Insert Date Insert Name and title Franklin Templeton

[Insert Date] [Insert Name and title] Franklin Templeton Investments Corp. DON’T LOSE TWICE RE-EVALUATE, REFOCUS AND REBUILD Dealer Use Only

2 Time to Take Action! Where do we go from here? “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. ” - Sir John Templeton • Investors are skeptical at best, pessimistic at worst – Start the conversation; if you are not talking to your clients, someone else is! • Ensure that you and your clients don’t lose twice – Declines have been significant; focus on rebuilding • Participate in the rebound: history has shown that markets always recover – Stock markets are traditionally a leading indicator of the economic cycle • Partner with Franklin Templeton Investments for your recovery solutions For Broker/Dealer Use Only. Not for Distribution to the Public

3 Bull Markets Are Longer and Stronger Current market is not unprecedented S&P 500 (USD): Bull and Bear Market Returns 152 -M 579. 2% 600% 500% Avg. Duration Bear: 23 months Bull: 70 months 151 -M 436. 1% 400% You are here 56 -M 324. 3% 300% 61 -M 228. 8% 4 -M 27. 8% Source: Bloomberg September 17, 1929 - June 30, 2009. Bear markets defined as market trends -20% or more from peak to trough. Bull markets defined as period of appreciation between bear markets. For Broker/Dealer Use Only. Not for Distribution to the Public 3 -M -33. 5 Jun-09 Jun-04 25 -M 18 -M -48. 9% -56. 8% Jun-99 20 -M -27. 1% Jun-94 21 -M -48. 2% Jun-89 7 -M -22. 2% 18 -M -36. 1% Jun-74 Jun-64 Jun-59 5 -M -28. 0 Jun-54 Jun-49 Jun-44 63 -M -60. 0% Jun-39 Jun-34 32 -M -86. 2% Jun-29 -100% 36 -M -29. 6% Jun-69 0% 26 -M 48. 1% 60 -M 101. 5% Jun-79 43 -M 79. 8% 100% 31 -M 73. 5% 74 -M 125. 6% Jun-84 49 -M 157. 7% 200%

4 Losses Have Been Significant Challenge ahead: amount to recover is even greater Return Since Peak* % Required to Recover U. S. Equities -46. 4% 86. 6% Global Equities -47. 3% 89. 8% Canadian Equities -48. 5% 94. 2% International Equities -50. 2% 100. 8% Emerging Market Equities -53. 6% 115. 5% * Index numbers for Canadian, International, Global and US Equities are as of March 9, 2009; Emerging Market Equities are as of Oct 27, 2008; and represented by the following indices respective peaks [in brackets]: Canadian Equities are represented by the S&P/TSX Total Return Index [June 18, 2008] ; U. S. Equities are represented by the S&P 500 Composite Total Return Index (CAD$) [Feb. 7, 2007]; International Equities are represented by the MSCI EAFE Index (CAD$) [Apr. 4, 2007]; Global Equities are represented by the MSCI World Index (CAD$) [Feb. 20, 2007]; Emerging Market Equities are represented by the MSCI Emerging Markets Index (CAD$) [Dec. 6, 2007]. For Broker/Dealer Use Only. Not for Distribution to the Public

5 Why You Should Commit Now Historically, markets start recovering during the recession Recovery resumed during the recession so waiting for the first positive GDP quarter means missing substantial returns • By staying invested, you would have surpassed your previous peak Bottom to Signal: +38. 2% 98% * Source: Bloomberg, US$ For Broker/Dealer Use Only. Not for Distribution to the Public • Missing the 10 best days from market bottom to previous peak represents 98% of the recovery

6 Why You Should Commit Now Historically, markets start recovering during the recession Recovery resumed during the recession so waiting for the first positive GDP quarter means missing substantial returns • By staying invested, you would have surpassed your previous peak 95% For Broker/Dealer Use Only. Not for Distribution to the Public • Missing the 10 best days from market bottom to previous peak represents 95% of the recovery

