3/25/2017 9:55 AM Note: Please check with your Compliance Department for your firm’s seminar delivery guidelines. The following script is intended for.

3/25/2017 9:55 AM Note: Please check with your Compliance Department for your firm’s seminar delivery guidelines. The following script is intended for use in public seminar presentations. This material has been filed with FINRA and may not be changed in any way without prior approval from Franklin Templeton Distributors, Inc. 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) , or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money. 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) , or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money. 2020_PPT_0110

Three World-Class Investment Groups
3/25/2017 9:55 AM Three World-Class Investment Groups One World-Class Organization 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 Main Idea: short FTI Script Good Morning/Afternoon/Evening. My name is ________ and I represent Franklin Templeton Investments. As many of you know, Franklin Templeton comprises multiple investment management groups: Franklin, based in California, specializes in fixed income and U.S. equity funds and is a leader in tax-free investing. Templeton, based in the Bahamas, specializes in global investing. Mutual Series, based in New Jersey, is a value investing specialist. Different management groups under one corporate banner – we call it the expertise of many with the strength of one. And we believe it benefits your clients three ways: Specialized, time-tested expertise – Our management groups are autonomous and stay true to their disciplines. True diversification – not duplication – Franklin, Templeton and Mutual Series funds typically have a low number of common holdings. Reliability you can trust – We strive for exceptional risk-adjusted returns over the long term and we know that our reputation is built on delivering accurate and personal service. Transition: Today, I’d like to talk to you about how Franklin Templeton’s expertise can help with your perspective in the coming years. FRANKLIN TEMPLETON MUTUAL SERIES 2020_PPT_0110

There Have Always Been Reasons Not to Invest
3/25/2017 9:55 AM IS NOW THE RIGHT TIME TO INVEST? There Have Always Been Reasons Not to Invest World Events 10/19/87 Black Monday Fall of Dow Jones Industrial Average 9/11/01 Attacks on the World Trade Center and Pentagon 1950–53 Korean Conflict 10/29/29 Black Tuesday Crash of New York Stock Exchange 1991 Operation Desert Storm 2007 Subprime Lending Crisis 1964–73 Vietnam War (U.S. Engagement) 10/24/29 Black Thursday Plunge of New York Stock Exchange 1939–45 World War II 1962 Cuban Missile Crisis 1979–81 Iran Hostage Crisis 1988 Savings & Loan Crisis 10/27/97 Bloody Monday Fall of Dow Jones Industrial Average 2003–Present Operation Iraqi Freedom 2008 Global Credit Meltdown Main Idea: Illustrate how historical events may have caused investors to be discouraged. We all know that the stock market can be tricky to navigate, and year after year, people have found reasons why they shouldn’t invest. Whether it has been the Black Thursday plunge of the New York Stock Exchange in 1929, the 9-year-long Vietnam War, the Savings & Loan crisis of the late ’80s, the sub-prime lending crisis of 2007 or the global credit meltdown of 2008, there have been plenty of events that have given investors cause for concern – particularly over the short-term. Transition: However, despite historical events, the stock market has performed well over the long-term. 2020_PPT_0110

Step Back and Take a Long-Term View
3/25/2017 9:55 AM IS NOW THE RIGHT TIME TO INVEST? Step Back and Take a Long-Term View Growth of $10k 12/31/1928–6/30/2009 Black Thursday Plunge of New York Stock Exchange Black Tuesday Crash of New York Stock Exchange Bloody Monday Fall of DJIA Subprime Lending Crisis Operation Desert Storm S&P 500 Index $9,593,073 Iran Hostage Crisis Cuban Missile Crisis Global Credit Meltdown World War II Black Monday Fall of DJIA Operation Iraqi Freedom Main Idea: The stock market has performed well over the long-term. In fact, a hypothetical $10,000 investment made in the stock market, as represented by the S&P 500 Index, on December 31, 1928, would have grown to over $9.5 million by June 30, 2009. Transition: When we focus on the short-term, whether looking back or forward, we tend to develop a myopic view. Vietnam War U.S. Engagement Korean Conflict Attacks on World Trade Center and Pentagon 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. 2020_PPT_0110

