DIRECT DEBIT GUARANTEE

Transcription

1 FRANKLIN TEMPLETON FUNDS OEIC APPLICATION FORM Please complete this application form in BLOCK CAPITALS using ink, after reading the Simplified Prospectus. Please note, application forms that are not completed correctly may incur delays or may have to be returned to you. Please send your completed application form to FRANKLIN TEMPLETON INVESTMENTS, PO BOX 23676, EDINBURGH EH7 5WS. If you are unsure about the suitability of this investment for your needs, please consult a financial adviser. 1. Investor Details (if you are a company please complete section 3) Existing Investor? If so please provide your client reference Title (e.g. Mr, Mrs, Other (please specify)) Surname Agent Details To be completed by the agent/financial adviser (if appropriate). By placing business with us, you are confirming that you have received and understood and accepted our Intermediary Agreement. Agent Stamp First Names (in full) Your Permanent Residential Address Postcode Date of Birth D D M M Y Y Y Y Nationality If you have previously invested with Franklin Templeton Investments on behalf of your clients, please provide your agent reference number. Daytime Telephone Number (incl STD code) Mobile Number Commission Payable Address % To designate an account for a minor, or distinguish the new account from any other Franklin Templeton Investments accounts you hold in the same name(s), please complete the details below. The designation may be a maximum of 18 characters and must only contain letters and numbers (no symbols). If you leave this box blank standard commission terms will be applied. Account Designation Security Password (if you contact us by phone we may ask for a password to identify you. This helps us to keep your account details secure. Your password can be a mixture of letters and numbers). 2. Additional Applicant (for joint applications) All documentation will be sent to the address of the first named applicant, listed above. Title (e.g. Mr, Mrs, Other (please specify)) Surname Should you need assistance completing this form, or to request a copy of the Simplified Prospectus of Franklin Templeton Funds or the latest Annual and Interim Report and Accounts, please contact your financial adviser or call us on or enquiries@franklintempleton.co.uk First Names (in full) Please note if there is more than one additional applicant, please include their details on a separate sheet and sign and date it. 3. Companies, Partnerships & Trusts Please visit the literature page of our website and download the Companies, Partnerships and Trusts OEIC Application Checklist for details of the additional information needed to open this type of account. Registered Name Address Name & Job Title of Representative Address Daytime Telephone Number (incl STD code) Postcode Making payments Payment By BACS Payments by BACS can be made to the following account: Bank of New York Mellon Sort Code: Account Number: Account Name: Franklin Templeton Investments Please provide surname and initials of the first shareholder as a reference or the Registered Name. Cheque Payments Alternatively, completed application forms can be sent with a cheque made payable to Franklin Templeton Investments. DIRECT DEBIT GUARANTEE This guarantee is offered by all Banks and Building Societies that take part in the Direct Debit Scheme. The efficiency and security of the Scheme is monitored and protected by your Bank or Building Society. If the amounts to be paid or the payment dates change, Franklin Templeton Investment Management Limited will notify you 10 working days in advance of your account being debited or as otherwise agreed. If an error is made by Franklin Templeton Investment Management Limited or your Bank or Building Society, you are guaranteed a full immediate refund from your branch of the amount paid. You can cancel a Direct Debit any time by writing to your Bank or Building Society. Please also send a copy of your letter to us.

