portfolio summary a core equity strategy: …...a core equity strategy: disciplined dividend growth...

A CORE EQUITYSTRATEGY: DISCIPLINED DIVIDEND GROWTH INVESTING Franklin Rising Dividends Fund– Advisor Class (FRDAX) As of June 30, 2017

PORTFOLIO SUMMARY

For Financial Professional Use Only / Not for Distribution to the Public

Franklin Retirement Payout Funds March 31, 2016

FRANKLIN RISING DIVIDENDS FUND A Core Equity Strategy: Disciplined Dividend Growth Investing

Not FDIC Insured | May Lose Value | No Bank Guarantee

A Core Equity Strategy: Disciplined Dividend Growth Investing 1

Topics Covered

Our Investment Approach

Outcomes of Our Investment Expertise

Active Sector Positioning

Strategy in Action

Active Investment Selection

Risk and Reward

Market Scenario: Economic Recession and Expansion Periods

Allocating to Core US Equity

Management Team

Consistent and robust dividend growth is a likely marker for earnings growth, good corporate governance, and a resilient business model. While other funds may screen for past dividend performance, Franklin Rising Dividends Fund (FRDAX) has a history of identifying dividend-paying companies poised for sustainable growth on a forward-looking basis.

Provides a Differentiated Return ProfileOur fund aims to provide investors with long-term capital appreciation by investing in financially sound, primarily US-based companies generating consistent dividend increases. Our high-quality fund has historically outperformed the S&P 500 index during periods of severe equity market dislocation.

Demonstrates Selection of Quality Dividend GrowersWe believe our ability to select fundamentally sound dividend-paying companies with long-term growth prospects, without over-paying based on our valuation analysis, may lead to repeatable and sustainable results. The 10-year dividend-per-share (DPS) growth of companies held within the fund has outpaced the S&P 500 index every year since 19961.

Active Share Score2: 80 Shifting markets remind many people of the importance of active risk management. Our active sector positioning and bottom up stock selection have provided protection in down markets while delivering competitive returns.

1. Source: FactSet, as of June 30, 2017.2. Source: © 2017 Morningstar as of June 30, 2017. The Active Share Score represents the portion of stock holdings in an actively managed fund that differs from its benchmark index. Active share scores range from 0 to 100. An active share score of 0 indicates a portfolio that is identical to its primary benchmark index, while an active share score of 100 represents a portfolio composition that holds no overlapping positions. Different position allocation amounts contribute to active share score and are subject to change. A high active share score does not guarantee positive fund performance, or that a fund will outperform its benchmark index.



OUR INVESTMENT APPROACH Focused on dividend-paying companies with long-term stability and growth potential Our investors benefit from a time-tested investment process predicated on extensive dividend growth research. We take a conservative approach to equity selection, which has tended to protect on the downside in periods of market duress. We believe the bottom-up research conducted by our investment team is at the core of our process and is the most significant contributor to the sustainability of our performance. We generally target companies with long-term annual dividend growth in excess of that for S&P 500 index benchmark, both on a historical and forward-looking basis.Under normal market conditions, the fund seeks to invest at least 65% of assets in securities of companies that have:Consistent dividend increases• At least 8 out of 10 years• No dividend decreases during that time

Substantial dividend increases• At least double over last 10 yearsReinvested earnings• Generally paid out less than 65% of current earnings in dividends,

except utility companiesFinancial screen• Either long-term debt that is no more than 50% of total

capitalization or senior debt that has been rated investment grade by at least one of the major bond rating organizations

Attractive prices relative to historical valuations• Prices at the time of purchase either in the lower half of the

stock’s Price/Earnings ratio range for the past 10 years or less than the average current market Price/Earnings ratio of the stocks comprising the Standard & Poor’s 500® Stock Index

Our quantitative screens shrink our investable universe from 10,000+ companies to +/-250 qualifiers. Our bottom-up stock selection narrows this universe to a high conviction portfolio of 50–70 holdings for which we anticipate robust dividend growth going forward based on our analysis.