7 Are Your Clients Exposed to Enough Equities? The Cost of Inaction is Significant Impact of a Market Downturn: • Loss in equity component effectively raises fixed income weighting in your clients’ portfolio • New allocation after market downturn will take longer to recover than original mix • Consider the need to rebalance From the market peak [June 18, 2009] to market bottom [March 9, 2009], a portfolio mix of 60% equities and 40% fixed income would have shifted to a 42%/58% ratio. The above example is hypothetical and is intended for illustrative purposes only. For Broker/Dealer Use Only. Not for Distribution to the Public

8 The Cost of Inaction is Significant Now is the time to reposition your clients’ portfolios Recovery Time 60% Equity, 40% Fixed Income MARKET PEAK 15 m 19 m 23 m 26 m Over 10 years Over 50 years $10, 000 60/40 $9, 000 C GI ills T-B $7, 261 $7, 000 Do Nothing (42% Equity, 58% Fixed Income) Revised Mix (42% Equity, 58% Fixed Income, 18% High Yield) MARKET BOTTOM Original Mix (60% Equity, 22% Fixed Income, 18% High Yield) Revised Mix (80% Equity, 20% High Yield) 42% Equity, 58% Fixed Income Source: Globe Hy. Sales, Bloomberg, Market Peak: June 18, 2008, Market Bottom: March 9, 2009 The above example is hypothetical and is intended for illustrative purposes only. It assumes the following rates of return for the following asset classes which are represented by [in brackets]: Equity 27% [Average annualized 2 -year return over the last 5 recovery periods for the S&P/TSX Composite TR Index] , Fixed Income 3. 45% [DEX Universe Bond Index], High Yield 22% [CFSB High Yield Index] , Treasury Bill 1%, and GIC 3%. The assumed returns illustrated above do not represent the future performance of any Franklin Templeton Funds. For Broker/Dealer Use Only. Not for Distribution to the Public

9 Reasons to Invest Now with Franklin Templeton Investments The Expertise of Many. The Strength of One. • Time-tested expertise – over 60 years of history – Each management group shares decades of investment experience spanning multiple bull and bear cycles – Stay true to disciplines regardless of short-term market cycles • True diversification, not duplication – A unique perspective with four distinct investment approaches – Broad range of solutions from standalone funds to managed solutions with a low overlap of securities • Consistency and reliability you can trust – Seek to provide investors with exceptional risk-adjusted returns over the long-term For Broker/Dealer Use Only. Not for Distribution to the Public TEMPLE FRANKLIN TON MUTUAL SERIES BISSETT

10 Rebuild Now for the Recovery Franklin High Income Fund Templeton Global Income Fund Franklin Templeton Global Blend Fund Bissett Canadian Equity Fund Mutual Discovery Fund Templeton Growth Fund Templeton International Stock Fund High Yield Opportunity CDN Blue Chip & Dividend Paying Equity Exposure Global Value Exposure Global Deep Value Exposure Small Cap Exposure Balanced Mandate One Ticket Diversified Managed Solution Guaranteed Options: Segregated Fund* GMWB* *Available on a number of other Franklin Templeton standalone funds that are also available on other platforms For Broker/Dealer Use Only. Not for Distribution to the Public Bissett Small Cap & Bissett Microcap Fund Templeton Global Smaller Companies Fund Quotential® Program

11 Franklin High Income Fund High Yield Spread in the U. S. Delivering strong returns after yield peaks July 09, 2009, 9. 9% Return (%) Returns after December 1990 Yield Peak Returns after October 2002 Yield Peak 40 20 0 6 Months 1 Year 2 Years 3 Years U. S. version of Franklin High Income Fund A 6 Months 1 Year 2 Years CSFB High Yield Index High Yield Spread Source: Credit Suisse High Yield Index. The indicated returns are those of the U. S. version of Franklin High Income Fund which is not available for sale in Canada. While the Canadian version uses a similar investment process to that of the U. S. fund, the returns of Canadian Franklin High Income Fund may differ from that of the U. S. fund. For Broker/Dealer Use Only. Not for Distribution to the Public 3 Years

