RETIREMETRICS GUIDE TO PORTFOLIO SOLUTIONS...Franklin Templeton investment options. Nothing herein should be construed as a recommendation to buy or investment advice. There is no

Dealer Use Only / Not for Distribution to the Public

RETIREMETRICS®: GUIDE TO PORTFOLIO SOLUTIONS

RETIREES NEED YOU

Not FDIC Insured | May Lose Value | No Bank Guarantee

What Are RetireMetrics?1

re•tire•met•rics (ri t r mé triks)

RetireMetrics are measures

that can help you evaluate

funds intended for the

distribution phase of

your clients’ retirement.

Clients preparing for retirement often face uncertainty about

what’s next––both from a financial and a lifestyle perspective.

This uncertainty can lead to increased levels of stress and anxiety.

When it comes to the financial perspective, clients often seek

guidance on their transition from the accumulation phase to the

distribution phase.

You can help reduce your clients’ uncertainty by:

• Understanding Their Retirement Situation

Learn about and help prioritize your clients’ goals and concerns,

assess short- and long-term risk tolerance, calculate their

retirement expenses and optimize potential retirement income

sources (Social Security, employment, investment income).

• Determining an Asset Allocation Target

If your client’s strategy includes investment income, it is important

to determine an asset allocation that addresses both long-term

retirement goals as well as short-term volatility concerns.

• Selecting the Right Investments

With an asset allocation plan that matches the client’s goals and

concerns, the next step is to choose the investments that will

comprise the allocation strategy.


franklintempleton.com 1Dealer Use Only / Not for Distribution to the Public

Overview Portfolio Construction Checklist

MONTE CARLOSIMULATION

PROBABILITY ANALYSIS

What is the likelihood their asset allocation will generate lasting income?

Probability Analysis uses Monte Carlo simulation to test a portfolio under thousands of scenarios to determine its ability to provide an income stream amid changing and unpredictable market conditions.

Does the current portfolio provide a high enough probability of sustaining income?

Is there a different allocation model that increases such probability?

CORRELATIONCORRELATION

Is their portfolio diversified or is it just a bunch of funds?

Correlation looks at the degree to which investments move in tandem. To minimize swings due to market movement, investments should not all move in the same direction at the same time.

How do the funds interact with each other? Do they improve diversification?

Are there less correlated assets that could be added to the portfolio to help reduce overall volatility and/or increase the probability of sustaining income?

STANDARDDEVIATIONSTANDARD DEVIATION

Will their portfolio’s volatility be acceptable or lead to excessive anxiety?

Standard Deviation measures the risk of an investment. For retirees, investments with a lower standard deviation can help provide desired peace of mind.

Does the overall standard deviation for the portfolio match the client’s risk tolerance?

Are there different investments that could be added to the portfolio to help reduce portfolio volatility while maintaining acceptable probability of sustaining income?

RETIREMETRICS

From a portfolio perspective, historical metrics such as average annual return and beta may have been helpful in gauging a fund’s suitability during the accumulation phase. However, determining a fund’s potential to help deliver sustainable income distributions from a portfolio requires a different approach— especially when volatility can have an exponential impact.

RetireMetrics includes Probability Analysis (Monte Carlo), Correlation and Standard Deviation. When used together, they can help determine an appropriate asset allocation and identify the appropriate funds for a portfolio that is designed to align with your clients’ individual retirement goals and concerns—with a focus on optimizing income while minimizing volatility throughout retirement.

CORRELATION

RetireMetrics Snapshot

Dealer Use Only / Not for Distribution to the Public2 RetireMetrics®: Guide to Portfolio Solutions

1 | Establish an Asset Allocation Target Does an asset allocation strategy address both long-term retirement income needs as well as short-term volatility concerns? Using RetireMetrics can help answer that question. Probability Analysis examines the long-term viability of a portfolio. Standard Deviation indicates the range of short-term volatility.

The following table looks at the Probability and Standard Deviation results for common asset allocation models:

RETIREMETRICS IN ACTION

RETIREMETRICS ANALYSIS

Probability of Sustaining Withdrawals over a 30-Year Period Beginning on December 31, 2017 with an Initial Annual Withdrawal Amount of 5% Increased by 3% Each Year

IMPORTANT: The Monte Carlo projections or other information regarding the likelihood of various investment outcomes are generated by Franklin Templeton Investments, are hypothetical in nature and should not be considered investment advice. They do not reflect actual investment results and are not guarantees of future results. The simulations are based on a number of assumptions, including certain forward-looking capital market expectations (CMEs) of each asset class developed by Franklin Templeton Solutions. There can be no assurance that results shown will be achieved or sustained. The results present only a range of possible outcomes. Actual results will vary with each use and over time, as such results may be better or worse than the simulated scenarios, and the potential for loss (or gain) may be greater than demonstrated in the simulations.

ASSET CLASS ASSUMPTIONS: Based on our assumptions, including the application of CMEs, U.S. Equity has an expected return of 9.34% and a standard deviation of 14.69%; U.S. Fixed Income has an expected return of 6.04% and a standard deviation of 5.53%; Global Equity has an expected return of 8.79% and a standard deviation of 14.79%; Global Fixed Income has an expected return of 4.53% and a standard deviation of 3.73%.

Please see “Important Information About Monte Carlo Simulations” on page 8 for more information.

Portfolio IncomeBalance & Income Balance

Balance & Growth Growth

■ U.S. Equity ■ U.S. Fixed Income■ Global Equity ■ Global Fixed Income

70%

10%

10% 10%

50%

10%

10%

30%

10%

10%

40%

40%

50%

10%

10%

30%70%

10%

10%

10%

Probability 70% 78% 79% 79% 78%

Standard Deviation 5.63% 7.18% 8.21% 9.35% 11.80%

Dealer Use Only / Not for Distribution to the Public franklintempleton.com 3

2 | Refine with CorrelationMost investors know that diversification should guide their choices. The idea behind diversification is simple— spread money across different asset classes in an effort to reduce risk. But asset classes that seem different may perform more alike than one would guess.

ARE YOU DIVERSIFYING OR JUST DUPLICATING?