3. FactSet, as of June 30, 2017. Performance data represents past performance, which does not guarantee future results. Holdings of the same issuer have been combined, unless otherwise noted. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. The portfolio characteristics above are based on the fund’s underlying holdings, and do not necessarily reflect the fund’s characteristics. Due to data limitations all equity holdings are assumed to be the primary equity issue (usually the ordinary or common shares) of each security’s issuing company. This methodology may cause small differences between the portfolio’s reported characteristics and the portfolio’s actual characteristics. In practice, Franklin Templeton’s portfolio managers invest in the class or type of security which they believe is most appropriate at the time of purchase. The market capitalization figures for both the portfolio and the benchmark are at the security level, not aggregated up to the main issuer.

OUTCOMES OF OUR INVESTMENT EXPERTISE Emphasis on financially-sound companiesand robust dividend growth Consistent dividend increases suggest the enduring viability of a company’s products or services both over time and across a wide variety of economic conditions. Compared to the S&P 500 index, the fund’s lower long-term debt-to-total capital ratio over the majority of the past 10 years indicate our portfolio companies are less reliant on long-term debt for permanent financing.

Looking at the fund and its benchmark index, the dividend growth of the fund’s holdings consistently outperformed the benchmark.

Focus on Strong Corporate Balance Sheet: Lower Long-Term Debt to Capital Ratio2007–2016

10-Year Dividend Growth of Fund’s Portfolio Holdings Outperformed S&P 500 IndexDividend Per Share (DPS) Growth 10-Year from 2007–2016, Weighted Average Basis

Source: FactSet. Source: FactSet.

0%

10%

20%

30%

40%

50%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

FRDAX S&P 500 Index

0%

4%

8%

12%

16%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

FRDAX S&P 500 Index

The fund’s top ten holdings have raised their dividends annually for over 25 years on average.3



ACTIVE SECTOR POSITIONING

FRDAX’s active sector allocations may be a key point of differentiation. Our fund’s largest sector concentrations are in industrials, followed by health care, consumer staples and materials.


Holdings of the same issuer have been combined, unless otherwise noted. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. The portfolio characteristics above are based on the fund’s underlying holdings, and do not necessarily reflect the fund’s characteristics. Due to data limitations all equity holdings are assumed to be the primary equity issue (usually the ordinary or common shares) of each security’s issuing company. This methodology may cause small differences between the portfolio’s reported characteristics and the portfolio’s actual characteristics. In practice, Franklin Templeton’s portfolio managers invest in the class or type of security which they believe is most appropriate at the time of purchase. The market capitalization figures for both the portfolio and the benchmark are at the security level, not aggregated up to the main issuer.

FRDAX vs. BenchmarkIndustrial Sector WeightsJune 30, 2007–June 30, 2017

2007 Industrial holdings tend to have a global presence. During a time of domestic and global economic expansion, particularly in China, the fund made a growing investment in this sector underpinned by strong company fundamentals.

2011–Present In the aftermath of the Global Financial Crisis, we initially perceived a high opportunity cost of holding a high conviction allocation to Industrials in a slow, sub-optimal global growth environment. Over time, however, we have become more comfortable with the growth trajectory of our holdings in the Industrials space.

FRDAX vs. BenchmarkHealth Care Sector WeightsJune 30, 2007–June 30, 2017

2009The fund’s increased weighting post-2009 was both strategicand opportunistic. We increased our allocation to a historically defensive sector, at valuations we believed had become overly pessimistic in the context of the Global Financial Crisis (GFC).

2014–16Intra-sector allocations distinguished our fund from the benchmark index. Our dividend growth approach resulted in a high conviction allocation to health care equipment and supply companies, and relative underweight allocation to pharmaceuticals and biotechs. The latter intra-sector allocation may be more susceptible to regulatory and political risk.

Health care, similar to consumer staples, tends to have a resilient quality, in that businesses in these sectors tend to experience product demand across all stages of the economic cycle.

The industrials sector has historically proven to be fertile territory for disciplined dividend growth companies. Therefore, our fund has performed well in periods of economic recovery and expansion. Our team’s opportunistic and strategic approach in sector allocation is highlighted below.

0%

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Jun-07 Oct-10 Feb-14 Jun-17FRDAX S&P 500 Index

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30%




ACTIVE SECTOR POSITIONING The financial sector is diversified between bank and non-bank financials. We find the non-bank financial firms’ risk/reward profile tends to be more suitable for our fund.