2 4. Your Investment Please ensure you complete the amount you wish to invest as either a lump sum or a regular saving and the appropriate share class next to your chosen fund(s). Minimum investments: Lump sum for A-share is 1,000, for I-share is 3,000,000. Regular saving in A-shares is 50 per month, 150 per quarter or 600 per year. If no share class is selected (ticked) you will automatically be invested in Class A Accumulation shares Fund Name Class A Accumulation Class A Income Please complete section 5 Class I Accumulation Class I Income Please complete section 5 Lump Sum Savings Plan* Franklin Biotechnology Fund Franklin Corporate Bond Fund Franklin Global REIT Fund Franklin Mutual Shares Fund Franklin U.S. Equity Fund Templeton Europe Fund Templeton Global Emerging Markets Fund Templeton Global Total Return Bond Fund Templeton Growth Fund Templeton Strategic Bond Fund Templeton U.K. Equity Fund * For Savings Plan investments only, please indicate the frequency and preferred collection date for your regular saving payments and complete the direct debit information at the bottom of this application form. Monthly Quarterly Annually Preferred Date of Direct Debit Collection 5. Income Distribution If you have chosen to invest in Income shares, please provide the details of the account we should send any income distribution payments to. Your application may be delayed or returned to you if this section is not completed. Bank/Building Society Name Sort Code Account Number Account Name 6. Payment of Sales Proceeds to your Bank/Building Society Account Please provide the details of the account to which we should pay any sales proceeds. Your application may be delayed if this section is not completed. Bank/Building Society Name Sort Code Account Number Account Name 7. Declaration (Please read the Declaration and all named applicants must sign and date below) I/We declare that this application form has been completed to the best of my/our knowledge and belief. I am/we are over 18 years of age and have read and understood the latest Simplified Prospectus (including any addendum) and agree to be bound by it. I/We understand that I/we may be required to provide further information to allow all requirements under the latest Anti-Money Laundering regulations to be met. I/We understand that my/our personal information in this application form will be treated as confidential and will be processed in accordance with, and for the purposes described in, the latest Simplified Prospectus under the heading Data Protection. I/We understand that personal data will be kept on file and may be used to inform me/us of marketing promotions from Franklin Templeton Investments. If I/we do not wish to receive any marketing or other information, I/we will inform you by writing to the address at the bottom of this application form. I/We declare that any further applications for Shares by me/us shall be made and/or deemed to be made in accordance with the terms of this application form. First Applicant Date Second Applicant Date For joint applications, if there are more than two applicants, the other applicants should sign and date next to their personal details on a separate sheet. Company applications should be signed by a duly authorised official, stating their capacity. Issued by Franklin Templeton Investment Management Limited, which is authorised and regulated by the Financial Services Authority. Registered in England: No Registered Office: The Adelphi, 1-11 John Adam Street, London WC2N 6HT. Direct Debit Mandate Please complete the Direct Debit Mandate below if you wish to set up a Regular Savings Plan. For joint bank accounts please ensure both account holders sign the mandate. Please do not detach the mandate from the application form. Franklin Templeton Funds Instructions to your Bank or Building Society to pay Direct Debits To: The Manager Bank/Building Society Name Originator s Identification Number Address Originator s Reference (for official use only) Postcode Branch Sort Code Account Name Account Number Please pay Franklin Templeton Investment Management Limited Direct Debits from the account detailed in this mandate subject to the safeguards assured by the Direct Debit Guarantee. I understand that this mandate may remain with Franklin Templeton Investment Management Limited, and, if so, details will be passed electronically to my Bank/Building Society. Signature(s) Date Banks/Building Societies may refuse to accept instructions to pay Direct Debits from some types of account. No acknowledgement is required. Amendments/cancellations should be advised by return. Please note that this Direct Debit instruction may only be used in respect of a sterling account held with a UK Bank/Building Society.

3

4 CONTENTS Page Introduction 4 Funds Available for Investment 5 Who should invest in the Funds? 6 What track record do the Funds have? 6 The Funds 7 Franklin Biotechnology Fund 7 Franklin Corporate Bond Fund 9 Franklin Global REIT Fund 11 Franklin Mutual Shares Fund 13 Franklin U.S. Equity Fund 15 Templeton Europe Fund 17 Templeton Global Emerging Markets Fund 19 Templeton Global Total Return Bond Fund 21 Templeton Growth Fund 23 Templeton Strategic Bond Fund 25 Templeton U.K. Equity Fund 27 What are the risks of investing? 29 What are the general risks? 29 What are the specific risks? 30 How do I buy Shares? 36 Investing through a Lump Sum 36 Investing through a Regular Savings Plan 36 Where can I obtain Share prices? 36 Can I switch my investment? 36 Do you offer share exchange facilities? 37 Re-registration 37 How do I sell my Shares? 37 Cancellation 37 Complaints 37 Compensation 38 Data Protection 38 How will an investment in the Funds be taxed? 39 Investor position 39 Fund position 40 Equalisation 40 Stamp Duty Reserve Tax Provision 41 Will I receive an income from my investment? 40 2

5 What are the Fees and Expenses that will apply? 40 Initial Charge 40 Annual Management Charge 40 Administration Charge 41 Depositary Fee 41 Depositary Expenses 41 Other Expenses 41 How much will any advice cost? 41 Revenue Sharing arrangements 41 What is the Total Expense Ratio ( TER )? 42 How do transaction costs and the Portfolio Turnover Rate ( PTR ) affect my investment? 42 Effect of charges and expenses 42 Additional important information 43 The Authorised Corporate Director (the ACD ) The Depositary 43 The Auditors 44 The Registrar 44 The Regulator 44 The Investment Advisers 44 What are the key dates for the Funds? 45 Further information 46 About Franklin Templeton Investments 46 Glossary 47 3

