FTI BLUE ORG 1 OLV 1 GRY 1GRY 2GRY 3 LTB 1LTB 2 NEU 1NEU 2NEU 3

The Truth about Europe FINDING OPPORTUNITIES WITH EUROPEAN COMPANIES March 2014

A World Famous Investor Said It Best “If you want to have a better performance than the crowd, you must do things differently from the crowd.” — Sir John Templeton 2

Where Is the Crowd? Source: © 2014 Morningstar. 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. Annual Net Equity Fund Flows by Region January 1, 2009–December 31, 2013 This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton, Franklin Mutual Series or Franklin Bissett fund. Past performance does not guarantee future results. 3

Where the Crowd Is Not—Europe

Sentiment about Europe Remains Negative “Euro Debt Crisis Is Not Over” —The Economist, Aug. 5, 2013 “European Union Economic Crisis Grinds On” —The Washington Post, Aug. 5, 2013 “Turning Point or False Hope: What’s Next For Europe?” —CNBC, Aug. 5, 2013 “The Euro Zone’s Next Big Crisis” —MarketWatch The Wall Street Journal, Oct. 23, But remember, a crisis in European countries does not necessarily mean a crisis in European companies.

Today’s Discussion Facts about Europe You May Not Know Seizing European Value the Templeton Way Getting Started with Franklin Templeton Funds 6

Facts about Europe You May Not Know

Government Debt Has Increased While Corporate Debt Has Decreased European Corporate Total Debt/Total Capital (%) Data. Sources: FactSet. © 2013 FactSet Research Systems Inc. All Rights Reserved. The information contained herein: (1) is proprietary to FactSet Research Systems Inc. and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither FactSet Research Systems Inc. nor its content providers are responsible for any damages or losses arising from any use of this information. Morgan Stanley Capital International. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI. The MSCI Europe Index is used as a proxy for the region. Eurozone Government Debt/GDP (%) Data Source: European Central Bank. Most recent data available. Eurozone Government Debt vs. European Corporate Debt September 30, 2007–September 30,

European Companies Are Export Powerhouses Exports by Region In Billions (USD) as of September 30, 2013 Source: © 2014 FactSet Research Systems Inc. Europe category is formed by combining Europe Developed and Europe Emerging categories, as defined by FactSet. Most recent data available. 9

European Earnings Have Significant Catch-Up Potential MSCI All Country Europe Index vs. S&P 500 Index (12/31/2003 to 12/31/2013) Source: © 2014 FactSet Research Systems Inc. Indexes are unmanaged, one cannot invest directly in an index.

Some European Companies Appear Attractively Priced vs. the Index Year Forward P/E Ratios as of December 31, MSCI Europe Index as of 12/31/ An assessment of a particular security is not intended as an investment recommendation nor does it constitute investment advice. Statements of fact are from sources considered reliable, but no representation or warranty is made as to their completeness or accuracy. 1. As of 12/31/13, holdings as a percentage of total net assets were the following: Telefonica (Templeton International Stock Fund 1.79%, Templeton Global Balanced Fund 1.25%); Michelin (Templeton International Stock Fund 1.91%, Templeton Global Balanced Fund 0.78%); Royal Dutch Shell (Templeton Growth Fund, Ltd. 1.04%, Templeton Global Balanced Fund 0.60%) and ING (Templeton Growth Fund, Ltd. 1.83%, Templeton International Stock Fund 1.80%, Templeton Global Balanced Fund 0.95%). Holdings are subject to change. Sources: © 2013 FactSet Research Systems Inc. and © 2013 MSCI. Indexes are unmanaged and one cannot invest directly in an index. Logos are trademarks of their respective owners. Logos are used to identify their respective companies and should not be construed as an endorsement of, or affiliation with, Franklin Templeton Investments.