Holdings of the same issuer have been combined, unless otherwise noted. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. The portfolio characteristics above are based on the fund’s underlying holdings, and do not necessarily reflect the fund’s characteristics. Due to data limitations all equity holdings are assumed to be the primary equity issue (usually the ordinary or common shares) of each security’s issuing company. This methodology may cause small differences between the portfolio’s reported characteristics and the portfolio’s actual characteristics. In practice, Franklin Templeton’s portfolio managers invest in the class or type of security which they believe is most appropriate at the time of purchase. The market capitalization figures for both the portfolio and the benchmark are at the security level, not aggregated up to the main issuer.

FRDAX vs. BenchmarkFinancial Sector WeightsJune 30, 2007–June 30, 2017

Post-2009 Since 2009, many financial companies have not meet our criteria for dividend growth consistency or magnitude, as a result of cutting or eliminating their dividends during the GFC. As more sector constituents approach eight years of consecutive dividend increases post-GFC, our fund has the structural capacity to potentially increase our financials exposure and will continue to monitor the stability of long-term earnings growth for the banking sub-sector.

FRDAX vs. BenchmarkSector Exposure (%)As of June 30, 2017

Real Estate, Telecom and UtilitiesThe real estate, telecommunications, and utilities sectors have not typically met our dividend growth criteria for portfolio inclusion. These companies typically have had a high dividend yield, but insufficient dividend growth.

Information TechnologyWe continue to assess the information technology sector, as it is increasingly within our opportunity set as we move forward in time.

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0 5 10 15 20 25 30

Telecommunication Services

Real Estate

Utilities

Financials

Energy

Consumer Discretionary

Information Technology

Materials

Consumer Staples

Health Care

Industrials

FRDAX S&P 500 Index



STRATEGY IN ACTION Along with the traditional sectors of industrials, materials and health care, the business landscape of dividend growth companies has had an increasing number of technology-focused companies. The investments below illustrate our investment process and deep due

diligence while looking at how perceived traditional “tech” companies are seeing a resurgence in their business models.

MICROSOFT TEXAS INSTRUMENTS

Microsoft Corp. develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services. Microsoft has been undergoing a transition from a packaged software company to cloud-based software and services company. We believe this transition will allow Microsoft to continue to be a leader in the enterprise and consumer software space, and should lead to consistent revenue, earnings, and dividend growth. Microsoft increased its dividend by 16% in 2016 from 11% in the prior year, ahead of its 10-year dividend compound annual growth rate (CAGR) of 15%.

Our investment selection of Microsoft is underpinned by four key drivers:Cloud – Microsoft’s cloud business is comprised of Azure, its enterprise cloud solution, as well as Office 365 and other software products. The firm ended fiscal year 2016 with a greater than $12.1 billion revenue run-rate in its commercial cloud business, up more than 50% from the previous year. The company is on target to achieve $20B in cloud revenue by FY18, which implies a conservative cloud-revenue CAGR of 30% over the next two years.

Recurring Revenue – Cloud-based software and infrastructure solutions result in recurring and more predictable revenue streams. We believe this will lead to greater earnings visibility, thereby increasing the resiliency of Microsoft’s revenue and earnings.

Cross-Platform Development – Microsoft has embraced a cloud-centric philosophy centered on delivering its software and services across all platforms, including iOS and Android. We believe this strategy makes sense long-term, as it will increase the reach of its products and services.

Leadership – CEO Satya Nadella was a 22-year veteran of Microsoft prior to his ascent to CEO and is known as an innovator with a collaborative and inclusive management style. We believe his leadership and vision will allow Microsoft to execute on its cloud and mobile strategy, and be a leader in the space.

Texas Instruments, Inc. designs, manufactures, and markets a variety of semiconductors and related products. As the largest manufacturer of analog semiconductors, Texas Instruments benefits from significant scale advantages, manufacturing efficiencies, and higher R&D productivity. As more products become “smart” and “wired”, Texas Instruments is poised to benefit from increasing semiconductor content, particularly in the automotive and industrial markets. Texas Instruments increased its dividend by 13% in 2015, marking the 12th consecutive year of dividend increases.

