Global Fixed Income January 31, 2014<strong>Templeton</strong> Global Bond Fund (Hedged)<strong>Templeton</strong>INVESTMENT OBJECTIVE & STRATEGYThe fund seeks to achieve high current income withcapital appreciation by investing substantially all of itsassets in units of <strong>Templeton</strong> Global Bond Fund (the"Underlying Fund"). The fund invests in derivatives toattempt to eliminate the impact of currency fluctuationsbetween the U.S. and Canadian dollars.MORNINGSTAR CATEGORYGlobal Fixed IncomePORTFOLIO MANAGERSMichael HasenstabSonal DesaiFUND FACTS 219 Years, California, United States20 Years, California, United StatesPrice per Unit $9.76Yield to Maturity 3.42%Weighted Average MaturityDuration2.4 Years1.4 YearsYield to Worst 3.42%Duration to Worst1.4 YearsAssets of the Fund $57,225,284Distributions Interest income paid quarterly 3,4Inception Date 08/19/2013Positions 2 154BenchmarkJPM Global GBI Traded (Hedged to CAD)1 Awards presented to <strong>Templeton</strong> Global Bond Fund Series A.2 The Fund’s performance is linked to the performance of units invested in <strong>Templeton</strong> GlobalBond Fund (the Underlying Fund). The holdings listed are an outline of the investmentsheld in the Underlying Fund. The Fund holds forward contracts to hedge as completely aspossible against fluctuations caused by changes in exchange rates between the U.S. andCanadian dollars.3 Target distributions are not guaranteed and may change at the discretion of <strong>Franklin</strong><strong>Templeton</strong> <strong>Investments</strong>. The Fund may also pay capital gains in December if required.4 Please see detailed definitions at www.franklintempleton.ca/define.RISK CLASSIFICATIONLowLow toMediumMediumMedium toHighHighFUND CODESSERIES CDN$ US$Series A Front 3712Series A DSC 3714Series A Low Load 3713Series F 3715Series I 3716Series O 3717REASONS TO INVEST IN THIS FUND:• Referencing a winner. <strong>Templeton</strong> Global Bond Fund (Hedged) references the performance of <strong>Templeton</strong>Global Bond Fund, which was named the Best Global Fixed Income Fund at the Canadian InvestmentAwards in 2007, 2008, 2009, 2010 and 2011 and the Lipper Fund Awards Canada in 2009, 2010 and 2011,over 5 and 10 years. 1• Diversification. Global fixed income offers investors an attractive option for overall portfolio diversificationthrough low correlations with other major asset classes.• Flexibility beyond borders. Having the flexibility to invest globally in any country or currency, includingemerging markets, allows the global bond investment team to take advantage of prevailing macroeconomictrends, opportunities in interest rates, currencies and sovereign credit to create a competitive advantage.• Currency hedge benefits. <strong>Templeton</strong> Global Bond Fund can invest in any currency but transacts primarily inU.S. dollars. The US $-CDN $ hedge used by <strong>Templeton</strong> Global Bond Fund (Hedged) is expected to reducepotential currency exchange risk and is designed to attempt to deliver U.S. investor-equivalent performanceto Canadian investors.• Active Management. The team seeks opportunities across three independent sources of alpha: interest rates,currencies and sovereign credit.Compounded Returns and Category Returns in Canadian Dollars (%) 2YTD 1 Mo 3 Mo 6 Mo 1 Year 3 Years 5 Years 10 years Since Inc^Series A -2.21 -2.21 -2.90 n/a n/a n/a n/a n/a -0.01Category Average Return 2.99 2.99 3.14 n/a n/a n/a n/a n/a 6.22Source: Morningstar Research Inc.HOLDINGS^ Fund inception dateTop Country Weightings (% of Total) 2South Korea 10.33Ireland 9.51Mexico 9.47Sweden 7.90Poland 7.69Singapore 6.06Malaysia 5.58Brazil 4.69Others 19.66Cash & Cash Equivalents 19.11Top Holdings (%) 2Government 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 4.28Bond Ratings (%) 2AAA 21.83 BB 5.15AA 12.61 B 2.08A 28.16 CCC 3.72BBB 26.443712 FFE 011416 <strong>advisormonthly</strong> FRANKLIN TEMPLETON INVESTMENTS For Dealer Use Only. Not For Distribution to the Public.
