advisormonthly - Franklin Templeton Investments

Global Fixed Income January 31, 2014Templeton Global Bond FundTempletonINVESTMENT OBJECTIVE & STRATEGYThe fundamental investment objective of the Fund is toachieve high current income with capital appreciationby investing primarily in fixed income securities andpreferred shares issued around the world. The Fundmay not invest more than 25% of the total value of theinvested assets (excluding cash) in a particularindustry.MORNINGSTAR CATEGORYGlobal Fixed IncomeRATINGMorningstar Rating OverallPORTFOLIO MANAGERSMichael HasenstabSonal Desai19 Years, California, United States20 Years, California, United StatesFUND FACTSPrice per Unit $9.79Yield to Maturity 3.42%Weighted Average Maturity2.4 YearsDuration1.4 YearsYield to Worst 3.42%Duration to Worst1.4 YearsAssets of the Fund $2,150,522,646 6Distributions Interest income paid monthly 1,2Inception Date 07/15/1988Positions 154Portfolio Turnover Rate (06/30/2013) 3.11%MER (06/30/2013 incl. HST) 2.19%BenchmarkJP Morgan Global Government Bond Index1 Please see detailed definitions at www.franklintempleton.ca/define.2 The Fund may also pay capital gains in December if required.3 Source: Bank for International Settlements, as of December 2009.4 Excludes holdings in short-term securities.5 Sources: S&P and Moody’s. Ratings apply to bond holdings only.6 Inclusive of trust and corporate class versions where applicable.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESSERIES CDN$ US$Series A Front 704 803Series A DSC 734 903Series A Low Load 674 684Series F 257 258Series I 254 256Series O 259 260REASONS TO INVEST IN THIS FUND:• Reduces portfolio volatility. Adding foreign fixed income investments to a portfolio can spread investment riskover many different geographic regions and sectors, resulting in reduced portfolio risk.• Global perspective broadens choice. With 98% of the world’s fixed income market outside of Canada, theFund provides access to a broad range of interest rates, currency and sovereign credit opportunities. 3Calendar Year Returns in Canadian Dollars (%)2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Series A 2.64 7.74 0.56 8.28 4.00 24.06 -6.50 13.38 -7.93 3.50Category Average Return 1.20 5.97 5.15 3.46 -0.50 15.26 -4.46 3.76 -6.45 1.70Source: Morningstar Research Inc.25.00%20.00%15.00%10.00%5.00%0.00%-5.00%-10.00%2013 2012 2011 2010 2009 2008 2007 2006 2005 2004• Series ACompounded Returns and Category Returns in Canadian Dollars (%)• Category Average ReturnYTD 1 Mo 3 Mo 6 Mo 1 Year 3 Years 5 Years 10 years Since Inc^Series A 2.36 2.36 3.23 6.08 4.89 4.68 4.85 4.64 5.70Category Average Return 2.99 2.99 3.14 5.34 4.44 5.12 4.05 2.43 5.03Source: Morningstar Research Inc.HOLDINGS^ Fund inception dateTop Country Weightings (% of Total) 4South Korea 10.33Ireland 9.51Mexico 9.47Sweden 7.90Poland 7.69Singapore 6.06Malaysia 5.58Brazil 4.69Others 19.66Cash & Cash Equivalents 19.11Top Holdings (%) 4Government of Sweden, 6.75%, 5/05/14 4.66Government of Mexico, 9.50%, 12/18/14 3.47Government of Canada, 1.00%, 11/01/14 2.88Government of Ireland, 5.90%, 10/18/19 2.78Government of Ireland, 5.00%, 10/18/20 2.34Korea Monetary Stabilization Bond, Senior Note,2.90%, 12/02/15 2.22Government of Poland, 5.75%, 4/25/14 2.10Korea Monetary Stabilization Bond, Senior Note,2.74%, 2/02/15 2.05Kommuninvest I Sverige AB, 2.25%, 5/05/14 1.46Government of Poland, Strip, 1/25/16 1.41Duration (%)0 to 1 Year 57.811 to 2 Years 10.612 to 3 Years 5.533 to 5 Years 8.655 to 7 Years 12.757 to 10 Years 1.7410 to 15 Years 0.2915 to 20 Years -1.67Offset Derivatives 4.28Series A Distribution HistoryDate Price Distr. Date Price Distr.02/28/2013 $9.92 $0.03 08/30/2013 $9.38 $0.0303/28/2013 $9.77 $0.03 09/30/2013 $9.37 $0.0304/30/2013 $9.80 $0.03 10/31/2013 $9.57 $0.0305/31/2013 $9.72 $0.03 11/29/2013 $9.57 $0.0306/28/2013 $9.58 $0.03 12/19/2013 $9.59 $0.0407/31/2013 $9.39 $0.03 01/31/2014 $9.79 $0.03Bond Ratings (%) 5AAA 21.83 BB 5.15AA 12.61 B 2.08A 28.16 CCC 3.72BBB 26.44Templeton Global Bond Fund Awards. Morningstar Research Inc., as of November 28, 2013. All Rights Reserved.Templeton Global Bond Fund Series A Named Best Global Fixed Income Fund [Canada] in 2013, 2011, 2010,2009, 2008 and 2007. In 2007, 2008, 2009, 2010, 2011 and 2013 there were 57, 62, 68, 78, 95 and 136 fundsconsidered for the category award, respectively.704 FFE 011414 advisormonthly FRANKLIN TEMPLETON INVESTMENTS For Dealer Use Only. Not For Distribution to the Public.