We believe Texas Instruments offers investors three key drivers:Automotive – Texas Instruments’ automotive segment has seen average growth per annum of 11.3% over the last 10 years, ahead of semiconductor industry growth. The company develops components that go into electric and hybrid vehicles, advanced driver assist systems (ADAS), and infotainment systems. According to company management, autonomous vehicles will require a 3-fold increase in semiconductor content per vehicle, which we believe will allow Texas Instruments to sustain/accelerate the growth rate in the this segment over the next 3-5 years.

Manufacturing – Texas Instruments has among the lowest manufacturing costs in the industry, given its scale advantage and advanced manufacturing capabilities. The company has $8 billion in low-cost manufacturing capacity, which was only 25% utilized at the end of FY15. As more products transition to these lower cost manufacturing facilities – which produce chips at 40% lower cost --we believe gross margins will continue to expand, resulting in increased profitability and earnings growth.

Capital Discipline – Texas Instruments targets a 20-30% free cash flow to sales ratio and is committed to returning 100% of free cash flow to shareholders through dividends and share buybacks. Management believes that free cash flow can only be properly valued if reinvested or returned to shareholders. Texas Instruments’ cash return is in the top 10% of companies in the S&P 500 and remains an attractive component of our investment thesis for the company.


The portfolio held 4.33% of total net assets in Microsoft and 2.32% of Texas Instruments, respectively, as of June 30, 2017. This is not a complete analysis of every material fact regarding an industry or security. The actions taken with respect to this stock, and its performance, may not represent other advice or investments of Franklin Templeton Investments. It should not be assumed that any securities transactions were or will be profitable. The analysis and opinions of the security discussed herein may change at any time. There is no assurance that any security purchased will remain in the fund’s portfolio, or that any security sold will not be repurchased. Factual statements are from sources deemed reliable, but have not been independently verified for completeness or accuracy. These opinions may not be relied upon asinvestment advice or recommendations or an offer for a particular security or as an indication of trading intent for any Franklin Templeton fund.



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Becton, Dickinsonand Company

Walgreens BootsAlliance

Apple Medtronic Stryker WestPharmaceutical

Services

RoperTechnologies

Pentair Dover General Dynamics

Fund

/Inde

x Weig

ht

Average Fund Weight Average Index Weight

ACTIVE INVESTMENT SELECTION

Top 10 Contributors by Attribution5-Year Period Ended June 30, 2017

Fund – Average Weight 2.73% 1.97% 0.00% 3.05% 2.81% 1.11% 3.51% 3.12% 2.66% 1.46%

Index – Average Weight 0.16% 0.34% 3.46% 0.47% 0.16% 0.00% 0.09% 0.07% 0.07% 0.22%

Fund – Total Return 186.31% 152.72% 0.00% 154.33% 176.90% 291.96% 141.86% 91.99% 99.89% 237.20%

Index – Total Return 186.35% 193.49% 91.12% 154.16% 171.29% 0.00% 142.07% 65.24% 100.92% 237.38%

Attribution – Total Effect 1.24% 1.12% 1.11% 1.08% 1.01% 0.98% 0.93% 0.84% 0.79% 0.77%

Distinctly Different than the BenchmarkThe attribution analysis highlights the performance impact of each security in the fund relative to its benchmark index. For the five-year period, both the fund and benchmark index held one unique holding of

the top ten contributors, with nine of the top ten contributors overweight in FRDAX. The benchmark index held Apple, Alphabet and Amazon, which do not meet the dividend growth criteria for portfolio inclusion. Not holding a certain stock present in the index can be a driver of out/underperformance.


Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. The Fund’s investment return and principal value will change with market conditions, and investors may have a gain or a loss when they sell their shares. Please call Franklin Templeton Investments at (800) DIAL BEN/(800) 342-5236 or visit franklintempleton.com for the most recent month-end performance. Holdings of the same issuer have been combined. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.Source: FactSet. Important data provider notices and terms available at www.franklintempletondatasources.com. Total Effect represents the excess return by sector as compared to the index. Performance attribution is calculated in the base currency of the fund. Data is calculated as a percentage of total including cash and cash equivalents but excluding fixed income. The information provided is not a recommendation to purchase, sell, or hold any particular security. The securities identified do not represent the fund’s entire holdings and in the aggregate may represent only a small percentage of such holdings. There is no assurance that securities purchased will remain in the fund or that securities sold will not be purchased. In addition, it should not be assumed that any securities transactions discussed were or will prove to be profitable. The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included.

