Not FDIC Insured May Lose Value No Bank Guarantee Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/ or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.

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3 There Have Always Been Reasons Not to Invest World Events Black Tuesday Crash of New York Stock Exchange 10/29/ –2010 Operation Iraqi Freedom 2008 Global Credit Meltdown Korean Conflict 1950–53 10/24/29 Black Thursday Plunge of New York Stock Exchange 1962 Cuban Missile Crisis 1939–45 World War II 1979–81 Iran Hostage Crisis 1988 Savings & Loan Crisis 10/27/97 Bloody Monday Fall of Dow Jones Industrial Average Vietnam War (U.S. Engagement) 1964–73 Black Monday Fall of Dow Jones Industrial Average 10/19/87 Operation Desert Storm 1991 Subprime Lending Crisis 2007 Attacks on the World Trade Center and Pentagon 9/11/01 European Crisis 2009– 201?

4 Step Back and Take a Long-Term View Growth of $10,000 12/31/1928–6/30/2013 This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund. Source: © 2013 Morningstar. Indexes are unmanaged, and one cannot invest directly in an index. 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. Past performance does not guarantee future results.

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6 “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” — Sir John Templeton Templeton Funds Founder and Former Chairman

5 Reasons to Be an Equity Investor in the Decade Ahead

8 History Favors a Return to the Mean The World Is Getting Smaller (and More Prosperous) Innovation Will Surprise Us...Again Quality Companies Are Not Short-Sighted Equities Help Protect Purchasing Power

History Favors a Return to the Mean

10 Most Years Have Been Positive HISTORY FAVORS A RETURN TO THE MEAN Calendar Year Returns for the S&P 500 Index, 1926–2012 This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund. Source: © 2013 Morningstar. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results.

11 The Same Goes for Decades HISTORY FAVORS A RETURN TO THE MEAN 10-Year Rolling Returns for the S&P 500 Index This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund. Source: © 2013 Morningstar. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results.

12 The Six Worst 10-Year Rolling Periods What Happened Next? HISTORY FAVORS A RETURN TO THE MEAN S&P 500 Index—Worst 10-Year Returns and Subsequent 10-Year Returns This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund. Source: © 2013 Morningstar. Indexes are unmanaged and one cannot invest directly in an index. For the 10-year periods ended 2010, 2011 and 2012, the S&P 500 Index returned 1.41%, 2.92% and 7.10%, respectively. Past performance does not guarantee future results.

The World Is Getting Smaller (and More Prosperous)

14 This Helps U.S. Companies Too THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS Percentage of Revenues Generated Overseas 68%65% 61% 56%63%95%53% Sources: Most recent data available in each company’s latest financial statements. December 31, 2012 (3M Co., Google Inc., McDonald’s Corp., Pfizer Inc., Coca Cola Co.), September 30, 2012 (Apple Inc., Qualcomm Inc.) and October 31, 2012 (Hewlett-Packard Co.). Foreign Revenue is based on Total Revenue minus Domestic Revenue. Logos are trademarks of their respective owners and are used for illustrative purposes and should not be construed as an endorsement or sponsorship of Franklin Templeton Investments.

15 Is Global Core to Your Everyday Life? THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS U.S.Foreign Godiva Chocolatier Hershey Nestle CITGO Shell Oil Valero Budweiser Miller Beer Yuengling Bridgestone Tires Dunlop Michelin Callaway Cleveland TaylorMade

16 U.S.Foreign Godiva Chocolatier Hershey Nestle CITGO Shell Oil Valero Budweiser Miller Beer Yuengling Bridgestone Tires Dunlop Michelin Callaway Cleveland TaylorMade Is Global Core to Your Portfolio? THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS Source: Company websites, as of 12/31/12. United States Britain Venezuela United States Britain Belgium Switzerland United States Turkey France United States Japan Germany Japan United States

17 The Global Opportunity THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS Potential for Increased Consumption Solid bars show current consumption of passenger cars, cell phones and the number of internet users. Shaded bars show potential based on population. Source: © 2013 World Bank (World Development Indicators), ITU (International Telecommunication Union). As of 2012, most recent data available (2005–2012). Internet users are defined as having access to the world wide network. Solid bars show current consumption of passenger cars, cell phones and the number of internet users.