6 Introduction This Simplified Prospectus contains key information in relation to Franklin Templeton Funds ( the Company ). The Company is an open-ended umbrella company with variable capital incorporated in Scotland under number SI2 and authorised by the Financial Services Authority (the FSA ) with effect from 3 February The Company has been certified by the FSA as complying with the conditions necessary for it to enjoy rights conferred by the EU Directive on Undertakings for Collective Investment in Transferable Securities ( UCITS ) as amended and, accordingly, is authorised as a UCITS Scheme and subject to the rules in the FSA s COLL Sourcebook. The Company is structured as an umbrella fund which holds various sub-funds open to investment (each of the subfunds being referred to as a Fund and collectively the Funds ). Franklin Templeton Investment Management Limited, the authorised corporate director of the Company (the ACD ), may authorise the creation of additional Funds in the future with different investment objectives, subject to the amendment of this Simplified Prospectus. Additional information about the Company and the Funds is available in: > the Full Prospectus; > the most recent audited Annual and unaudited Semi Annual Reports of the Company. These documents may be obtained free of charge from our website or by calling us on or from outside the UK. Shares in the Company ( the Shares ) are offered or in issue in respect of the Funds and Classes of Shares set out on page 5. This Simplified Prospectus is intended for distribution in the United Kingdom. Its distribution may be restricted in other countries. It does not constitute an offer or solicitation to anyone in any jurisdiction in which such a solicitation is not lawful or in which the person making such an offer or solicitation is not qualified to do so, or to anyone to whom it is unlawful to make such an offer or solicitation. Please ensure that you read this document carefully and understand the potential risks involved before you decide to invest your money with Franklin Templeton Investments. Potential investors are also advised to read the Full Prospectus which contains further information on the Funds. The base currency of the Funds is pounds sterling and all monetary values are stated in pounds sterling. Investors who are resident in a state with a different currency should be aware that currency fluctuations could increase or decrease the return on their investment. This document is accurate only as at the date stated on the cover. Any investment decision should be made by reference only to the most recent version of the documents available. Nothing in this document should be construed as investment advice and current and potential investors should consult a financial adviser if they are in any doubt as to the merits of buying, selling or holding Shares. Throughout the document you will see certain words or phrases highlighted in blue, definitions of these words can be found in the Glossary on page 47. 4

7 Funds Available for Investment Fund Class Lump Sum Regular Savings Franklin Biotechnology Fund A Accumulation 1,000 50pm Franklin Corporate Bond Fund A Accumulation 1,000 50pm Franklin Corporate Bond Fund A Income 1,000 N/A Franklin Global REIT Fund A Accumulation 1,000 50pm Franklin Global REIT Fund A Income 1,000 N/A Franklin Global REIT Fund I Income 3,000,000 N/A Franklin Mutual Shares Fund A Accumulation 1,000 50pm Franklin Mutual Shares Fund A Income 1,000 N/A Franklin Mutual Shares Fund I Accumulation 3,000,000 N/A Franklin U.S. Equity Fund A Accumulation 1,000 50pm Franklin U.S. Equity Fund I Accumulation 3,000,000 N/A Templeton Europe Fund A Accumulation 1,000 50pm Templeton Europe Fund A Income 1,000 N/A Templeton Global Emerging Markets Fund Templeton Global Total Return Bond Fund Templeton Global Total Return Bond Fund A Accumulation 1,000 50pm A Accumulation 1,000 50pm A Income 1,000 N/A Templeton Growth Fund A Accumulation 1,000 50pm Templeton Growth Fund A Income 1,000 N/A Templeton Growth Fund I Accumulation 3,000,000 N/A Templeton Growth Fund I Income 3,000,000 N/A Templeton Strategic Bond Fund A Accumulation 1,000 50pm Templeton Strategic Bond Fund A Income 1,000 N/A Templeton U.K. Equity Fund A Accumulation 1,000 50pm Templeton U.K. Equity Fund A Income 1,000 N/A Templeton U.K. Equity Fund I Accumulation 3,000,000 N/A You may make additional investments of 250 or more into any Fund or class of Shares. The Company may waive the requirements of the preceding table in any particular case prescribed by it. 5

8 Who should invest in the Funds? The Company s Funds are available to all retail investors, however before making your decision to invest, you should consider: Have you thought about the risks involved? Do you understand how charges might affect your investment? Is your investment objective being met by the Fund you have chosen? Some of the Funds are specialist products and should form part of a diversified portfolio. The ACD recommends that investors seek financial advice before investing. Full details of the risks involved in investing in the Funds can be found in the What are the risks of investing? section beginning on page 29. What track record do the Funds have? The following pages include historical performance information expressed in percentage terms. Please be aware that past performance is not a reliable indicator of future performance. The prices of Shares and the scale of income from them can go down as well as up and investors may not get back some or all of the original amount invested. Figures include the effect of the management charge but are net of tax and do not reflect sales charges; if they did, returns would be reduced accordingly. a. Annual Returns this bar chart shows the annual returns for the last ten full consecutive years to 31 March each year. If a fund has been running for less than ten years, but at least one year, annual returns are shown for as many whole years as are available. b. Cumulative Performance this line chart shows the cumulative returns for the last ten full consecutive years to 31 March each year. If the fund has been running for less than ten years, but at least one year, the cumulative returns are shown for as many years as are available. 6