3/25/2017 9:55 AM For those of you who have been focused on just the past year, who can tell me what this says? (CLICK) Perhaps I can help you readjust your focus. Transition: My goal today is to help reframe our viewpoint and focus not over the next six weeks, six months, or even the next year – but to look toward the next *decade* and make a case for why we should be excited about investing in equities. 2020_PPT_0110

3/25/2017 9:55 AM “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 Main Idea: Highlight a famous quote from legendary investor, Sir John Templeton. “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” — Sir John Templeton This is one of Sir John Templeton’s most famous quotes, and for good reason. If you think back to the most recent bear and bull market cycles, that statement really rings true. Even in terms of the present day. Despite the fact that the market is significantly higher today than we were at the low in 2008, many indicators seem to suggest that we are still somewhere between pessimism and skepticism in the current market cycle. Transition: Are there reasons for optimism in the equity markets? 2020_PPT_0110

5 Reasons to Be an Equity Investor in the Decade Ahead
3/25/2017 9:55 AM 5 Reasons to Be an Equity Investor in the Decade Ahead Main Idea: Transition slide. By focusing in the decade ahead, we see reasons to be optimistic about the equity markets. Transition: We believe there are five good reasons to be an equity investor over the next ten years. 2020_PPT_0110

5 Reasons to be An Equity Investor In the Decade Ahead
3/25/2017 9:55 AM 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 Main Idea: Highlight the five reasons to be an equity investor over the next decade. Here are 5 reasons we think you should consider being an equity investor of the next decade: 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 Transition: Let’s take a closer look at the first reason, History favors a return to the mean. 2020_PPT_0110

History Favors a Return to the Mean
3/25/2017 9:55 AM History Favors a Return to the Mean Main Idea: Transition slide. Transition: Historically speaking, what do we mean by mean? 2020_PPT_0110

Most Years Have Been Positive
3/25/2017 9:55 AM HISTORY FAVORS A RETURN TO THE MEAN Most Years Have Been Positive Calendar Year Returns for the S&P 500 Index (1926–2009) Main Idea: Illustrate the range of returns for the S&P 500 since 1926. Here’s a graphic way of looking at ranges of returns for the S&P 500 index since Blue lines indicate years that were positive, while yellow indicates years with negative returns. We have also highlighted 2008, since that is so clearly in our recent memory, and as years go, the -37% performance turned in was the 2nd worst in history. The key thing to focus on here is that the majority of years were positive. In fact since 1926, 71% of the time the S&P 500 Index posted positive annual returns. As far as extremes go, there were two years where the S&P 500 experienced gains in the 50-60% range, while it never fell by that much. While 2008 is one of two years that had a drop in the 30% - 40% range, there were THIRTEEN years that were up that much. Transition: So we can see that over the long-term significantly more years were positive than negative, but remember, we don’t want to focus on the short-term. 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. 2020_PPT_0110

The Same Goes For Decades
HISTORY FAVORS A RETURN TO THE MEAN The Same Goes For Decades 10-Year Rolling Returns for the S&P 500 Index Main Idea: Illustrate 10-year rolling returns for the S&P 500. What happens when we look at 10-year holding periods? Here the difference is even greater. Again the blue indicates positive and the yellow indicates negative. There were year holding periods going back to 1935 (that 10-year period started in 1926, the first year on the previous slide). Of those 75 periods, 71 were positive. Put another way, over a 10-year period, a hypothetical investment in the S&P 500 Index was positive 95% of the time and negative only 5% of the time. Transition: Let’s take a look at some of the 10-year periods that weren’t so hot and see what happened in the following 10 years. 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. 2020_PPT_0110

The Five Worst 10-Year Rolling Periods What Happened Next?
3/25/2017 9:55 AM HISTORY FAVORS A RETURN TO THE MEAN The Five Worst 10-Year Rolling Periods What Happened Next? S&P 500 Index Worst 10-Year Returns and Subsequent 10-Year Returns 10-Year Periods Ending 12/31 Main Idea: Illustrate the 5 worst 10-year periods in the history of the S&P 500, and what happened next. These are the 5 worst 10-year periods for the S&P500 Index in its history. The periods and their average annual total returns are: % % % % %, which represents the worst 10 year period in the S&P500 index’s history. CLICK But what happened in the 10-year periods that followed these? We’ll have to wait and see what happens in the 10-year periods that follow 2008 (and 2009). Transition: In addition to looking at returns, let’s also take a look at investor behavior. 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. 2020_PPT_0110