Correlation of Key Asset Classes for the 10-Year Period Ended March 31, 20182

S&P 500 IndexBloomberg Barclays

US Corporate Investment Grade Index

MSCI World Index Citi World Govt Bond Index

Bloomberg Barclays Municipal Bond Index

S&P 500 Index 1.00 0.35 0.97 0.22 0.06

Bloomberg Barclays US Corporate Investment

Grade Index0.35 1.00 0.44 0.58 0.53

MSCI World Index 0.97 0.44 1.00 0.31 0.12

Citi World Govt Bond Index 0.22 0.58 0.31 1.00 0.33

Bloomberg Barclays Municipal Bond Index 0.06 0.63 0.12 0.33 1.00

THE POWER OF CORRELATION

The following chart illustrates the potential impact of adding asset classes that traditionally have less correlation to U.S. asset classes may have on portfolio return and standard deviation.

Risk vs. Return (Without Sales Charge) 10-Year Period Ended March 31, 20182

Portfolio IncomeBalance & Income Balance

Balance & Growth Growth

■ U.S. Equity ■ U.S. Fixed Income■ Global Equity ■ Global Fixed Income

70%

10%

10% 10%

50%

10%

10%

30%

10%

10%

40%

40%

50%

10%

10%

30%70%

10%

10%

10%

Probability 70% 78% 79% 79% 78%

Standard Deviation 5.63% 7.18% 8.21% 9.35% 11.80%

Source: © 2018 Morningstar, Inc. 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.

Blended portfolios are rebalanced annually

5% 11%7% 9%6% 8% 10% 12%

11%

Volatility

Retu

rn

5%

9%

7%

12%

6%

10%

8%

55% Stocks35% U.S. Bonds10% Global Gov't Bonds

60% Stocks 40% U.S. Bonds

55% Stocks 35% U.S. Bonds10% Munis

50% Stocks 30% U.S. Bonds20% Global Gov't Bonds

4 RetireMetrics®: Guide to Portfolio Solutions Dealer Use Only / Not for Distribution to the Public

3 | Select InvestmentsOnce an asset allocation strategy is established and correlation has been reviewed, it is time to select investments to build a portfolio.

RETIREMETRICS DATA SHEET

Product Information on Various Franklin Templeton FundsAll data is Advisor Class/Class Z as of March 31, 2018 (For all such)

The above list of Franklin Templeton funds is for informational and illustrative purposes only and is subject to change. It shows a selected sample of Franklin Templeton funds available in Franklin Templeton investment options. Nothing herein should be construed as a recommendation to buy or investment advice. There is no assurance or guarantee that target objectives will be achieved or your retirement needs will be met if you invest in a Franklin Templeton fund. All investments involve risks, including possible loss of principal.Sources: Standard deviation, 10-Year Correlation and Up and Down Capture Ratios: © 2018 Morningstar, Inc. 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 is no guarantee of future results.

NASDAQ STANDARD DEVIATION (%) 10-YEAR CORRELATION BETAALPHA

(%) R-SQUARED SHARPE RATIO UP CAPTURE RATIO (%) DOWN CAPTURE RATIO (%)AVERAGE ANNUAL TOTAL RETURNS (%)

WITHOUT MAXIMUM SALES CHARGE

3-Year 5-Year 10-Year

Bloomberg Barclays

Municipal Bond Index

Bloomberg Barclays U.S. Corporate – Investment Grade Index

Citi World Government Bond Index

MSCI World Index

S&P 500 Index 3-Year 3-Year 3-Year 3-Year 5-Year 10-Year 3-Year 5-Year 10-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year

U.S. EQUITY

Franklin Convertible Securities Fund3,4 FCSZX 7.59 7.69 13.66 0.24 0.51 0.21 0.91 0.88 0.95 3.83 0.88 1.21 1.33 0.64 112.34 101.89 95.65 73.85 89.08 91.62 16.68 9.67 10.53 9.01

Franklin DynaTech Fund3,5 FDYZX 13.80 13.32 17.01 0.13 0.33 0.17 0.90 0.89 1.16 1.16 0.84 1.13 1.32 0.74 119.42 112.87 109.42 114.06 109.57 106.29 31.69 16.06 17.96 12.95

Franklin Growth Fund5,6 FCGAX 10.00 9.45 15.17 0.12 0.38 0.22 0.95 0.97 0.95 1.30 0.93 1.11 1.53 0.70 102.47 100.68 101.75 96.04 86.36 94.64 19.70 11.67 14.76 10.91

Franklin Mutual Shares Fund (Class Z) MUTHX 9.48 9.06 13.84 0.06 0.35 0.27 0.92 0.96 0.87 -4.35 0.86 0.43 0.85 0.42 74.99 79.03 83.25 111.84 105.28 94.42 1.50 4.65 8.05 6.05

Franklin Rising Dividends Fund7 FRDAX 9.98 9.91 13.49 0.00 0.30 0.15 0.88 0.90 0.94 -0.88 0.91 0.87 1.06 0.64 91.18 90.84 88.65 97.97 104.26 85.72 12.22 9.17 10.80 8.96

Franklin Small Cap Value Fund4,6 FVADX 12.53 13.28 20.48 0.07 0.30 0.10 0.90 0.92 0.85 2.29 0.88 0.69 0.73 0.43 95.87 97.59 99.12 85.44 96.10 96.79 9.33 9.18 9.96 9.13

Franklin Small-Mid Cap Growth Fund6,8 FSGAX 10.95 11.31 17.52 0.96 0.60 0.27 0.17 0.11 0.97 -2.17 0.91 0.54 1.01 0.55 85.56 94.91 97.50 97.96 103.26 99.70 17.36 6.48 11.72 9.90

U.S. FIXED INCOME

Franklin Federal Tax-Free Income Fund9 FAFTX 2.48 3.62 4.63 0.15 0.39 0.31 0.67 0.64 -- -0.14 0.96 0.47 0.60 0.88 77.12 96.86 102.68 78.65 100.88 106.68 1.83 1.69 2.51 4.37

