Templeton Funds
04/30/2024 | Press release | Distributed by Public on 04/30/2024 05:19
Semi-Annual Report by Investment Company - Form N-CSRS
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02781
Templeton Funds
(Exact name of registrant as specified in charter)
300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923
(Address of principal executive offices) (Zip code)
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: 954 527-7500
Date of fiscal year end: 8/31
Date of reporting period: 2/29/24
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30e-1.)
b.)
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
Semiannual
Report
Templeton
Funds
February
29,
2024
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
.
The
Securities
and
Exchange
Commission
has
adopted
new
regulations
that
will
result
in
changes
to
the
design
and
delivery
of
annual
and
semiannual
shareholder
reports
beginning
in
July
2024.
If
you
have
previously
elected
to
receive
shareholder
reports
electronically,
you
will
continue
to
do
so
and
need
not
take
any
action.
Otherwise,
paper
copies
of
the
Fund's
shareholder
reports
will
be
mailed
to
you
beginning
in
July
2024.
If
you
would
like
to
receive
shareholder
reports
and
other
communications
from
the
Fund
electronically
instead
of
by
mail,
you
may
make
that
request
at
any
time
by
contacting
your
financial
intermediary
(such
as
a
broker-dealer
or
bank)
or,
if
you
are
a
direct
investor,
enrolling
at
franklintempleton.com.
You
may
access
franklintempleton.com
by
scanning
the
code
below.
franklintempleton.com
Semiannual
Report
1
Contents
Templeton
Foreign
Fund
2
Templeton
International
Climate
Change
Fund
7
Templeton
World
Fund
12
Financial
Highlights
and
Schedules
of
Investments
17
Financial
Statements
37
Notes
to
Financial
Statements
42
Shareholder
Information
57
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
2
franklintempleton.com
Semiannual
Report
Templeton
Foreign
Fund
This
semiannual
report
for
Templeton
Foreign
Fund
covers
the
period
ended
February
29,
2024
.
Fund
Overview
Your
Fund's
Goal
and
Main
Investments
The
Fund
seeks
long-term
capital
growth.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
foreign
securities.
These
securities
are
predominantly
equity
securities
of
companies
located
outside
the
U.S.,
including
developing
markets.
Performance
Overview
The
Fund's
Class
A
shares
posted
a
+2.87%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
MSCI
All
Country
World
Index
(ACWI)
ex
USA
Index-NR,
which
measures
stock
performance
in
global
developed
and
emerging
markets
excluding
the
U.S.,
posted
a
+7.90%
cumulative
total
return.
1
Please
note
index
performance
information
is
provided
for
reference
and
we
do
not
attempt
to
track
the
index
but
rather
undertake
investments
on
the
basis
of
fundamental
research.
You
can
find
more
performance
data
in
the
Performance
Summary
beginning
on
page
4
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Geographic
Composition
2/29/24
%
of
Total
Net
Assets
Europe
55.4%
Asia
32.2%
North
America
9.1%
Short-Term
Investments
&
Other
Net
Assets
3.3%
Top
10
Industries
2/29/24
%
of
Total
Net
Assets
a
Banks
17.5%
Oil,
Gas
&
Consumable
Fuels
9.7%
Semiconductors
&
Semiconductor
Equipment
8.1%
Automobile
Components
5.8%
Chemicals
5.7%
Technology
Hardware,
Storage
&
Peripherals
5.5%
Broadline
Retail
4.8%
Household
Durables
4.2%
Aerospace
&
Defense
3.8%
Insurance
3.5%
Top
10
Countries
2/29/24
a
%
of
Total
Net
Assets
a
a
United
Kingdom
20.9%
South
Korea
11.7%
Netherlands
10.0%
United
States
9.1%
Germany
7.1%
France
6.7%
China
6.5%
Japan
5.1%
Hong
Kong
3.5%
Taiwan
3.5%
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund's
portfolio.
Net
Return
(NR)
reflects
no
deduction
for
fees,
expenses
or
taxes
but
are
net
of
dividend
tax
withholding.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund's
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
22
.
Templeton
Foreign
Fund
3
franklintempleton.com
Semiannual
Report
On
December
31,
2023,
subsequent
to
period-end,
Herbert
J.
Arnett,
Jr.
(Portfolio
Manager)
left
the
firm
to
pursue
other
opportunities.
We
thank
Herbert
for
his
service
and
contributions
to
the
Fund.