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Alphabet Bunge Limited Chevron Amazon Wal-Mart Stores Family DollarStores

OccidentalPetroleum

Schlumberger Praxair IBM

Fund

/Inde

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Average Fund Weight Average Index Weight

Bottom 10 Contributors by Attribution5-Year Period Ended June 30, 2017

Fund – Average Weight 0.00% 1.72% 2.84% 0.00% 2.24% 1.03% 1.85% 1.46% 2.85% 1.70%

Index – Average Weight 1.27% 0.00% 1.27% 1.03% 0.71% 0.03% 0.39% 0.65% 0.21% 1.03%

Fund – Total Return 0.00% 11.88% 19.66% 0.00% 23.57% 16.27% -13.06% -20.05% 36.85% -12.11%

Index – Total Return 220.23% 0.00% 19.75% 323.91% 23.59% 23.65% -12.76% 12.46% 36.66% -9.63%

Attribution – Total Effect -0.97% -0.98% -1.01% -1.07% -1.10% -1.13% -1.22% -1.34% -1.34% -1.50%



RISK AND REWARD

Competitive long-term returns with relatively lower long-term volatilityLooking at the five-year, ten-year and twenty-year periods ended June 30, 2017, the fund posted competitive returns, standard deviation, and Sharpe ratio. The relatively strong downside capture ratios in the ten-year and twenty-year periods indicate the fund captured a lower proportion of the losses during periods of negative returns of the benchmark.


Average Annual Total Returns (%) Standard Deviation (%) Sharpe Ratio1 Year 3 Year 5 Year 10 Year 20 Year 1 Year 3 Year 5 Year 10 Year 20 Year 1 Year 3 Year 5 Year 10 Year 20 Year

FRDAX 13.1 7.8 12.5 6.8 8.1 6.2 10.2 9.5 13.5 13.4 2.0 0.7 1.3 0.5 0.4

Peer Group Average US Fund Large Blend 17.2 7.6 13.4 6.3 7.0 6.4 10.5 9.9 15.6 15.6 2.5 0.7 1.3 0.4 0.3

S&P 500 Index 17.9 9.6 14.6 7.2 7.2 5.8 10.2 9.5 15.1 15.1 3.0 0.9 1.5 0.4 0.3

Risk and Reward StatisticsPeriods Ending June 30, 2017

Upside Capture (%) Downside Capture (%)1 Year 3 Year 5 Year 10 Year 20 Year 1 Year 3 Year 5 Year 10 Year 20 Year

FRDAX 81.5 92.2 92.0 86.5 81.5 141.7 102.7 102.7 83.8 69.6

Peer Group Average US Fund Large Blend 96.7 93.6 96.5 98.7 98.6 103.1 107.6 105.3 103.1 99.0

S&P 500 Index 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Total Annual Operating Expense -0.66%Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. The Fund’s investment return and principal value will change with market conditions, and investors may have a gain or a loss when they sell their shares. Please call Franklin Templeton Investments at (800) DIAL BEN/(800) 342-5236 or visit franklintempleton.com for the most recent month-end performance. Advisor Class shares are only offered to certain eligible investors as stated in the prospectus. They are offered without sales charges or Rule 12b-1 fees. The fund offers other share classes subject to different fees and expenses that will affect their performance. Please see the prospectus for details. Effective 10/3/2005, the Fund began offering Advisor Class shares.

The fund’s ten-year and twenty-year downside capture ratio indicates the manager protected capital during a market decline.



Relatively strong performance during recession and competitive performance in expansion periodsWhen markets are turbulent, financially sound portfolios may offer capital preservation through downside protection. Our fund

achieved outperformance in two of the three recession periods and minimized losses during the GFC period represented in the 2008-2009 period below. The fund’s higher Sharpe ratio in five out of six periods indicates FRDAX generated a better risk-adjusted performance than its benchmark index and category peer group.