Franklin Low Duration Total Return Fund3,10 FLDZX 1.02 0.94 1.74 0.24 0.58 0.29 0.91 0.88 -- 0.50 0.17 0.57 0.96 1.29 110.98 112.55 135.39 51.52 51.12 63.07 0.61 1.11 1.23 2.56

Franklin Strategic Income Fund8,11 FKSAX 3.64 3.66 6.17 0.41 0.73 0.37 0.81 0.74 -- 1.44 0.13 0.48 0.53 0.77 94.38 81.27 109.49 55.85 56.47 70.75 1.84 2.26 2.27 5.06

Franklin Total Return Fund10 FBDAX 2.77 3.07 4.18 0.62 0.90 0.57 0.61 0.53 -- -0.39 0.74 0.07 0.46 0.95 94.02 98.77 112.41 107.81 100.93 106.41 0.89 0.73 1.73 4.25

Franklin U.S. Government Securities Fund6 FUSAX 1.38 1.82 2.33 0.41 0.51 0.53 -0.05 -0.08 -- -0.24 0.69 -0.20 0.34 1.10 59.66 79.15 82.69 60.88 64.30 40.32 -0.46 0.25 0.95 2.86

U.S. HYBRID

Franklin Balanced Fund4 FBFZX 6.83 6.60 11.78 0.06 0.34 0.13 0.92 0.90 0.62 -1.71 0.86 0.67 0.93 0.53 56.19 57.74 70.36 66.27 70.13 71.31 4.69 5.09 6.48 6.59

Franklin Income Fund5,6 FRIAX 8.13 7.71 11.92 0.14 0.47 0.33 0.95 0.88 0.68 -3.10 0.72 0.44 0.63 0.48 58.77 58.37 69.75 82.67 86.44 73.57 2.24 4.12 5.18 6.05

GLOBAL EQUITY

Franklin Mutual Global Discovery Fund (Class Z) MDISX 9.56 8.95 10.98 0.08 0.38 0.17 0.96 0.96 0.86 -3.04 0.88 0.38 0.78 0.54 76.11 81.05 71.28 97.71 90.45 63.71 2.36 4.15 7.35 6.23

Templeton Foreign Fund12,13 TFFAX 13.34 13.01 20.36 0.35 0.70 0.48 0.66 0.57 1.03 -2.37 0.90 0.28 0.43 0.16 93.43 97.01 105.81 106.73 98.71 104.89 5.59 4.24 5.94 3.52

GLOBAL FIXED INCOME

Templeton Global Bond Fund14,15 TGBAX 6.48 5.97 8.03 0.25 0.59 0.29 0.95 0.93 -- 2.61 0.07 0.23 0.25 0.64 -24.11 5.08 70.17 -70.51 -20.90 18.66 -0.60 2.02 1.82 5.40

INDEX

Bloomberg Barclays Municipal Bond Index -- 10.11 9.78 14.98 1.00 0.63 0.33 0.12 0.06 -- -- -- 1.01 1.33 0.61 -- -- -- -- -- -- 13.99 10.78 13.31 9.50

Bloomberg Barclays U.S. Corporate – Investment Grade Index -- 3.21 3.55 4.18 0.63 1.00 0.58 0.44 0.35 -- -- -- 0.54 0.68 0.98 -- -- -- -- -- -- 2.66 2.25 2.73 4.40

Citi World Government Bond Index -- 3.69 4.06 6.02 0.33 0.58 1.00 0.31 0.22 -- -- -- 0.49 0.67 0.85 -- -- -- -- -- -- 2.70 2.30 3.02 5.42

MSCI World Index -- 5.77 5.40 6.49 0.12 0.44 0.31 1.00 0.97 -- -- -- 0.51 0.16 0.26 -- -- -- -- -- -- 8.49 3.45 1.18 1.97

S&P 500 Index -- 10.47 10.11 16.21 0.06 0.35 0.22 0.97 1.00 -- -- -- 0.77 0.99 0.38 -- -- -- -- -- -- 14.20 8.58 10.32 6.51


Beta is a measure of a fund’s volatility relative to the market, as represented by the following benchmarks: Franklin Convertible Securities Fund: BofA Merrill Lynch All Alternatives U.S. Convertibles Index; Franklin DynaTech Fund: Russell 1000 Growth Index; Franklin Growth Fund, Franklin Mutual Shares Fund, Franklin Rising Dividends Fund, Franklin Balanced Fund, Franklin Income Fund: S&P 500 Index; Franklin Small Cap Value Fund: Russell 2000 Value Index; Franklin Small-Mid Cap Growth Fund: Russell Midcap Growth Index; Franklin Federal Tax-Free Income Fund: Bloomberg Barclays Municipal Bond Index; Franklin Low Duration Total Return Fund: Bloomberg Barclays U.S. Government & Credit (1–3 Year) Index; Franklin Strategic Income Fund, Franklin Total Return Fund: Bloomberg Barclays U.S. Aggregate Index; Franklin U.S. Government Securities Fund: Bloomberg Barclays U.S. Government – Intermediate Index; Franklin Mutual Global Discovery Fund: MSCI World Index; Templeton Foreign Fund: MSCI All Country World ex-US Index; Templeton Global Bond Fund: Citigroup World Government Bond Index. A beta greater than 1.00 indicates volatility greater than the market. Based on the 3-year period ended as of the date of the calculation.The same indexes were used to calculate Alpha, R-Squared, Sharpe Ratio and Up and Down Capture ratio. Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. Past performance is no guarantee of future results.

Advisor Class and Class Z shares are only offered to certain eligible investors as stated in the prospectus. They are offered without sales charges or Rule 12b-1 fees. These funds offer multiple share classes, which are subject to different fees and expenses that will affect their performance. Please see a prospectus for details.

Performance data represents past performance, which does not guarantee future results. Please call Franklin Templeton Investments at (800) DIAL BEN/342-5236 or visit franklintempleton.com for the fund’s standardized and most recent month-end performance.

