Franklin Absolute Return Bond Fund (the “Fund”) seeks a positive return (through a combination of income and capital growth) each calendar year. In addition, over a three to five-year period, the Fund aims to outperform the London Interbank Offered Rate (LIBOR) 90 Day (GBP) by 2% after all fees and costs are deducted. There is no guarantee that the Fund will achieve its objective over this or any other time period; capital invested in the Fund is at risk and you may get back less than you paid in. The Fund intends to achieve its objective by investing at least two thirds (but typically significantly more) in: · debt securities or bonds issued by governments, government-related entities, supranational organisations and corporations in any industry, anywhere in the world of any maturity, duration or quality, although no more than 50% of the portfolio will be invested in securities rated below investment grade (rated below BBB- by Standard & Poor’s or Baa3 by Moody’s). · up to 30% of assets can be invested in currencies other than the pound (GBP), this does not include currencies that are hedged back to the pound. · related derivatives for hedging and investment purposes. The Fund may invest to a lesser extent in: · mortgage and asset-backed securities; · convertible bonds; · structured products; · other asset classes. The Fund seeks to generate returns from various sources and as such the assets of the Fund may be diversified by risk type, including credit sectors, currency and duration. The Fund will normally seek to manage the level of portfolio risk within a volatility range of 1 to 3% on an annualised ex ante basis (the estimated future risk over a year). The Fund’s performance target is the London Interbank Offered Rate (LIBOR) 90 Day (GBP) Index plus 2%. The London Interbank Offered Rate (LIBOR) 90 Day (GBP) reflects the rate of return investors could typically expect from money markets. The Fund uses derivatives with the aim of growing capital, providing cost-effective access to different types of investment, reducing short term changes in value or risk and preserving capital and to increase the efficiency of managing the portfolio. You may request the sale of your shares on any UK business day. The income received from the Fund's investments is accumulated and included in the value of the shares. For further information on the Objectives and Investment Policy of the Fund, please refer to the “Investment Objectives and Policies of the Funds” section of the current prospectus of Franklin Templeton Funds. Terms to Understand Asset-backed securities: Debt securities whose value and income payments are derived from a pool of underlying assets. Debt securities: Securities representing the issuer’s obligation to repay a loan at a specified date and to pay interest.