Performance During Recession and Expansion PeriodsAnnualized Returns (%)August 1, 1990–June 30, 2017

EXPANSION EXPANSIONRECESSION RECESSION RECESSION EXPANSION

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

1990-19918/01-3/31

1991-20014/01-3/31

20014/01-11/30

2001-200712/01-12/31

2008-20091/01-6/30

2009-20177/01-6/30

FRDAX US Fund Large Blend Category S&P 500 Index

RECESSION EXPANSION RECESSION EXPANSION RECESSION EXPANSION

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

1990-19918/01-3/31

1997-20014/01-3/31

20014/01-11/30

2001-200712/01-12-31

2008-20091/01-06/30

2009-20177/01-6/30

FRDAX US Fund Large Blend Category S&P 500 Index

Performance During Recession and Expansion PeriodsSharpe Ratio (Annualized)August 1, 1990–June 30, 2017


MARKET SCENARIO: RECESSION AND EXPANSION PERIODS

Source: Morningstar and MSCI.Performance data represents past performance, which does not guarantee future results.




ALLOCATING TO CORE US EQUITY

Relatively lower volatility and better capital protection during major market downturnsWe created a 60% equity/40% fixed income hypothetical portfolio to illustrate how our fund (FRDAX) may benefit your clients’ portfolios. The initial portfolio had a 35% core US equity allocation represented by the S&P 500 Index. In portfolio 2, we replaced the US equity allocation with a 35% allocation to FRDAX. Figure 1 depicts an unchanged standard deviation between the portfolios and a relatively small decrease in performance with portfolio 2.

When major market bubbles burst, such as the dot com crash or global financial crisis (GFC), financially sound portfolios may offer better capital protection. Figure 2 shows the performance of both portfolios during major market downturns.

During the dot com crash period, portfolio 2 with a 35% allocation to FRDAX posted relatively stronger annualized returns and the fund experienced a smoother ride than the benchmark index.

Looking at the GFC period, both portfolios experienced a negative return. However, portfolio 2 with the 35% substitution to FRDAX in place of the benchmark index, protected capital better and posted a relatively lower standard deviation.

Figure 1: Hypothetical 5-Year AllocationAs of June 30, 2017

Portfolios with FRDAX showed improved returns and lower volatilityduring the dot com crash and GFC.

Asset Class Portfolio 1 Portfolio 2Fixed Income

High Yield Corporate Bonds 5.0% 5.0%

US 30.0% 30.0%

US TIPS 5.0% 5.0%

Equity

US Core 35.0% 0.0%

US Small Cap 10.0% 10.0%

International 10.0% 10.0%

Emerging Markets 5.0% 5.0%

FRDAX 0.0% 35.0%

Figure 2: Performance During Major Market EventsDot Com Crash November 1, 2000 – September 30, 2002GFC November 1, 2007 – February 28, 2009

Performance data represents past performance, which does not guarantee future results. Source: FactSet. All data as June 30, 2017. Fund data is based on Franklin Rising Dividends Fund Advisor share class (FRDAX).4. For the fixed income allocations, high yield corporate bonds are represented by the Bloomberg Barclays High Yield Corporate Index, US fixed income is represented by the Bloomberg Barclays US Aggregate Index, and US TIPS are represented by the Bloomberg Barclays US Treasury TIPS 0-5 Year Index. For the equity allocations, emerging markets equity is represented by the MSCI Emerging Markets Index, international equity is represented by the MSCI ACWI ex-US, U.S. core equity is represented by the S&P 500 Index and U.S. small cap equity is represented by the Russell 2000 Index. All hypothetical portfolios are rebalanced monthly with the reinvestment of all dividends and capital gains.Each asset class is represented by an index with the longest performance history within that asset class. If these hypothetical portfolios included other indexes and/or asset classes not shown here, they may have provided outcomes more or less favorable than those shown within these illustrations. This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. As a financial professional, only you can provide your customers with personalized advice and investment recommendations tailored to their specific goals, individual situation, and risk tolerance.Franklin Templeton does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact results. FTDI cannot guarantee that such information is accurate, complete or timely; and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Hypothetical Portfolios (60% Equity/ 40% Fixed Income)4