12 Templeton Growth Fund Price to Earnings Ratio Outstanding recovery after previous downturns 1970’s – October 1974: 1 Year Return 1980’s – July 1982: 1 Year Return 1990’s – September 1990: 1 Year Return 2000’s – March 2003: 1 Year Return (%) 60. 0 40. 0 20. 0 -20. 0 Following Periods -40. 0 10/74 1 Y 3 Y 5 Y 10 Y 07/82 1 Y Templeton Growth Fund, Ltd. Series A 3 Y 5 Y 10 Y 09/90 1 Y MSCI World Index (CDN) Source: Morningstar Research Inc. as of July 31, 2009 For Broker/Dealer Use Only. Not for Distribution to the Public 3 Y 5 Y 10 Y 03/03 1 Y 3 Y Global Equity Category Average 5 Y

13 Price to Earnings Ratio Templeton International Stock Fund Outstanding recovery after previous downturns Return (%) 1990’s – September 1990 1 Year Return 2000’s – March 2003 1 Year Return 40. 0 20. 0 Following Periods -20. 0 Following Periods -40. 0 09/90 1 Year 3 Years Templeton International Stock Fund (Series A) 5 Years 10 Years 03/03 MSCI EAFE Index (CDN) Source: Morningstar Research Inc. . as of July 31, 2009 For Broker/Dealer Use Only. Not for Distribution to the Public 1 Year 3 Years 5 Years Canada International Equity

14 Templeton Global Smaller Companies Fund Growth of $10, 000 Outstanding recovery after previous downturns 2000’s – March 2003 1 Year Return (%) 1990’s – September 1990 1 Year Return 40. 0 20. 0 Following Periods -20. 0 -40. 0 09/90 1 Year 3 Years 5 Years Following Periods 03/03 Templeton Global Smaller Companies Fund (Series A) Source: Morningstar Research Inc. as of July 31, 2009 For Broker/Dealer Use Only. Not for Distribution to the Public 1 Year 3 Years 5 Years MSCI World Index (CDN)

15 Global Balanced Funds at Franklin Templeton Balanced approach to gain equity exposure • • Franklin Templeton Global Balanced Solutions: Templeton Global Income Fund • • A balance of Templeton’s global equity expertise and award winning global fixed income approach Franklin Templeton Global Blend Fund • Blend of proven investment styles (Mutual Series deep value, Franklin growth & Templeton global fixed income) Source: Globe Hy. Sales, Jan. 1979 – July 2009 For Broker/Dealer Use Only. Not for Distribution to the Public

16 Bissett Small Cap Fund and Bissett Microcap Fund Positioned to lead in the market recovery Bear Markets Feb-09 Bear Markets Source: Globe Hy. Sales as of July 31, 2009. For Broker/Dealer Use Only. Not for Distribution to the Public

17 The Quotential Program A diversified, actively managed recovery solution Corporate Bond Opportunities Bissett CDN Dividend Paying & Blue Chip Opportunity High Yield Opportunity Deep Value Opportunities Templeton Global Value Opportunities Small Cap Opportunities YOU WILL BENEFIT FROM: • Dedicated HNW Expertise • Proactive Investment Process • Tactical and Strategic Management For Broker/Dealer Use Only. Not for Distribution to the Public

18 Don’t Lose Twice! RE-EVALUATE • Review your clients’ Investment Policy Statement – Ensure that their current investments still meet their long-term goals REFOCUS • Adjust your clients’ portfolio as needed – Sell funds that may not be as well positioned for the recovery – Buy funds that are best positioned for the recovery REBUILD • Maximize your clients’ RRSP for greatest tax gains Now is the time to take action to ensure your clients don’t lose twice! For Broker/Dealer Use Only. Not for Distribution to the Public

