Not FDIC Insured May Lose Value No Bank Guarantee Investors should carefully consider a funds investment goals, risks, charges and expenses before investing.

Not FDIC Insured • May Lose Value • No Bank Guarantee

Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/(800) 342-5236, or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money.

2

F R A N K L I N T E M P L E T O N I N V E S T M E N T S

FRANKLIN TEMPLETON MUTUAL SERIES

One World-Class OrganizationThree World-Class Investment Groups

5

6

“Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”

— Sir John TempletonTempleton Funds Founder

and Former Chairman

5 Reasons to Be an Equity Investorin the Decade Ahead

8

5 Reasons to be An Equity InvestorIn the Decade Ahead

• History favors a return to the mean

• The world is getting smaller (and more prosperous)

• Innovation will surprise us…again

• Quality companies are not short-sighted

• Equities can help protect purchasing power

History Favors a Return to the Mean

10

Most Years Have Been Positive

HISTORY FAVORS A RETURN TO THE MEAN

Calendar Year Returns for the S&P 500 Index(1926–2009)

This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund.

Source: © 2009 Morningstar. Indexes are unmanaged, and one cannot invest directly in an index.Past performance does not guarantee future results.

11

The Same Goes For Decades

HISTORY FAVORS A RETURN TO THE MEAN

10-Year Rolling Returns for the S&P 500 Index

This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund.

Source: © 2009 Morningstar. Indexes are unmanaged, and one cannot invest directly in an index.Past performance does not guarantee future results.

12

The Five Worst 10-Year Rolling PeriodsWhat Happened Next?

HISTORY FAVORS A RETURN TO THE MEAN

S&P 500 Index Worst 10-Year Returns and Subsequent 10-Year Returns10-Year Periods Ending 12/31

This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund.

Source: © 2009 Morningstar. Indexes are unmanaged, and one cannot invest directly in an index.Past performance does not guarantee future results.

The World Is Getting Smaller(and More Prosperous)

14

Foreign U.S.

Chocolate

Godiva Chocolatier

Hershey

Nestle

Gasoline

CITGO

Shell Oil

Valero

Beer

Budweiser

Miller Beer

Yuengling

Tires

Bridgestone Tires

Dunlop

Michelin

Golf Clubs

Callaway

Cleveland

TaylorMade

Is Global Core To Your Everyday Life?

THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS

15

Foreign U.S.

Chocolate

Godiva Chocolatier

Hershey

Nestle

Gasoline

CITGO

Shell Oil

Valero

Beer

Budweiser

Miller Beer

Yuengling

Tires

Bridgestone Tires

Dunlop

Michelin

Golf Clubs

Callaway

Cleveland

TaylorMade

Is Global Core To Your Portfolio?

THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS

United States

Britain

Venezuela

United States

Britain

Belgium

Switzerland

United States

Turkey

France

United States

Japan

Germany

Japan

United States

Source: Company websites, as of 10/31/09

16

The Global Opportunity

THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS

Potential for Increased Consumption

Source: © 2009 World Bank, ITU (International Telecommunication Union).

17

This Helps U.S. Companies Too!

THE WORLD IS GETTING SMALLER AND MORE PROSPEROUS

Percentage of Sales Generated Overseas

58%

76%

66%

55%91%

69%

51%

64%

Sources: 3M Co., Apple Inc., Coca Cola Co., Google Inc., Hewlett-Packard Co., McDonalds Corp., Pfizer Inc., Qualcomm Inc. Most recent data available. September 30, 2008 (Apple Inc., Qualcomm Inc.), October 31, 2008 (Hewlett-Packard Co.), December 31, 2008 (3M Co., Coca Cola Co., Google Inc., McDonalds Corp., Pfizer Inc.)

Innovation Will Surprise Us…Again

19

“There is no reason why anyone would want to have a computer in their home.”

— Ken Olson

President, Chairman and Founder

Digital Equipment Corp, 1977

INNOVATION WILL SURPRISE US…AGAIN

20

A Look Back…What’s Next?The Beat Goes OnUnits (Millions)

Source: Recording Industry Association of America, as of December, 2008. Digital includes Downloaded Singles, Downloaded Albums, Kiosks and Downloaded Music Videos. Total vinyl records, cassettes and CDs includes singles and albums.

PEAK ANNUAL UNITS SOLD

21

The World Is Changing

INNOVATION WILL SURPRISE US…AGAIN

Robotic Surgery Cloud Computing

Green EnergyGene Therapy &

Regenerative Medicine

Infrared Technology

Nanotechnology

Quality Companies Are Not Short Sighted

23

Leaders Can Emerge During Tough Times

Source: Company websites, as of 12/31/08. Recessions as identified by National Bureau of Economic Research (NBER).

QUALITY COMPANIES ARE NOT SHORT SIGHTED

All of these companies were founded during recessions

AVERAGE RECESSION LENGTH:

12 MONTHS

25

Dividends Make a Difference!

QUALITY COMPANIES ARE NOT SHORT SIGHTED

Dow Jones Industrial AverageGrowth of a $10k Investment

This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund.

Dividends can be increased, decreased or totally eliminated without notice.Source: Dow Jones & Company. Total return figures assume reinvestment of dividends. Indexes are unmanaged and one cannot invest directly in an index.Past performance does not guarantee future results.

Equities Can Help Protect Purchasing Power

27

Inflation Shrinks Your Buying Power1

EQUITIES CAN HELP PROTECT PURCHASING POWER

1.Sources: U.S. Postal Regulatory Commission, U.S. Bureau of Labor Statistics & U.S. Department of Commerce, The College Board

$0.251988

$0.422008

$0.732028

AmountYear

Price of a U.S. Stamp

$13,9331988

$23,0462008

$40,2062028

AmountYear

Price of a New Car

$14,5461988

$24,6492008

$43,0032028

AmountYear

Price of Tuition

$2.421988

$3.682008

$6.422028

AmountYear

Price of a Gallon of Milk

28

After Inflation1…

This chart is for illustrative purposes only and does not reflect the performance of any Franklin, Templeton or Mutual Series fund.

1. Source: © 2009 Morningstar. Stocks are represented by S&P 500 Index; Bonds are represented by Ibbotson Associates SBBI Long Term Corporate Index; Treasury Bills are represented by the P&R 90-Day U.S. Treasury Index; Inflation is represented by the CPI. Gold is represented by the S&P GSCI Gold Spot Index. U.S. Dollar is represented by the growth of the nominal dollar beginning in 1978, taking inflation into account. Indexes are unmanaged, and one cannot invest directly in an index.

Past performance does not guarantee future results.

EQUITIES CAN HELP PROTECT PURCHASING POWER

What’s Your Vision of 2020?

30

5 Reasons to be An Equity InvestorIn the Decade Ahead

• History favors a return to the mean

• The world is getting smaller and more prosperous

• Innovation will surprise us…again

• Quality companies are not short-sighted

• Equities can help protect purchasing power

Working With Your Advisor

32WORKING WITH YOUR ADVISOR

The Importance of Working with Your Advisor

• Keeps emotions out of investing

• Builds a long-term investment strategy that is appropriate for your risk tolerance and goals

• Ensures you stay on course with regular reviews and adjustments to your investment strategy

Franklin Templeton Distributors, Inc.One Franklin ParkwaySan Mateo, California 94403-1906(800) DIAL BEN/(800) 342-5236franklintempleton.com

2020 PPT 01/10

Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/(800) 342-5236, or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money.