9 Franklin Biotechnology Fund Fund Details Type of Fund: Equity Launch Date: 10 July 2000 Total Expense Ratio: A (Acc) 1.71% Portfolio Turnover Rate: 55.15% Distributions: N/A: Accumulation Shares only Benchmark: NASDAQ Biotechnology Index Investment Adviser: Franklin Advisers, Inc. What is the Fund s investment strategy and objective? This Fund aims to deliver capital growth by investing primarily in equity securities of biotechnology companies and discovery research firms located in the US, Europe and other countries and to a lesser extent in debt securities of any type of foreign or US issues. What is the Fund s investment strategy? The Fund invests a substantial portion of its assets in smaller capitalisation companies which are generally companies with a market capitalisation of less than USD2 billion at the time of the Fund s investment. For the Fund s investment purposes, a biotechnology company is one that has at least 50% of its earnings derived from biotechnology activities, or at least 50% of its assets devoted to such activities based on the company s most recent fiscal year. Biotechnology activities are research, development, manufacture, and distribution of various biotechnological or biomedical products, services and processes. This may include companies involved with genomics, genetic engineering, and gene therapy. It also includes companies involved in the application and development of biotechnology in areas such as health care, pharmaceuticals and agriculture. Discovery research firms are companies that may not have a drug in development or a product of any type, but may instead offer drug discovery services to other companies (such as contract research). Who might want to invest in the Fund? The Franklin Biotechnology Fund may be appropriate for an investor who has a portfolio invested in a number of different asset classes and is now looking to take a higher risk by investing some of their investments in biotechnology companies and discovery research firms in return for higher potential growth and greater portfolio diversification. The Fund is unlikely to be suitable for anyone looking for a consistent, regular investment return particularly over shorter time periods. An investment in the Franklin Biotechnology Fund should be considered as a long term financial commitment, generally at least 5 years. What are the specific risks of investing in the Fund? Biotechnology Sector Risk, Liquidity Risk, Small and Mid-Size Companies Risk. See the section What are the risks of investing? from page 29 for a fuller discussion of these risks and details of the more general risks which apply to all the Funds listed here. Historical Performance 7

10 Annual Performance to 31 March % Growth Franklin Biotechnology Fund A(acc) NASDAQ Biotech Price Index Cumulative Performance Performance since launch to 31 March Jul-00 Nov-00 Mar-01 Jul-01 Nov-01 Mar-02 Jul-02 Nov-02 Mar-03 Jul-03 Nov-03 Indexed Performance Mar-04 Jul-04 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Franklin Biotechnology Fund A(acc) NASDAQ Biotech Price Index Source for performance charts: Franklin Templeton Investment/Morningstar Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar: (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 performance. Performance details provided are in sterling, include reinvested dividends and are net of management fees. Sales charges and other commissions, taxes and other relevant costs to be paid by an investor are not included in the calculations. For up-to-date performance figures please visit our website 8

11 Franklin Corporate Bond Fund Fund Details Type of Fund: Fixed Income Launch Date: 8 September 2003 Total Expense Ratio: A (Acc) 1.08% and A (Inc) 1.08% Portfolio Turnover Rate: 7.12% Distributions: Quarterly Benchmark: Merrill Lynch Sterling Non-Gilts Index Investment Adviser: Franklin Templeton Investment Management Limited What is the Fund s objective? This Fund aims to deliver an income greater than UK government bonds (gilts) by investing in sterlingdenominated fixed- and variable-rate fixed income securities listed or traded on Eligible Markets. What is the Fund s investment strategy? The Fund may invest in corporate bonds and debentures, sovereign, supranational, public agency, government guaranteed, asset-backed and mortgage backed debt instruments. The Fund may, from time to time, invest in sterling denominated government securities if the ACD deems it appropriate. The Fund may only invest in and hold securities with a credit rating of BBB- or higher from S&P or the equivalent rating from another rating agency. The majority of the Fund s assets will be invested in high-quality securities with a relatively low risk of default. However, a small proportion (up to 15%) of the Fund can be held in higher yielding securities, providing that each holding does not exceed 3% of the net asset value of the Fund. While these higher-yielding securities can boost the available income they can carry a greater degree of risk that the investment and/or any interest on the investment will not be paid. Who might want to invest in the Fund? The Franklin Corporate Bond Fund may be appropriate for an investor who wants an income greater than UK government bonds (gilts), paid on a regular basis, by investing in a range of sterling priced variable and fixed income securities. The amount of income paid by the Fund may vary in value and is not guaranteed, so it may not be suitable for someone who needs a specific level of income on a regular basis. An investment in the Franklin Corporate Bond Fund should be considered as a long term financial commitment. What are the specific risks of investing in the Fund? Credit Risk, Sub-Investment Grade Risk and Interest Rate Risk. See the section What are the risks of investing? from page 29 for a fuller discussion of these risks and details of the more general risks which apply to all the Funds listed here. 9

