Franklin U.S. Rising Dividends Fund DIVIDENDS AN INDICATOR OF GROWTH

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1 Franklin U.S. Rising Dividends Fund DIVIDENDS AN INDICATOR OF GROWTH

2 The Strategy A Disciplined Approach to Stock Selection Franklin U.S. Rising Dividends Fund invests in high-quality, U.S. companies with a history of consistent and substantial dividend increases that participate in up markets, but also offer a degree of downside protection. The fund employs a disciplined approach to evaluating and selecting quality companies. Generally, companies must meet the fund s strict criteria before stocks are considered for purchase Consistent Dividend Increases The fund s managers believe that companies with consistently increasing dividends should also realize an increase in the price of their shares. Our fund managers look for companies that increased their dividend in at least 8 of the previous 10 years, without any decrease. Substantial Dividend Increases A company must have at least doubled its dividend over the previous 10 years. Generally, the greater the rate of the increase over time, the greater the effect on share price. Strong Balance Sheet Companies with relatively low debt levels generally pose less financial risk. The fund s managers look for companies with long-term debt that is no more than 50% of their total capitalization, or senior debt that is rated investment grade or higher. Reinvested Earnings for Future Growth A company s payment of dividends must be less than 65% of earnings. In other words, a company must reinvest at least 35% of its earnings in its own future growth. Since earnings growth often fuels a rising dividend, the fund s management believes companies that reinvest a sizable portion of earnings should also enjoy better long-term prospects. Attractive Price The fund s managers consider purchasing shares of a stock when it is attractively priced relative to historical valuations. In other words, the stock must have a price to earnings (P/E) ratio in the lower half of its range over the past 10 years or less than the average P/E ratio of stocks composing the S&P 500 Index, at the time of purchase.

3 Franklin U.S. Rising Dividends Fund is designed to weather market uncertainty. This fund is an ideal solution for investors seeking a core U.S. equity component for their portfolios. It offers investors long-term growth and performance through dividend-paying U.S. equities. The fund tends to avoid: Young, growth companies High cyclical companies High-yielding companies (ex. Utilities) The fund sells when: Company becomes fully valued (may either sell or reevaluate and revise the target accordingly) Company unable to generate expected operating results Company no longer meets rising dividends criteria We believe better opportunities are available THE SUCCESSFUL RISING DIVIDENDS PATTERN SELECTION PROCESS RISING TO THE TOP CASH FLOW TARGET STOCKS Sustainable Growth Attractive Value Increasing Dividends Doubling Dividends 8 out of 10 years over same 10 years BUSINESS GROWTH REINVESTMENT Payment of dividends NARROWED TO STRONG COMPANIES Financial Health Fiscal Discipline ALL U.S. DIVIDEND-PAYING STOCKS Reliable Income Less Volatility Franklin U.S. Rising Dividends Fund 1

4 The Benefits 1 A Record of Lower Volatility and Better Downside Protection Throughout various market cycles, Franklin U.S. Rising Dividends Fund Series A has provided investors with lower volatility and protected investor capital better in down markets than its benchmark index and its peer group average. Volatility in the market can be unsettling, which may lead you to sell when it s least advantageous at market lows. With Franklin U.S. Rising Dividends Fund s stringent investment approach, your portfolio can be less vulnerable to market swings. Market volatility can be measured in a number of ways: standard deviation, downside capture ratio and beta. By all of these measures, Franklin U.S. Rising Dividends Fund has been less vulnerable to market swings and we believe, when added to a portfolio, can help smooth out the ups and downs in the market. THE FUND HAS PROVIDED LESS VOLATILITY... Standard Deviation 1 As of December 31, AND BETTER DOWNSIDE PROTECTION THAN ITS BENCHMARK AND PEERS Downside Capture Ratios 1 As of December 31, % 83.95% 10-Year 11.60% 11.92% 10-Year % Franklin U.S. Rising Dividends Fund Series A S&P 500 Total Return Index (CDN$) Morningstar U.S. Equity Category Average Standard Deviation is an annualized statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution for a given time period. The lower the fund s standard deviation, the lower the volatility of the fund. The downside capture ratios measure both the fund s performance and peer group s performance in a down market relative to the S&P 500. A down market is one in which the market s monthly return was less than zero. The lower the fund s down capture ratio, the better the manager protected capital during a market decline. Beta 2 As of December 31, 2017 Franklin U.S. Rising Dividends Fund Series A 3-Year 5-Year 10-Year 0.93% 0.95% 0.86% Beta measures a fund s market-related risk over the time periods shown. The beta is calculated against the S&P 500 Total Return Index (CDN$) as the benchmark and the FTSE TMX Canada 91 Day Treasury Bill Index as the risk-free rate. A beta lower than 1.00 indicates historically lower volatility than the index; higher than 1.00 indicates historically higher volatility. 1. Source: 2018 Morningstar Research 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. Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. 2. Source: Franklin Templeton Investments as of December 31, Franklin U.S. Rising Dividends Fund

