Premium Point, 7th-8th Floor, 011017 Bucharest 1, Romania. Singapore: Investors may wish to seek advice from a financial adviser before making a commitment to invest in shares of the Fund. In the event an investor chooses not to seek advice from a financial adviser, he/she should consider whether the fund is suitable for him/her. Issued by Templeton Asset Management Limited. RCB No: 199205211E. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.com.sg or which can be obtained, free of charge, from Templeton Asset Management Ltd., 7 Temasek Boulevard, #38-03 Suntec Tower One, 038987 Singapore Switzerland: Paying agent of Franklin Templeton Investment Funds in Switzerland is J.P.Morgan Chase Bank, Dreikoenigstrasse 21, 8022 Zurich. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.ch or which can be obtained, free of charge, from Franklin Templeton Switzerland Ltd., Bahnhofstrasse 22, CH-8022 Zurich, Switzerland. UK & Nordic regions: Issued by Franklin Templeton Investment Management Limited (FTIML), registered office: The Adelphi, 1-11 John Adam Street, London WC2N 6HT. FTIML is authorized and regulated in the United Kingdom by the Financial Conduct Authority and is authorized to conduct investment business in Denmark by the Finanstilsynet, in Sweden by the Finansinspektionen, in Norway with Kredittilsynet, and in Finland with Rahoitustarkastuksen. Investor can obtain the prospectus or any other offering documents at www.franklintempleton.co.uk or which can be obtained, free of charge, from Franklin Templeton Investment Management Limited.
The Templeton Global Bond Fund is a sub-fund of the Luxembourg-registered SICAV, Franklin Templeton Investment Funds (FTIF). Source for data and information provided by Franklin Templeton Investments, as of the date of this presentation, unless otherwise noted. Benchmark related data provided by FactSet, as of the date of this presentation, unless otherwise noted. 256 PPT 05/13 2013 Franklin Templeton Investments. All rights reserved.