FRANKLIN INDIA FEEDERFRANKLIN EUROPEAN GROWTH FUND

NFO Opens: 25 April 2014 NFO Closes: 09 May 2014

WHY INVEST IN EUROPE?

EUROPE IS TOO BIG TO IGNORE
Europe remains a significant producer of goods and services contributing to

23%

24%

of the global market capitalization

of the world's gross domestic product (GDP)

4

34%

of the world's trade

5

FUNDAMENTALS IN EUROPE HAVE STEADILY IMPROVED

While Europe witnessed a recession post the global financial crisis in 2008, measures taken by the European Central Bank (ECB) and the individual governments of the European region have been instrumental in improving the overall economic environment and bringing it back on the path of steady economic recovery.

Earnings Growth Has Rebounded From Financial Crisis

2009
7.8%

Debt Levels Have Steadily Decreased Each Year Since 2008

2013
7.0%

2008 2013
BT
DE BT

DE

2012
1.8%

318%

Earnings growth for European 2010 2011 companies has trended higher over 2012 and 2013
-2.2% -2.0%

205%

Many European companies have successfully reduced their debt and increased their cash levels since 2008

EUROPEAN COMPANIES HAVE A GLOBAL COMPETITIVE ADVANTAGE

Europe based companies have demonstrated strong competitive advantage in several areas such as engineering, pharmaceuticals, consumer business etc. This is validated by the fact that they are the biggest exporters. In fact, companies in Europe export more than the combined total of North and South America, the Middle East and Africa.

$565 South America $2,001 North America $5,993 Asia $7,032 Europe

INTERNATIONAL DIVERSIFICATION INTO ONE OF THE WORLD'S LARGEST REGIONAL EQUITY MARKETS
Franklin India Feeder Franklin European Growth Fund provides investors access to European markets bringing about an effective diversification to their portfolio as developed markets show low correlation to Indian capital markets. Moreover, given the volatility in Indian markets since 2008, global diversification becomes especially relevant.

Indian Investors

in R

Franklin India FeederFranklin European Growth Fund

in

Franklin European Growth Fund

invests in

European Companies

Source (most recent available data): 1. Bloomberg, as on 31 March 2014. 2. GDP share as per estimated 2013 Nominal GDP, International Monetary Fund. 3. Europe trade: World Trade Organization. Statistics Database (as of 31 December 2012). 4. As of 30 Sept 2013, MSCI FactSet Earnings growth is average earnings per share of companies in MSCI Europe Index. 5. Debt levels is ratio of total debt to total equity of companies in MSCI Europe Index. 6. 2014 Factset Research Systems Inc, figures in Billion(USD) as of 30 Sept 2013.

PRODUCT LABEL:
This product is suitable for investors who are seeking* Long term capital appreciation A Fund of Funds investing in an overseas equity fund having exposure to Europe

** Note: Risk may be represented as:

BROWN : Investors understand that their principal will be at high risk

HIGH RISK** (BROWN)

YELLOW : Investors understand that their principal will be at medium risk BLUE : Investors understand that their principal will be at low risk

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

FUND TYPE AND INVESTMENT OBJECTIVE

An open ended fund of funds scheme investing overseas that seeks to provide capital appreciation by investing predominantly in units of Franklin European Growth Fund, an overseas equity fund which primarily invests in securities of issuers incorporated or having their principal business in European countries.

ABOUT FRANKLIN EUROPEAN GROWTH FUND (FEGF)

FUND FEATURES The fund follows an active, bottom-up fundamental research process to search for individual securities believed to possess superior risk-return characteristics The endeavour is to identify companies that have sustainable competitive advantages, strong balance sheet and available at attractive valuations Fund mandate provides investors with exposure to European companies, by investing in companies across market capitalization An experienced group of teams provide deep industry knowledge to find the leading growth companies in their respective sectors FUND MANAGER (for FEGF): Michael Clements TOP 10 HOLDINGS
Issuer Name TGS NOPEC GEOPHYSICAL CO ASA FUGRO NV THE BERKELEY GROUP HOLDINGS PLC REED ELSEVIER NV ROCHE HOLDING AG BOSKALIS WESTMINSTER NV LEGRAND SA IMPERIAL TOBACCO GROUP PLC C&C GROUP PLC ANHEUSER-BUSCH INBEV NV % of net assets 6.49 5.83 5.22 4.89 4.84 4.66 4.63 4.43 3.93 3.93

FUND FACTS Fund Manager Neeraj Gaurh NFO Dates Opens: 25 April 2014 Closes: 09 May 2014 Re-opens for ongoing sales and repurchases: 19 May 2014 Plans Growth Dividend (with Reinvestment & Payout Options) Direct Growth Direct Dividend (with Reinvestment & Payout Options) Load Structure Entry Load: NIL Exit Load: 1% if redeemed/switched out within 18 months of allotment Benchmark MSCI Europe Index Minimum Application Amount R5,000 and in multiples of R1 thereafter

All portfolio holdings are subject to change. The information stated above does not constitute an investment advice or recommendation to subscribe or transact in these securities. The portfolio details mentioned are as on 31 March 2014.

INDUSTRY EXPOSURE (% of NAV)

1.64 (IT) 5.07 (HC)

GEOGRAPHICAL EXPOSURE (% of NAV)

4.09 (S) 4.11 (BE) 6.80 (NW) 1.91 (I) 2.30 (FI)

15.30 (CS) 12.90 (EN) 16.49 (FIN) 22.58 (IND) 26.02 (CD)

5.50 (G) 5.96 (IRL) 9.15 (SW) 9.94 (FR)

34.13 (UK)

16.11 (NL)

Information Technology (IT) Consumer Discretionary (CD) Financials (FIN) Consumer Staples (CS)

Health Care (HC) Industrials (IND) Energy (EN)

United Kingdom (UK) Switzerland (SW) Norway (NW) Italy (I)

Netherlands (NL) Ireland (IRL) Belgium (BE) Finland (FI)

France (FR) Germany (G) Spain (S)

Industry exposure and geographical exposure are as on 31 March 2014. Industry exposure is based on Global Industry Classification Standard (GICS).

FUND PERFORMANCE
Compounded annualised returns (%) FEGF MSCI Europe Index 1 Year 19.24 16.65 3 Years* 17.17 10.11 5 Years* 23.38 17.34 Since Inception* 11.79 7.01

* Compounded and annualized returns based on 31 March 2014 NAV of Share class I (acc) EUR. AUM as of 31 March 2014: 2.8 billion. Past performance may or may not be sustained in future. Performance of the scheme may differ from the performance of underlying fund on account of various factors including but not limited to currency movements and expense ratios. Inception date: 31 August 2004 for Share class I

Risk factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The expenses of the Fund of Funds scheme will be over and above the expenses charged by the underlying scheme. Investments in overseas financial assets are subject to risks associated with currency movements, restrictions on repatriation, transaction procedures in overseas markets and country related risks.