The World Is Getting Smaller (and More Prosperous)
3/25/2017 9:55 AM The World Is Getting Smaller (and More Prosperous) Main Idea: Transition slide. Transition: Another reason we may want to consider equities over the next decade is that our world is continuing to get smaller and more prosperous, which can lead to greater opportunities for companies – and for investors. 2020_PPT_0110

Is Global Core To Your Everyday Life?
3/25/2017 9:55 AM THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS Is Global Core To Your Everyday Life? 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 Main Idea: Illustrate the global nature of familiar “domestic” brands. When we think of items and brand names we use every day, many of us tend to think they come from domestic companies. So let’s take a little quiz here. We have five different types of products here, with three brand names for each. I will tell you that one out of every three is domiciled in the US, and two are outside the US. Can you tell me which is the domestic company? Transition: Can you tell me which is the domestic company for each? 2020_PPT_0110

Is Global Core To Your Portfolio?
3/25/2017 9:55 AM THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS Is Global Core To Your Portfolio? 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 Switzerland United States Turkey United States Britain Venezuela United States Britain Belgium Main Idea: Reveal answers: Transition: If global is core to your everyday life, shouldn’t it be core to your portfolio? Let’s take a look at some other global trends that you might want to be aware of. France United States Japan (CLICK) Chocolate Foreign U.S. Godiva Chocolatier Turkey x Hershey United States Nestle Switzerland (CLICK) Gasoline CITGO Venezuela Shell Oil Britain Valero (CLICK) Beer Budweiser Belgium Miller Beer Yuengling (CLICK) Tires Bridgestone Tires Japan Dunlop Michelin France (CLICK) Golf Clubs Callaway Cleveland Taylor Made Germany Germany Japan United States Source: Company websites, as of 10/31/09 2020_PPT_0110

The Global Opportunity
3/25/2017 9:55 AM THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS The Global Opportunity Potential for Increased Consumption Main Idea: The potential for increased consumption means potential profits for companies. A growing consumer base and rising global middle class presents some very compelling opportunities for companies that can position themselves to take advantage. Here we see the United States all the way to the left, and three examples of nations where the middle class population is expected to grow significantly over the next decade. The bars represent the total population of these countries. Over 300 million for the US, 190 million for Brazil, and India and China with well over 1 billion people. (CLICK) Now let’s take a look at three examples of consumer products, and how much penetration there has been in the US and abroad. The three we’ve chosen are automobiles, computers and cellular phones. As you can see, just under 50% of the US population has a car, over 80% have access to a computer in their household and almost 90% have a cellular phone. Let’s take a look at these same products and the penetration in these other nations. When compared with the US, autos and computers are far lower. In fact, to surpass the amount of cars in the US, China would only need about 9% of their population to be car owners. It’s also interesting to note that although India and China each have more cellular phone subscribers than there are Americans, there is still quite a bit of room to grow. Transition: These trends don’t just help companies outside the United States. Source: © 2009 World Bank, ITU (International Telecommunication Union). 2020_PPT_0110

This Helps U.S. Companies Too!
3/25/2017 9:55 AM THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS This Helps U.S. Companies Too! Percentage of Sales Generated Overseas 58% 64% 69% 66% 76% 51% 91% 55% Main Idea: Many domestic companies also recognize and benefit from the trend of the global consumer. Many companies in the S&P 500 derive a majority of their sales from overseas. This is just a small list of companies that you may not think of as being global, and the amount of sales they derive from outside the US. Pfizer – 58% 3M – 64% Hewlett Packard – 69% McDonalds – 66% Coca Cola – 76% Google – 51% Qualcomm – 91% Apple 55% Transition: One of the drivers of success for these companies has been their continued innovation. If there’s one thing we can all count on in the decade ahead, it’s that… 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.) 2020_PPT_0110

