templeton global equity income fund

Franklin Templeton Investment Funds

Templeton Global Equity Income Fund - A (Mdis) USD

Templeton Global Equity Group

Data as of 30 June 2019

For professional investor use only. Not for distribution to retail investors.

Templeton Global Equity Income Fund

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Table of Contents

Summary................................................................................................................................3

What are the Key Risks?........................................................................................................4

Discrete Performance............................................................................................................. 5

Historical Performance............................................................................................................6

Calendar Year Returns...........................................................................................................7

Portfolio Characteristics..........................................................................................................8

Top Ten Holdings................................................................................................................... 9

Geographic Allocation...........................................................................................................10

Sector Allocation...................................................................................................................11

Performance Attribution by Region........................................................................................ 12

Performance Attribution by Sector.........................................................................................13

Performance Attribution by Security.......................................................................................14

Performance Risk Statistics.................................................................................................. 15

Glossary...............................................................................................................................16

Important Disclosures...........................................................................................................17


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Fund Identifiers

ISIN Code LU0211328371

SEDOL Code B0BTCB0

Bloomberg Code TGEIADI LX


As of 30 June 2019

Summary

Portfolio Manager(s)

Peter Wilmshurst, CFA Australia

Fund Ratings (30 June 2019)

Overall Morningstar Rating™

«

Summary of Investment Objective

The Fund aims to provide a combination of current income and long-term capital

appreciation by investing, under normal market conditions, in a diversified portfolio of

equity securities worldwide.

Morningstar Category™ Global Equity Income

Investment Style Value

Fund Inception Date 27 May 2005

Share Class Inception Date 27 May 2005

Benchmark MSCI All Country World Index

Base Currency for Fund USD

Base Currency for Share Class USD

Total Net Assets (USD) 95,913,329.82

Portfolio Turnover -18.89%

Asset Allocation Equity: 96.70%

Cash & Cash Equivalents: 3.30%

Number of Issuers 56

Total Expense Ratio 1.60%

Distribution Yield 4.38%

The Portfolio Turnover is calculated over a 12-month period as at the end of the fiscal year (31 December 2018).

Holdings of the same issuer have been combined.

© Morningstar, Inc. 2019. 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.

Percentage may not total 100% due to rounding.

Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.

The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details.

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



4

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 invests mainly in equity securities of companies around the world. Such securities have historically been subject to significant price movements that may

occur suddenly due to market or company-specific factors. As a result, the performance of the Fund can fluctuate considerably over time.

The Fund may distribute income gross of expenses. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital.

Other significant risks include: currency risk, emerging markets risk, liquidity risk, derivatives risk.

For full details of all of the risks applicable to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin Templeton

Investment Funds.

What are the Key Risks?



5

Discrete Performance

Discrete Annual Performance (%)

Inception

Date

06/18

06/19

06/17

06/18

06/16

06/17

06/15

06/16

06/14

06/15

Templeton Global Equity Income Fund - A (Mdis) USD—Net of Fees 27.5.2005 -5.49 6.13 24.40 -15.97 -5.85

MSCI All Country World Index 6.32 11.31 19.42 -3.17 1.23

All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations.

Performance data may represent blended share class performance, e.g., hybrid created from an A (dis) share class which was converted to A (acc).


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.

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. Past performance is not an indicator

or a guarantee of future performance. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund

denominated in a foreign currency, performance may also be affected by currency fluctuations. Please visit franklintempleton.lu for current performance.



As of 30 June 2019

Annualised Performance (%)

Inception

Date 1 Yr 3 Yrs 5 Yrs 10 Yrs

Since

Incept

Templeton Global Equity Income Fund - A (Mdis) USD—Net of Fees 27.5.2005 -5.49 7.66 -0.26 5.49 2.57

MSCI All Country World Index 6.32 12.23 6.74 10.73 7.29


Historical Performance


As of 30 June 2019









6

Cumulative Performance (%)

Inception

Date 1 Mth 3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs

Since

Incept

Templeton Global Equity Income Fund - A (Mdis) USD—Net of Fees 27.5.2005 6.12 1.07 8.63 -5.49 24.77 -1.29 70.60 42.91

