Franklin European Corporate Bond Fund

Summary of Fund Objective

The Fund seeks to maximize total investment returns through a combination of interest income and capital appreciation by investing principally in investment grade or floating rate debt securities issued by European companies or those companies with a business presence in the European region. Most investments will be either denominated in Euros or hedged back into Euros.

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 invests mainly in higher-quality debt securities of corporations located in or doing significant business in European countries. Such securities have historically proven to present some stability over time and have benefitted from a limited exposure to interest rates and movements in the bond market but the performance can fluctuate moderately 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: credit risk, derivatives risk, liquidity 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.