Innovation Will Surprise Us…Again

19 “There is no reason why anyone would want to have a computer in their home.” — Ken Olsen President, Chairman and Founder Digital Equipment Corp., 1977 INNOVATION WILL SURPRISE US…AGAIN

20 A Look Back…What’s Next? The Beat Goes On INNOVATION WILL SURPRISE US…AGAIN Source: Recording Industry Association of America, as of December, Digital includes Downloaded Singles, Downloaded Albums, Kiosks and Downloaded Music Videos. Total vinyl records, cassettes and CDs includes singles and albums.

21 The World Is Changing INNOVATION WILL SURPRISE US…AGAIN Cloud Computing Green Energy Gene Therapy & Regenerative Medicine NanotechnologyRobotics

Quality Companies Are Not Short-Sighted

23 Leaders Can Emerge During Tough Times Source: Company websites. Recessions as identified by National Bureau of Economic Research (NBER). Logos are trademarks of their respective owners and are used for illustrative purposes and should not be construed as an endorsement or sponsorship of Franklin Templeton Investments. QUALITY COMPANIES ARE NOT SHORT-SIGHTED All of these companies were founded during recessions Average Recession Length: 12 MONTHS

24 Dividends Make a Difference! QUALITY COMPANIES ARE NOT SHORT-SIGHTED Dow Jones Industrial Average Growth of a $10,000 Investment This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund. Dividends can be increased, decreased or totally eliminated without notice. Source: Dow Jones & Company. Total return figures assume reinvestment of dividends. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

25 Dividends and Performance Source: © 2013 Ned Davis Research, Inc. Past performance does not guarantee future results. Average Annual Total Returns of S&P 500 Stocks by Dividend Policy 30-Year Period Ended June 30, 2013 QUALITY COMPANIES ARE NOT SHORT-SIGHTED

26 Dividend Payers Risk/Return QUALITY COMPANIES ARE NOT SHORT-SIGHTED Dividends can be increased, decreased or totally eliminated without notice. Source: © 2013 Ned Davis Research, Inc. Indexes are unmanaged and one cannot invest directly in an index. Non-Dividend-Paying Stocks represents non-dividend-paying stocks of the S&P 500 Index; Dividend-Paying Stocks represents all dividend-paying stocks of the S&P 500 Index that maintained their existing dividend rate. Past performance does not guarantee future results. 30-Year Period Ended June 30, 2013

Equities Help Protect Purchasing Power

28 Inflation Shrinks Your Buying Power 1 EQUITIES HELP PROTECT PURCHASING POWER 1. Sources: U.S. Postal Regulatory Commission, U.S. Bureau of Labor Statistics & U.S. Department of Commerce, The College Board (E) $0.29 $0.45 $0.73 U.S. Stamp $16,334 $25,493 $41,250 New Car $17,037 $29,056 $47,014 College Tuition $2.78 $3.58 $5.79 Gallon of Milk

29 This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund. Source: © 2013 Morningstar. Stocks are represented by S&P 500 Index; Bonds are represented by Ibbotson Associates SBBI Long Term Corporate Index; Cash Equivalents are represented by the P&R 90-Day U.S. Treasury Index; Gold is represented by the S&P GSCI Gold Spot Index; U.S. Dollar is represented by the growth of the nominal dollar beginning in 1978, taking inflation into account. Inflation is calculated using the CPI. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. EQUITIES HELP PROTECT PURCHASING POWER After Inflation… December 31,1977 – June 30, 2013

30 5 Reasons to Be an Equity Investor In the Decade Ahead History Favors a Return to the Mean The World Is Getting Smaller (and More Prosperous) Innovation Will Surprise Us...Again Quality Companies Are Not Short-Sighted Equities Help Protect Purchasing Power

What’s Your Vision of 2020?

32 The Importance of Working with Your Advisor Keeps emotions out of investing Builds a long-term investment strategy that is appropriate for your risk tolerance and goals Ensures you stay on course with regular reviews and adjustments to your investment strategy

33 All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Investments in fast-growing industries like the technology and telecommunications sectors (which have historically been volatile) could result in increased price fluctuation, especially over the short term. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size and lesser liquidity. These and other risk considerations are discussed in a fund prospectus. What Are the Risks?

Franklin Templeton Distributors, Inc. One Franklin Parkway San Mateo, California (800) DIAL BEN ® / franklintempleton.com © 2013 Franklin Templeton Investments. All rights reserved. Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/ or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money PPT 10/13