NASDAQ STANDARD DEVIATION (%) 10-YEAR CORRELATION BETAALPHA

(%) R-SQUARED SHARPE RATIO UP CAPTURE RATIO (%) DOWN CAPTURE RATIO (%)AVERAGE ANNUAL TOTAL RETURNS (%)

WITHOUT MAXIMUM SALES CHARGE

3-Year 5-Year 10-Year

Bloomberg Barclays

Municipal Bond Index



MSCI World Index

S&P 500 Index 3-Year 3-Year 3-Year 3-Year 5-Year 10-Year 3-Year 5-Year 10-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year

U.S. EQUITY

Franklin Convertible Securities Fund3,4 FCSZX 7.59 7.69 13.66 0.24 0.51 0.21 0.91 0.88 0.95 3.83 0.88 1.21 1.33 0.64 112.34 101.89 95.65 73.85 89.08 91.62 16.68 9.67 10.53 9.01

Franklin DynaTech Fund3,5 FDYZX 13.80 13.32 17.01 0.13 0.33 0.17 0.90 0.89 1.16 1.16 0.84 1.13 1.32 0.74 119.42 112.87 109.42 114.06 109.57 106.29 31.69 16.06 17.96 12.95

Franklin Growth Fund5,6 FCGAX 10.00 9.45 15.17 0.12 0.38 0.22 0.95 0.97 0.95 1.30 0.93 1.11 1.53 0.70 102.47 100.68 101.75 96.04 86.36 94.64 19.70 11.67 14.76 10.91

Franklin Mutual Shares Fund (Class Z) MUTHX 9.48 9.06 13.84 0.06 0.35 0.27 0.92 0.96 0.87 -4.35 0.86 0.43 0.85 0.42 74.99 79.03 83.25 111.84 105.28 94.42 1.50 4.65 8.05 6.05

Franklin Rising Dividends Fund7 FRDAX 9.98 9.91 13.49 0.00 0.30 0.15 0.88 0.90 0.94 -0.88 0.91 0.87 1.06 0.64 91.18 90.84 88.65 97.97 104.26 85.72 12.22 9.17 10.80 8.96

Franklin Small Cap Value Fund4,6 FVADX 12.53 13.28 20.48 0.07 0.30 0.10 0.90 0.92 0.85 2.29 0.88 0.69 0.73 0.43 95.87 97.59 99.12 85.44 96.10 96.79 9.33 9.18 9.96 9.13

Franklin Small-Mid Cap Growth Fund6,8 FSGAX 10.95 11.31 17.52 0.96 0.60 0.27 0.17 0.11 0.97 -2.17 0.91 0.54 1.01 0.55 85.56 94.91 97.50 97.96 103.26 99.70 17.36 6.48 11.72 9.90

U.S. FIXED INCOME

Franklin Federal Tax-Free Income Fund9 FAFTX 2.48 3.62 4.63 0.15 0.39 0.31 0.67 0.64 -- -0.14 0.96 0.47 0.60 0.88 77.12 96.86 102.68 78.65 100.88 106.68 1.83 1.69 2.51 4.37

Franklin Low Duration Total Return Fund3,10 FLDZX 1.02 0.94 1.74 0.24 0.58 0.29 0.91 0.88 -- 0.50 0.17 0.57 0.96 1.29 110.98 112.55 135.39 51.52 51.12 63.07 0.61 1.11 1.23 2.56

Franklin Strategic Income Fund8,11 FKSAX 3.64 3.66 6.17 0.41 0.73 0.37 0.81 0.74 -- 1.44 0.13 0.48 0.53 0.77 94.38 81.27 109.49 55.85 56.47 70.75 1.84 2.26 2.27 5.06

Franklin Total Return Fund10 FBDAX 2.77 3.07 4.18 0.62 0.90 0.57 0.61 0.53 -- -0.39 0.74 0.07 0.46 0.95 94.02 98.77 112.41 107.81 100.93 106.41 0.89 0.73 1.73 4.25

Franklin U.S. Government Securities Fund6 FUSAX 1.38 1.82 2.33 0.41 0.51 0.53 -0.05 -0.08 -- -0.24 0.69 -0.20 0.34 1.10 59.66 79.15 82.69 60.88 64.30 40.32 -0.46 0.25 0.95 2.86

U.S. HYBRID

Franklin Balanced Fund4 FBFZX 6.83 6.60 11.78 0.06 0.34 0.13 0.92 0.90 0.62 -1.71 0.86 0.67 0.93 0.53 56.19 57.74 70.36 66.27 70.13 71.31 4.69 5.09 6.48 6.59

Franklin Income Fund5,6 FRIAX 8.13 7.71 11.92 0.14 0.47 0.33 0.95 0.88 0.68 -3.10 0.72 0.44 0.63 0.48 58.77 58.37 69.75 82.67 86.44 73.57 2.24 4.12 5.18 6.05

GLOBAL EQUITY

Franklin Mutual Global Discovery Fund (Class Z) MDISX 9.56 8.95 10.98 0.08 0.38 0.17 0.96 0.96 0.86 -3.04 0.88 0.38 0.78 0.54 76.11 81.05 71.28 97.71 90.45 63.71 2.36 4.15 7.35 6.23

Templeton Foreign Fund12,13 TFFAX 13.34 13.01 20.36 0.35 0.70 0.48 0.66 0.57 1.03 -2.37 0.90 0.28 0.43 0.16 93.43 97.01 105.81 106.73 98.71 104.89 5.59 4.24 5.94 3.52

GLOBAL FIXED INCOME

Templeton Global Bond Fund14,15 TGBAX 6.48 5.97 8.03 0.25 0.59 0.29 0.95 0.93 -- 2.61 0.07 0.23 0.25 0.64 -24.11 5.08 70.17 -70.51 -20.90 18.66 -0.60 2.02 1.82 5.40

INDEX

Bloomberg Barclays Municipal Bond Index -- 10.11 9.78 14.98 1.00 0.63 0.33 0.12 0.06 -- -- -- 1.01 1.33 0.61 -- -- -- -- -- -- 13.99 10.78 13.31 9.50

Bloomberg Barclays U.S. Corporate – Investment Grade Index -- 3.21 3.55 4.18 0.63 1.00 0.58 0.44 0.35 -- -- -- 0.54 0.68 0.98 -- -- -- -- -- -- 2.66 2.25 2.73 4.40

