Product Details1

Fund Assets $74751246.36Fund Inception Date 04/05/2012Number of Issuers 29Bloomberg FTAFAAU LXISIN LU0727123662Base Currency USDInvestment Style ValueBenchmark Dow Jones Africa Titans

50 IndexMorningstar Category™ Africa Equity

Asset Allocation2Percent of Total

%Equity 80.22Cash & CashEquivalents

19.78

Fixed Income 0.00

Fund DescriptionThe Fund’s investment objective is to provide long-term capital appreciation by investingprincipally in equity and equity-related securities of companies across the market capitalisationspectrum which are (i) incorporated or listed in African countries, and/or (ii) listed or incorporatedelsewhere in the world but have their principal business activities in African countries.

Performance Data

Portfolio Manager InsightPerformance Review

In South Africa, investors cheered telecommunication services provider MTN Group’s plans to•use the proceeds of the sale of its Cyprus operations and upcoming Ghana IPO to reduce netdebt and strengthen its balance sheet. Mr Price Group, the value-apparel retailer, reboundedin July, as the group continued to gain market share as a result of consumers trading down ina muted market.

1. All holdings are subject to change. Holdings of the same issuers have been combined.

Discrete Annual Performance (%) as at 31/07/20187/17-7/18 7/16-7/17 7/15-7/16 7/14-7/15 7/13-7/14

A (acc) USD 5.64 6.91 -18.86 -23.12 7.23Dow JonesAfrica Titans 50Index USD

6.26 8.42 0.72 -30.79 17.24

Performance Net of Management Fees as at 31/07/2018 (Dividends Reinvested) (%)3,4

1 Mth 3 Mths YTD 1 Yr 3 Yrs 5 YrsSince Inception

(04/05/2012)A (acc) USD 1.24 -10.46 -3.33 5.64 -2.87 -5.46 -1.69Dow Jones AfricaTitans 50 Index

0.66 -5.76 -2.67 6.26 5.08 -1.20 -0.61

Calendar Year Returns (%)

2017 2016 2015 2014 2013

-50%

0%

50%

100%

A (acc) USDDow Jones Africa Titans 50 Index

25.34

-9.07

-27.08

-10.69

9.6323.50 17.08

-29.40

-11.81

2.24

Past performance is not an indicator or a guarantee of future performance.

ONE-MONTH KEY PERFORMANCE DRIVERS

Stocks Sectors Countries

Helped

Delta Corporation Limited Energy (Lack of Exposure) Zimbabwe (Off-benchmarkExposure)

MTN Group Limited Consumer Staples (StockSelection) Ghana (Lack of Exposure)

Mr Price Group Limited Materials (Lack ofExposure)

United Kingdom (Lack ofExposure)

Hurt

Eastern Company Financials (Underweight) Egypt (Stock Selection,Overweight)

Egyptian InternationalPharmaceutical IndustriesCo.

Health Care (StockSelection) Canada (Lack of Exposure)

Juhayna Food Industries — South Africa (StockSelection)

ValueEquity

31 July 2018

Templeton Africa Fund–A (acc) USDFranklin Templeton Investment Funds

Fund Manager Report

For Professional Client Use Only. Not for distribution to Retail Clients.

Templeton Africa Fund–A (acc) USD

Market sentiment in energy companies was pressured by a ~7% decline in oil prices in July, affected by concerns that tense trade negotiations•between the United States and China may imperil economic growth and impact global energy demand.

Market sentiment in Egypt was impacted by inflation concerns, stemming from a reduction in government energy subsidies in June, and a neutral•monetary policy. Egypt’s de facto cigarette producer Eastern Company and packaged dairy and fruit juice producer and distributor Juhayna FoodIndustries, however, reported strong earnings growth for fiscal year 2017/8 and first half of 2018, respectively.

Outlook & StrategyRising trade tensions, particularly between the United States and China, have prompted a cautious investor outlook, affecting global markets over•the short term. However, we believe that the market correction was overdone, and we could see a widespread recovery in the second half ofthe year.

We believe that Africa remains an attractive investment destination in view of its strong economic growth potential. In turn, this growth could•provide a conducive environment for corporate development and earnings growth.

Exposure to Africa offers a good way of diversification as its correlation with global capital markets is rather low. This is due in part to differences•in the underlying industries and growth drivers in each country. Many markets are more heavily exposed to domestic growth drivers and thus,may be more immune to external factors.

Our investment philosophy remains centred on three tenets: value, patience and a bottom-up approach. We take a holistic view of value to also•assess sustainability, quality and growth.