MSCI All Country World Index 6.59 3.80 16.60 6.32 41.33 38.54 177.16 169.61


7









Calendar Year Returns


As of 30 June 2019

YTD 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

-16%

-3%

10%

23%

36%

8.63

16.60

-14.24 -8.93

20.42

24.62

3.56

8.49

-6.17 -1.84 -4.40

4.71

24.33

23.44

16.24

16.80

-10.21 -6.86

0.78

13.21

31.51

35.41

MSCI All Country World IndexTempleton Global Equity Income Fund - A (Mdis) USD—Net of Fees


vs. MSCI All Country World Index

As of 30 June 2019


8

Portfolio Characteristics


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 assumed to 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 reported characteristics 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 the time of purchase. The dividend yield quoted here is the yield on securities within the Fund’s portfolio and should not be used as an indication of the

income received from this portfolio. The market capitalisation figures for both the portfolio and the benchmark are the security level, not aggregated up to the main issuer.

Source: FactSet. Price Ratio calculations for the weighted average use harmonic means. Any exceptions to this are noted. Market capitalisation statistics are indicated in the base currency for the portfolio presented.



Portfolio Index

Price to Earnings (12-mo Trailing) 13.12x 17.54x

Price to Cash Flow 5.59x 11.23x

Price to Book 1.09x 2.29x

Dividend Yield 4.56% 2.49%

Market Capitalisation (Millions USD) 92,490 130,537

Market Capitalisation Breakdown in USD Portfolio %

<2.0 Billion 2.95

2.0-5.0 Billion 1.98

5.0-10.0 Billion 6.24

10.0-25.0 Billion 12.47

25.0-50.0 Billion 21.19

>50.0 Billion 54.31

N/A 0.85


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The Ten Largest Holdings represent the ten largest holdings of the fund as of the date indicated. These securities do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that

investment in the securities listed was or will be profitable. All portfolio holdings are subject to change.

Holdings of the same issuer have been combined.

The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the top 10 holdings list.


Name of Issuer Country Industry % of Total

ROYAL DUTCH SHELL PLC United Kingdom Energy 3.74

BP PLC United Kingdom Energy 3.66

CITIGROUP INC United States Banks 3.44

TOTAL SA France Energy 3.42

ENI SPA Italy Energy 3.21

VEOLIA ENVIRONNEMENT SA France Utilities 2.94

SINGAPORE TELECOMMUNICATIONS LTD Singapore Telecommunication Services 2.91

ROCHE HOLDING AG Switzerland Pharmaceuticals, Biotechnology & Life Sciences 2.85

SANOFI France Pharmaceuticals, Biotechnology & Life Sciences 2.75

BNP PARIBAS SA France Banks 2.59

Total 31.49

Top Ten Holdings


As of 30 June 2019


MSCI All Country World Index

Cash & Cash Equivalents

Latin America / Caribbean

Mid-East / Africa

Australia / New Zealand

Asia

North America

Europe

0% 12% 24% 36% 48% 60%

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Weightings as percent of total. Percentage may not total 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.

Emerging markets exposure is based on the countries included in the MSCI Emerging Markets Index.




As of 30 June 2019

Geographic Allocation

Portfolio % Index % Over/Under %

Europe 58.45 19.60 38.85

France 19.14

3.41

15.73

United Kingdom 17.93

5.01

12.92

Switzerland 6.42

2.77

3.65

Italy 4.80

0.69

4.11

Germany 3.81

2.64

1.18

Ireland 3.24

0.16

3.08

Netherlands 2.28

1.08

1.21

Others 0.82 3.85 -3.03

North America 18.66 58.33 -39.67

United States 18.66

55.28

-36.62

Canada 0.00

3.05

-3.05

Asia 17.46 17.17 0.29

Japan 5.47

7.07

-1.60

Singapore 2.91

0.40

2.50

China 2.66

3.72

-1.06

Thailand 2.36

0.35

2.00

Taiwan 1.86

1.28

0.58

South Korea 1.20

1.46

-0.26

Hong Kong 1.01

1.19

-0.18

Others 0.00 1.69 -1.69

Australia / New Zealand 1.11 2.20 -1.09

New Zealand 1.11

0.07

1.03

Australia 0.00

2.12

-2.12

Mid-East / Africa 1.01 1.26 -0.24

Israel 1.01

0.17

0.84

Others 0.00 1.08 -1.08

Latin America / Caribbean 0.00 1.45 -1.45

Others 0.00 1.45 -1.45

Cash & Cash Equivalents 3.30 0.00 3.30

Emerging Markets Exposure 8.08 11.79 -3.71


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Weightings as percent of total. Percentage may not total 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.