Citi World Government Bond Index -- 3.69 4.06 6.02 0.33 0.58 1.00 0.31 0.22 -- -- -- 0.49 0.67 0.85 -- -- -- -- -- -- 2.70 2.30 3.02 5.42

MSCI World Index -- 5.77 5.40 6.49 0.12 0.44 0.31 1.00 0.97 -- -- -- 0.51 0.16 0.26 -- -- -- -- -- -- 8.49 3.45 1.18 1.97

S&P 500 Index -- 10.47 10.11 16.21 0.06 0.35 0.22 0.97 1.00 -- -- -- 0.77 0.99 0.38 -- -- -- -- -- -- 14.20 8.58 10.32 6.51


CORRELATION BETWEEN VARIOUS FRANKLIN TEMPLETON FUNDS’ RETURNS (ADVISOR CLASS/CLASS Z)10-Year Period Ended March 31, 2018

U.S. EQUITY U.S. FIXED INCOME U.S. HYBRID GLOBAL EQUITYGLOBAL FIXED

INCOME INDEX

Franklin Convertible Securities Fund

Franklin DynaTech Fund

Franklin Growth Fund

Franklin Mutual Shares Fund (Class Z)

Franklin Rising Dividends Fund

Franklin Small Cap Value Fund

Franklin Small-Mid Cap Growth Fund

Franklin Federal Tax-Free Income Fund

Franklin Low Duration Total Return Fund

Franklin Strategic Income Fund

Franklin Total Return Fund

Franklin U.S. Government Securities Fund

Franklin Balanced Fund

Franklin Income Fund

Franklin Mutual Global Discovery Fund (Class Z)

Templeton Foreign Fund

Templeton Global Bond Fund




MSCI World Index

S&P 500 Index


1.00 0.90 0.91 0.90 0.82 0.85 0.92 0.27 0.66 0.86 0.65 -0.05 0.93 0.91 0.85 0.88 0.57 0.24 0.51 0.21 0.91 0.88

Franklin DynaTech Fund0.90 1.00 0.92 0.85 0.83 0.79 0.94 0.18 0.56 0.71 0.50 -0.10 0.84 0.80 0.83 0.82 0.53 0.13 0.33 0.17 0.90 0.89

Franklin Growth Fund0.91 0.92 1.00 0.94 0.94 0.90 0.94 0.16 0.60 0.76 0.55 -0.09 0.92 0.87 0.88 0.87 0.63 0.12 0.38 0.22 0.95 0.97


0.90 0.85 0.94 1.00 0.93 0.91 0.89 0.14 0.61 0.79 0.55 -0.11 0.93 0.91 0.94 0.91 0.64 0.08 0.38 0.17 0.96 0.96


0.82 0.83 0.94 0.93 1.00 0.90 0.87 0.10 0.53 0.68 0.51 -0.03 0.89 0.84 0.85 0.82 0.62 0.06 0.35 0.27 0.92 0.96


0.85 0.79 0.90 0.91 0.90 1.00 0.91 0.04 0.54 0.70 0.47 -0.11 0.87 0.81 0.81 0.82 0.62 0.00 0.30 0.15 0.88 0.90


0.92 0.94 0.94 0.89 0.87 0.91 1.00 0.12 0.55 0.73 0.49 -0.13 0.88 0.82 0.86 0.83 0.57 0.07 0.30 0.10 0.90 0.92


0.27 0.18 0.16 0.14 0.10 0.04 0.12 1.00 0.33 0.42 0.61 0.34 0.30 0.28 0.11 0.17 0.13 0.96 0.60 0.27 0.17 0.11


0.66 0.56 0.60 0.61 0.53 0.54 0.55 0.33 1.00 0.86 0.81 0.30 0.70 0.71 0.66 0.71 0.76 0.35 0.70 0.48 0.66 0.57


0.86 0.71 0.76 0.79 0.68 0.70 0.73 0.42 0.86 1.00 0.87 0.18 0.88 0.89 0.78 0.84 0.72 0.41 0.73 0.37 0.81 0.74


0.65 0.50 0.55 0.55 0.51 0.47 0.49 0.61 0.81 0.87 1.00 0.52 0.71 0.71 0.52 0.63 0.58 0.62 0.90 0.57 0.61 0.53


-0.05 -0.10 -0.09 -0.11 -0.03 -0.11 -0.13 0.34 0.30 0.18 0.52 1.00 0.02 -0.03 -0.11 -0.02 0.08 0.41 0.51 0.53 -0.05 -0.08

Franklin Balanced Fund0.93 0.84 0.92 0.93 0.89 0.87 0.88 0.30 0.70 0.88 0.71 0.02 1.00 0.96 0.87 0.90 0.65 0.25 0.59 0.29 0.95 0.93

Franklin Income Fund0.91 0.80 0.87 0.91 0.84 0.81 0.82 0.28 0.71 0.89 0.71 -0.03 0.96 1.00 0.86 0.90 0.66 0.24 0.58 0.29 0.91 0.88


0.85 0.83 0.88 0.94 0.85 0.81 0.86 0.11 0.66 0.78 0.52 -0.11 0.87 0.86 1.00 0.89 0.66 0.06 0.34 0.13 0.92 0.90

Templeton Foreign Fund0.88 0.82 0.87 0.91 0.82 0.82 0.83 0.17 0.71 0.84 0.63 -0.02 0.90 0.90 0.89 1.00 0.68 0.14 0.47 0.33 0.95 0.88


0.57 0.53 0.63 0.64 0.62 0.62 0.57 0.13 0.76 0.72 0.58 0.08 0.65 0.66 0.66 0.68 1.00 0.15 0.39 0.31 0.67 0.64


0.24 0.13 0.12 0.08 0.06 0.00 0.07 0.96 0.35 0.41 0.62 0.41 0.25 0.24 0.06 0.14 0.15 1.00 0.63 0.33 0.12 0.06


0.51 0.33 0.38 0.38 0.35 0.30 0.30 0.60 0.70 0.73 0.90 0.51 0.59 0.58 0.34 0.47 0.39 0.63 1.00 0.58 0.44 0.35