Portfolio Characteristics5,6

Portfolio Diversification

Portfolio Dow Jones Africa Titans 50 IndexPrice to Earnings (12 Month Trailing) 13.36x 13.17xPrice to Book Value 2.53x 1.79xPrice to Cash Flow 9.45x 7.85xMarket Capitalisation (Millions in USD) 12,980 20,494Dividend Yield 3.75% 2.31%

Geographic Weightings vs. Dow Jones Africa Titans 50 Index2Percent of Total

Templeton Africa FundDow Jones Africa Titans 50 Index

0% 25% 50%

South Africa

Egypt

Kenya

Nigeria

Zimbabwe

Mauritius

Togo

Senegal

Cash & Cash Equivalents

32.57

7.56

6.10

9.37

0.00

0.00

0.00

0.00

0.00

36.00

15.79

12.56

6.26

4.31

2.80

1.47

1.02

19.78

Sector Weightings vs. Dow Jones Africa Titans 50 Index2Percent of Total

Templeton Africa FundDow Jones Africa Titans 50 Index

0% 5% 10% 15% 20% 25% 30% 35% 40%

Financials

Consumer Staples

Consumer Discretionary

Telecommunication Services

Health Care

Energy

Real Estate

Industrials

Materials

Cash & Cash Equivalents

36.01

6.67

8.52

8.09

1.06

8.97

1.12

1.44

28.11

0.00

29.02

26.99

10.44

9.55

4.22

0.00

0.00

0.00

0.00

19.78

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Templeton Africa Fund–A (acc) USD

Supplemental Performance Statistics

Investment Team

What Are the Key Risks?The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the full amount invested.Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments. The Fund investsmainly in equity and equity-related securities of companies across the market capitalization spectrum that are located in or doing business in Africancountries (including emerging and frontier markets), which have historically been subject to significant price movements, frequently to a greaterextent than equity markets generally. As a result, the performance of the Fund can fluctuate considerably over time. Other significant risks include:currency risk, emerging markets risk, liquidity risk, operational risk. For full details of all of the risks applicable to this Fund, please refer to the “RiskConsiderations” section of the Fund in the current prospectus of Franklin Templeton Investment Funds.

8. Beta, Information Ratio and Tracking Error information are measured against the Dow Jones Africa Titans 50 Index.

Top Ten Holdings7Percent of TotalTop Holdings Sector Country %MTN GROUP LTD Telecommunication Services South Africa 6.70NASPERS LTD Media South Africa 5.75PICK N PAY STORES LTD Food & Staples Retailing South Africa 5.29EASTERN TOBACCO Food Beverage & Tobacco Egypt 4.99COMMERCIAL INTERNATIONALBANK EGYPT SAE

Banks Egypt 4.64

DELTA CORP LTD Food Beverage & Tobacco Zimbabwe 4.31EAST AFRICAN BREWERIES LTD Food Beverage & Tobacco Kenya 4.26KCB GROUP LTD Banks Kenya 3.74EQUITY GROUP HOLDINGS LTD Banks Kenya 3.36JUHAYNA FOOD INDUSTRIES Food Beverage & Tobacco Egypt 3.21

Supplemental Risk Statistics83 Yrs 5 Yrs Since Inception

Standard Deviation (%)Templeton Africa Fund 17.24 15.19 14.71Dow Jones Africa Titans 50 Index 17.45 17.41 16.93Tracking Error (%) 15.67 13.71 12.91Information Ratio9 -0.51 -0.31 -0.14Beta 0.58 0.57 0.59Sharpe RatioTempleton Africa Fund -0.21 -0.39 -0.10Dow Jones Africa Titans 50 Index 0.25 -0.09 0.02

Portfolio Manager Years with Firm Years ExperienceAhmed Awny, CFA, Senior Vice President 11 20David Haglund, Senior Vice President 11 13

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Templeton Africa Fund–A (acc) USD