12 Historical Performance Annual Performance to 31 March % Growth Franklin Corporate Bond Fund A(inc) Merrill Lynch Sterling Non-Gilts Cumulative Performance Performance since launch to 31 March Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Indexed Performance Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Franklin Sterling Corporate Bond Fund A(inc) Merrill Lynch Sterling Non-Gilts Source for performance charts: Franklin Templeton Investment/Morningstar Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar: (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 performance. Performance details provided are in sterling, include reinvested dividends and are net of management fees. Sales charges and other commissions, taxes and other relevant costs to be paid by an investor are not included in the calculations. For up-to-date performance figures please visit our website 10

13 Franklin Global REIT Fund Fund Details Type of Fund: Equity Launch Date: 28 April 2006 Total Expense Ratio: A (Acc) 1.65%, A(Inc) 1.65% and I (Inc) 0.95% Portfolio Turnover Rate: % Distributions: Quarterly Benchmark: S&P/Citigroup BMI Global REIT (Hedged into GBP) Index Investment Adviser: Franklin Templeton Institutional LLC What is the Fund s investment objective? The Fund s investment objective is to maximise total investment return consisting of income and capital appreciation. What is the Fund s investment strategy? The Investment Adviser will seek to achieve its investment objective by investing primarily in a global portfolio of real estate investment trusts (REITs). The Fund may also invest in other companies whose principal business is property oriented and which are located anywhere in the world. The Fund will seek to invest in companies across a wide range of property sectors and countries. Who might want to invest in the Fund? The Franklin Global REIT Fund may be appropriate for an investor who has a portfolio invested in a number of different asset classes and now wants to increase their portfolio diversification and potential returns by investing some of their capital into property companies. The Fund s portfolio is primarily invested in the shares of property companies rather than in physical properties. While this makes it much easier and cheaper to buy and sell any investment, they can be more volatile than actual property. Similarly, the Fund can take charges from capital. While this may boost income, it can reduce capital. The Fund may therefore be unsuitable for investors who are not prepared to take some risk to their capital. An investment in the Franklin Global REIT Fund should be considered as a long term financial commitment, generally at least 5 years. What are the specific risks of investing in the Fund? REIT/Property Company Risk, Charges to Capital Risk, Currency Hedging Risk, Emerging Markets Risk, Liquidity Risk, Small and Mid Sized Companies Risk, Prepayment Risk, Non Regulated Markets Risk, Undervalued Securities Risk and Growth Stocks Risk. See the section What are the risks of investing? from page 29 for a fuller discussion of these risks and details of the more general risks which apply to all the Funds listed here. 11

14 Historical Performance Annual Performance to 31 March 0-5 % Growth Franklin Global REIT Fund A(acc) S&P/Citigroup BMI Global REIT (Hedged into GBP) Index Cumulative Performance Performance since launch to 31 March Indexed Performance Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Franklin Global REIT Fund A(acc) S&P/Citigroup BMI Global REIT (Hedged into GBP) Index Source for performance charts: Franklin Templeton Investment/Morningstar Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar: (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 performance. Performance details provided are in sterling, include reinvested dividends and are net of management fees. Sales charges and other commissions, taxes and other relevant costs to be paid by an investor are not included in the calculations. For up-to-date performance figures please visit our website 12

15 Franklin Mutual Shares Fund Fund Details Type of Fund: Equity Launch Date: 8 September 2003 Total Expense Ratio: A (Acc) 1.55%; A (Inc) 1.54%; I (Acc) 0.88% Portfolio Turnover Rate: % Distributions: Benchmark: Investment Adviser: Semi-annually S&P 500 Index Franklin Mutual Advisers, LLC What is the Fund s investment objective? This Fund invests primarily in US companies whose share prices the Investment Adviser considers to be significantly undervalued on purchase but have the potential to grow in value over the long term, with a secondary objective being the generation of income. What is the Fund s investment strategy? Companies that are undergoing periods of significant change, such as mergers, acquisitions, bankruptcy or consolidations can offer investors opportunities for greater diversification and potential higher reward. While these are generally considered to be higher risk than other types of undervalued securities, at no time will the Fund invest more than 10% of the Fund s nest asset value into these types of companies. The Fund s investments in distressed companies typically involve the purchase of lower-rated (or comparable unrated) or defaulted debt securities or other debt obligations, such as syndicated bank debt, of such companies. The Fund generally invests in such debt instruments to achieve capital appreciation, rather than to seek income. Generally, the Fund will invest in such securities at a price which represents a significant discount from the principal amount due at maturity. More details of the risks involved are included in the risk section of the Prospectus. Up to 20% of the portfolio can be invested in undervalued companies in countries outside the US if the Investment Adviser considers them to be strong investment opportunities. Who might want to invest in the Fund? The Franklin Mutual Shares Fund may be appropriate for investors looking for capital growth potential over the long term by investing primarily in the US, the world s largest stock market. The Fund offers investors exposure to US companies that the Investment Adviser considers to be undervalued taking a longer term view. However up to 20% of the portfolio can be invested in undervalued companies in countries outside the US if the Investment Adviser considers they have strong investment potential. If the Investment Adviser believes there is a strong investment opportunity, up to 10% of the portfolio can be invested in companies that are undergoing periods of significant change, such as mergers, acquisitions, bankruptcy or consolidations. While these offer opportunities for greater diversification and potential higher reward, they are generally considered to be higher risk than other types of undervalued securities. More details of the risks involved are included in the risk section of the Prospectus. An investment in the Franklin Mutual Shares Fund should be considered as a long term financial commitment, generally at least 5 years. What are the specific risks of investing in the Fund? 13

