(PUB) Investing 2016

7

November 2016

Morningstar FundInvestor

Data through October 31, 2016 FINRA members: For internal or institutional use only. Templeton Global Bond A

Ticker TPINX

Yield 2.6%

SEC Yield 3.79%

Total Assets $42,138 mil

Mstar Category World Bond

Benchmark 1: Citi WGBI NonUSD USD Benchmark 2: BBgBarc US Agg Bond TR USD Morningstar Analyst Rating 10-31-16 Œ

Investment Style Fixed Income

Historical Profile Return Risk Rating Above Avg Above Avg QQQQ Above Avg

5 2 2 2 2 3 3

12.0 14.0 16.0 18.0 20.0 22.0

Growth of $10,000

Investment Values of Fund Investment Values of Benchmark 1

Morningstar Pillars Process

∞ Positive ∞ Positive ∞ Positive ∞ Positive ∞ Positive

Performance

People Parent

10.0

Performance Quartile (within Category)

& & & & & ) & & * ( ) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 10-16 11.05 11.42 11.20 12.72 13.59 12.41 13.38 13.14 12.46 11.58 11.60 13.51 10.86 6.28 18.86 12.68 -2.37 15.81 2.22 1.58 -4.26 2.33 6.57 -0.60 -3.83 14.48 7.47 -7.55 14.30 6.78 4.25 1.29 -6.64 9.17 3.89 1.04 12.93 6.14 -10.22 11.59 4.24 -4.39 -4.81 -2.65 6.09 7.32 8.27 4.93 5.73 6.02 6.40 4.01 6.63 2.93 2.09 7.42 3.54 -1.99 13.94 6.95 -8.39 9.41 -1.79 -5.05 -7.18 0.24 0.61 0.79 0.92 0.54 0.71 0.80 0.77 0.53 0.85 0.36 0.24 0.01 0.01 0.00 0.00 0.00 0.08 0.17 0.00 0.03 0.00 0.00 1.03 0.99 0.92 0.92 0.91 0.88 0.89 0.86 0.90 0.90 0.91 3.59 4.17 4.28 4.99 4.40 3.76 3.30 2.84 2.83 2.68 3.29 4 6 16 19 7 96 4 4 47 51 94

Price

History

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 10-31-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

7.03 -0.97 5.32 3.75 15.81 1.35 -2.78 1.01 2.72 2.22 0.62 2.68 0.00 -1.69 1.58 0.08 -0.33 -6.15 2.27 -4.26

. .

39

44

30

66

12

26

42

42

35

43

2,352 4,902 6,215 12,912 20,779 22,930 25,903 26,588 22,017 17,420

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 09-30-16

0.03 -0.43 -1.33

— —

Date of Maturity

Value $000

% Assets

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Total Fixed Income: 119 Vereinigte Mexikanische

Amount 000

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

12-14-17

557,967 2,970,554 6.52

1 Yr 3 Yr 5 Yr

-3.10 -1.27 1.70 5.99 7.26

3 Mo 6 Mo

3.57 8.14 4.50 2.48 4.47 0.97 1.20 -6.14 -3.17 0.17 0.91 -3.31 2.59 3.49 -0.31 6.45 3.11 1.81 8.41 3.42 3.81

3 10,357 29 10,248 94 10,120 68 10,052 30 11,363 2 18,684 2 33,571

United Mexican States 8 12-13-18 489,083 2,677,228 5.88 Korea(Republic Of) 2% 03-10-21 1,456,387,020 1,364,215 3.00 Brazil Federative Rep 01-01-20 5,602 1,210,016 2.66 Brazil Federative Rep 1 01-01-21 4,010 1,176,220 2.58 Secretaria Tesouro Nacl 01-01-23 3,504 1,008,719 2.21 Malaysia (Govt Of) 4.01 09-15-17 3,711,240 910,055 2.00 Indonesia(Rep Of) 8.375 03-15-24 10,037,615,00 0 828,713 1.82 Indonesia(Rep Of) 8.375 09-15-26 9,734,168,000 814,848 1.79 Korea Treasury Bond 09-10-21 859,779,700 786,406 1.73 Brazil Federative Rep 1 01-01-17 2,422 738,534 1.62 India(Govt Of) 8.83% 11-25-23 37,754,900 624,981 1.37 Indonesia(Rep Of) 9.5% 07-15-23 6,667,220,000 582,379 1.28 Brazil Federative Rep 1 01-01-25 1,988 566,031 1.24 Indonesia(Rep Of) 8.25% 07-15-21 6,591,149,000 534,195 1.17 Poland(Rep Of) 01-25-17 2,005,988 525,199 1.15 Republic Of Colombia 7. 09-18-30 1,297,093,900 475,042 1.04 Poland(Rep Of) 01-25-21 1,721,975 444,330 0.98 Malaysia (Govt Of) 3.31 10-31-17 1,713,700 417,806 0.92 Portugal Rep 5.125% 10-15-24 413,230 410,722 0.90