Real Estate

Consumer Staples

Consumer Discretionary

Information Technology

Utilities

Materials

Industrials

Communication Services

Energy

Health Care

Financials

0% 8% 16% 24% 32% 40%

Sector Allocation


MSCI All Country World Index

Portfolio % Index % Over/Under %

Financials 30.05 16.89 13.16

Banks

22.63 8.99 13.64

Diversified Financials

5.16 3.94 1.22

Insurance

2.26 3.96 -1.70

Health Care 15.80 11.41 4.39

Pharmaceuticals, Biotechnology & Life Sciences

15.58 7.23 8.35

Health Care Equipment & Services

0.22 4.18 -3.96

Energy 15.07 5.93 9.14

Communication Services 11.81 8.72 3.09

Telecommunication Services

9.88 2.92 6.96

Media & Entertainment

1.93 5.80 -3.87

Industrials 8.86 10.51 -1.65

Capital Goods

6.94 7.13 -0.19

Transportation

1.92 2.17 -0.25

Commercial & Professional Services

0.00 1.21 -1.21

Materials 5.16 4.94 0.22

Utilities 3.59 3.25 0.34

Information Technology 3.30 16.02 -12.72

Semiconductors & Semiconductor Equipment

2.58 3.03 -0.44

Technology Hardware & Equipment

0.71 4.82 -4.10

Software & Services

0.00 8.17 -8.17

Consumer Discretionary 3.05 10.83 -7.78

Retailing

1.75 5.14 -3.39

Consumer Durables & Apparel

1.29 2.00 -0.71

Automobiles & Components

0.00 1.90 -1.90

Consumer Services

0.00 1.78 -1.78

Consumer Staples 0.00 8.28 -8.28

Food, Beverage & Tobacco

0.00 4.70 -4.70

Household & Personal Products

0.00 2.06 -2.06

Food & Staples Retailing

0.00 1.53 -1.53

Real Estate 0.00 3.21 -3.21

Cash & Cash Equivalents 3.30 0.00 3.30



As of 30 June 2019


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Eurozone

United States

United Kingdom

Mid-East / Africa

Australia / Nzl

L. America / Caribbean

Japan

N. America Other

Europe Other

Asia Ex Japan

-3.0 0.0 3.0

Total Effect (%)

-0.08

-2.99

-2.89

-2.59

-1.43

-1.19

-0.18

0.04

0.05

0.22

1.17

Performance Attribution by Region



1 July 2018-30 June 2019


Source: FactSet. Important data provider notices and terms available at www.franklintempletondatasources.com. Total Effect reflects the excess return by security as compared to the index. Performance attribution is calculated in the base currency of

the fund.

Performance attribution is calculated in the base currency of the fund.



PORTFOLIO (%) INDEX (%) ATTRIBUTION EFFECTS (%)

Average

Weight Total Return

Average

Weight Total Return

Allocation

Effect

Selection

Effect Total Effect

Asia Ex Japan 12.19 11.83 10.01 -0.26 -0.01 1.17 1.17

Europe Other 6.08 16.67 5.00 14.11 0.10 0.11 0.22

N. America Other - - 3.03 4.30 0.05 0.00 0.05

Japan 5.41 -7.84 7.38 -3.83 0.19 -0.15 0.04

L. America / Caribbean - - 1.41 20.28 -0.18 0.00 -0.18

Australia / Nzl 1.53 -50.02 2.30 7.86 -0.02 -1.17 -1.19

Mid-East / Africa 1.72 -59.77 1.10 -0.33 0.00 -1.43 -1.43

United Kingdom 17.81 -9.93 5.50 -0.58 -0.85 -1.74 -2.59

United States 20.99 1.20 54.70 10.18 -1.18 -1.71 -2.89

Eurozone 32.31 -5.39 9.56 -0.16 -1.12 -1.87 -2.99

Cash & Cash Equivalents 1.96 - 0.00 - -0.11 0.02 -0.08


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Cash & Other Net Assets

Financials

Communication Services

Consumer Discretionary

Information Technology

Industrials

Materials

Consumer Staples

Health Care

Energy

Real Estate

Utilities

-4.0 -1.0 2.0

Total Effect (%)

-0.08

-3.05

-1.71

-1.53

-1.24

-0.94

-0.39

-0.38

-0.36

-0.16

-0.13

0.09


Source: FactSet. Important data provider notices and terms available at www.franklintempletondatasources.com. Allocation Effect is the portion of excess return attributed to sector allocation decisions. Selection Effect is the portion of excess return

attributed to security selection decisions within the sector and the product of the difference between the sector portfolio and index weight times the difference between sector portfolio and index return. Total Effect is the sum of the Allocation and

Selection Effects and represents the excess return by sector.




