Mutual Funds

Important Legal Information

• Advisor Class, Class R, Class R6 and Class Z shares are only offered to certain eligible investors as stated in the prospectus. The Fund offers multiple share classes, which are subject to different fees and expenses that will affect their performance.
• Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total Returns With Sales Charge: returns reflect the deduction of the stated sales charge. Total returns, distribution rate, and yields reflect any applicable expense reductions, without which the results for those impacted funds would have been lower.
• For more information on any of our funds, contact your financial professional or download a prospectus. Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.
• All investments involve risks, including possible loss of principal. The Fund concentrates in real estate securities, which involve special risks, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments affecting the sector. The Fund's investments in REITs involve additional risks; since REITs typically are invested in a limited number of projects or in a particular market segment, they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments. These and other risk considerations are discussed in the fund's prospectus.
• All investments involve risks, including possible loss of principal. Generally, those offering potential for higher returns are accompanied by a higher degree of risk. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Bond prices are affected by interest rate changes. Bond prices, and thus a bond fund's share price, generally move in the opposite direction of interest rates. As the price of bonds in a fund adjusts to a rise in interest rates, the fund's share price may decline. High-yield, lower-rated ("junk") bonds generally have greater price swings and higher default risks. These securities carry a greater degree of credit risk relative to investment-grade securities. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets' smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Smaller, mid-sized and relatively new or unseasoned companies can be particularly sensitive to changing economic conditions, and their prospects for growth are less certain than those of larger, more established companies. Historically, these securities have experienced more price volatility than larger company stocks, especially over the short-term. Derivatives involve costs and can create economic leverage in a portfolio which may result in significant volatility and cause such fund to participate in losses on an amount that exceeds its initial investment; such fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. These and other risks pertaining to specific funds, such as those involving investments in specialized industry sectors or use of complex securities, are discussed in each fund's prospectus. By clicking on the fund name, you will be taken to a more detailed fund information page which includes main investments and risks.
• You could lose money by investing in a money fund. Although a money fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in a money fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. A money fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Footnotes

