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FUND FACTSTempleton Emerging Markets Fund — Series F
May 27, 2016
This document contains key information you should know about Templeton Emerging Markets Fund. You can find more detailed information in the fund’s simplifiedprospectus. Ask your representative for a copy, contact Franklin Templeton Investments Corp. (Franklin Templeton) at 1.800.387.0830 or [email protected] or visitwww.franklintempleton.ca.
Before you invest in any fund, consider how it would work with your other investments and your tolerance for risk.Before you invest in any fund, consider how it would work with your other investments and your tolerance for risk.Before you invest in any fund, consider how it would work with your other investments and your tolerance for risk.Before you invest in any fund, consider how it would work with your other investments and your tolerance for risk.
At special meetings of investors to be held on or about August 5, 2016, Franklin Templeton will seek investor approval to merge Templeton BRICCorporate Class into Templeton Emerging Markets Fund. If approved, Franklin Templeton expects that the merger will be implemented on or aboutAugust 12, 2016.
Quick facts
Fund codes: CAD: TML741USD: TML751
Date series started: November 24, 2000Total value of the fund on March 31,2016:
$235.2 million
Management expense ratio (MER): 1.77%
Fund manager: Franklin Templeton Investments Corp.Portfolio manager(s): Franklin Templeton Investments Corp.Sub-advisor: Templeton Asset Management Ltd.Minimum investment: $500 initial, $100 additional, PACs $50
What does the fund invest in?The fund invests primarily in equities of companies in emerging markets using Templeton’s value investing style.
The charts below give you a snapshot of the fund’s investments on March 31, 2016. The fund’s investments will change.
Top 10 investments (March 31, 2016)
1. Taiwan Semiconductor Manufacturing Co. Ltd. 5.79%2. Unilever PLC 5.39%3. Brilliance China Automotive Holdings Ltd. 4.44%4. Samsung Electronics Co. Ltd. 3.35%5. Astra International Tbk PT 3.25%6. Banco Bradesco SA, American Depositary Receipt, Preferred 2.80%7. Itau Unibanco Holding SA, American Depositary Receipt, Preferred 2.78%8. Bank Danamon Indonesia Tbk PT 2.77%9. Yandex NV, A 2.51%10. Infosys Ltd. 2.32%
Total percentage of top 10 Investments 35.40%
Total number of investments 73
Investment mix (March 31, 2016)
Regional
Asia 66.68%Latin America & Caribbean 12.89%Europe 11.38%Middle East & Africa 3.42%
How risky is it?The value of the fund can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund’s returns change over time. This is called“volatility”.
In general, funds with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance ofhigher returns. Funds with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money.
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Templeton Emerging Markets Fund — Series F May 27, 2016
Risk ratingFranklin Templeton has rated the volatility of this fund as medium.
This rating is based on how much the fund’s returns have changed from year to year. It doesn’t tell you how volatile the fund will be in the future. The rating can change overtime. A fund with a low risk rating can still lose money.
Low Low to Medium Medium Medium to High High
For more information about the risk rating and specific risks that can affect the fund’s returns, see the Investment risk classification methodology section of the fund’ssimplified prospectus.
No guaranteesLike most mutual funds, this fund doesn’t have any guarantees. You may not get back the amount of money you invest.
How has the fund performed?This section tells you how Series F units of the fund have performed over the past 10 years. Returns are after expenses have been deducted. These expenses reduce the series’returns.
YEAR-BY-YEAR RETURNS
This chart shows how Series F units of the fund have performed in each of the past 10 years. The series dropped in value in 4 of the 10 years.The range of returns and change from year to year can help you assess how risky the fund has been in the past. It does not tell you how the fund will perform in the future.
26.7%17.6%
-42.9%
53.2%
14.5%
-19.1%
13.5%
-1.4%
5.4%
-5.9%
-80% -60% -40% -20%
0% 20% 40% 60% 80%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
BEST and WORST 3-MONTH RETURNS
This table shows the best and worst returns for Series F units of the fund in a 3-month period over the past 10 years. The best and worst 3-month returns could be higher orlower in the future. Consider how much of a loss you could afford to take in a short period of time.
Return 3 months ended If you invested $1,000 at the beginning of the period
Best return 30.1% May 31, 2009 Your investment would rise to $1,301.