Important Legal InformationThis document does not constitute legal or tax advice nor is it investment advice or an offer for shares of Franklin Templeton Investment Funds (the“Fund”). Subscriptions to shares of the Fund can only be made on the basis of the current prospectus and, where available, the relevant Key InvestorInformation Document, accompanied by the latest available audited annual report and the latest semi-annual report accessible on our websitewww.ftidocuments.com or which can be obtained, free of charge, from Franklin Templeton International Services, S.à r.l. - 8A, rue Albert Borschette,L-1246 Luxembourg. Past performance is not an indicator or a guarantee of future performance. The value of shares in the Fund and income received from it can godown as well as up, and investors may not get back the full amount invested. Investment in the Fund entails risks which are described in the Fund’sprospectus and, where available, in the relevant Key Investor Information Document. Special risks may be associated with a Fund’s investment incertain types of securities, asset classes, sectors, markets, currencies or countries and in the Fund’s possible use of derivatives. References toparticular industries, sectors or companies are for general information and are not necessarily indicative of a fund’s holdings at any one time.Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performancemay also be affected by currency fluctuations. Where a Fund invests in emerging markets, this investment can be more risky than an investment indeveloped markets. No shares of the Fund may be directly or indirectly offered or sold to residents of the United States of America. Shares of theFund are not available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin TempletonInvestments representative before making any plans to invest. The information provided is not a complete analysis of every material fact regarding any country, market, industry, security or fund. Because marketand economic conditions are subject to change, comments, opinions and analyses are rendered as of the date of this material and may changewithout notice. A portfolio manager’s assessment of a particular security, investment or strategy is not intended as individual investment advice or arecommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy; it is intended only to provide insight into thefund’s portfolio selection process. Holdings are subject to change. In addition, it should not be assumed that any securities mentioned were or will prove to be profitable. Stocks mentioned in this report are not asolicitation to purchase those stocks, and are examples of some stocks which performed well. Not all stocks in the portfolio performed as well. Forthe most current information on the fund, please contact your Franklin Templeton marketing representative. Performance figures are not based on audited financial statements and assume reinvestment of interest and dividends. When comparing theperformance of Franklin Templeton Investment Funds (the “Fund”) with a benchmark index, it is important to note that the securities in which theFund invests may be substantially different than those represented by the benchmark index. Furthermore, an investment in Franklin TempletonInvestment Funds represents an investment in a managed investment company in which certain charges and expenses, including management fees,are applicable. These charges and expenses are not applicable to indices. Lastly, please note that indices are unmanaged and are not available fordirect investment. Certain data and other information shown have been supplied by outside sources. While we consider that information to bereliable, we give no assurance that such data and information is accurate or complete. References to indexes are made for comparative purposes only and are provided to represent the investment environment existing during the timeperiods shown. The indices include a greater number of securities than those held in the Fund. An index is unmanaged and one cannot investdirectly in an index. The performance of the index does not include the deduction of expenses and does not represent the performance of anyFranklin Templeton fund. Past performance is not an indicator or a guarantee of future performance.Important data provider notices and terms available at www.franklintempletondatasources.com. 2. Information is historical and may not reflect current or future portfolio characteristics. Percentage may not equal 100% due to rounding. All holdings are subject to change. 3. Source for all information is Franklin Templeton Investments. Benchmark related data provided by FactSet. Past performance is not an indicator or a guarantee of future performance.Periods greater than one year are shown as average annual total returns. Fund performance data include reinvested dividends, and is net of management fees. Sales charges, othercommissions, taxes and other relevant costs to be paid by the investor are not included. The fund offers other share classes subject to different fees and expenses, which will affect theirperformance. Please see the prospectus for details. 4. When performance for either the portfolio or its benchmark has been converted, different foreign exchange closing rates may be used between the portfolio and its benchmark. 5. The portfolio characteristics listed are based on the fund’s underlying holdings, and do not necessarily reflect the fund’s characteristics. Due to data limitations all equity holdings are assumedto be the primary equity issue (usually the ordinary or common shares) of each security’s issuing company. This methodology may cause small differences between the portfolio’s reportedcharacteristics and the portfolio’s actual characteristics. In practice, Franklin Templeton’s portfolio managers invest in the class or type of security which they believe is most appropriate at thetime of purchase. The market capitalisation figures for both the portfolio and the benchmark are at the security level, not aggregated up to the main issuer. Source: Factset. Price ratiocalculations for weighted average use harmonic means. Any exceptions to this are noted. Information is historical and may not reflect current or future portfolio characteristics. All holdings aresubject to change. 6. The dividend yield quoted here is the yield on securities within the portfolio and should not be used as an indication of the income received from this portfolio. 7. Holdings of the same issuers have been combined. Top ten holdings information is historical and may not reflect current or future portfolio characteristics. All holdings are subject to change.The information provided is not a recommendation to purchase, sell, or hold any particular security. The securities identified do not represent the fund’s entire holdings and in the aggregate mayrepresent only a small percentage of such holdings. There is no assurance that securities purchased will remain in the fund, or that securities sold will not be repurchased. The portfolio managerfor the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included. 9. Information Ratio is a way to evaluate a manager’s ability to outperform a benchmark in relation to the risk that manager is assuming, with risk defined as deviation from the benchmark. Thismeasure is calculated by dividing the portfolio’s excess return (portfolio return less the benchmark return) by the tracking error (derived by taking the standard deviation of the monthlydifferences between the portfolio return and the benchmark return over time).

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