Performance Attribution by Sector



1 July 2018-30 June 2019

PORTFOLIO (%) INDEX (%) ATTRIBUTION EFFECTS (%)

Average

Weight Total Return

Average

Weight Total Return

Allocation

Effect

Selection

Effect Total Effect

Utilities 2.31 18.94 3.15 14.79 -0.08 0.17 0.09

Real Estate - - 3.11 10.90 -0.13 0.00 -0.13

Energy 14.96 -0.82 6.37 -7.01 -1.10 0.94 -0.16

Health Care 16.54 5.03 11.65 10.28 0.30 -0.65 -0.36

Consumer Staples 0.72 -16.73 8.19 10.03 -0.18 -0.20 -0.38

Materials 4.67 -8.32 4.94 0.54 0.03 -0.42 -0.39

Industrials 7.66 -7.00 10.51 6.94 0.01 -0.95 -0.94

Information Technology 4.84 -0.78 15.38 14.09 -0.80 -0.44 -1.24

Consumer Discretionary 4.68 -28.37 10.74 3.23 0.13 -1.66 -1.53

Communication Services 12.34 -8.61 8.77 1.86 -0.04 -1.68 -1.71

Financials 29.32 -5.46 17.18 4.02 -0.24 -2.81 -3.05

Cash & Other Net Assets 1.96 - 0.00 - -0.11 0.02 -0.08


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Performance Attribution by Security

TEVA PHARMACEUTICAL INDUSTRIES

LTD

SKY NETWORK TELEVISION LTD

VODAFONE GROUP PLC

PANASONIC CORP

KINGFISHER PLC

SINGAPORE TELECOMMUNICATIONS

LTD

VEOLIA ENVIRONNEMENT SA

PFIZER INC

SOFTBANK GROUP CORP

ROCHE HOLDING AG

-2.0 0.0 2.0

Total Effect (%)

-1.46

-1.15

-0.87

-0.69

-0.67

0.31

0.31

0.33

0.35

0.52

Holdings of the same issuer have been combined. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.

Source: FactSet. Important data provider notices and terms available at www.franklintempletondatasources.com. Total Effect reflects the excess return by security as compared to the index. Performance attribution is calculated in the base currency of

the fund.






1 July 2018-30 June 2019

PORTFOLIO (%) INDEX (%)

Average

Weight Total Return

Average

Weight Total Return Total Effect

5 Largest Contributors

ROCHE HOLDING AG 2.82 30.35 0.40 30.88 0.52

SOFTBANK GROUP CORP 1.57 33.19 0.16 33.74 0.35

PFIZER INC 0.87 20.13 0.55 23.48 0.33

VEOLIA ENVIRONNEMENT SA 2.31 18.94 0.03 19.23 0.31

SINGAPORE TELECOMMUNICATIONS

LTD

2.26 20.97 0.04 21.08 0.31

5 Largest Detractors

KINGFISHER PLC 1.79 -26.97 0.02 -26.79 -0.67

PANASONIC CORP 1.36 -36.64 0.05 -36.55 -0.69

VODAFONE GROUP PLC 2.31 -28.43 0.12 -28.26 -0.87

SKY NETWORK TELEVISION LTD 1.53 -50.02 - - -1.15

TEVA PHARMACEUTICAL INDUSTRIES

LTD

1.72 -59.77 0.04 -62.05 -1.46


15

The base currency of a fund determines the risk-free rate index used in calculating certain risk statistics on this page. A fund that is based in USD uses the US T-Bill Index as the risk free rate return, a EUR-based fund uses the Euro 3-Month T-Bill

Index, a GBP-based fund uses the UK Treasury Bills 3 Month Index, a JPY-based fund uses the Japan Financing Bill 3 Month Index, and an AUD-based fund uses the Australia T-Note 3 Month Index.


^^Measured against the MSCI All Country World Index.

*Annualised.



