Franklin Euro Short Duration Bond Fund

Franklin Euro Short Duration Bond Fund (the “Fund”) aims to preserve capital and liquidity while seeking to maximize its investment return over the medium to long term. The Fund invests mainly in:short-term high quality debt securities denominated in Euro issued by European sovereign issuers and European and/or non-European corporations having a business presence within Europe The Fund can invest to a lesser extent in:lower-quality debt securities such as non-investment grade securities or securities in default (limited to 10% of the Fund’s assets)debt securities denominated in non-Euro currencies (limited to 10% of the Fund’s assets)derivatives for hedging, efficient portfolio management and/or investment purposes In making investment decisions, the Fund’s investment team refers to detailed analyses of economic trends in various countries and individual companies. The Fund may distribute income gross of expenses. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital.