Templeton Korea Fund - I (Acc) USD LU0260871479 31 January 2018

Franklin Templeton Investment Funds Korean Equity Templeton Korea Fund - I (acc) USD LU0260871479 31 January 2018

Fund Fact Sheet

For professional investors only. Not directed at retail investors. Fund Overview Performance

Base Currency for Fund USD Performance over 5 Years in Share Class Currency (%) Total Net Assets (USD) 37 million Templeton Korea Fund I (acc) USD MSCI Korea Index Fund Inception Date 08.05.1995 160 Number of Issuers 21 Benchmark MSCI Korea Index 140 Morningstar Category™ Korea Equity 120 Summary of Investment Objective The Fund aims to achieve long-term capital appreciation by 100 investing primarily in equity securities of issuers incorporated or having their principal business activity in Korea. 80 Asset Allocation 60 01/13 07/13 01/14 07/14 01/15 07/15 01/16 07/16 01/17 07/17 01/18 Discrete Annual Performance in Share Class Currency (%) 01/17 01/16 01/15 01/14 01/13 01/18 01/17 01/16 01/15 01/14 I (acc) USD 17.62 -2.84 -3.71 -11.10 3.78 % Benchmark in USD 42.28 24.65 -13.64 -1.91 0.89 Equity 97.43 Cash & Cash Equivalents 2.57 Performance in Share Class Currency (%) Cumulative Annualised Since Since 1 Mth 3 Mths 6 Mths 1 Yr 3 Yrs 5 Yrs Incept 3 Yrs 5 Yrs Incept I (acc) USD 11.13 13.25 12.69 17.62 10.05 1.53 12.80 3.24 0.30 1.06 Benchmark in USD 3.69 6.79 15.24 42.28 53.17 51.58 119.27 15.27 8.68 7.12 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 go down as well as up, and investors may not get back the full amount invested. Performance details provided are in share class currency, include the reinvested dividends gross of basic rate UK tax and are net of management fees. Sales charges and other commissions, other taxes and relevant costs to be paid by an investor are not included in the calculations. Performance may also be affected by currency fluctuations. Up to date performance figures can be found on our local website. Top Ten Holdings (% of Total) Fund Measures Issuer Name Price to Earnings (12-mo 9.79x HYUNDAI DEVELOPMENT CO-ENGINEERING & 7.59 Trailing) CONSTRUCTION Price to Book 0.88x SAMSUNG HEAVY INDUSTRIES CO LTD 6.69 Price to Cash Flow 7.26x DAELIM INDUSTRIAL CO LTD 6.39 Dividend Yield 1.13% HANS BIOMED CORP 5.42 Standard Deviation (5 Yrs) 16.53% KOLAO HOLDINGS 5.35 Sharpe Ratio (5 Yrs) 0.00 LOTTE SHOPPING CO LTD 5.34 Tracking Error (5 Yrs) 12.48% HYUNDAI MOTOR CO 5.01 Information Ratio (5 Yrs) -0.67 HUCHEMS FINE CHEMICAL CORP 4.91 Beta (5 Yrs) 0.72 SAMSUNG ENGINEERING CO LTD 4.79 KIA MOTORS CORP 4.79 Share Class Information (For a full list of available share classes, please visit your local website) Fees Dividends Fund Identifiers Ongoing Max. Sales Max. Annual Last Paid Last Paid Share Class Incept Date NAV Charges (%) Charge (%) Charge (%) Frequency Date Amount SEDOL ISIN I (acc) USD 01.09.2006 USD 11.28 1.48 N/A 1.10 N/A N/A N/A B19VR98 LU0260871479

UK Freefone Tel Fax E-Mail Web 0800 305 306 +44 20 7073 8690 +44 20 7073 8701 [email protected] www.franklintempleton.co.uk Templeton Korea Fund 31 January 2018

For professional investors only. Not directed at retail investors. Composition of Fund Templeton Korea Fund MSCI Korea Index Sector % of Total Market Capitalisation Breakdown in USD % of Equity Industrials 39.26 / 8.61 <2.0 Billion 41.68 Consumer Discretionary 31.91 / 10.69 2.0-5.0 Billion 40.36 Consumer Staples 13.56 / 6.10 5.0-10.0 Billion 5.48 Health Care 5.42 / 5.73 10.0-25.0 Billion 7.34 Materials 4.91 / 8.29 25.0-50.0 Billion 5.15 Financials 2.36 / 13.25 Information Technology 0.00 / 43.10 Energy 0.00 / 2.41 Utilities 0.00 / 1.14 Telecommunication Services 0.00 / 0.68 Cash & Cash Equivalents 2.57 / 0.00