19 A Recovery Ready Action Plan for Your Clients Step 1: Step 2: Step 3: Identify the GAP in your clients’ portfolio Re-evaluate, Refocus Invest now with Franklin and Rebuild using: Templeton’s Recovery Solutions Bestbuilt Franklin High Income Fund Diversified Fixed Income Exposure Canadian Dividend Exposure Global Equity Exposure International Equity Exposure Specialty Exposure Bestbuilt Bissett Canadian Equity Fund Bestbuilt Templeton Growth Fund Mutual Discovery Fund Bestbuilt Templeton International Stock Fund Bestbuilt Bissett Small Cap Bissett Microcap Fund Templeton Global Smaller Companies Fund For clients on the sidelines: And who lack confidence in the markets DCA Program For Broker/Dealer Use Only. Not for Distribution to the Public Provide clients with a One Ticket Recovery Solution: Templeton Global Income Fund Franklin Templeton Global Blend Fund Quotential Program: A Diversified Managed Solution

20 Now is the Time to Take Action! • Tools to help clients off the fence and committed to this market • Strategies to help you keep your clients and prospect for new ones • Solutions to help your clients and your business recover faster and stronger • Franklin Templeton can help: Re-evaluate, Refocus and Rebuild “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. ” - Sir John Templeton For Broker/Dealer Use Only. Not for Distribution to the Public

21 Ensure Your Clients Don’t Lose Twice – www. dontlosetwice. ca Visit our website www. dontlosetwice. ca for timely market updates, tools, and strategies to help your clients position their portfolios for recovery For Broker/Dealer Use Only. Not for Distribution to the Public

22 NEW: Portfolio Recovery Calculator and Customizable Client Report Step 1: Enter your client’s current portfolio Step 2: View recovery portfolio options Present your clients’ with a professional recovery report Step 3: Select & adjust client’s recovery portfolio Step 4: Prepare for your client meeting For Broker/Dealer Use Only. Not for Distribution to the Public

23 For Broker/Dealer Use Only. Not for Distribution to the Public

24 For Broker/Dealer Use Only. Not for Distribution to the Public

25 For Broker/Dealer Use Only. Not for Distribution to the Public

26 For Broker/Dealer Use Only. Not for Distribution to the Public

27 For Broker/Dealer Use Only. Not for Distribution to the Public

28 A Customized Portfolio Recovery Report for your Clients For Broker/Dealer Use Only. Not for Distribution to the Public

29 For Broker/Dealer Use Only. Not for Distribution to the Public

DON’T LOSE TWICE APPENDIX

31 • Get access to timely commentary and product updates – Call our toll-free line at 1. 877. 236. 1070 to hear directly from our investment management teams OR – Visit www. advisorsource. ca to listen to the audio commentary online For Broker/Dealer Use Only. Not for Distribution to the Public

32 Why You Should Commit Now Don’t Lose Twice Recovery resumed during the recession so waiting for the first positive GDP quarter means missing substantial returns S&P/TSX: Before, During and After 1990 -91 Recession 1 st positive GDP quarter Bottom to Signal: +15. 2% For Broker/Dealer Use Only. Not for Distribution to the Public S&P/TSX: Before, During and After 2001 Recession 1 st positive GDP quarter Bottom to Signal: +20. 4%

33 Why You Should Commit Now Don’t Lose Twice Recovery resumed during the recession so waiting for the first positive GDP quarter means missing substantial returns MSCI World (CDN): Before, During, After 1980 US Recession MSCI World (CDN): Before, During, After 1990 -91 US Recession 1 st positive GDP quarter Bottom to Signal: +33. 0% For Broker/Dealer Use Only. Not for Distribution to the Public 1 st positive GDP quarter Bottom to Signal: +13. 2%

34 Bissett Canadian Equity Fund A Focus on Quality Favouring Blue Chips TSX Index Returns: Market Bottom Sept-02 1 Year After 3 Years After 5 Years After Sept-02 – July-09 Dividend Growers 18. 3% 24. 8% 19. 3% 10. 1% Dividend Payers 18. 8% 23. 7% 19. 4% 10. 6% Non-Payers 31. 0% 18. 0% 16. 5% 3. 1% S&P/TSX Composite Total Return Index 24. 3% 21. 0% 18. 2% 8. 1% Bissett Canadian Equity Fund provides: • Access to dividend paying equities • A focus on attractive valued equities with lower P/E ratios • Over 25 years of proven investment management expertise *Source: RBC Capital Markets Quantitative Research As of July 31, 2009 For Broker/Dealer Use Only. Not for Distribution to the Public