Worst return -35.4% November 30, 2008 Your investment would drop to $646.
AVERAGE RETURN
The annual compounded return of Series F units of the fund was 1.94% over the past 10 years. If you had invested $1,000 in the fund 10 years ago, your investment would benow worth $1,212.
Who is this fund for?Investors who:
• want to access the above average capital gain potential of an emerging markets fund on its own or as a small partof a well-diversified portfolio
• invest for the long term• are very comfortable with the ups and downs of the stock market
This fund is focused on capital appreciation. It is not intended for investors who need a steady source of income fromtheir investment.
This series is also available in U.S. dollars.
Series F units are only available to investors approved by Franklin Templeton for whom Franklin Templeton does notincur distribution costs.
A word about taxIn general, you pay income tax on your share ofthe fund’s earnings and on any gains you realizefrom redeeming your investment. The amount oftax depends on the tax rules and rates thatapply to you, and whether you hold the fund in aregistered plan, such as an RRSP or TFSA.
If you hold the fund in a non-registered account,we send a tax slip that shows your share of thefund’s earnings. You must calculate your gainson redemption.
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Templeton Emerging Markets Fund — Series F May 27, 2016
How much does it cost?The following tables show the fees and expenses you could pay to buy, own and sell Series F units of the fund. The fees and expenses – including any commissions – can varyamong series of a fund and among funds. Higher commissions can influence representatives to recommend one investment over another. Ask about other funds andinvestments that may be suitable for you at a lower cost.
1. SALES CHARGES
There are no sales charges for Series F units of the fund.
2. FUND EXPENSES
You don’t pay these expenses directly. They affect you because they reduce the series’ returns. As of December 31, 2015, the expenses of Series F were 1.95% of the value ofthis series. This equals $19.48 for every $1,000 invested.
Annual rate(as a % of the series’ value)
Management expense ratio (MER)This is the total of the management fee (including trailing commission), fixed administrationfee and any operating expenses not covered by the fixed administration fee.
1.77%
Trading expense ratio (TER)These are the fund's trading costs for this series.
0.18%
Series Expenses 1.95%
More about the trailing commission
No trailing commission is paid by Franklin Templeton to your representative’s firm in respect of Series F units. Please see "Representative's Firm Fees" below.
3. OTHER FEES
You may have to pay other fees when you buy, hold, sell or switch units of the fund.
Fee What you pay
Representative's Firm Fees No trailing commission is paid by Franklin Templeton to your representative's firm in respect of this series. Instead, you mayneed to enter an agreement to pay your representative's firm a fee, which you negotiate with, and pay directly to yourrepresentative's firm.
Switch fee Up to 2% of the value of the switched units. You negotiate this amount with, and pay it to, your representative's firm. A switchfrom Series F units of the fund to Series F securities of another fund will not be subject to switch fees. Your representative's firmmay charge you a switch fee for switches from Series F to any other series.
What if I change my mind?Under the securities law in some provinces and territories, you have the right to:
• withdraw from an agreement to buy mutual fund units within two businessdays after you receive a simplified prospectus or Fund Facts document, or
• cancel your purchase within 48 hours after you receive confirmation of thepurchase.
In some provinces and territories, you will also have the right to cancel apurchase, or in some jurisdictions, claim damages, if the simplified prospectus,annual information form, Fund Facts document or financial statements contain amisrepresentation. You must act within the time limit set by the securities law inyour province or territory.
For more information, see the securities law of your province or territory or ask alawyer.
For more informationContact Franklin Templeton or your representative for a copy of the fund’ssimplified prospectus and other disclosure documents. These documents and theFund Facts make up the fund’s legal documents.
Franklin Templeton Investments Corp.5000 Yonge Street, Suite 900Toronto, ON M2N 0A7Client Services Toll-Free: 1.800.387.0830Email: [email protected]
To learn more about investing in mutual funds, see the brochure UnderstandingUnderstandingUnderstandingUnderstandingmutual fundsmutual fundsmutual fundsmutual funds, which is available on the website of the Canadian SecuritiesAdministrators at www.securities-administrators.cawww.securities-administrators.cawww.securities-administrators.cawww.securities-administrators.ca.
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