0.21 0.17 0.22 0.17 0.27 0.15 0.10 0.27 0.48 0.37 0.57 0.53 0.29 0.29 0.13 0.33 0.31 0.33 0.58 1.00 0.31 0.22

MSCI World Index0.91 0.90 0.95 0.96 0.92 0.88 0.90 0.17 0.66 0.81 0.61 -0.05 0.95 0.91 0.92 0.95 0.67 0.12 0.44 0.31 1.00 0.97

S&P 500 Index0.88 0.89 0.97 0.96 0.96 0.90 0.92 0.11 0.57 0.74 0.53 -0.08 0.93 0.88 0.90 0.88 0.64 0.06 0.35 0.22 0.97 1.00

Please note that each of these funds is managed to its stated objectives, and low correlation between Franklin Templeton funds is not a consideration of the funds’ managers. This chart is for illustrative purposes only, and holdings and correlation between Franklin Templeton funds are subject to change.

Performance data represents past performance, which does not guarantee future results.Source: © 2018 Morningstar, Inc. 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 is no guarantee of future results.

Correlation is the statistical measure of the degree to which the movements of two variables are related: 1.00 = perfect positive correlation 0.00 = no correlation -1.00 = perfect negative correlation


U.S. EQUITY U.S. FIXED INCOME U.S. HYBRID GLOBAL EQUITYGLOBAL FIXED

INCOME INDEX


Franklin DynaTech Fund

Franklin Growth Fund










Franklin Balanced Fund

Franklin Income Fund


Templeton Foreign Fund





MSCI World Index

S&P 500 Index


1.00 0.90 0.91 0.90 0.82 0.85 0.92 0.27 0.66 0.86 0.65 -0.05 0.93 0.91 0.85 0.88 0.57 0.24 0.51 0.21 0.91 0.88

Franklin DynaTech Fund0.90 1.00 0.92 0.85 0.83 0.79 0.94 0.18 0.56 0.71 0.50 -0.10 0.84 0.80 0.83 0.82 0.53 0.13 0.33 0.17 0.90 0.89

Franklin Growth Fund0.91 0.92 1.00 0.94 0.94 0.90 0.94 0.16 0.60 0.76 0.55 -0.09 0.92 0.87 0.88 0.87 0.63 0.12 0.38 0.22 0.95 0.97


0.90 0.85 0.94 1.00 0.93 0.91 0.89 0.14 0.61 0.79 0.55 -0.11 0.93 0.91 0.94 0.91 0.64 0.08 0.38 0.17 0.96 0.96


0.82 0.83 0.94 0.93 1.00 0.90 0.87 0.10 0.53 0.68 0.51 -0.03 0.89 0.84 0.85 0.82 0.62 0.06 0.35 0.27 0.92 0.96


0.85 0.79 0.90 0.91 0.90 1.00 0.91 0.04 0.54 0.70 0.47 -0.11 0.87 0.81 0.81 0.82 0.62 0.00 0.30 0.15 0.88 0.90


0.92 0.94 0.94 0.89 0.87 0.91 1.00 0.12 0.55 0.73 0.49 -0.13 0.88 0.82 0.86 0.83 0.57 0.07 0.30 0.10 0.90 0.92


0.27 0.18 0.16 0.14 0.10 0.04 0.12 1.00 0.33 0.42 0.61 0.34 0.30 0.28 0.11 0.17 0.13 0.96 0.60 0.27 0.17 0.11


0.66 0.56 0.60 0.61 0.53 0.54 0.55 0.33 1.00 0.86 0.81 0.30 0.70 0.71 0.66 0.71 0.76 0.35 0.70 0.48 0.66 0.57


0.86 0.71 0.76 0.79 0.68 0.70 0.73 0.42 0.86 1.00 0.87 0.18 0.88 0.89 0.78 0.84 0.72 0.41 0.73 0.37 0.81 0.74


0.65 0.50 0.55 0.55 0.51 0.47 0.49 0.61 0.81 0.87 1.00 0.52 0.71 0.71 0.52 0.63 0.58 0.62 0.90 0.57 0.61 0.53


-0.05 -0.10 -0.09 -0.11 -0.03 -0.11 -0.13 0.34 0.30 0.18 0.52 1.00 0.02 -0.03 -0.11 -0.02 0.08 0.41 0.51 0.53 -0.05 -0.08

Franklin Balanced Fund0.93 0.84 0.92 0.93 0.89 0.87 0.88 0.30 0.70 0.88 0.71 0.02 1.00 0.96 0.87 0.90 0.65 0.25 0.59 0.29 0.95 0.93

Franklin Income Fund0.91 0.80 0.87 0.91 0.84 0.81 0.82 0.28 0.71 0.89 0.71 -0.03 0.96 1.00 0.86 0.90 0.66 0.24 0.58 0.29 0.91 0.88


0.85 0.83 0.88 0.94 0.85 0.81 0.86 0.11 0.66 0.78 0.52 -0.11 0.87 0.86 1.00 0.89 0.66 0.06 0.34 0.13 0.92 0.90

Templeton Foreign Fund0.88 0.82 0.87 0.91 0.82 0.82 0.83 0.17 0.71 0.84 0.63 -0.02 0.90 0.90 0.89 1.00 0.68 0.14 0.47 0.33 0.95 0.88


0.57 0.53 0.63 0.64 0.62 0.62 0.57 0.13 0.76 0.72 0.58 0.08 0.65 0.66 0.66 0.68 1.00 0.15 0.39 0.31 0.67 0.64


0.24 0.13 0.12 0.08 0.06 0.00 0.07 0.96 0.35 0.41 0.62 0.41 0.25 0.24 0.06 0.14 0.15 1.00 0.63 0.33 0.12 0.06


0.51 0.33 0.38 0.38 0.35 0.30 0.30 0.60 0.70 0.73 0.90 0.51 0.59 0.58 0.34 0.47 0.39 0.63 1.00 0.58 0.44 0.35


0.21 0.17 0.22 0.17 0.27 0.15 0.10 0.27 0.48 0.37 0.57 0.53 0.29 0.29 0.13 0.33 0.31 0.33 0.58 1.00 0.31 0.22

MSCI World Index0.91 0.90 0.95 0.96 0.92 0.88 0.90 0.17 0.66 0.81 0.61 -0.05 0.95 0.91 0.92 0.95 0.67 0.12 0.44 0.31 1.00 0.97

S&P 500 Index0.88 0.89 0.97 0.96 0.96 0.90 0.92 0.11 0.57 0.74 0.53 -0.08 0.93 0.88 0.90 0.88 0.64 0.06 0.35 0.22 0.97 1.00

ARE YOU READY TO SELECT THE RIGHT INVESTMENTS?