35 Mutual Discovery Fund Outstanding recovery after previous downturn Sinception, the Fund’s results have more than doubled the index *The indicated returns and ranking are those of the U. S. based Mutual Discovery Fund which is not available for sale in Canada. While the Canadianbased version uses a similar investment process to that of the U. S. -based fund, the returns of the Canadian Mutual Series funds may differ from that of the U. S. funds. The returns for the MSCI World Index (U. S. ) and U. S. based Mutual Discovery are from Jan. 1993 - July 2009. Source: Morningstar as of July 31, 2009. The historical annual compound rates of return for Class Z units of the U. S. - based Mutual Discovery Fund in USD as of July 31, 2009 are: 1 year -6. 7%, 3 years 1. 3%, 5 years 8. 8%, 10 years 9. 1% and 12. 8% sinception (December 31, 1992). The historical annual total compounded rates of return for Mutual Discovery Fund, Series A in CAD as of July 31, 2009 are: 1 year -10. 9%, 3 years -2. 8%, 5 years 3. 0%, and 5. 2% sinception (Feb. 17, 2003). For Broker/Dealer Use Only. Not for Distribution to the Public

36 Volatility is Normal Before the Bull – Has this Happened Before? The VIX Index is a popular measure of the implied volatility of S&P 500 index options. A high value corresponds to more costly options and a more volatile market. Historically, when volatility has peaked, it marked the approximate bottom of the underlying index, and also the best time to buy! Source: Bloomberg as of July 31, 2009 For Broker/Dealer Use Only. Not for Distribution to the Public

Franklin Templeton Investments is one of the world’s largest publicly-traded investment management companies, delivering a truly global perspective to investors for over 60 years. With values that have withstood the test of time, Franklin Templeton Investments provides global and domestic investment advisory services to the Franklin, Templeton, Bissett and Mutual Series funds and institutional accounts, including private wealth management solutions through Fiduciary Trust Company of Canada. www. franklintempleton. ca Franklin Templeton Investments Corp. 5000 Yonge Street, Suite 900, Toronto, ON M 2 N 0 A 7 Client Services Toll-free: 1. 800. 387. 0830 Fax: 416. 364. 1163 Sales Team Toll-free: 1. 800. 897. 7286 Fax: 416. 364. 1320 Founding Member of The Canadian Coalition for Good Governance Canadian offices: CALGARY • HALIFAX • OTTAWA • MONTREAL • TORONTO • VANCOUVER • WINNIPEG U. S. offices: FT. LAUDERDALE • FORT LEE • LOS ANGELES • MIAMI • NEW YORK CITY • NORWALK • RANCHO CORDOVA • SALT LAKE CITY SAN MATEO • SHORT HILLS • ST. PETERSBURG • WASHINGTON D. C. • WILMINGTON International offices: ABUDHABI • AMSTERDAM • BEIJING • BRUSSELS • BUENOS AIRES • CAPE TOWN • CARACAS CHENNAI • DUBLIN EDINBURGH • FRANKFURT • GENEVA • HONG KONG • HYDERABAD • ISTANBUL • JOHANNESBURG • LONDON • LUXEMBOURG MADRID • MELBOURNE • MEXICO CITY • MILAN • MOSCOW • MUMBAI • NASSAU • PARIS • POZNAN • RIO DE JANEIRO SAO PAULO • SEOUL • SHANGHAI • SINGAPORE • STOCKHOLM • SYDNEY • TAIPEI • TOKYO • VIENNA • WARSAW • ZURICH NYSE: BEN Fiduciary Trust Company of Canada is a wholly owned subsidiary of Franklin Templeton Investments Corp.