Base Currency. The currency in which a fund is denominated: funds within the Franklin Templeton Investment Funds may be denomited in US dollars or Euro. The base currency does not imply that all, the majority or any of the securities held in the portfolio are denominated in that currency. Rather, it is the measuring rod used to calculate the value of these portfolios. Please refer to the prospectus for specific information. Transactions into the Franklin Templeton Investment Funds can be made in any major currency, irrespective of the fund's base currency.

Benchmark. An unmanaged group of securities whose overall performance is used as a standard to measure investment performance.

Benchmark Indices. The performance of a fund is commonly measured against a benchmark index, which is unmanaged and approximates the average performance of the universe of securities in which the fund can invest.

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%.

Bond. A long-term debt security, or IOU, issued by a government or corporation, that generally pays a stated rate of interest and intends to return the face value on the maturity date.

Cashflow. In accounting, cash flow represents the amount of cash earned during a period. It is calculated by adding net income after taxes to non-cash charges such as depreciation, amortization and extraordinary charges to reserves. It is sometimes used as an indicator of the likelihood that a company will pay dividends.

Chapter 11. Is a chapter of the United States Bankruptcy Code, which permits activity while reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities.

Credit quality. A measure of a bond issuer’s ability to repay interest and principal in a timely manner.