5 2 Portfolio of High Quality Companies Franklin U.S. Rising Dividends Fund s focus on high quality companies with rising dividends enables the fund to potentially take advantage of companies that are experiencing growth. DIVIDEND INCREASES 10-Year Top 10 Holdings 3 Weighting Dividend Yield* Year-over-Year Average Annual Consecutive Annual Years Roper Technologies, Inc. 4.84% 0.60% 18% 19% 24 Microsoft Corporation 4.73% 2.00% 8% 14% 14 Albemarle Corporation 4.54% 1.00% 5% 12% 23 Honeywell International, Inc. 3.38% 1.90% 12% 12% 8 Stryker Corporation 3.34% 1.20% 11% 19% 25 Accenture PLC 3.32% 1.70% 10% 20% 13 Becton, Dickinson and Company 3.19% 1.40% 3% 10% 46 Praxair, Inc. 3.18% 2.00% 5% 10% 24 Texas Instruments Inc. 2.94% 2.40% 24% 20% 14 Air Products and Chemicals, Inc. 2.74% 2.30% 10% 10% 35 *The dividend yield of a stock is the total amount of dividend per share paid over the previous 12 months, divided by its current price. Over the past 30 years, companies that have increased dividends have outperformed companies that have decreased dividends. S&P 500 Stocks by Dividend Policy 4 Compounded Returns CDN$ (30-Year Period Ended December 31, 2017) 9.87% 8.86% 6.51% 2.97% -0.85% Dividend Growers & Initiators Dividend-Paying Stocks Dividend Payers with No Change Non-Dividend-Paying Stocks Dividend Cutters & Eliminators 3. Source: Franklin Templeton Investments as of December 31, Dividend yield is based on price per share and dividends paid by each holding over the previous 12 months. Portfolio breakdowns and holdings are subject to change. Breakdown data may not add up to 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. 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. 4. Source: 2018 Ned Davis Research, Inc. Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. All stocks were categorized by the following methodology for the 12-month period ended December 31, 2017: Dividend Growers & Initiators represents all dividend-paying stocks of the S&P 500 that increased their existing dividend or initiated a new dividend; Dividend-Paying Stocks represents all dividend-paying stocks of the S&P 500; Dividend Payers with No Change represents all dividendpaying stocks of the S&P 500 that maintained their existing dividend rate; Non-Dividend-Paying Stocks represents non-dividend-paying stocks of the S&P 500; and Dividend Cutters & Eliminators represents stocks in the S&P 500 that have lowered or eliminated their dividend. Franklin U.S. Rising Dividends Fund 3

6 The Case for Dividend Growers Through various market cycles over the past 30 years, companies that increased their dividend or initiated a new dividend outperformed both the total of all dividend-paying stocks within the S&P 500, as well as non-dividend-paying companies. S&P 500 STOCKS BY DIVIDEND POLICY 5 Growth of a $100,000 Investment (CDN$) 30-Year Period Ended December 31, 2017 $1,600,000 Gulf War January 1991 Asian Economic Crisis October 1997 World Trade Center Attacks September 11, 2001 $1,200,000 $800,000 $400,000 $ Source: 2018 Ned David Research, Inc. Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. The chart represents the dividend grower and initiators, dividend- and non-dividend-paying stocks of the S&P 500 Index, based on a rolling 12-month dividend policy. 4 Franklin U.S. Rising Dividends Fund

7 $1,683,691 Dividend Growers & Initiators Escalation of the Credit Crisis September 2008 European Debt Crisis October 2009 $1,277,039 Dividend-Paying Stocks $240,344 Non-Dividend-Paying Stocks Franklin U.S. Rising Dividends Fund 5