Visit www.franklintempleton.com/hypotheticals to start building your client’s portfolio today.Franklin Templeton is here to help—for more information, call Sales and Marketing Services at (800) DIAL BEN®/342-5236.


IMPORTANT INFORMATION ABOUT MONTE CARLO SIMULATIONS

Monte Carlo SimulationsMonte Carlo simulations model future uncertainty. In contrast to tools generating average outcomes, Monte Carlo analyses produce outcomes based on probability—thus incorporating future uncertainty. Each Monte Carlo simulation generates a randomized scenario consistent with the projected characteristics of the asset classes using our assumptions. The projections can be used to help an investor to understand the probability of various allocation strategies and withdrawal rates sustaining assets throughout the specified time period (simulation survival rates).

Material Assumptions• Underlying long-term rates of return for each asset class are not directly based on historical returns. Rather, they represent assumptions

that take into account, among other things, historical total returns, which may include our estimates for reinvested dividends and capital gains.

• These assumptions, as well as an assumed degree of fluctuation of returns around these long -term rates, are used to generate random monthly returns for each asset class over the specified time period.

• The monthly returns are then used to generate 100,000 simulations, representing a spectrum of possible return outcomes for the modeled asset classes. The projections are directly based on these simulations.

Modeling Assumptions• The projections are generated by Franklin Templeton Investments using a number of assumptions, including capital market expectations

(CMEs) of arithmetic mean (return), standard deviation (risk) and correlation between asset classes (correlation is a measure of the degree in which returns are related or dependent upon each other). These CMEs are forward-looking and are developed by Franklin Templeton Solutions, a global investment management group within Franklin Templeton Investments that is dedicated to multi-strategy solutions, using informed forward estimates of fundamentals and economic regimes. In building asset return expectations for different asset classes, Franklin Templeton Solutions reviews data and themes it believes are drivers of capital markets. The long-term forecasts are based on an assessment of current valuation measures, economic growth and inflation prospects, as well as historical risk premiums. A complete summary of the CME methodology can be found in the 2016 Long-Term Capital Market Expectations: Perspective from Franklin Templeton Solutions.

• The initial withdrawal amount is the percentage of the initial value of the investments withdrawn in the first year where the entire amount is withdrawn on the last day of the year; in each subsequent year, the amount withdrawn is increased by 3% to reflect the annual rate of inflation.

• The indexes used for the asset classes are as follows: for U.S. Equity, S&P 500 Index; for U.S. Fixed Income, BofA Merrill Lynch U.S. Corporate Master Index (12/31/74–1/31/80), Citi Broad Investment Grade Credit Index (1/31/80–1/31/90) and Bloomberg Barclays U.S. Corporate – Investment Grade Index (1/31/90–Present); for Global Equity, MSCI World Index; for Global Fixed Income, Average IMF Euro Long Term Government Index (12/31/74–1/31/85), IMF Japan Long Term Government Index (12/31/74–1/31/85) and Citi World Government Bond Index (1/31/85–Present). Indexes do not reflect the deduction of fees or sales charges. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

Key Limitations• It is important to note that these projections are estimates only, are not predictions, and should be viewed as approximations, and they do

not guarantee or predict any particular investment result. There can be no assurance that the assumptions and the return model will accurately estimate asset class return ranges going forward or that the simulation survival rates will be achieved or sustained. Actual results will vary and may be better or worse than the probabilities indicated, which only present a range of possible outcomes based on the simulations and assumptions. Consequently, investors should allow a margin for error and not place undue reliance on the apparent precision of the projections. It may also be prudent for an investor to be more conservative with the withdrawal rates, especially early in retirement, given the unpredictable nature of market performance.

• This type of Monte Carlo simulations also assumes that the distribution of returns is normal. A normal distribution means that returns are concentrated near the average (arithmetic mean) and decrease in frequency as the distance from the average increases. Should actual returns not follow this pattern, results may vary significantly.

• The simulations do not take into account taxes on withdrawals, nor early withdrawal penalties or required minimum distributions.

• The projections are based on a limited collection of asset classes. Other investments or asset classes not considered may have characteristics similar or superior to those being analyzed, may provide different returns or outcomes, and may be more appropriate for one’s individual situation.

• Market crises can cause asset classes to perform similarly, lowering the accuracy of our return assumptions and diminishing the benefits of diversification (that is, of using many different asset classes) in ways not captured by the simulations. As a result, returns actually experienced by investors may be more volatile than those assumed in the simulations.

• Results also may significantly vary over time and each time the simulations are run. Periods of significant market volatility, which may occur more often than assumed in the simulations, may increase the chances that actual results will differ, possibly significantly, from the examples provided.

• The simulations do not take into consideration fluctuations in correlations among asset class returns over the short term.

• Inflation is assumed constant, so variations are not reflected in the simulations.

• The simulations model asset classes, not investment product. As a result, the actual experience of an investor in a given investment product (e.g., a mutual fund) may differ from the range generated by the simulations, even if the broad asset allocation of the investment product is similar to the one being modeled. Possible reasons for divergence include, but are not limited to, active management by the manager of the investment product, or the costs, fees, and other expenses associated with the investment product. Active management for any particular investment product—the selection of a portfolio of individual securities that differs from the broad asset classes modeled in the simulations— can lead to the investment product having higher or lower returns than the range in the simulations.

• Indexes are unmanaged, include reinvestment of dividends and, as they are unmanaged, do not include any fees and expenses. A mutual fund, or other managed account, will include investment management fees and other expenses, which will reduce returns. One cannot invest directly in an index.