Innovation Will Surprise Us…Again
3/25/2017 9:55 AM Innovation Will Surprise Us…Again Main Idea: Transition slide. Transition: Innovation will surprise us…again. 2020_PPT_0110

3/25/2017 9:55 AM INNOVATION WILL SURPRISE US…AGAIN “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 Main Idea: We can’t know the future precisely, only that advances will occur. This is a now infamous quote from Ken Olson, who was the President and Chairman of Digital Equipment Corp. in It illustrates that at one time, even the leading minds in the field of technology couldn’t fathom how their products would evolve and the type of appetite and applications there would ultimately be. Ken may have never imagined that by the year 2008, as we referenced a few slides earlier over 75% of Americans would have access to a computer in their homes. Note to presenter: Digital Equipment Corp was acquired in June 1998 by Compaq, which subsequently merged with HP in May 2002. Transition: One industry in particular can help bring into focus just how radically innovation can alter our environment. 2020_PPT_0110

A Look Back…What’s Next?
3/25/2017 9:55 AM A Look Back…What’s Next? The Beat Goes On Units (Millions) PEAK ANNUAL UNITS SOLD Main Point: Illustrate the impact of innovation. Consider the many different ways there have been over the years to purchase and listen to music. (CLICK) The bars here show annual units sold. Does anyone remember 8-tracks? 8-Track sales peaked in 1978, and 134 million units sold. That may sound like a lot, but they were little more than a blip in history, with sales tapering off to zero by (CLICK) Let’s look at vinyl records, which were around for some time before our data here became available, and at the same time as 8-Tracks. Sales for vinyl records peaked in 1977 at 554 million units sold. (CLICK) Next came cassettes which grew in popularity in the late 1980s and peaked at 530 million units in 1990. (CLICK) Next came an innovation that revolutionized music as we knew it, the compact disc, or CD. CD sales dwarfed those of both vinyl records and cassettes. Just 4 years after the peak of cassette sales, CD sales eclipsed them on an annual basis. CD sales peaked in 1999, at 995 million units sold. It was hard to imagine anything would ever be more advanced. (CLICK) But then came the digital music revolution. In the 5 years that sales have been tracked for digitized music (i.e. MP3, etc) downloaded music has already eclipsed annual sales of CDs and in 2008 there were over 1.1 billion music downloads. (CLICK) Here’s what the evolution looks like when you put it all together. The point is, that the adoption time for new technology has continued to compress as new technologies are introduced. Also, given the innovation that’s taken place over the past 35 years, do you think digital music as we know it will be the end? It’s impossible to predict what the future will look like, but one thing is certain: innovation will continue. Transition: It’s been said that the only constant is change. 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. 2020_PPT_0110

Gene Therapy & Regenerative Medicine
3/25/2017 9:55 AM INNOVATION WILL SURPRISE US…AGAIN The World Is Changing Green Energy Nanotechnology Gene Therapy & Regenerative Medicine Infrared Technology Robotic Surgery Cloud Computing Main Idea: Highlight some of the exciting technological innovations worth watching. Here is just a small sample of some of the exciting technological advances that today are in their early stages: Green Energy: How we create energy that takes into account the wellbeing of the natural world and the responsible use of its natural resources. Nanotechnology: the study of the controlling of matter on an atomic and molecular scale. Nanotechnology has the potential to create many new materials and devices with a vast range of applications, such as in medicine, electronics and energy production. Regenerative medicine: the process of creating living, functional tissues to repair or replace tissue or organ function lost due to age, disease, damage, or congenital defects Infrared technology – being used more and more in the military to locate potentially hostile enemies, and domestically by firefighters to locate civilians who may be trapped. Robotic surgery: the rapidly emerging field of robotic-assisted minimally invasive surgery Cloud computing: Internet - ("cloud-") based development and use of computer technology (“computing”). Transition: Innovation continues at a rapid pace, and the only way to take advantage of these advances and profit alongside these companies as an investor is through equities. 2020_PPT_0110

Quality Companies Are Not Short Sighted
3/25/2017 9:55 AM Quality Companies Are Not Short Sighted Main Idea: Transition slide Transition: Quality companies can be found, regardless of the market cycle. We think this is another great reason to be an equity investor over the long-term. 2020_PPT_0110

