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Fixed Income Investing with Franklin Templeton

Most investment professionals agree that a well-diversified portfolio should include stocks and bonds. Franklin Templeton has a long history as a fixed income investment manager, and we offer a wide variety of fixed income funds to help you meet your unique financial needs.

Bonds Can Help Reduce Risk
Because stock and bond markets often behave differently, fixed income investments can play a key role in helping to reduce the impact of stock market volatility on an overall portfolio. For this reason, it's important for all investors—whether age 35 or 75—to consider including fixed income investments in their portfolios.

A Complex Market Requires Special Expertise
The size and scope of the fixed income market is much larger than the stock market. In fact, at more than $27 trillion in size, the U.S. fixed income market is one of the largest securities market in the world.1 The increased complexity of the market demands a high level of expertise in all areas of fixed income. That's why the Franklin Templeton Fixed Income Group® has established a global fixed income platform with specialist teams focusing on every major sector of the fixed income market to provide comprehensive coverage of investment opportunities for our fund portfolios.

Franklin Templeton Fixed Income Group
Franklin Templeton, a pioneer in fixed income investing, has become one of the most respected names in the industry, as well as one of the largest fixed income fund managers in the country.2 The Franklin Templeton Fixed Income Group:

  • Manages over $173 billion in fixed income assets3
  • Serves over 2.7 million shareholder accounts3
  • Includes more than 100 investment professionals3
  • Offers over 50 fixed income funds covering the entire fixed income spectrum, including:

       - government securities
       - municipal bonds
       - corporate bonds
       - floating-rate loans
       - global bonds
       - multi-sector strategies, which capitalize on our expertise
         in each of these areas
Important Legal Information
For more information on Franklin Templeton fixed income funds, please contact your financial advisor or download a free prospectus. Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. A prospectus contains this and other information. Please carefully read the prospectus before you invest or send money.

A financial advisor can help
If you have questions about investing in fixed income funds, we urge you to contact your financial advisor, who is best suited to help you make investment decisions based on your individual investment objectives and risk tolerance.

A word about risk
Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses. Interest rate movements will affect a fund's share price and yield. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in a fund adjust to a rise in interest rates, a fund's share price may decline. These and other risk considerations are discussed in the appropriate fund prospectus.

Footnotes
1.  Sources: Standard & Poor's Global Stock Markets Factbook 2007 and Bank for International Settlements, 12/31/06. Most recent data available.
2.  Source: Strategic Insight, ICI as of 8/31/08.
3.  As of 9/30/08.

Video Commentary
Christopher Molumphy, CIO of the Franklin Templeton Fixed Income Group®, discusses Franklin Templeton's approach to fixed income investing (6 min)

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Why Invest for Income?
Why Invest with
Franklin Templeton?
Fund Basics: Fixed Income
Understanding Interest
Rates
Franklin Tax-Free Income Funds
Franklin Templeton Fixed
Income Funds
Franklin Strategic Income
Fund
Franklin Total Return Fund
Templeton Global Bond
Fund
Franklin Federal Tax-Free Income Fund
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