16 Small and Mid-Sized Companies Risk Currency Hedging Risk, Restructuring Companies Risk, Undervalued Securities Risk, Credit-linked Securities Risk, Defaulted Debt Securities Risk, Growth Stocks Risk, Undervalued Securities Risk, Mortgage & Asset-backed Securities Risk, Non Regulated Markets Risk, Prepayment Risk, Restructuring Companies Risk, Swap Agreement Risk and Warrants Risk. See the section What are the risks of investing? from page 29 for a fuller discussion of these risks and details of the more general risks which apply to all the Funds listed here. Historical Performance Annual Performance to 31 March % Growth Franklin Mutual Shares Fund A(acc) S&P 500 Index Cumulative Performance Performance since launch to 31 March Indexed Performance Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Franklin Mutual Shares Fund A(acc) S&P 500 Index Source for performance charts: Franklin Templeton Investment/Morningstar Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar: (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 performance. Performance details provided are in sterling, include reinvested dividends and are net of management fees. Sales charges and other commissions, taxes and other relevant costs to be paid by an investor are not included in the calculations. For up-to-date performance figures please visit our website 14

17 Franklin U.S. Equity Fund Fund Details Type of Fund: Equity Launch Date: 8 September 2003 Total Expense Ratio: A (Acc) 1.67%; I (Acc) 0.97% Portfolio Turnover Rate: 66.35% Distributions: Benchmark: Investment Adviser: N/A: Accumulation Shares only S&P 500 Index Franklin Advisers, Inc. What is the Fund s investment objective? This Fund seeks to achieve capital growth over the long term by investing primarily in US equity securities including common and preferred stocks or securities convertible into common stocks as well as American Depositary Shares that are listed on major US Eligible Markets with a secondary objective being the generation of income. What is the Fund s investment strategy? The Fund will pursue these objectives primarily through investments in equity and debt securities of US corporate issuers which are listed or traded on Eligible Markets and which the Investment Adviser believes are available at market prices less than their inherent value. The Fund will focus on investments in securities offering the greatest risk/return potential, taking into account both their growth characteristics and their valuations. The Investment Adviser will follow an active management style utilising all of the portfolio management tools available including fundamental, technical and quantitative analysis. Who might want to invest in the Fund? The Franklin U.S. Equity Fund may be appropriate for investors looking for capital growth potential over the long term by investing primarily in the US, the world s largest stock market. The Fund offers investors a broad exposure to the US market. An investment in the Franklin U.S. Equity Fund should be considered as a long term financial commitment, generally at least 5 years. What are the specific risks of investing in the Fund? Growth Stocks Risk, Small and Mid-Sized Companies Risk. See the section What are the risks of investing? from page 29 for a fuller discussion of these risks and details of the more general risks which apply to all the Funds listed here. 15

18 Historical Performance Annual Performance to 31 March % Growth Franklin U.S. Equity Fund A(acc) S&P 500 Index Cumulative Performance Performance since launch to 31 March Indexed Performance Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Franklin U.S. Equity Fund A(acc) S&P 500 Index Source for performance charts: Franklin Templeton Investment/Morningstar Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar: (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 performance. Performance details provided are in sterling, include reinvested dividends and are net of management fees. Sales charges and other commissions, taxes and other relevant costs to be paid by an investor are not included in the calculations. For up-to-date performance figures please visit our website 16