As of 30 June 2019

Performance Risk Statistics

1 Yr 3 Yrs* 5 Yrs* 10 Yrs*

Standard Deviation (%):

Templeton Global Equity Income Fund - A (Mdis) USD 17.89 12.48 13.28 15.60

MSCI All Country World Index 16.56 11.15 11.69 13.42

Tracking Error (%)^^ 4.94 4.94 4.87 5.13

Information Ratio^^ -2.39 -0.92 -1.44 -1.02

Beta^^ 1.04 1.03 1.06 1.10

Sharpe Ratio -0.43 0.50 -0.08 0.32


Performance Risk Statistics

Glossary


16


Beta: A measure of the magnitude of a portfolio's past share-price fluctuations in relation to the ups and downs of the overall market (or appropriate market index). The market (or index)

is assigned a beta of 1.00, so a portfolio with a beta of 1.20 would have seen its share price rise or fall by 12% when the overall market rose or fell by 10%.

Dividend Yield: The annual dividend received on an equity security as a percentage of the price. For a portfolio, the value represents a weighted average of the stocks it holds. It should

not be used as an indication of the income received from this portfolio.

Information Ratio: In investing terminology, the ratio of expected return to risk. Usually, this statistical technique is used to measure a manager's performance against a benchmark.

This measure explicitly relates the degree by which an investment has beaten the benchmark to the consistency by which the investment has beaten the benchmark.

Market Capitalisation: A determination of a company's value, calculated by multiplying the total number of company stock shares outstanding by the price per share.

Price to Book: The price per share of a stock divided by its book value (i.e., net worth) per share. For a portfolio, the value represents a weighted average of the stocks it holds.

Price to Cash Flow: Supplements price/earnings ratio as a measure of relative value for a stock. For a portfolio, the value represents a weighted average of the stocks it holds.

Price to Earnings (12-mo Trailing): The share price of a stock, divided by its per-share earnings over the past year. For a portfolio, the value represents a weighted average of the

stocks it holds.

Sharpe Ratio: To calculate a Sharpe ratio, an asset's excess returns (its return in excess of the return generated by risk-free assets such as Treasury bills) are divided by the asset's

standard deviation.

Standard Deviation: A measure of the degree to which a fund's return varies from the average of its previous returns. The larger the standard deviation, the greater the likelihood (and

risk) that a fund's performance will fluctuate from the average return.

Tracking Error: Measure of the deviation of the return of a fund compared to the return of a benchmark over a fixed period of time. Expressed as a percentage. The more passively the

investment fund is managed, the smaller the tracking error.

Important Disclosures



17

This document is intended to be of general interest only and does not constitute legal or tax advice nor is it an offer for shares or invitation to apply for shares of the Luxembourg-domiciled

SICAV Franklin Templeton Investment Funds (the “Fund”). Nothing in this document should be construed as investment advice.

Subscriptions to shares of the Fund can only be made on the basis of the current prospectus of the Fund, accompanied by the latest available audited annual report and the latest semi-annual

report if published thereafter. An investment in the Fund entails risks which are described in the Fund's prospectus.

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. Past performance is not an indicator or a

guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be

affected by currency fluctuations.

In emerging markets, the risks can be greater than in developed markets. Investments in derivative instruments entail specific risks that may increase the risk profile of the fund and are more

fully described in the Fund’s prospectus. If the fund invests in a specific sector or geographical area, the returns may be more volatile than a more diversified fund.

No shares of the Fund may be directly or indirectly offered or sold to residents of the United States of America. Shares of the Fund are not available for distribution in all jurisdictions and

prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any plans to invest.

Opinions expressed are the author’s at publication date and they are subject to change without prior notice. Any research and analysis contained in this document has been procured by Franklin

Templeton Investments for its own purposes and is provided to you only incidentally.

A copy of the latest prospectus, the annual report and semi-annual report, if published thereafter can be found, on our website: www.franklintempletongem.com or can be obtained, free of

charge, from the address below.

Issued by Franklin Templeton Investments (ME) Limited, authorized and regulated by the Dubai Financial Services Authority.

Dubai office: Franklin Templeton Investments, The Gate, East Wing, Level 2, Dubai International Financial Centre, P.O. Box 506613, Dubai, U.A.E., Tel.: +9714-4284100 Fax:+9714-4284140.

References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. An index is unmanaged and

one cannot invest directly in an index. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund.

© 2019 Franklin Templeton Investments. All rights reserved.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

Important Disclosures (continued)



18

All MSCI data is provided “as is.” The Fund described herein is not sponsored or endorsed by MSCI. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind

in connection with the MSCI data or the Fund described herein. Copying or redistributing the MSCI data is strictly prohibited.

templeton global equity income fund

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