Leaders Can Emerge During Tough Times
3/25/2017 9:55 AM QUALITY COMPANIES ARE NOT SHORT SIGHTED Leaders Can Emerge During Tough Times Main Idea: Illustrate leading companies can be founded in both good and bad economies. Here’s a small list of companies that have emerged over the years as household names, all of which it can be argued, are leaders in their respective industries. Does anyone know what they all have in common? (CLICK) Each of these companies was founded during a recession! In fact, the recessions during which they were founded lasted an average of 12 months. Visionary leaders and quality companies don’t only come about when times are good. And recognizing that companies like these are starting all the time (even during tough times) can help investors maintain perspective. All of these companies were founded during recessions AVERAGE RECESSION LENGTH: 12 MONTHS Source: Company websites, as of 12/31/08. Recessions as identified by National Bureau of Economic Research (NBER). 2020_PPT_0110

Dividend Payers Risk/Reward
3/25/2017 9:55 AM QUALITY COMPANIES ARE NOT SHORT SIGHTED Dividend Payers Risk/Reward 30-Year Period Ended 9/30/09 Main Idea: Highlight the risk/reward of dividend paying stocks vs. non-dividend paying stocks. When we think of quality companies, one of the things that often comes to mind is a company’s ability to pay and sustain dividends to its shareholders. This chart shows the difference from a risk/reward perspective between the performance of non-dividend paying stocks and dividend paying stocks within the S&P 500 over the last 30 years. As you can see, companies that paid their shareholders regular dividends achieved a higher return, while generating lower risk than non-dividend paying stocks. Note: Dividends can be increased, decreased or totally eliminated without notice. Transition: The bottom line is, dividends matter and dividend-paying stocks should be considered when constructing a diversified stock portfolio. 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. 2020_PPT_0110

Dividends Make a Difference!
3/25/2017 9:55 AM QUALITY COMPANIES ARE NOT SHORT SIGHTED Dividends Make a Difference! Dow Jones Industrial Average Growth of a $10k Investment Here’s another way to look at dividends, this time focusing on the Dow Jones Industrial average in two periods where the Dow began and ended at around the same price, a.k.a. “flat” markets. On December 31, 1970 the Dow average closed at A full nine years later, it closed at About as flat as it gets. But the cumulative total return of the Dow Jones Average, including reinvested dividends was better than 50% over this time period. Let’s look at a more recent time period – one that has appeared in the media as “The Lost Decade”. The Dow started this period on October 31, 1998 at , and ended December 31, 2008 at Again, essentially flat in terms of price return. This time, when reinvested dividends are taking into account, the total return was better than 20%. Transition: It pays to invest in quality companies. 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. 2020_PPT_0110

Equities Can Help Protect Purchasing Power
3/25/2017 9:55 AM Equities Can Help Protect Purchasing Power Main Idea: Transition Slide. Transition: It’s important to understand that, over the long-term, equities can help protect purchasing power. 2020_PPT_0110

Inflation Shrinks Your Buying Power1
3/25/2017 9:55 AM EQUITIES CAN HELP PROTECT PURCHASING POWER Inflation Shrinks Your Buying Power1 $0.25 1988 $0.42 2008 $0.73 2028 Amount Year Price of a U.S. Stamp $2.42 1988 $3.68 2008 $6.42 2028 Amount Year Price of a Gallon of Milk $13,933 1988 $23,046 2008 $40,206 2028 Amount Year Price of a New Car $14,546 1988 $24,649 2008 $43,003 2028 Amount Year Price of Tuition Main Idea: Illustrate the effects of inflation on purchasing power. Inflation has caused the price of goods to increase over the years. There are a few items listed here, such as stamps, a gallon of milk and a new car – but one item that causes the most consternation among investors is the rising cost of tuition. Consider this: In 1988 the average cost per year at a private university was just over $14,000. That number jumped to over $24,000 last year. And estimates are that, another 20 years down the road, the average will cost over $43,000. So if an investor is risking “nothing” today, they may be risking buying power down the road. While increases in the cost of living fluctuate from year to year, they’ve averaged about 2.82% annually over the last 20 years ending December 31, If this pace were to continue, an item you pay $10 for today would cost about $13.21 in 10 years and about $17.45 in 20 years. Your investments would need to earn an average of 2.82% each year just to maintain your present purchasing power. So how can you get ahead and stay ahead? The good news is there are investments that can potentially provide higher total returns, which may help you keep ahead of inflation, albeit with higher risks. Transition: If you think inflation impacts the price of things, have a look at its effect on various investments. Sources: U.S. Postal Regulatory Commission, U.S. Bureau of Labor Statistics & U.S. Department of Commerce, The College Board 2020_PPT_0110