Focus on Investment ExcellenceAt the core of our firm, you’ll find multiple independent

investment teams—each with a focused area of expertise—

from traditional to alternative strategies and multi-asset

solutions. Across the firm, our portfolio teams share

a commitment to excellence grounded in rigorous,

fundamental research and robust, disciplined risk

management.

Global Perspective Shaped by Local ExpertiseIn today’s complex and interconnected world, smart

investing demands a global perspective. Having pioneered

global investing more than 60 years ago, our perspective

is built on decades of experience and shaped by the local

expertise of our investment professionals who are on the

ground across the globe, working to spot smart investment

ideas and potential risks firsthand.

At Franklin Templeton Investments, we’re dedicated to one goal: delivering exceptional asset

management for our clients. By bringing together multiple, world-class investment teams in a

single firm, we’re able to offer specialized expertise across styles and asset classes, all supported

by the strength and resources of one of the world’s largest asset managers.

Strength and ExperienceSince our founding in 1947, we’ve stayed focused on

putting clients first and delivering relevant investment

solutions, strong long-term results and reliable, personal

service that have helped us to become a trusted partner

to investors around the globe.

Invest with a Retirement Leader®

Franklin Templeton Investments is a leader in retirement

investing, managing over $200 billion on behalf of

individuals, businesses and institutions.*

FRANKLIN TEMPLETON INVESTMENTS

* As of 3/31/18.


Franklin Templeton Distributors, Inc.One Franklin ParkwaySan Mateo, CA 94403-1906(800) DIAL BEN® / 342-5236franklintempleton.com

Dealer Use Only / Not for Distribution to the Public© 2018 Franklin Templeton Investments. All rights reserved. RRM BGPS 05/18

This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. As a financial professional, only you can provide your customers with personalized advice and investment recommendations tailored to their specific goals, individual situation, and risk tolerance.Franklin Templeton does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact results. Franklin Templeton Distributors, Inc. (FTDI) cannot guarantee that such information is accurate, complete or timely; and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.All financial decisions, strategies, and investments involve risks, including possible loss of principal, and may not achieve the desired results.Fluctuations in the financial markets and other factors may cause declines in one’s account. Diversification and asset allocation strategies do not ensure a profit or protect against a loss. There is no guarantee that any particular asset allocation or investment in a Franklin Templeton fund or mix of funds will meet one’s investment goal, provide one with a given level of income, or provide sufficient funds to meet future retirement needs.Your clients should carefully consider a fund’s investment goals, risks, charges, and expenses before investing. They should carefully read the prospectus before they invest or send money. To obtain a prospectus, which contains this and other information, please call Sales and Marketing Services at (800) DIAL BEN/342-5236 or visit franklintempleton.com.1. RetireMetrics is a retirement planning tool and its use does not guarantee that you or your clients will have sufficient funds to meet future retirement needs.2. U.S. Equity is represented by the S&P 500 Index, U.S. Fixed Income is represented by Bloomberg Barclays U.S. Corporate – Investment Grade Index, Global Equity is represented by the MSCI World Index, Global Fixed Income is represented by the Citi World Government Bond Index, and Munis are represented by the Bloomberg Barclays Municipal Bond Index. Indexes are unmanaged and one cannot invest directly in an index. Index returns do not reflect any fees, expenses or sales charges. Past performance does not guarantee future results.3. Effective 5/15/08, the fund began offering Advisor Class Shares. For periods prior to the fund’s Advisor Class inception date, a restated figure is used based on the fund’s oldest share class, Class A performance, excluding the effect of Class A’s maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund’s Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.4. The fund has a fee waiver associated with any investment it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through 2/28/19. Fund investment results reflect the fee waiver; without this waiver, the results would have been lower.5. The fund has a fee waiver associated with any investment it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through 1/31/19. Fund investment results reflect the fee waiver; without this waiver, the results would have been lower.6. Effective 12/31/96, the fund began offering Advisor Class Shares. For periods prior to the fund’s Advisor Class inception date, a restated figure is used based on the fund’s oldest share class, Class A performance, excluding the effect of Class A’s maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund’s Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.7. Effective 10/3/05, the fund began offering Advisor Class Shares. For periods prior to the fund’s Advisor Class inception date, a restated figure is used based on the fund’s oldest share class, Class A performance, excluding the effect of Class A’s maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund’s Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.8. The fund has a fee waiver associated with any investment it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through 8/31/18. Fund investment results reflect the fee waiver; without this waiver, the results would have been lower.9. Effective 3/20/02, the fund began offering Advisor Class Shares. For periods prior to the fund’s Advisor Class inception date, a restated figure is used based on the fund’s oldest share class, Class A performance, excluding the effect of Class A’s maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund’s Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.10. The fund has an expense reduction and a fee waiver associated with any investments it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through 2/28/19. Fund investment results reflect the expense reduction and fee waiver; without these reductions, the results would have been lower.11. Effective 8/12/99, the fund began offering Advisor Class Shares. For periods prior to the fund’s Advisor Class inception date, a restated figure is used based on the fund’s oldest share class, Class A performance, excluding the effect of Class A’s maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund’s Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.12. Effective 1/2/97, the fund began offering Advisor Class Shares. For periods prior to the fund’s Advisor Class inception date, a restated figure is used based on the fund’s oldest share class, Class A performance, excluding the effect of Class A’s maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund’s Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.13. The fund has an expense reduction contractually guaranteed through 12/31/2019. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.14. The fund has a fee waiver associated with any investment it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through 4/30/18. Fund investment results reflect the fee waiver; without this waiver, the results would have been lower.15. Effective 1/1/97, the fund began offering Advisor Class Shares. For periods prior to the fund’s Advisor Class inception date, a restated figure is used based on the fund’s oldest share class, Class A performance, excluding the effect of Class A’s maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund’s Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.

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RETIREMETRICS GUIDE TO PORTFOLIO SOLUTIONS...Franklin Templeton investment options. Nothing herein should be construed as a recommendation to buy or investment advice. There is no