8 The Power of Dollar-Cost Averaging Regular Investing May Help You Reach Your Long-Term Goals 6 Dollar-cost averaging is a proven investment technique that may help lower the average cost of the units you purchase. For example, by investing a fixed dollar amount of $1,000 each month, you buy more units when the price is low and fewer units when the price is high. As a result, your average unit cost may be less than the average price per unit. FRANKLIN U.S. RISING DIVIDENDS FUND SERIES A Monthly Investment of $1,000 November 30, 2000 December 31, 2017 $400,000 $350,000 An investor who invests $12,000 annually can take advantage of the fund s performance over time. 6 $397,648 Fund Market Value $300,000 $250,000 $200,000 $150,000 $206,000 Total Investment Cost $100,000 $50,000 $ Total Investment Cost Fund Market Value Year Total Investment Cost Fund Market Value Year Total Investment Cost Fund Market Value 2000 $2,000 $1, $ $86, $14,000 $13, $122,000 $107, $26,000 $21, $134,000 $127, $38,000 $32, $146,000 $146, $50,000 $44, $158,000 $213, $62,000 $54, $170,000 $262, $74,000 $74, $182,000 $307, $86,000 $70, $194,000 $348, $98,000 $74, $206,000 $397,648 Average Unit Cost = $27.65 Average Price Per Unit = $29.11 Dollar-cost averaging can help reduce your average investment cost. Average unit cost is the adjusted cost base including reinvested distributions divided by the number of units. Average price per unit is the average of the non-weighted purchase prices during the given period. 6. Source: Franklin Templeton Investments, as of December 31, The illustration represents performance of a hypothetical investment and is for illustrative purposes only. It does not represent the past or future performance of a Franklin Templeton mutual fund. All contributions are at month end with the investment beginning on November 30, No front end charge has been included; however, the standard fees are reflected in the fund performance. 6 Franklin U.S. Rising Dividends Fund

Performance Worthy of Recognition Since 2000, Franklin U.S. Rising Dividends Fund has distinguished itself with a record of strong historical performance.

9 Performance Worthy of Recognition Since 2000, Franklin U.S. Rising Dividends Fund has distinguished itself with a record of strong historical performance. It has also received solid ratings from Morningstar and Lipper. ««««MORNINGSTAR RATING TM 7 Over multiple time periods, the fund s Series A performance relative to its peer group has resulted in an overall 4-star Morningstar Rating. Lipper Rating for Total Return 8 Periods Ended December 31, YEAR Lipper RATING YEAR Lipper RATING 10-YEAR Lipper RATING OVERALL Lipper RATING Compounded Returns 9 Periods Ended December 31, 2017 Inception Date 1-Year 3-Year 5-Year 10-Year Since Inception Franklin U.S. Rising Dividends Fund Series A 11/24/ % 10.69% 16.61% 8.89% 1.88% Franklin U.S. Rising Dividends Fund Series F 12/1/ % 11.92% 17.92% 10.09% 7.29% In my opinion, the fund will be successful if we can identify and invest in companies that will be able to have consistent and substantial dividend increases for many years to come. DON TAYLOR, CPA, Lead Portfolio Manager 7. As of December 31, The Morningstar Rating TM for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product 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. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Ratings metrics. The weights are 100% three-year rating for months of total returns, 60% five-year rating/40% three-year rating for months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Franklin U.S. Rising Dividends Fund is rated within the Morningstar U.S. Equity category. All performance data refers to Series A units. Please refer to for more details on the calculation of Morningstar Risk-Adjusted Ratings and the one-year information. For each of the three-, five- and 10-year performance periods, there were in total 891, 561 and 249 funds, respectively, in the Morningstar U.S. Equity category. 8. Source: Lipper, Inc. Lipper ratings for Total Return reflect funds historical total return performance relative to peers as of December 31, The ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return metrics over three-, five- and 10-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leader or receive a score of 5 for Total Return, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2, and the lowest 20% are scored 1. Franklin U.S. Rising Dividends Fund-Series A, in Lipper s U.S. Equity classification, received the following ratings for the three-, five-, 10-year and overall periods, respectively: Total Return: [3] (1,354 funds), [2] (876 funds), [3] (412 funds), and [3] (1,354 funds). Lipper Leader ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at Thomson Reuters All Rights Reserved. 9. Source: Franklin Templeton Investments, as of December 31, Series F is available to investors participating in programs that do not require Franklin Templeton to incur distribution costs in the form of trailing commissions to dealers. As a consequence, the management fee on Series F is lower than on Series A. Franklin U.S. Rising Dividends Fund 7

