not fdic insured may lose value no bank guarantee investors should carefully consider a funds...
TRANSCRIPT
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 prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/(800) 342-5236, or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money.
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F R A N K L I N T E M P L E T O N I N V E S T M E N T S
FRANKLIN TEMPLETON MUTUAL SERIES
One World-Class OrganizationThree World-Class Investment Groups
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“Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”
— Sir John TempletonTempleton Funds Founder
and Former Chairman
5 Reasons to Be an Equity Investorin the Decade Ahead
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5 Reasons to be An Equity InvestorIn 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 can help protect purchasing power
History Favors a Return to the Mean
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Most Years Have Been Positive
HISTORY FAVORS A RETURN TO THE MEAN
Calendar Year Returns for the S&P 500 Index(1926–2009)
This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund.
Source: © 2009 Morningstar. Indexes are unmanaged, and one cannot invest directly in an index.Past performance does not guarantee future results.
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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: © 2009 Morningstar. Indexes are unmanaged, and one cannot invest directly in an index.Past performance does not guarantee future results.
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The Five Worst 10-Year Rolling PeriodsWhat Happened Next?
HISTORY FAVORS A RETURN TO THE MEAN
S&P 500 Index Worst 10-Year Returns and Subsequent 10-Year Returns10-Year Periods Ending 12/31
This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund.
Source: © 2009 Morningstar. Indexes are unmanaged, and one cannot invest directly in an index.Past performance does not guarantee future results.
The World Is Getting Smaller(and More Prosperous)
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Foreign U.S.
Chocolate
Godiva Chocolatier
Hershey
Nestle
Gasoline
CITGO
Shell Oil
Valero
Beer
Budweiser
Miller Beer
Yuengling
Tires
Bridgestone Tires
Dunlop
Michelin
Golf Clubs
Callaway
Cleveland
TaylorMade
Is Global Core To Your Everyday Life?
THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS
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Foreign U.S.
Chocolate
Godiva Chocolatier
Hershey
Nestle
Gasoline
CITGO
Shell Oil
Valero
Beer
Budweiser
Miller Beer
Yuengling
Tires
Bridgestone Tires
Dunlop
Michelin
Golf Clubs
Callaway
Cleveland
TaylorMade
Is Global Core To Your Portfolio?
THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS
United States
Britain
Venezuela
United States
Britain
Belgium
Switzerland
United States
Turkey
France
United States
Japan
Germany
Japan
United States
Source: Company websites, as of 10/31/09
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The Global Opportunity
THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS
Potential for Increased Consumption
Source: © 2009 World Bank, ITU (International Telecommunication Union).
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This Helps U.S. Companies Too!
THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS
Percentage of Sales Generated Overseas
58%
76%
66%
55%91%
69%
51%
64%
Sources: 3M Co., Apple Inc., Coca Cola Co., Google Inc., Hewlett-Packard Co., McDonalds Corp., Pfizer Inc., Qualcomm Inc. Most recent data available. September 30, 2008 (Apple Inc., Qualcomm Inc.), October 31, 2008 (Hewlett-Packard Co.), December 31, 2008 (3M Co., Coca Cola Co., Google Inc., McDonalds Corp., Pfizer Inc.)
Innovation Will Surprise Us…Again
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“There is no reason why anyone would want to have a computer in their home.”
— Ken Olson
President, Chairman and Founder
Digital Equipment Corp, 1977
INNOVATION WILL SURPRISE US…AGAIN
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A Look Back…What’s Next?The Beat Goes OnUnits (Millions)
Source: Recording Industry Association of America, as of December, 2008. Digital includes Downloaded Singles, Downloaded Albums, Kiosks and Downloaded Music Videos. Total vinyl records, cassettes and CDs includes singles and albums.
PEAK ANNUAL UNITS SOLD
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The World Is Changing
INNOVATION WILL SURPRISE US…AGAIN
Robotic Surgery Cloud Computing
Green EnergyGene Therapy &
Regenerative Medicine
Infrared Technology
Nanotechnology
Quality Companies Are Not Short Sighted
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Leaders Can Emerge During Tough Times
Source: Company websites, as of 12/31/08. Recessions as identified by National Bureau of Economic Research (NBER).
QUALITY COMPANIES ARE NOT SHORT SIGHTED
All of these companies were founded during recessions
AVERAGE RECESSION LENGTH:
12 MONTHS
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Dividends Make a Difference!
QUALITY COMPANIES ARE NOT SHORT SIGHTED
Dow Jones Industrial AverageGrowth of a $10k 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.
Equities Can Help Protect Purchasing Power
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Inflation Shrinks Your Buying Power1
EQUITIES CAN 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
$0.251988
$0.422008
$0.732028
AmountYear
Price of a U.S. Stamp
$13,9331988
$23,0462008
$40,2062028
AmountYear
Price of a New Car
$14,5461988
$24,6492008
$43,0032028
AmountYear
Price of Tuition
$2.421988
$3.682008
$6.422028
AmountYear
Price of a Gallon of Milk
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After Inflation1…
This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund.
1. Source: © 2009 Morningstar. Stocks are represented by S&P 500 Index; Bonds are represented by Ibbotson Associates SBBI Long Term Corporate Index; Treasury Bills are represented by the P&R 90-Day U.S. Treasury Index; Inflation is represented by the CPI. 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. Indexes are unmanaged, and one cannot invest directly in an index.
Past performance does not guarantee future results.
EQUITIES CAN HELP PROTECT PURCHASING POWER
What’s Your Vision of 2020?
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5 Reasons to be An Equity InvestorIn 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 can help protect purchasing power
Working With Your Advisor
32WORKING WITH YOUR ADVISOR
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
Franklin Templeton Distributors, Inc.One Franklin ParkwaySan Mateo, California 94403-1906(800) DIAL BEN/(800) 342-5236franklintempleton.com
2020 PPT 01/10
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/(800) 342-5236, or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money.