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Not FDIC Insured May Lose Value No Bank Guarantee Investors should carefully consider a funds investment goals, risks, charges and expenses before investing.

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Presentation on theme: "Not FDIC Insured May Lose Value No Bank Guarantee Investors should carefully consider a funds investment goals, risks, charges and expenses before investing."— Presentation transcript:

1 Not FDIC Insured May Lose Value No Bank Guarantee Investors should carefully consider a funds 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) , or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money.

2 2 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 FRANKLINTEMPLETONMUTUAL SERIES One World-Class Organization Three World-Class Investment Groups

3 3 There Have Always Been Reasons Not to Invest World Events IS NOW THE RIGHT TIME TO INVEST? 10/29/29 Black Tuesday Crash of New York Stock Exchange 2003–Present Operation Iraqi Freedom 2008 Global Credit Meltdown 1950–53 Korean Conflict 10/24/29 Black Thursday Plunge of New York Stock Exchange 1962 Cuban Missile Crisis 1939–45 World War II 1979–81 Iran Hostage Crisis 1988 Savings & Loan Crisis 10/27/97 Bloody Monday Fall of Dow Jones Industrial Average 1964–73 Vietnam War (U.S. Engagement) 10/19/87 Black Monday Fall of Dow Jones Industrial Average 1991 Operation Desert Storm 2007 Subprime Lending Crisis 9/11/01 Attacks on the World Trade Center and Pentagon

4 4 Step Back and Take a Long-Term View Growth of $10k 12/31/1928–6/30/2009 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. IS NOW THE RIGHT TIME TO INVEST? Black Thursday Plunge of New York Stock Exchange Black Tuesday Crash of New York Stock Exchange World War II Korean Conflict Cuban Missile Crisis Vietnam War U.S. Engagement Iran Hostage Crisis Black Monday Fall of DJIA Operation Desert Storm Bloody Monday Fall of DJIA Attacks on World Trade Center and Pentagon Operation Iraqi Freedom Global Credit Meltdown Subprime Lending Crisis S&P 500 Index $9,593,073

5 5

6 6 Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria. Sir John Templeton Templeton Funds Founder and Former Chairman

7 5 Reasons to Be an Equity Investor in the Decade Ahead

8 8 5 Reasons to be An Equity Investor In 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

9 History Favors a Return to the Mean

10 10 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.

11 11 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.

12 12 The Five Worst 10-Year Rolling Periods What Happened Next? HISTORY FAVORS A RETURN TO THE MEAN S&P 500 Index Worst 10-Year Returns and Subsequent 10-Year Returns 10-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.

13 The World Is Getting Smaller (and More Prosperous)

14 14 ForeignU.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

15 15 ForeignU.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

16 16 The Global Opportunity THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS Potential for Increased Consumption Source: © 2009 World Bank, ITU (International Telecommunication Union).

17 17 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.)

18 Innovation Will Surprise Us…Again

19 19 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

20 20 A Look Back…Whats Next? The Beat Goes On Units (Millions) Source: Recording Industry Association of America, as of December, 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

21 21 The World Is Changing INNOVATION WILL SURPRISE US…AGAIN Robotic SurgeryCloud Computing Green Energy Gene Therapy & Regenerative Medicine Infrared Technology Nanotechnology

22 Quality Companies Are Not Short Sighted

23 23 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

24 24 Dividend Payers Risk/Reward QUALITY COMPANIES ARE NOT SHORT SIGHTED Dividends can be increased, decreased or totally eliminated without notice. Source: © 2009 Ned Davis Research, Inc. Indexes are unmanaged, and one cannot invest directly in an index. Dividend-Paying Stocks represents the dividend paying stocks of the S&P 500, based on rolling 12-month dividend policy. Past performance does not guarantee future results. 30-Year Period Ended 9/30/09

25 25 Dividends Make a Difference! QUALITY COMPANIES ARE NOT SHORT SIGHTED Dow Jones Industrial Average Growth 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.

26 Equities Can Help Protect Purchasing Power

27 27 Inflation Shrinks Your Buying Power 1 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 $ $ $ AmountYear Price of a U.S. Stamp $13, $23, $40, AmountYear Price of a New Car $14, $24, $43, AmountYear Price of Tuition $ $ $ AmountYear Price of a Gallon of Milk

28 28 After Inflation 1 … 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

29 Whats Your Vision of 2020?

30 30 5 Reasons to be An Equity Investor In 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

31 Working With Your Advisor

32 32 WORKING 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

33 Franklin Templeton Distributors, Inc. One Franklin Parkway San Mateo, California (800) DIAL BEN/(800) franklintempleton.com 2020 PPT 01/10 Investors should carefully consider a funds 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) , or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money.


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