19 Templeton Europe Fund Fund Details Type of Fund: Equity Launch Date: 8 September 2003 Total Expense Ratio: A (Acc) 1.67%; A (Inc) 1.67% Portfolio Turnover Rate: 9.29% Distributions: Benchmark: Investment Adviser: Semi-annually MSCI Europe ex UK Index Franklin Templeton Investment Management Limited What is the Fund s investment objective? This Fund seeks to invest in companies based mainly in Continental Europe (excluding the UK) whose shares or bond prices were considered by the Investment Adviser to be undervalued at the time they were added to the portfolio but have the potential to grow in value over the long term. The Fund can also invest in companies with significant Continental European operations. What is the Fund s investment strategy? The Fund will primarily invest in equity securities. Since the investment objective of the Fund is more likely to be achieved through an investment policy that is flexible, the Fund may seek investment opportunities in higher yielding securities, such as preferred stock and securities convertible into common stock. While these higher-yielding securities can boost the available income they can carry a greater degree of risk that the investment and/or any interest on the investment will not be paid. Changing market conditions and interest rate levels can also have a larger impact on the market value of higher yielding bonds than those that have a higher credit rating, especially those issued by companies. At no time will the Fund invest more than 10% of the Fund s net asset value in higher yield securities. Who might want to invest in the Fund? The Templeton Europe Fund may be appropriate for investors looking for long term capital growth potential, by investing primarily in undervalued European companies (excluding the UK). An investment in the Templeton Europe Fund should be considered as a long term financial commitment, generally at least 5 years. What are the specific risks of investing in the Fund? Small and Mid-Sized Companies Risk, Sub-Investment Grade Risk and Emerging Markets Risk. See the section What are the risks of investing? from page 29 for a fuller discussion of these risks and details of the more general risks which apply to all the Funds listed here. 17

20 Historical Performance Annual Performance to 31 March % Growth Templeton Europe Fund A(acc) MSCI Europe ex UK Index Cumulative Performance Performance since launch to 31 March Indexed Performance Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Templeton Europe Fund A(acc) MSCI Europe ex UK Index Source for performance charts: Franklin Templeton Investment/Morningstar Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar: (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 performance. Performance details provided are in sterling, include reinvested dividends and are net of management fees. Sales charges and other commissions, taxes and other relevant costs to be paid by an investor are not included in the calculations. For up-to-date performance figures please visit our website 18

21 Templeton Global Emerging Markets Fund Fund Details Type of Fund: Equity Launch Date: 15 March 2004 Total Expense Ratio: A (Acc) 1.95% Portfolio Turnover Rate: 47.28% Distributions: Benchmark: Investment Adviser: N/A: Accumulation Shares only MSCI Emerging Markets Index Templeton Asset Management Limited What is the Fund s investment objective? This Fund aims to achieve long term capital growth through a policy of investing primarily in equity securities (and, as an ancillary matter, in debt securities) issued by corporations incorporated in or having their principal business activities in developing or emerging nations or by governments of such nations. What is the Fund s investment strategy? As well as investing in the securities of issuers in emerging nations, the Fund may also invest in companies which derive a significant proportion of their revenues or profits from emerging economies or have a significant portion of their assets in emerging economies or in equity and debt securities of issuers linked to assets or currencies of emerging nations. Who might want to invest in the Fund? The Templeton Global Emerging Markets Fund may be appropriate for an investor who has a portfolio invested in a number of different asset classes and is now looking to take a higher risk with some of their investments, in return for the higher long term growth potential and greater portfolio diversification available from an investment in emerging market companies from around the world. Emerging Markets can be more volatile than developed markets and an investment in the Templeton Global Emerging Markets Fund could occasionally change in value significantly over the shorter term. It may therefore be unsuitable for anyone looking for a consistent, regular and reliable investment return, particularly over shorter time periods. The Templeton Global Emerging Markets Fund should be considered as long term financial commitment, generally at least 5 years. What are the specific risks of investing in the Fund? Growth Risk, Emerging Markets Risk, Liquidity Risk, Small and Mid-Sized Companies Risk and Non- Regulated Markets Risk. See the section What are the risks of investing? from page 29 for a fuller discussion of these risks and details of the more general risks which apply to all the Funds listed here. 19

22 Historical Performance Annual Performance to 31 March % Growth Templeton Global Emerging Markets Fund A(acc) MSCI Emerging Markets Free Index Cumulative Performance Performance since launch to 31 March Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Indexed Performance Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 Templeton Global Emerging Markets Fund A(acc) MSCI Emerging Markets Free Index Source for performance charts: Franklin Templeton Investment/Morningstar Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar: (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 performance. Performance details provided are in sterling, include reinvested dividends and are net of management fees. Sales charges and other commissions, taxes and other relevant costs to be paid by an investor are not included in the calculations. For up-to-date performance figures please visit our website 20

