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G. Summary of Our Sponsored Investment ProductsOur sponsored investment products are offered globally to retail, institutional, high net-worth andseparate account clients, which include individual investors, qualified groups, trustees, tax-deferred (such asIRAs in the United States and retirement saving plans, or RSPs, in Canada) or money purchase plans,employee benefit and profit sharing plans, trust companies, bank trust departments and institutionalinvestors. Our sponsored investment products include portfolios managed for some of the world’s largestcorporations, endowments, charitable foundations, pension funds, wealthy individuals and other institutions.We use various investment techniques to focus on specific client objectives for these specialized portfolios.1. Investment ObjectivesThe sponsored investment products that we offer accommodate a variety of investment goals, spanningthe spectrum of our clients’ risk tolerance – from capital appreciation (with our more growth-orientedproducts) to capital preservation (with our fixed-income offerings). In seeking to achieve such objectives,each portfolio emphasizes different strategies and invests in different types of securities.Our equity investment products include some that are considered value-oriented, others that areconsidered growth-oriented, and some that use a combination of growth and value characteristics, generallyidentified as blend or core products. Value investing focuses on identifying companies that our researchanalysts and portfolio managers believe are undervalued based on a number of different factors, usually putin the context of historical ratios such as price-to-earnings or price-to-book value; however, we alsoconsider the future earnings potential of each individual company on a multi-year basis. Growth investingfocuses on identifying companies that our research analysts and portfolio managers believe have sustainablegrowth characteristics, meeting our criteria for sustainable growth potential, quality and valuation. In thiseffort, the key variables we examine include: market opportunity (overall size and growth); competitivepositioning of the company; assessment of management (strength, breadth, depth, and integrity) andexecution of plans; and the general financial strength and profitability of the enterprise, to determinewhether the growth and quality aspects are properly reflected in the current share price. Paramount to all ofour different equity products is the incorporation of independent, fundamental research through our owncollaborative in-house group of investment professionals. Our approach, across the variety of equityproducts we manage, emphasizes bottom-up stock selection within a disciplined portfolio constructionprocess, and is complemented by our ongoing assessment of risk at both the security and portfolio levels.Portfolios seeking income generally focus on one or more of the following securities: taxable andtax-exempt money market instruments; tax-exempt municipal bonds; global fixed-income securities; andfixed-income debt securities of corporations, of the U.S. government and its sponsored agencies andinstrumentalities, such as the Government National Mortgage Association, the Federal National MortgageAssociation and the Federal Home Loan Mortgage Corporation, or of the various states in the United States.Others focus on investments in particular countries and regions.2. Types of Sponsored Investment ProductsAs of September 30, 2009 we had $523.4 billion in assets under management. Our open-end U.S.Funds (excluding our insurance products trust) accounted for $273.6 billion of our assets undermanagement. As of September 30, 2009, our five largest open-end U.S. Funds and their net assets undermanagement were Franklin Income Fund ($47.4 billion), Templeton Global Bond Fund ($19.2 billion),Templeton Growth Fund ($18.9 billion), Mutual Global Discovery Fund ($15.1 billion) and Mutual SharesFund ($15.0 billion). These five funds represented, in the aggregate, approximately 22% of all of oursponsored investment product assets under management.13