Thank
you
for
your
continued
participation
in
Templeton
Foreign
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Christopher
James
Peel,
CFA
Lead
Portfolio
Manager
Peter
M.
Moeschter,
CFA
Warren
Pustam,
CFA
Portfolio
Management
Team
Top
10
Holdings
2/29/24
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
Samsung
Electronics
Co.
Ltd.
5.5%
Technology
Hardware,
Storage
&
Peripherals,
South
Korea
BP
plc
4.8%
Oil,
Gas
&
Consumable
Fuels,
United
Kingdom
Shell
plc
4.0%
Oil,
Gas
&
Consumable
Fuels,
Netherlands
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
3.5%
Semiconductors
&
Semiconductor
Equipment,
Taiwan
Lloyds
Banking
Group
plc
3.5%
Banks,
United
Kingdom
Smurfit
Kappa
Group
plc
3.0%
Containers
&
Packaging,
Ireland
Standard
Chartered
plc
3.0%
Banks,
United
Kingdom
Infineon
Technologies
AG
2.9%
Semiconductors
&
Semiconductor
Equipment,
Germany
CRH
plc
2.9%
Construction
Materials,
United
States
ING
Groep
NV
2.9%
Banks,
Netherlands
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
February
29,
2024
Templeton
Foreign
Fund
4
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund's
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund's
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/29/24
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A
:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
-
A
4
6-Month
+2.87%
-2.75%
1-Year
+6.71%
+0.80%
5-Year
+21.70%
+2.84%
10-Year
+20.61%
+1.31%
Advisor
6-Month
+2.92%
+2.92%
1-Year
+6.98%
+6.98%
5-Year
+23.11%
+4.25%
10-Year
+23.64%
+2.15%
See
page
5
for
Performance
Summary
footnotes.
Templeton
Foreign
Fund
Performance
Summary
5
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
To
the
extent
the
Fund
invests
in
companies
in
a
spe-
cific
country
or
region,
the
Fund
may
experience
greater
volatility
than
a
Fund
that
is
more
broadly
diversified
geographically.
Derivative
instruments
can
be
illiquid,
may
disproportionately
increase
losses,
and
have
a
potentially
large
impact
on
performance.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund's
prospectus.
1.
Gross
expenses
are
the
Fund's
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
12/31/24
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund's
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund's
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Distributions
(9/1/23-2/29/24)
Share
Class
Net
Investment
Income
A
$0.1946
C
$0.1219
R
$0.1758
R6
$0.2234
Advisor
$0.2146
Total
Annual
Operating
Expenses
5
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
1.10%
1.14%
Advisor
0.85%
0.89%
Your
Fund's
Expenses
Templeton
Foreign
Fund
6
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
"Actual."
In
these
columns
the
Fund's
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
"Ending
Account
Value"
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
"Actual"
and
"Expenses
Paid
During
Period"
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
"Hypothetical"
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund's
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund's
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
"Hypothetical"
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above-in
the
far
right
column-multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period
9/1/23-2/29/24
1,2
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period
9/1/23-2/29/24
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,028.70
$5.53
$1,019.41
$5.50
1.10%
C
$1,000
$1,024.60
$9.29
$1,015.69
$9.25
1.85%
R
$1,000
$1,027.00
$6.78
$1,018.17
$6.75
1.35%
R6
$1,000
$1,030.40
$3.73
$1,021.19
$3.72
0.74%
Advisor
$1,000
$1,029.20
$4.27
$1,020.65
$4.25
0.85%
7
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Templeton
International
Climate
Change
Fund
This
semiannual
report
for
Templeton
International
Climate
Change
Fund
covers
the
period
ended
February
29,
2024.
Fund
Overview
Your
Fund's
Goal
and
Main
Investments
The
Fund
seeks
total
return
over
the
longer
term.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
"non-U.S.
securities,"
as
defined
in
the
prospectus.
These
securities
are
predominantly
equity
securities
of
companies
located
outside
the
U.S.,
including
developing
markets.
Under
normal
market
conditions,
the
Fund
invests
predominantly
in
companies
that
we
determined
to
exhibit
superior
practices
in
identifying,
adapting
and
providing
solutions
to
the
consequences
of
climate
change
(i.e.,
companies
that,
based
on
our
fundamental
analysis
and
research,
are
able
to
successfully
transition
to
a
lower
carbon
economy).
Performance
Overview
The
Fund's
Class
A
shares
posted
a
+4.04%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
MSCI
All
Country
World
Index
(ACWI)
ex
USA
Index-NR,
which
measures
stock
performance
in
global
developed
and
emerging
markets
excluding
the
U.S.,
posted
a
+7.90%
cumulative
total
return.