Global & International Equity January 31, 2014<strong>Templeton</strong> Global Smaller Companies Fund(Reopened to new investors effective October 27, 2008)<strong>Templeton</strong>INVESTMENT OBJECTIVE & STRATEGYThis Fund seeks long-term capital appreciation byinvesting primarily in securities of smaller companiesaround the world. In order to meet its objectives, theFund focuses on those companies with a marketcapitalization of less than US$2.5 billion.MORNINGSTAR CATEGORYGlobal Small/Mid Cap EquityRATINGMorningstar Rating OverallPORTFOLIO MANAGERMartin CobbFUND FACTS21 Years, Toronto, CanadaPrice per Unit $21.52Assets of the Fund $842,775,486 1Inception Date 01/03/1989Positions 82Portfolio Turnover Rate (06/30/2013) 19.95%MER (06/30/2013 incl. HST) 2.68%Benchmark1 Inclusive of trust and corporate class versions where applicable.RISK CLASSIFICATIONLowLow toMediumMediumMSCI AC World Small Cap IndexMedium toHighHighREASONS TO INVEST IN THIS FUND:• Investing early in tomorrow’s leading companies. The Fund is broadly diversified by country and sector withsmall-cap stocks from around the globe, making it an ideal choice to provide greater global diversification incapitalization exposure to your portfolio.• Not your typical small-cap fund. The Fund follows a proven disciplined value approach that was pioneered bySir John <strong>Templeton</strong> more than 50 years ago.Calendar Year Returns in Canadian Dollars (%)2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Series A 32.65 11.53 -22.86 18.10 51.18 -38.79 -7.37 24.78 -2.34 10.78Category Average Return 26.73 4.68 -15.67 17.01 31.20 -35.98 -5.03 19.83 11.51 11.98Source: Morningstar Research Inc.60.00%40.00%20.00%0.00%-20.00%-40.00%2013 2012 2011 2010 2009 2008 2007 2006 2005 2004• Series A • Category Average ReturnCompounded Returns and Category Returns in Canadian Dollars (%)YTD 1 Mo 3 Mo 6 Mo 1 Year 3 Years 5 Years 10 years Since Inc^Series A 1.08 1.08 6.11 13.62 26.20 5.11 17.48 4.05 8.37Category Average Return 1.96 1.96 7.18 15.29 24.13 4.40 13.28 4.21 9.00Source: Morningstar Research Inc. ^ Fund inception dateHOLDINGSTop Country Weightings (% Equity)Asset Class Weightings (%)FUND CODESSERIES CDN$ US$Series A Front 707 806Series A DSC 737 906Series A Low Load 694 695Series F 747 754Series I 787 798Series O 169 178CORPORATE CLASS CDN$ US$Series A Front 330 332Series A DSC 331 333Series A Low Load 608 609Series F 334 335Series I 336 337Series O 338 339United States 26.34United Kingdom 16.35Japan 7.64China 6.52Germany 5.86Hong Kong 5.71Canada 4.98Italy 3.64Singapore 2.50Others 20.45Top Holdings (%)Hudbay Minerals Inc 2.37Iida Group Holdings Co Ltd 2.36Brocade Communications Systems Inc 2.33Homeserve 2.17Stillwater Mining Co 2.02Hibbett Sports Inc 2.00Techtronic Industries Co. Ltd 1.96African Minerals Ltd 1.95Kobayashi Pharmaceutical Co. Ltd. 1.88Just Retirement Group PLC 1.87Top Sector Weightings (% Equity)• Equity 94.75• Cash & Cash Equivalents 5.25Consumer Discretionary 23.96Financials 15.79Industrials 13.47Health Care 12.48Information Technology 9.14Materials 8.43Energy 7.84Consumer Staples 6.88Utilities 2.01For Dealer Use Only. Not For Distribution to the Public.707 FFE 0114FRANKLIN TEMPLETON INVESTMENTS <strong>advisormonthly</strong> 17
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