Sector% Lower Price to Book Values Appear Attractive at a Sector Level Sources: © 2014 FactSet Research Systems Inc. and © 2014 MSCI. Sector level percentage lower price to book values based on a comparison of P/B ratios as of September 30, 2013 to the 15-year average P/B ratio of the MSCI Europe Index. Indexes are unmanaged and one cannot invest directly in an index. Health Care 18% 3.90 vs Information Technology 12% 3.52 vs Financials 32% 1.04 vs Energy 40% 1.33 vs Current Average P/B Ratios of European Stocks by Sector vs. 15-Year Averages As of December 31,

European Stocks Have Recently Offered Higher Yields on Average Average Yields As of December 31, 2013 U.S. stocks are represented by the S&P 500 Index, Asian stocks are represented by the MSCI All Country Asia Pacific Index, Canadian Stocks are represented by the S&P/TSX Composite Index, European stocks are represented by the MSCI Europe Index. 1. Sources: Data from Robert J. Shiller, Irrational Exuberance, 2nd Edition, 2005, as updated by author. 2. © 2014 FactSet Research Systems Inc. and © 2014 MSCI. 3. Source: Morningstar Research Inc. Past performance is no guarantee of future results. Indexes are unmanaged and one cannot invest directly in an index. 13

Seizing European Value the Templeton Way

Templeton Is Different 15 Global Investing Pioneers 1 Worldwide Bargain Hunters Investing Differently Than The Crowd Investing Differently Than the Crowd 1. The investment team leverages the experience and resource infrastructure developed by Sir John Templeton more than 70 years ago.

Value Usually Outperforms Over the Long Term… 16 Source: MSCI, FactSet. Returns in CAD (Gross). All MSCI data is provided “as is.” In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with the MSCI data describe herein. Copying or redistributing the MSCI data is strictly prohibited. Annual Data YTD ending December 31, <0% Value Underperforms >0% Value Outperforms But Does Not Always Lead in the Short Term Annual Excess Return of MSCI World Value Index vs. MSCI World Index (Gross of Dividends, Canadian Dollar) January 1, 1975 through December 31, 2013

When Others Fled, We Built a Position 17 Templeton Growth Fund, Ltd. Allocation to Europe vs. MSCI World Index Earnings Per Share 3-Year Period Ended December 31, 2013 Portfolio holdings are subject to change. Source: © 2014 Factset. Indexes are unmanaged and one cannot invest directly in an index. As earnings began to plummet in the spring of 2011, Templeton built a bigger position in Europe.

Templeton Global Balanced Fund Templeton Growth Fund, Ltd. Templeton International Stock Fund Inception date 12/12/200511/29/195401/03/1989 Why Invest in this Fund A dynamic, tactical, flexible approach to asset allocation Actively adjusted allocation between stocks and bonds Boots-on-the-ground insights and analysis from a globally dispersed team of researchers and traders Searches globally for opportunities Seeks value Performs fundamental, bottom- up research Practices patient, long-term investing True international diversification Backed with real international expertise Made for investors, not traders AUM $160 million$1.6 billion$790 million Geographic Allocation As of December 31, 2013 Investing Differently Than the Crowd Templeton Funds At-A-Glance 18

Templeton Global Balanced Fund A dynamic blend of global stocks and bonds Employs a flexible, bottom-up allocation Seeks income and capital appreciation

Diversification does not guarantee a profit or protect against loss.. Asset allocation information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. As of December 31, Templeton Global Balanced Fund–Series A Active Allocation Over Time June 2008–December 31,

Templeton Global Balanced Fund–Series A 5-year Risk vs. Return As of December 31, 2013 Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. The fund’s investment return and principal value will change with market conditions, and you may have a gain or a loss when you sell your shares. Sources: © 2013 MSCI and Barclays Global Family of Indices. ©2013 Barclays Capital Inc. Used with permission. Indexes are unmanaged and one cannot invest directly in an index. 21

1. Blended Benchmark: 50% MSCI All Country World Index ($US), 50% Barclays Multiverse Index ($US). Templeton Global Balanced Fund–Series A As of December 31, 2013 Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. The fund’s investment return and principal value will change with market conditions, and you may have a gain or a loss when you sell your shares. Average Annual Total Returns 1-Year3-Year5-Year Since Inception (07/01/05) Templeton Global Balanced Fund 20.3%9.3%8.8%7.6% Morningstar Tactical Balanced Category 10.7%4.1%7.4%4.2% Blended Benchmark %8.9%7.2%5.0% 22

Templeton Growth Fund, Ltd. Searches globally for opportunities Performs fundamental, bottom-up research Practices patient, long-term investing