23 Templeton Global Total Return Bond Fund Fund Details Type of Fund: Fixed Income Launch Date: 31 May 2008 Total Expense Ratio: N/A: New Fund Portfolio Turnover Rate: N/A: New Fund Distributions: Benchmark: Investment Adviser: Quarterly Lehman Multiverse Index Franklin Templeton Investment Management Limited and Franklin Advisers, Inc. What is the Fund s investment objective? The Fund s investment objective is to achieve a total return, over the long term, from a combination of income, capital growth and currency gains. What is the Fund s investment strategy? The Fund will invest across the entire fixed income universe, (including convertible bonds) of governments, government-related or corporate issuers worldwide, and also using currencies, with the aim of delivering investors a total return from income and capital over the long term. The Fund may also invest in securities or structured products where the security is linked to or derives its value from another security, linked to assets or currencies of any nation. More specifically, the Fund may purchase debt obligations issued by governments and supranational entities organised or supported by several national governments. The Fund may also purchase mortgage and asset-backed securities, convertible bonds, and use financial futures contracts, or options on such contracts, on government securities worldwide. The Fund may invest in investment grade and non-investment grade debt securities issued by UK and non-uk issuers including securities in default. By diversifying investments across a number of countries and fixed income sectors the Fund seeks to reduce the risks associated with a more concentrated portfolio, making it an attractive investment for those looking to invest in fixed income markets. Who might want to invest in the Fund? The Templeton Global Total Return Bond Fund may be appropriate for investors who want to receive a positive total return over the long term, by investing in a range of global fixed income securities and currencies. By diversifying fixed income investments across a number of countries, currencies and sectors the Fund seeks to reduce some of the risks associated with a more concentrated portfolio. This Fund is unlikely to appeal to investors who want a cash-like savings account where capital is secure and only the interest varies. An investment in the Fund should be considered as a long term financial commitment, generally at least 5 years. 21

24 What are the specific risks of investing in the Fund? Swap Agreement Risk, Warrants Risk, Short Selling Risk, Non Regulated Markets Risk, Prepayment Risk, Mortgage Dollar Roll Risk, Credit-linked Risk, Credit Risk, Mortgage & Asset-backed Securities Risk, Sub-Investment Grade Risk, Interest Rate Risk, Emerging Markets Risk, and Defaulted Debt Securities Risk. See the section What are the risks of investing? from page 29 for a fuller discussion of these risks and details of the more general risks which apply to all the Funds listed here. Historical Performance Under the current legislation we are unable to provide fund performance for any Fund with less than a complete 12 month performance record. Cumulative Performance Under the current legislation we are unable to provide fund performance for any Fund with less than a complete 12 month performance record. 22

25 Templeton Growth Fund Fund Details Type of Fund: Equity Launch Date: 15 September 1988 Total Expense Ratio: A (Acc) and A (Inc) 1.57%; I (Acc) and I (Inc) 0.87% Portfolio Turnover Rate: 3.84% Distributions: Semi-annually Benchmark: Investment Adviser: MSCI All Country World Index Franklin Templeton Investment Management Limited What is the Fund s investment objective? The Fund s investment objective is to maximise total investment return, concentrating on long term capital growth with the lower risks associated with an internationally diversified portfolio. What is the Fund s investment strategy? This Fund invests in a diversified portfolio of companies from around the world whose shares or bond prices were considered by the Investment Adviser to be undervalued at the time they were added to the portfolio but have the potential to grow in value over the long term. Where there is difficulty in buying securities in buoyant markets at good value, the Fund may also hold interest stocks or significant amounts of cash. By diversifying investments in companies across a number of countries and industry sectors the Fund seeks to reduce the risks associated with a more concentrated portfolio. This could make it an attractive investment for those looking to invest in stock markets for the first time. The Fund uses derivatives only for the purposes of hedging risks and efficient portfolio management, not as a means to achieve the investment objective. Who might want to invest in the Fund? The Templeton Growth Fund may be appropriate for investors looking for long term capital growth potential, from a diversified portfolio of companies from around the world. By diversifying investments in companies across a number of countries and industry sectors the Fund seeks to reduce the risks associated with a more concentrated portfolio. This could make it an attractive investment for those looking to invest in stock markets for the first time. An investment in the Templeton Growth Fund should be considered as a long term financial commitment, generally at least 5 years. What are the specific risks of investing in the Fund? Undervalued Securities Risk, Emerging Markets Risk and Small and Mid-Sized Companies Risk. See the section What are the risks of investing? from page 29 for a fuller discussion of these risks and details of the more general risks which apply to all the Funds listed here. 23

26 Historical Performance Annual Performance to 31 March % Growth Templeton Grow th Fund A(acc) MSCI All Country World Free Index Cumulative Performance 10 Year Performance to 31 March Indexed Performance Mar-98 Sep-98 Mar-99 Sep-99 Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Templeton Growth Fund A(acc) MSCI All Country World Free Index Source for performance charts: Franklin Templeton Investment/Morningstar Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar: (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 performance. Performance details provided are in sterling, include reinvested dividends and are net of management fees. Sales charges and other commissions, taxes and other relevant costs to be paid by an investor are not included in the calculations. For up-to-date performance figures please visit our website 24