Low +Avg Q

High QQQ

Avg High

1 Yr

+Avg QQQQQ

10 Yr Incept

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Other Measures

Standard Index

Best Fit Index

Alpha

0.9

-3.0 0.42

Beta

-0.21

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

R-Squared

1

44

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

-3.09 -0.33 3.83

95 67

1.85 1.99 2.04

87 93 92

Standard Deviation

6.31 0.17 0.04

8

Mean

Sharpe Ratio

Potential Capital Gain Exposure: -13% of assets

Morningstar's Take by Karin Anderson 10-31-16 Templeton Global Bond is among the boldest entrants in the world-bond Morningstar Category. Notably, its emerging-markets-heavy profile has caused it to move in sync with riskier assets and sport one of the highest correlations to equities in the group. And its shorts on the yen and euro are a significant drag when those currencies strengthen against the U.S. dollar. However, manager Michael Hasenstab's investment themes and shrewd bond and currency selection have led to topnotch long- term performance. His experience, a skilled and generally stableanalystbench, the fund’sconsistentapproach,and reasonable fees earn this fund a Morningstar Analyst Rating of Gold. The fund has almost no exposure to the debt of the United States, eurozone, and Japan, which dominate most peer funds’ portfolios. It also stands out for its significant, and longtime, bets against the euro and yen which Hasenstab believes are set to weaken on the back of further quantitative easing. Instead, he has preferred emerging-markets issues and currencies (roughly two thirds of debt exposure and four fifths of currency exposure as of August 2016) given what he views as

those countries' better fiscal prospects. Where the fund looks less daring, however, is its interest-rate risk. Hasenstab believes global inflation pressures could lead to permanent loss of capital, which led him to further reduce duration to 0.2 years as of August down from roughly one year in late 2014. Hasenstab has also shown a willingness to buy what the rest of the market shuns: He loaded up on Irish bonds in the depths of the 2011 eurozone crisis, and bought up even shakier Hungarian debt. As Mexican and Brazilian debt sold off in 2015's third quarter, Hasenstab took the fund’s stakes in those countries and their currencies up by several percentage points by the end of the year. Moves like that have led to sharp, short-term sell-offs, but over time, long-term-focused investors have been amply rewarded. Since Hasenstab took over as lead manager in December 2006 through September 2016, the fund’s 6.1% annualized return ranked second out of 46 distinct peers.

Current Investment Style

Sector Breakdown

% Assets

Government

63

Duration Ltd Mod Ext

Government Related

0 1

Quality High Med Low

Corporate

Agency MBS 0 Non-Agency Residential MBS 0 Commercial MBS 0 Covered Bond 0 Asset Backed 0 Municipal 0 Cash & Equivalents 36 Other 0

1 figure provided by fund

0.0 Yrs 3.2 Yrs

Avg Eff Duration 1 Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon

BB

7.06%

Avg Wtd Price

—

Composition - Net Cash

Coupon Range

% of Bonds

35.0 Bonds -1.8 Other

65.3

0% PIK

8.0

Stocks

1.5

0% to 4% 4% to 6% 6% to 8% 8% to 10%

19.5

8.1

Special Securities Restricted/Illiquid Secs Emerging-Markets Secs Options/Futures/Warrants

21.0 40.1

5

61

Address:

Templeton Income Trust

Minimum Purchase: Min Auto Inv Plan:

$1000 Add: — IRA: $250

More than 10%

3.2

Fort Lauderdale, FL 33394-3091

$50

Add: —

0

800-342-5236

Sales Fees:

4.25%L

Credit Analysis

% bonds 09-30-16

Web Address:

www.franklintempleton.com

Management Fee:

0.65% mx./0.46% mn., 0.15%A

AAA

0 BB

22

Inception:

09-18-86

Actual Fees:

Mgt:0.48% Dist:0.25%

AA

10 B

1 6

Advisor:

Franklin Advisers Inc

Expense Projections: 3Yr:$701 5Yr:$906 10Yr:$1496

A

33 Below B

Subadvisor:

None

Income Distribution:

Monthly

BBB

28 Not Rated 0

D

ß ® Mutual Funds

©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past performance is no guarantee of future results.Access updated reports at www.morningstar.com . To order reprints, email reprints@morningstar.com