After Inflation1… 3/25/2017 9:55 AM 2020_PPT_0110
EQUITIES CAN HELP PROTECT PURCHASING POWER After Inflation1… Main Idea: Illustrate the effects of inflation on various investments. Consider the “real return” on these investments, after inflation. Let’s say an investor had $1 in 1978 and was given a choice of what to do with it. The first option—do nothing. Stick the dollar under the mattress and don’t take any risk whatsoever. If that option had been chosen, that dollar would have only about 29 cents’ worth of buying power today after inflation is taken into account. Some other options one may have chosen are Gold, which would have ended up being worth $1.69 (while many think gold is the most effective investment to fend off inflation, it hasn’t fared all that well historically), T Bills at $1.91 and corporate bonds as measured by the Ibbotson Associates SBBI Long Term Corporate Index. Which would have ended up being worth $4.46. But looking at what that same dollar would be worth in today’s terms if it had been invested in stocks, as measured by the S&P 500 we see that at $8.37 this investment would have been far better for those who think long term. Of course, investing involves an unavoidable tradeoff between risk and reward. Generally speaking, the higher the return you hope to achieve, the more risk you must be willing to take. Stocks have provided the highest, long-term returns of the three major asset classes (stocks, bonds and money market instruments), and have also been subject to the biggest losses over shorter periods. Bonds have experienced less fluctuation, but lower long-term returns. Money market instruments are among the safest investments when it comes to price stability, but they have provided the lowest, long-term total returns. Transition: So, after examining the reasons for being an equity investor over the next decade… This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund. 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. 2020_PPT_0110

What’s Your Vision of 2020? 3/25/2017 9:55 AM
Main Idea: Transition Slide Transition: What’s your vision of 2020? 2020_PPT_0110

5 Reasons to be An Equity Investor In the Decade Ahead
3/25/2017 9:55 AM 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 Main Idea: Re-cap. Here are 5 reasons we discussed earlier, for why it may make sense to be an equity investor over the next decade. 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 Transition: We think that each of these are great reasons to be an equity investor over the next decade. Consider these 5 steps to put a plan into action today. 2020_PPT_0110

Working With Your Advisor
3/25/2017 9:55 AM Working With Your Advisor Main Idea: Client-use transition. 2020_PPT_0110

The Importance of Working with Your Advisor
3/25/2017 9:55 AM 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 Notes: To ensure that your long-term strategy remains on target—it’s especially important to work closely with your advisor. The severity of recent market events has many investors focused on short-term safety and short-term performance, but diversification and long-term vision continue to be important as you work to achieve long-term investments goals. Talk to your financial advisor about designing an investment strategy that works for you. 2020_PPT_0110

3/25/2017 9:55 AM 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) , or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money. 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) , or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money. 2020 PPT 01/10 2020_PPT_0110

3/25/2017 9:55 AM Note: Please check with your Compliance Department for your firm’s seminar delivery guidelines. The following script is intended for.

Similar presentations

Presentation on theme: "3/25/2017 9:55 AM Note: Please check with your Compliance Department for your firm’s seminar delivery guidelines. The following script is intended for."— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

3/25/2017 9:55 AM Note: Please check with your Compliance Department for your firm’s seminar delivery guidelines. The following script is intended for.

Similar presentations

Presentation on theme: "3/25/2017 9:55 AM Note: Please check with your Compliance Department for your firm’s seminar delivery guidelines. The following script is intended for."— Presentation transcript:

Similar presentations

About project

Feedback