Templeton Growth Fund, Ltd. Has Offered Value P/E RATIO PRICE/BOOK RATIO PRICE/CASH FLOW RATIO Templeton Growth Fund, Ltd. vs. MSCI World Index As of December 31, % Lower vs % Lower 1.67 vs % Lower 8.37 vs The fund’s P/E ratio, price/book ratio and price/cash flow ratio are determined based on the weighted average of the respective ratios of the stocks in the fund’s portfolio. Portfolio holdings are subject to change. Source: © 2013 MSCI World Index. As of December 31, Indexes are unmanaged and one cannot invest directly in an index. 24

Templeton Growth Fund, Ltd. (Series A) vs. MSCI World Index Growth of a $10,000 Investment Since Inception November 29, 1954 to December 31, 2013 Templeton Growth Fund, Ltd. Sources: Morningstar Research Inc. as of December 31, 2013, The growth of $10,000 begins at the date of the fund's inception (November 29, 1954). Figures include reinvestment of income, capital gains, return of capital and dividends, but the performance does not include the effect of any direct fees described in the fund's prospectus (e.g. advisory fee or income taxes payable) which, if applicable, would lower your total returns. *Inception date of MSCI World Index (CDN$) is December 31, Assumes beginning investment in MSCI World Index (CDN$) is $60,484 (Templeton Growth Fund, Ltd. value on December 31, 1969). 25 Total Value of Templeton Growth Fund, Ltd. $7,859,104 Total Value of MSCI World Index (CDN$) $3,506,894*

Templeton Growth Fund, Ltd. Average Annual Total Returns S 1-Year3-Year5-Year10-Year Since Inception (11/29/54) Templeton Growth Fund, Ltd. (Series A) 35.7%13.8%11.0%4.2%11.9% Morningstar Global Equity Category 28.6%10.5%11.2%4.6%- MSCI World Index 35.9%14.7%12.3%5.5%- As of December 31, Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. The fund’s investment return and principal value will change with market conditions, and you may have a gain or a loss when you sell your shares.

Templeton International Stock Fund True international diversification Backed with real international expertise Made for investors, not traders Compliment to Canadian and U.S. holdings

Geographic Weighting (As of December 31, 2013) As of December 31, Holdings are subject to change. For updated information, please call Franklin Templeton Investments at or visit The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings. Values may not total 100% due to rounding. Templeton International Stock Fund–Series A Capitalize on the Opportunity 28

$47,458 $32,963 $32,196 Templeton International Stock Fund–Series A MSCI EAFE GR Index (CAD$) International Equity Category Average Over 40% More Growth Growth of $10,000* January 3, 1989 to December 31, 2013 * Since inception (January 3, 1989). Source: Morningstar Research Inc. as of December 31, The growth of $10,000 begins at the date of the fund's inception (January 3, 1989). Figures include reinvestment of income, capital gains, return of capital and dividends, but the performance does not include the effect of any direct fees described in the fund's prospectus (e.g. advisory fee or income taxes payable) which, if applicable, would lower your total returns. Templeton International Stock Fund–Series A Capitalize on the Opportunity 29

Templeton International Stock Fund–Series A As of December 31, 2013 Average Annual Total Returns 1-Year3-Year5-Year10-Year Since Inception (1/3/1989) Templeton International Stock Fund, Series A 25.6%8.0%8.8%4.1%6.4% Morningstar Global Equity Category 26.2%8.3%8.8%3.8%5.4% MSCI EAFE Index 31.6%11.1%9.6%5.3%4.8% 30 Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. The fund’s investment return and principal value will change with market conditions, and you may have a gain or a loss when you sell your shares.

Today’s Discussion Facts about Europe That You May Not Know Seizing European Value the Templeton Way Getting Started with Franklin Templeton Funds 31

The Importance of Working with a Financial Advisor To learn more about Franklin Templeton mutual funds that offer exposure to European stocks, talk to your financial advisor. A financial advisor can prove invaluable in helping you define your needs and narrowing the search for investments suitable to your unique objectives. 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. Speculation or stated beliefs about future events, such as market and economic conditions, company or security performance, upcoming product offerings or other projections represent the beliefs of the speaker/author and do not necessarily represent the views of Franklin Templeton Investments Corp. General business, market, economic and political conditions could cause actual results to differ materially from what the speaker presently anticipates or projects. The information presented is not a recommendation or solicitation to buy or sell any securities. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 32

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