Franklin Global Small-Mid Cap Growth Fund Exposure to the worlds hidden values

Sub-fund of the Luxembourg registered SICAV Franklin Templeton Investment Funds

FRANKLIN GLOBAL SMALL-MID CAP GROWTH FUND

INVEsTmENT OBJEcTiVE
The Fund aims to achieve long-term capital appreciation by investing principally in the equity and equity-related securities issued by small and mid-size companies (from $US100 million to $US8 billion in market capitalisation) located in or doing significant business in any developed country in the world.

Why invest in global small and mid-caps?

H  igh potential With higher estimated forward earnings per share growth, and lower long term debt to equity and price to book ratios than their larger cap counterparts, small-mid capitalisation stocks offer a compelling investment opportunity. E  xposure to some of the fastest growing companies in the world There are more themes within the small cap universe and more industries to invest in, such as head-hunting/recruitment services, car rental, Chinese pharmaceuticals and parking services etc. O  pportunities for active management A large number of global small cap companies are covered by a comparatively small number of sell-side analysts. That creates stock-picking opportunities and the potential to generate above-benchmark returns.

BENEfiTs
 Disciplined bottom-up approach1: focus on small and medium-sized companies with sustainable growth potential and attractive valuation. Concentrated portfolio: establishment of best ideas portfolio through in-depth analysis and selection of individual securities.  Focus on risk management: regular risk analysis carried out at individual security level.

RisKs
 Currency Risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations.  Liquidity risk: the risk that arises when adverse market conditions affect the ability to sell assets when necessary. Reduced liquidity may have a negative impact on the price of the assets.

See the Funds prospectus and, where available, the relevant Key Investor Information Document for all risks.

 ottom-up approach: seek out investment opportunities primarily on the basis of intensive analysis of individual securities or issuers, as opposed to a top down approach, where B macroeconomic and market trend analysis drive the stock selection process.

2 | FRANKLIN GLOBAL SMALL-MID CAP GROWTH FUND

EXposure to the worlds hidden Values

INVEsTmENT ProcEss
The investment team believes a concentrated, yet diversified portfolio of carefully selected companies with sustainable business models has the potential to produce above-average risk-adjusted returns over the longer term. They select companies based on three main criteria: Growth A clear competitive advantage with the potential for sustainable growth and strong absolute returns over the longer term. Quality Strong balance sheets and free cash flow supported by a management team focused on the creation of shareholder value. Valuation Attractive pricing, determined by rigorous valuation analysis. The investment process begins by identifying growth companies with strong market positions, niche products, and/or high returns. The team gains further advantage through in-depth, long-term analysis of each company while the disciplined valuation technique is designed to avoid overpaying for growth companies. In essence, the goal of the research process is to find European growth companies that can generate return on investment with minimal downside risk, while using in-depth analysis to establish a strong conviction for each company in the portfolio.
TeAM RoUNdtABle IdeNtifY IdeAs ANd Review KeY AttriBUtes

TeAM RoUNdtABle

IN-dePth fUNdAMeNtAl ANAlYsis

ForMAl RAtiNg ANd INclUsioN iN ClieNt Portfolios

INVEsTmENT TEAm GLoBAL SmALL-MiD CAps

Franklin Equity Group - Franklin Global Small Cap Investment Team
 The global investment team consists of 5 experienced professionals with an average of of close to13 years experience focused on global equity strategies.  The team is located in New York, London and Frankfurt.  Dedicated team of experienced professionals focused on global equity strategies, who are supported by the broader resources of the Franklin Equity Group. Edwin Lugo The manager of the fund is Edwin Lugo, Senior Vice President, who joined the firm in June 2006  and has more than 16 years of investment experience.

FRANKLIN GLOBAL SMALL-MID CAP GROWTH FUND | 3

TEcHNicAL DATA
Investment type ISIN codes

frANKLiN gLoBAL smALL-miD cAp groWTH fUND

Sub-fund of the Luxembourg-registered SICAV Franklin Templeton Investment funds Accumulation A(acc)USD: LU0144644332

FrANKLiN TEmpLEToN INVEsTmENTs

is a global investment manager with over 60 years of experience in managing mutual funds. The company, founded in 1947 and listed on the New York and San Francisco stock exchanges, has over 8500 employees (including over 500 portfolio managers, analysts and traders) in over 30 countries. At the core of our business are multiple world-class investment management groups Franklin, Templeton, Mutual Series, the Franklin Templeton Fixed Income Team, local asset management groups each operating independently and offering their distinct perspectives to financial advisors and their clients. Supported by a single global platform for risk management, operations and client service, they offer investors the expertise of many with the strength of one.

Fund reference currency

USD

Fund launch date

15 April 2002

Subscription fee Redemption fee2

0%

Maximum 5,75% (Please speak to your distributor and consult the fee grid)

Total annual management fee3

1,5%

Would you like to obtain more detailed information on this fund (historical performance, asset allocation,...), please visit our website www.franklintempleton.be or contact the financial service in Belgium.

Investor Profile

This fund is designed for investors: seeking capital appreciation by investing in equity securities,  seeking a growth investment in small or mid cap companies around the world,  planning to hold their investment for the medium to long term.

Distributed by:

Source for all information in this document: Franklin Templeton Investments Copyright 2012. Franklin Templeton Investments. All rights reserved.
Subscriptions to shares of the Luxembourg-domiciled SICAV Franklin Templeton Investment Funds (the Fund) can only be made on the basis of the current prospectus, and, where available, the relevant Key Investor Information Document, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. For all transactions performed from January 1, 2012, tax on stock market transactions on the exit from accumulation shares represents 1%, with maximum EUR 1500 per transaction. The physical person investing in the Fund will be subject to the withholding tax rate of 21% on dividends distribution and/or on the gain when redeeming accumulating shares in one or several sub-funds holding more than 40% in debt securities. An additional 4% contribution will be applied on movable income (interests and dividends) subject to the 21% rate exceeding the annual threshold of EUR 20 000 (indexed). Please consult your financial advisor for more information on the Belgian tax regime and before deciding to invest. The financial service is provided by J.P. Morgan Chase Bank N.A., Brussels Branch, 1 Boulevard Roi Albert II, B-1210 Brussels. A copy of the latest prospectus, and, if available for this product, the Key Investor Information Document, the annual report and semi-annual report, if published thereafter can be found, on our website www.ftidocuments.com or can be obtained, free of charge, from the financial service J.P. Morgan Chase Bank or Franklin Templeton International Services S.A. - Professional of the Financial Sector under the supervision of the Commission de Surveillance du Secteur Financier - 8A rue Albert Borschette, L-1246 Luxembourg - Tel: +352-46 66 67-1 - Fax: +352-46 66 76.

Last update: September 2012.

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Z20156E

Contingent Deferred Sales Charges (CDSC) may apply for investments over $1million redeemed before 18 months. For more information, please consult the SICAV prospectus. Total annual management fee includes annual management fees (1%) and annual maintenance fees (0.5% maximum). For more information, please consult the SICAV prospectus.