10 Franklin U.S. Rising Dividends Fund Reasons to Invest The Strategy Invests in high-quality, U.S. companies with a history of consistent and substantial dividend increases that participate in up markets, but also offer a degree of downside protection. Employs a disciplined approach to evaluating a company s strength and stability to continue paying dividends. Considers strict criteria in five key areas before stocks are qualified to purchase. The Benefits Lower volatility and better downside protection than its Peer Group Average and benchmark index. A portfolio of widely recognized companies experiencing growth. Companies that invested or initiated a new dividend outperformed both dividend-paying stocks within the S&P 500 and non-dividend-paying companies. The Results Offers investors solid, core U.S. equity holdings. Scaling back into the market by making regular contributions to Franklin U.S. Rising Dividends Fund has the potential to reduce the average investment cost as well as capture growth potential. Franklin U.S. Rising Dividends Fund offers a hedged version for Canadian investors to minimize the effects of U.S./Canadian dollar exchange rate movements. Franklin U.S. Rising Dividends Fund Franklin U.S. Rising Dividends Fund Corporate Class Franklin U.S. Rising Dividends Hedged Corporate Class SERIES A, F, O, PF, PFT, T CDN$ US$ SERIES A, F, I, O, PF, T CDN$ US$ SERIES A, F, O, T CDN$ Series A Front End Series A Front End Series A Front End 3608 Series A DSC Series A DSC Series A DSC 3610 Series A Low Load Series A Low Load Series A Low Load 3609 Series F Series F Series F 3611 Series O Series I (Closed to new investors) * Series O 3612 Series PF Series O Series T Front End 3613 Series PF (Hedged) 3953 Series PF Series T DSC 3615 Series PFT 3911 Series T Front End 3155 Series T Low Load 3614 Series T Front End 3056 Series T DSC 3157 Series T DSC 3058 Series T Low Load 3156 Series T Low Load 3057 *Series I and V closed to new investors as of November 22, Beginning in January 2017, investors switching between Corporate Class funds will trigger a capital gain or loss at the time of the switch due to certain changes in the income tax laws made by the federal government in Franklin U.S. Rising Dividends Fund

FRANKLIN TEMPLETON INVESTMENTS At Franklin Templeton Investments, we re dedicated to one goal: delivering exceptional asset management for our clients.

11 FRANKLIN TEMPLETON INVESTMENTS At Franklin Templeton Investments, we re dedicated to one goal: delivering exceptional asset management for our clients. By bringing together multiple, world-class investment teams in a single firm, we re able to offer specialized expertise across styles and asset classes, all supported by the strength and resources of one of the world s largest asset managers. This has helped us to become a trusted partner to individual and institutional investors across the globe. Focus on Investment Excellence At the core of our firm, you ll find multiple independent investment teams each with a focused area of expertise from traditional to alternative strategies and multi-asset solutions. And because our portfolio groups operate autonomously, their strategies can be combined to deliver true style and asset class diversification. All of our investment teams share a common commitment to excellence grounded in rigorous, fundamental research and robust, disciplined risk management. Decade after decade, our consistent, research-driven processes have helped Franklin Templeton earn an impressive record of strong, long-term results. Global Perspective Shaped by Local Expertise In today s complex and interconnected world, smart investing demands a global perspective. Franklin Templeton pioneered international investing over 60 years ago, and our expertise in emerging markets spans more than a quarter of a century. Today, our investment professionals are on the ground across the globe, spotting investment ideas and potential risks firsthand. These locally based teams bring in-depth understanding of local companies, economies and cultural nuances, and share their best thinking across our global research network. Strength and Experience Franklin Templeton is a global leader in asset management serving clients in over 170 countries.* We run our business with the same prudence we apply to asset management, staying focused on delivering relevant investment solutions, strong long-term results and reliable, personal service. This approach, focused on putting clients first, has helped us to become one of the most trusted names in financial services. * As of 12/31/17. Clients are represented by the total number of shareholder accounts. Franklin U.S. Rising Dividends Fund 9

12 Franklin Templeton Investments Canada 200 King Street West, Suite 1500 Toronto, ON M5H 3T4 fax (866) (800) For more information on Franklin U.S. Rising Dividends Fund or Franklin Templeton Solutions, please call (800) , speak to your investment advisor, or visit Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. The information presented herein is considered reliable at the present time; however, we do not represent that it is accurate or complete, or that it should be relied upon as such. The information presented herein is not a recommendation or solicitation to buy or sell securities. Mutual fund distributions are not guaranteed, are set and may change at the discretion of Franklin Templeton Investments Corp. Unlike fixed income securities, there is no obligation to distribute any fixed amount, and reductions in, or suspensions of, distributions may occur that would reduce yield. Distributions are not an indication of performance, rate of return, or yield. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or fund facts document before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Franklin Templeton Investments Corp. is the portfolio advisor of Franklin U.S. Rising Dividends Fund, Franklin Advisory Services LLC is the sub-advisor. Franklin Templeton Investments Canada is a business name used by Franklin Templeton Investments Corp Franklin Templeton Investments Corp. All rights reserved. 201 INVE 12/17

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