Performance Attribution by Sector 01.02.2017-31.01.2018 Total Effect Consumer Staples 1.31 Utilities 0.60 Telecommunication Services -0.02 Health Care -0.27 Energy -0.30 Financials -0.82 Materials -0.84 Information Technology -1.66 Consumer Discretionary -4.95 Industrials -14.41 Cash & Other Net Assets -0.98

Largest Contributing Securities Contribution to Return % Samsung Engineering Co., Ltd. Capital Goods South Korea 1.90 Daewoo Shipbuilding & Marine Engineering Co., Ltd Capital Goods South Korea 1.84 Samsung Heavy Industries Co., Ltd. Capital Goods South Korea 1.57 Doosan Infracore Co., Ltd Capital Goods South Korea 1.33 Hyundai Development Co. Capital Goods South Korea 1.08 Lotte Shopping Co., Ltd Retailing South Korea 1.06 Kolao Holdings Co., Ltd. Retailing Laos 0.75 ORION CORP. Food Beverage & Tobacco South Korea 0.55 Doosan Heavy Industries & Construction Co., Ltd. Capital Goods South Korea 0.49 Fila Korea Ltd Consumer Durables & Apparel South Korea 0.18 Smallest Contributing Securities Contribution to Return % Hans Biomed Corp Pharmaceuticals Biotechnology & Life Sciences South Korea -0.25 DGB Financial Group Co., Ltd. Diversified Financials South Korea 0.00 Daelim Industrial Co., Ltd Capital Goods South Korea 0.01 Youngone Corp. Consumer Durables & Apparel South Korea 0.05 Youngone Holdings Co., Ltd. Consumer Durables & Apparel South Korea 0.07 COSMECCA KOREA CO. LTD Household & Personal Products South Korea 0.09 ORION Holdings Food Beverage & Tobacco South Korea 0.12 Shinhan Financial Group Co., Ltd. Banks South Korea 0.13 Huchems Fine Chemical Corporation Materials South Korea 0.14 KIA Motors Corporation Automobiles & Components South Korea 0.15

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 South Korean equity securities. Such securities have historically been subject to significant price movements, frequently to a greater extent than equity markets globally. As a result, the performance of the Fund can fluctuate significantly over relatively short time periods. Other significant risks include: currency risk, emerging markets 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. Important Information 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 Franklin Templeton Investment Funds SICAV (the Fund). Nothing in this document should be construed as investment advice. Given the rapidly changing market environment, Franklin Templeton Investments disclaim responsibility for updating this material. Subscriptions to shares of the Fund can only be made on the basis of the current prospectus and where available, the relevant Key Investor Information Document, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. 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. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a Funds's holding at any one time. 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. All or most of the protections provided by the UK Regulatory System will not apply to Franklin Templeton Investment Funds (SICAV) Investors. An investment in the Fund entails risks which are described in the Fund's prospectus and where available, the relevant Key Investor Information Document. Source for data and information provided by Franklin Templeton Investments, as of the date of this document, unless otherwise noted. Benchmark related data provided by FactSet, as of the date of this document, unless otherwise noted. 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.

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.

www.franklintempleton.co.uk Templeton Korea Fund 31 January 2018

For professional investors only. Not directed at retail investors. Important Information (continued)

In emerging markets, the risks can be greater than in developed markets. The Fund invests in a specific sector or geographical area and the returns may be more volatile than a more diversified fund. Top Ten Holdings: These securities do not represent all of the securities purchased, sold or recommended for clients, and the reader should not assume that investment in the securities listed was or will be profitable. 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 holdings list. Ongoing Charges: The Ongoing Charges Figure (OCF) is an amount representing all operating charges and expenses of the Fund in the prior 12 months as a percentage of the Fund's average net assets for the period. Where that figure would not be a fair representation of future costs or if 12 months data is not available, an estimated figure will be shown. Performance attribution is calculated in the base currency of the fund. For a free copy of the latest prospectus, the relevant Key Investor Information Document, the annual report and semi-annual report, if published thereafter or for more information about any Franklin Templeton Investments’ fund, UK investors should contact: Franklin Templeton Investments, Telephone: 0800 305 306, Email: [email protected] or write to us at the address below. Issued by Franklin Templeton Investment Management Limited (FTIML) Registered office: Cannon Place, 78 Cannon Street, London, EC4N 6HL. FTIML is authorised and regulated by the Financial Conduct Authority.