1
Please
note
index
performance
information
is
provided
for
reference
and
we
do
not
attempt
to
track
the
index
but
rather
undertake
investments
on
the
basis
of
fundamental
research.
You
can
find
more
performance
data
in
the
Performance
Summary
beginning
on
page
9
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Geographic
Composition
2/29/24
%
of
Total
Net
Assets
Europe
58.4%
Asia
21.4%
North
America
10.0%
Latin
America
&
Caribbean
1.4%
Short-Term
Investments
&
Other
Net
Assets
8.8%
Top
10
Industries
2/29/24
%
of
Total
Net
Assets
a
Electrical
Equipment
16.2%
Semiconductors
&
Semiconductor
Equipment
11.8%
Banks
11.8%
Automobiles
8.2%
Metals
&
Mining
7.7%
Electric
Utilities
6.6%
Multi-Utilities
6.5%
Containers
&
Packaging
5.5%
Building
Products
5.2%
Independent
Power
and
Renewable
Electricity
Producers
3.2%
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund's
portfolio.
Net
Return
(NR)
reflects
no
deduction
for
fees,
expenses
or
taxes
but
are
net
of
dividend
tax
withholding.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund's
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
29
.
Templeton
International
Climate
Change
Fund
8
franklintempleton.com
Semiannual
Report
On
December
31,
2023,
subsequent
to
period-end,
Herbert
J.
Arnett,
Jr.
(Portfolio
Manager)
left
the
firm
to
pursue
other
opportunities.
We
thank
Herbert
for
his
service
and
contributions
to
the
Fund.
Thank
you
for
your
continued
participation
in
Templeton
International
Climate
Change
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Craig
Cameron,
CFA
Tina
Sadler,
CFA
Portfolio
Management
Team
Top
10
Holdings
2/29/24
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
Smurfit
Kappa
Group
plc
5.5%
Containers
&
Packaging,
Ireland
ING
Groep
NV
5.2%
Banks,
Netherlands
Cie
de
Saint-Gobain
SA
5.2%
Building
Products,
France
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
4.9%
Semiconductors
&
Semiconductor
Equipment,
Taiwan
Prysmian
SpA
4.7%
Electrical
Equipment,
Italy
Honda
Motor
Co.
Ltd.
4.3%
Automobiles,
Japan
Standard
Chartered
plc
4.1%
Banks,
United
Kingdom
Veolia
Environnement
SA
4.0%
Multi-Utilities,
France
Infineon
Technologies
AG
3.9%
Semiconductors
&
Semiconductor
Equipment,
Germany
Bayerische
Motoren
Werke
AG
3.9%
Automobiles,
Germany
Top
10
Countries
2/29/24
a
%
of
Total
Net
Assets
a
a
France
11.4%
United
Kingdom
11.2%
Germany
10.2%
United
States
10.0%
Japan
7.3%
Denmark
6.1%
Ireland
5.5%
Netherlands
5.2%
Taiwan
4.9%
India
4.8%
Performance
Summary
as
of
February
29,
2024
Templeton
International
Climate
Change
Fund
9
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund's
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund's
portfolio,
adjusted
for
operating
expenses.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/29/24
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
-
A
4
6-Month
+4.04%
-1.68%
1-Year
+6.34%
+0.49%
5-Year
+51.88%
+7.49%
Since
Inception
(6/1/18)
+39.02%
+4.86%
Advisor
6-Month
+4.25%
+4.25%
1-Year
+6.64%
+6.64%
5-Year
+53.96%
+9.01%
Since
Inception
(6/1/18)
+41.20%
+6.19%
See
page
10
for
Performance
Summary
footnotes.
Templeton
International
Climate
Change
Fund
Performance
Summary
10
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
Equity
securities
are
subject
to
price
fluctuation
and
possible
loss
of
principal.
International
invest-
ments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
Derivative
instruments
can
be
illiquid,
may
disproportionately
increase
losses,
and
have
a
potentially
large
impact
on
performance.
The
managers'
en-
vironmental,
social
and
governance
(ESG)
strategies
may
limit
the
types
and
number
of
investments
available
and,
as
a
result,
may
forgo
favourable
market
opportunities
or
underperform
strategies
that
are
not
subject
to
such
criteria.
There
is
no
guarantee
that
the
strategy's
ESG
directives
will
be
successful
or
will
result
in
better
performance.
