Price and Performance

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.
• 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.
• Performance data quoted represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or a loss when you sell your shares.
• The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.
• For more information on any of our funds, contact your financial advisor 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.

Footnotes

1. 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.
2. 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.
3. The Morningstar Rating™ for this share class is based on Morningstar's extended performance calculation. This means that, for a share class that doesn't have a 1-, 3-, 5-, or 10-year performance history, the rating shown is a hypothetical Morningstar Rating based first on the oldest active surviving share class of the fund and then any dormant or liquidated share classes. If more than one share class has the earliest inception date, Morningstar selects the share class that is freely available to investors, that is not currency-hedged, and has the lowest fee.
4. The following fund share classes use Morningstar Extended Performance Ratings: Frk AL T-F Inc A, Frk AL T-F Inc Adv, Frk AL T-F Inc R6, Frk AZ T-F Inc A, Frk AZ T-F Inc R6, Frk CA High Yield Municipal A, Frk CA High Yield Municipal R6, Frk CA Intermediate-Term T-F Inc A, Frk CA Intermediate-Term T-F Inc R6, Frk CA T-F Inc A, Frk CA T-F Inc R6, Frk CO T-F Inc A, Frk CO T-F Inc R6, Frk Corefolio Allocation R6, Frk CT T-F Inc A, Frk CT T-F Inc R6, Frk Federal Intermediate-Term T-F Inc A, Frk Federal Intermediate-Term T-F Inc R6, Frk Federal Limited-Term T-F Inc A, Frk Federal Limited-Term T-F Inc R6, Frk Federal T-F Inc A, Frk Federal T-F Inc R6, Frk FL T-F Inc A, Frk FL T-F Inc Adv, Frk FL T-F Inc R6, Frk Founding Funds Allocation R6, Frk GA T-F Inc A, Frk GA T-F Inc Adv, Frk GA T-F Inc R6, Frk High Income A, Frk High Yield T-F Inc A, Frk High Yield T-F Inc R6, Frk Income A, Frk KY T-F Inc A, Frk KY T-F Inc Adv, Frk KY T-F Inc R6, Frk LA T-F Inc A, Frk LA T-F Inc Adv, Frk LA T-F Inc R6, Frk MA T-F Inc A, Frk MA T-F Inc R6, Frk MD T-F Inc A, Frk MD T-F Inc R6, Frk MI T-F Inc A, Frk MI T-F Inc R6, Frk MN T-F Inc A, Frk MN T-F Inc R6, Frk MO T-F Inc A, Frk MO T-F Inc R6, Frk NC T-F Inc A, Frk NC T-F Inc R6, Frk NJ T-F Inc A, Frk NJ T-F Inc R6, Frk NY Intermediate-Term T-F Inc A, Frk NY Intermediate-Term T-F Inc R6, Frk NY T-F Inc A, Frk NY T-F Inc R6, Frk OH T-F Inc A, Frk OH T-F Inc R6, Frk OR T-F Inc A, Frk OR T-F Inc R6, Frk PA T-F Inc A, Frk PA T-F Inc R6, Frk Strategic Mortgage R6, Frk TN Municipal Bond A, Frk TN Municipal Bond Adv, Frk TN Municipal Bond R6, Frk US Govt Secs A, Frk Utilities A USD, Frk VA T-F Inc A, Frk VA T-F Inc R6, Tmp Emerging Markets Small Cap R6, Tmp Growth C, Tmp International Bond R6.
5. The amount per share you would receive if you sold shares that day.