Franklin Mutual European Fund (the “Fund”) aims to increase the value of its investments and, secondarily, to earn income over the medium to long term. The Fund invests mainly in: equity securities issued by companies of any size located in European countries The Fund can invest to a lesser extent in: equity securities issued by companies involved in mergers, consolidations, liquidations or other major corporate transactions debt securities of any quality (including lower quality debt such as non-investment grade securities) of companies involved in reorganisation or financial restructuring securities of non-European issuers (up to 10% of assets) derivatives for hedging, efficient portfolio management and/or investment purposes In exceptional market circumstances, the Fund may temporarily hold a greater amount of cash in times where the manager believes that the markets are experiencing excessive volatility, a prolonged general decline or other adverse conditions. Although the Fund generally invests in at least five countries, it may invest in as few as one or two. The Fund currently intends to invest principally in securities of issuers in western Europe. The investment team uses in-depth, fundamental research and analysis to find and purchase those equity and debt securities that are believed to be trading at a discount. You may request the sale of your shares on any Luxembourg business day. The income received from the Fund's investments is accumulated with the result of increasing the value of the shares. For further information on the Objectives and Investment Policy of the Fund, please refer to the section “Fund Information, Objectives and Investment Policies” of the current prospectus of Franklin Templeton Investment Funds. The benchmark of the Fund is the MSCI Europe (Net Dividends) Index. The benchmark is indicated for information purposes only, and the Fund manager does not intend to track it. The Fund can deviate from this benchmark. Terms to Understand Debt securities: Securities representing the issuer’s obligation to repay a loan at a specified date and to pay interest. Derivatives: Financial instruments whose characteristics and value depend on the performance of one or more underlying assets, typically securities, indexes, currencies or interest rates. Equity securities: Securities that represent an ownership stake in a company. Hedging: A strategy for totally or partially offsetting particular risks such as those arising from fluctuations in share prices, currencies or interest rates.