7.75%

8.00%

8.25%

8.50%

8.75%

6.00% 6.10% 6.20% 6.30%

Portfolio 1

Portfolio 2with 35% FRDAX

Standard Deviation

Annu

alize

d Ret

urn

Annu

alize

d Ret

urn

Standard Deviation

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0.00% 6.00% 12.00% 18.00%

Portfolio 1 (Dot com crash)

Portfolio 2 with 35% FRDAX(Dot com crash)

Portfolio 1 (GFC)

Portfolio 2 with 35% FRDAX(GFC)



FRANKLIN RISING DIVIDEND TEAM

Forward-looking dividend growth expertise Investors can benefit from our veteran management team. Lead portfolio manager Don Taylor has been managing the fund since 1996, through major market events such as the Dot Com Bubble and GFC and fellow portfolio manager Nicholas Getaz brings almost two decades of industry experience. The portfolio team is supported by dedicated research analysts and draws on expertise from the 68-member Franklin Equity team.

Our global reach through Franklin Templeton Investments provides access to sophisticated risk management and trading resources. Portfolio management collaborates with the Performance Analysis and Investment Risk Group, which regularly examines risk analytics to help identify and address areas of excessive risk exposure within our portfolios. Franklin Templeton’s worldwide trading desks allow uninterrupted trading of stocks that trade in multiple time zones.

Donald G. Taylor, CPAPortfolio Manager

Nicholas P.B. Getaz, CFAPortfolio Manager


21Years onaverage ofindustryexperience

10Years on average with Templeton

4Portfolio Managers & Research Analysts

5. As of December 31, 2016. Based on findings from PwC’s 2017 Benchmark Your Global Fund Distribution Report, which ranks asset managers on the number of countries in which their cross-border funds are distributed. A cross-border fund is one that’s distributed in more than three countries, including its domicile.6. Joint venture partners with Franklin Templeton Investments.7. Majority ownership interest.

45RESEARCH OFFICES

13GLOBAL TRADING OFFICES

Americas

• Bogota6

• Boston• Buenos Aires•• Calgary• Coral Gables•• Ft. Lauderdale• Los Angeles• Mexico City• Nassau• New York City

• Rio de Janeiro• Rancho Cordova•• Ridgefield Park•• Short Hills•• San Mateo•• São Paulo• Stamford7

• Toronto•Washington, D.C.

• Geneva• Istanbul• Leeds• London• Moscow• Vienna•Warsaw

Europe, Middle East, Africa

• Bucharest• Budapest• Cape Town•• Dubai•• Edinburgh• Frankfurt

Asia Pacific

• Bangkok•• Chennai• Ho Chi Minh City6

•• Hong Kong• Hyderabad• Kuala Lumpur•• Melbourne

• Mumbai•• Seoul•• Shanghai6

• Singapore• Sydney• Tokyo

A truly global organization, Franklin Templeton Investments isthe world’s top cross-border fund management group.5

Franklin Templeton’s global footprint offers local market knowledge and around-the-clock trading

GPM FRD 09/17

Franklin Templeton Distributors, Inc.One Franklin ParkwaySan Mateo, CA 94403-1906(800) DIAL BEN® / 342-5236franklintempleton.com

For Financial Professional Use Only / Not For Distribution to the Public.© 2017 Franklin Templeton Investments. All rights reserved.

WHAT ARE THE RISKSAll investments involve risks, including possible loss of principal. Value securities may not increase in price as anticipated or may decline further in value. For stocks paying dividends, dividends are not guaranteed, and can increase, decrease or be totally eliminated without notice. While smaller- and midsize-companies may offer substantial opportunities for capital growth, they also involve heightened risks and should be considered speculative. Historically, smaller- and midsize-company securities have been more volatile in price than larger company securities, especially over the short term. These and other risks are detailed in the fund’s prospectus.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute

Your clients should carefully consider a fund's investment goals, risks, charges and expenses before investing. They should read the summary prospectus and/or prospectus carefully before they invest or send money. To obtain a prospectus, which contains this and other information, please call Franklin Templeton Investments at (800) DIAL BEN/(800) 342-5236.

portfolio summary a core equity strategy: …...a core equity strategy: disciplined dividend growth...

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