Templeton Global Total Return Fund Important Legal Information The Fund aims to achieve total return consisting of a combination of interest income, capital appreciation and currency gains by investing principally in fixed and floating rate debt securities and debt obligations (including convertible bonds) of governments, government-related or corporate issuers worldwide. The Fund may invest in emerging market securities which are exposed to higher risk of economic, political and regulatory changes that may pose additional risk to the Fund. The Fund may invest up to 100% of their total net assets in structured products, mortgage- and asset-backed securities and derivatives (such as credit default swaps, forwards and options), and is subject to significant liquidity and counterparty default risks. The Fund may invest in defaulted debt securities on which the issuers are not currently making interest payment, and as a result may be subject to liquidity and counterparty default risks. The Fund may invest in non-investment grade debt securities, and as a result may be subject to liquidity and counterparty default risks. This investment involves risks which may result in loss of part or entire amount of your investment. Investors should not invest in the Fund unless the intermediary who sells it to you has advised you that it is suitable for you and has explained how it is consistent with your investment objectives. Investors should not only base on this marketing material alone to make investment decisions. Investments are subject to investment risks, fund value may go up as well as down and past performance is not indicative of future performance. Investors should read carefully the Explanatory Memorandum (including the section "Risk Considerations") for the relevant risks associated with the investment in the fund before investing. This report has not been reviewed by the Securities and Futures Commission of Hong Kong. Templeton Global Total Return Fund All-round Bond Strategy Invests in global bonds across sectors, aims at maximizing total return No limitations against benchmark, can flexibly invest in various types of bonds, including government bonds, corporate bonds and convertible bonds Prudent investment style with average portfolio credit rating of A-1 Could benefits from an improving credit market sentiment through a 18% exposure in corporate bonds1 Monthly Dividends Distribution Class available, with a historical 12 months average annualized dividend yield of 7.06%2 Outstanding Performance - Ranked No.1 for 1 year, 3 years and 5 years among peers of SFC authorized funds3 Rated by Morningstar Rating4 and AA/V5 by S&P Fund Management Rating5 Calendar Year Performance (%)6                            YTD 2009 2008 2007 2006 2005 Since Inception To Date Fund 2.51 33.47 -2.75 10.26 16.93 -2.47 112.71 Index 0.51 8.05 3.76 9.23 6.92 -4.15 50.16 Index: Barclays Capital Multiverse Index Inception date: 29-Aug-03 1 Source: Franklin Templeton Investments, data as of 28-Feb-10. 2 Source: Franklin Templeton Investments, record date as of 5-Mar-10, Calculation based on "A Shares" with the following formula: [( 1+ r/p )12 -1] x 100. r = monthly dividend of the month; p = ex-dividend price of the month 3 Source: © 2010 Morningstar, Inc. All Rights Reserved, Hong Kong authorized funds, Fixed Income Global USD based, A(Mdis), NAV to NAV, in USD, dividend re-invested, data as of 28-Feb-10. 4 Source: © 2010 Morningstar, Inc. All rights reserved. Data as of 28-Feb-10. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 5 Source: Copyright © 2010 Standard & Poor's, a division of The McGraw-Hill Companies, Inc. Data as of 28-Feb-10. Standard & Poor's including its subsidiary corporations ("S&P") is a division of The McGraw-Hill Companies, Inc. 6 Source: Franklin Templeton Investments, A(Mdis), NAV to NAV, in USD, dividend re-invested, data as of 28-Feb-10.

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