1. The Gross Expense Ratio does not include a fee reduction related to the LifeSmart Retirement Income Fund's investment in a Franklin Templeton money fund and/or other underlying fund, contractually guaranteed through 4/30/2020. Fund investment results reflect the fee reduction; without this reduction, the results would have been lower. Please see the prospectus for additional information.
2. 7-Day Current (annualized) and Effective (compounded) Yields reflect income per share earned by the fund. For money funds, the 7-Day Current Yield more accurately reflects the fund's current earnings than does total return.
3. Most Franklin Templeton funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance. In general, Class A/A1 shares have a maximum initial sales charge; Class C/C1 shares have a 1% contingent deferred sales charge; Class Z, Advisor Class and Class R6 shares have no sales charges nor Rule 12b-1 fees; Class R shares have no sales charges, but do have a Rule 12b-1 fee.
4. The fund has a Class R6 transfer agency fee reduction contractually guaranteed through the dates noted below. Fund investment results reflect the fee reduction; without this reduction, the results would have been lower. Franklin Adjustable U.S. Government Securities Fund (2/28/21); Franklin Alabama Tax-Free Income Fund (6/30/21); Franklin Arizona Tax-Free Income Fund (6/30/21); Franklin Biotechnology Discovery Fund (8/31/21); Franklin California High Yield Municipal Fund (9/30/21); Franklin Colorado Tax-Free Income Fund (6/30/21); Franklin Connecticut Tax-Free Income Fund (6/30/21); Franklin Conservative Allocation Fund (4/30/21); Franklin Convertible Securities Fund (2/28/21); Franklin Corefolio Allocation Fund (4/30/21); Franklin DynaTech Fund (1/31/21); Franklin Equity Income Fund (2/28/21); Franklin Floating Rate Daily Access Fund (2/28/21); Franklin Florida Tax-Free Income Fund (6/30/21); Franklin Founding Funds Allocation Fund (4/30/21); Franklin Georgia Tax-Free Income Fund (6/30/21); Franklin Gold and Precious Metals Fund (30/11/20); Franklin High Income Fund (9/30/21); Franklin High Yield Tax-Free Income Fund (6/30/21); Franklin Income Fund (31/01/21); Franklin Kentucky Tax-Free Income Fund (6/30/21); Franklin Louisiana Tax-Free Income Fund (6/30/21); Franklin Maryland Tax-Free Income Fund (6/30/21); Franklin Massachusetts Tax-Free Income Fund (6/30/21); Franklin Michigan Tax-Free Income Fund (6/30/21); Franklin MicroCap Value Fund (2/28/21); Franklin Minnesota Tax-Free Income Fund (6/30/21); Franklin Missouri Tax-Free Income Fund (6/30/21); Franklin Mutual U.S. Value Fund (2/28/21); Franklin Natural Resources Fund (8/31/21); Franklin North Carolina Tax-Free Income Fund (6/30/21); Franklin Ohio Tax-Free Income Fund (6/30/21); Franklin Oregon Tax-Free Income Fund (6/30/21); Franklin Pennsylvania Tax-Free Income Fund (6/30/21); Franklin Virginia Tax-Free Income Fund (6/30/21); Franklin Moderate Allocation Fund (4/30/21); Franklin Mutual Beacon Fund (4/30/21); Franklin Mutual European Fund (4/30/21); Franklin Mutual Financial Services Fund (4/30/21); Franklin Mutual Quest Fund (4/30/21); Franklin Real Estate Securities Fund (8/31/21); Franklin Small Cap Value Fund (8/31/21); Franklin U.S. Government Money Fund (10/31/21); Franklin U.S. Government Securities Fund (8/31/21); Franklin Small Cap Growth Fund (8/31/21); Franklin Small-Mid Cap Growth Fund (8/31/21); Franklin Strategic Income Fund (8/31/21); Franklin Tennessee Municipal Bond Fund (9/30/21); Franklin Utilities Fund (1/31/21); Templeton Global Balanced Fund (4/30/21); Templeton Global Bond Fund (4/30/21); Templeton Global Smaller Companies Fund (12/31/20); Templeton Global Total Return Fund (4/30/21); Templeton World Fund (12/31/20); Franklin Growth Allocation Fund (4/30/21); Templeton Emerging Markets Small Cap Fund (4/30/21).
5. The Gross Expense Ratio does not include an expense reduction contractually guaranteed through the dates noted below. Please see the prospectus for additional information. Total returns, yield and distribution rate reflect the expense reduction, without which the results would have been lower. Franklin Federal Intermediate Term Tax-Free Income Fund (6/30/21); Franklin Federal Limited-Term Tax-Free Income Fund (6/30/21); Templeton China World Fund (12/31/20); Templeton Foreign Fund (12/31/20).
6. The Gross Expense Ratio does not include a waiver reduction related to the Fund's investment in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through the dates noted below. Please see the prospectus for additional information. Total returns, yield and distribution rate reflect the expense reduction, without which the results would have been lower. Franklin Equity Income Fund (2/28/21); Franklin Mutual U.S. Value Fund (2/28/21); Franklin Floating Rate Daily Access Fund (2/28/21); Franklin High Income Fund (9/30/2021); Franklin MicroCap Value Fund (2/28/21); Franklin Small Cap Growth Fund (8/31/21); Franklin Small Cap Value Fund (8/31/21); Franklin Strategic Income Fund (8/31/21); Templeton Global Balanced Fund (4/30/21); Templeton Global Bond Fund (4/30/21); Templeton Global Total Return Fund (4/30/21); Franklin DynaTech Fund (1/31/21).
7. The Gross Expense Ratio does not include an expense reduction and a fee waiver related to the Fund's investment in a Franklin Templeton money fund and other Franklin Templeton fund, contractually guaranteed through the dates noted below. Please see the prospectus for additional information. Total returns, yield and distribution rate reflect the expense reduction, without which the results would have been lower. Franklin International Growth Fund (11/30/19); Franklin Low Duration Total Return Fund (2/29/20); Franklin Real Return Fund (2/29/20); Franklin Select U.S. Equity Fund (8/31/20); Franklin Strategic Mortgage Portfolio (1/31/20); Franklin Total Return Fund (2/29/20); Templeton Developing Markets Trust (4/30/20); Templeton Emerging Markets Bond Fund (4/30/20); Templeton Frontier Markets Fund (7/31/20); Templeton International Bond Fund (4/30/20); Templeton Foreign Fund (12/31/19); Templeton Emerging Markets Small Cap Fund (7/31/21);Franklin Managed Income Fund (2/28/21).
8. The Gross Expense Ratio does not include an expense reduction and fee waiver related to the Franklin LifeSmart 2020 Retirement Target Fund's, Franklin LifeSmart 2025 Retirement Target Fund's, Franklin LifeSmart 2030 Retirement Target Fund's, Franklin LifeSmart 2035 Retirement Target Fund's, Franklin LifeSmart 2040 Retirement Target Fund's, Franklin LifeSmart 2045 Retirement Target Fund's, Franklin LifeSmart 2050 Retirement Target Fund's and Franklin LifeSmart 2055's Retirement Target Fund's investment in a Franklin Templeton money fund and/or other underlying fund, contractually guaranteed through 4/30/20. Fund investment results reflect the expense reduction and fee waiver; without these reductions, the results would have been lower.
9. The Gross Expense Ratio does not include an expense reduction and a fee waiver related to the Fund's investment in a Franklin Templeton money fund and other Franklin Templeton fund, contractually guaranteed through the dates noted below. Please see the prospectus for additional information. Total returns, yield and distribution rate reflect the expense reduction, without which the results would have been lower. Franklin Low Duration Total Return Fund (2/28/21); Franklin Strategic Mortgage Portfolio (1/31/21); Franklin Total Return Fund (2/28/21); Templeton International Bond Fund (4/30/21); Franklin Managed Income Fund (2/28/21);.
10. The Gross Expense Ratio does not include an expense reduction contractually guaranteed through the dates noted below. Fund investment results reflect the expense reduction ("Total Annual Operating Expenses with Waiver"); without this reduction, the results would have been lower. Please see the prospectus for additional information. Franklin K2 Alternative Strategies Fund (9/30/21); Franklin K2 Long Short Credit Fund (9/30/21).
11. Source: Morningstar®. For each mutual fund and exchange traded fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on how a fund ranks on a Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance, and does not take into account the effects of sales charges and loads, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The weights are: 100% 3-year rating for 36-59 months of total returns, 60% 5-year rating/40% 3-year rating for 60-119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. Morningstar Rating is for the named share class only; other classes may have different performance characteristics. Past performance is not an indicator or a guarantee of future performance.
12. The Gross Expense Ratio does not include an expense reduction, a transfer agency fee reduction and a fee waiver associated with any investments it makes in a Franklin Templeton money fund and/or other Franklin Templeton fund, contractually guaranteed through the dates noted below. Fund investment results reflect the expense and fee reductions; without these reductions, the results would have been lower. Please see the prospectus for additional information. Templeton Foreign Fund (12/31/2020; Templeton Emerging Markets Bond Fund (4/30/21); Templeton Emerging Markets Small Cap Fund (7/31/21);
13. The amount per share you would receive if you sold shares that day.