These
and
other
risks
are
discussed
in
the
Fund's
prospectus.
1.
Gross
expenses
are
the
Fund's
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
12/31/24
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
6/3/22,
the
Fund
began
offering
Class
A
shares.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
6/3/22,
a
restated
figure
is
used
based
on
the
Fund's
Advisor
Class
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A
and
Advisor
Class;
and
(b)
for
periods
after
6/3/22,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Figures
are
as
stated
in
the
Fund's
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund's
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Distributions
(9/1/23-2/29/24)
Share
Class
Net
Investment
Income
A
$0.2079
C
$0.2047
R6
$0.2168
Advisor
$0.2137
Total
Annual
Operating
Expenses
5
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
1.25%
6.28%
Advisor
1.00%
6.03%
Your
Fund's
Expenses
Templeton
International
Climate
Change
Fund
11
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
"Actual."
In
these
columns
the
Fund's
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
"Ending
Account
Value"
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
under
the
headings
"Actual"
and
"Expenses
Paid
During
Period"
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
"Hypothetical"
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund's
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund's
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
"Hypothetical"
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above-in
the
far
right
column-multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period
9/1/23-2/29/24
1,2
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period
9/1/23-2/29/24
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,040.40
$6.07
$1,018.91
$6.01
1.20%
C
$1,000
$1,039.20
$7.44
$1,017.57
$7.36
1.47%
R6
$1,000
$1,042.80
$4.77
$1,020.19
$4.72
0.94%
Advisor
$1,000
$1,042.50
$4.75
$1,020.22
$4.69
0.93%
12
franklintempleton.com
Semiannual
Report
Templeton
World
Fund
This
semiannual
report
for
Templeton
World
Fund
covers
the
period
ended
February
29,
2024.
Fund
Overview
Your
Fund's
Goal
and
Main
Investments
The
Fund
seeks
long-term
capital
growth.
Under
normal
market
conditions,
the
Fund
invests
primarily
in
the
equity
securities
of
companies
located
anywhere
in
the
world,
including
developing
markets.
Under
normal
circumstances,
the
Fund
will
invest
in
issuers
located
in
at
least
three
different
countries
(including
the
U.S.).
Performance
Overview
The
Fund's
Class
A
shares
posted
a
+17.35%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Fund's
benchmark,
the
MSCI
All
Country
World
Index
(ACWI)-NR,
which
measures
stock
performance
in
global
developed
and
emerging
markets,
posted
a
+11.66%
cumulative
total
return.
1
Please
note
index
performance
information
is
provided
for
reference
and
we
do
not
attempt
to
track
the
index
but
rather
undertake
investments
on
the
basis
of
fundamental
research.
You
can
find
more
performance
data
in
the
Performance
Summary
beginning
on
page
14
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Geographic
Composition
2/29/24
%
of
Total
Net
Assets
North
America
68.5%
Europe
17.4%
Asia
13.1%
Short-Term
Investments
&
Other
Net
Assets
1.0%
Top
10
Industries
2/29/24
%
of
Total
Net
Assets
a
Semiconductors
&
Semiconductor
Equipment
14.6%
Software
12.2%
Interactive
Media
&
Services
8.8%
Life
Sciences
Tools
&
Services
6.8%
Broadline
Retail
6.7%
Aerospace
&
Defense
5.8%
Oil,
Gas
&
Consumable
Fuels
5.5%
Health
Care
Providers
&
Services
4.1%
Capital
Markets
3.8%
Textiles,
Apparel
&
Luxury
Goods
3.7%
Top
10
Holdings
2/29/24
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
Amazon.com,
Inc.
6.7%
Broadline
Retail,
United
States
Rolls-Royce
Holdings
plc
5.7%
Aerospace
&
Defense,
United
Kingdom
Microsoft
Corp.
4.9%
Software,
United
States
Alphabet,
Inc.
4.8%
Interactive
Media
&
Services,
United
States
Meta
Platforms,
Inc.
4.0%
Interactive
Media
&
Services,
United
States
Salesforce,
Inc.
3.9%
Software,
United
States
Thermo
Fisher
Scientific,
Inc.
3.7%
Life
Sciences
Tools
&
Services,
United
States
Tokyo
Electron
Ltd.
3.4%
Semiconductors
&
Semiconductor
Equipment,
Japan
Intercontinental
Exchange,
Inc.
3.3%
Capital
Markets,
United
States
SAP
SE
3.3%
Software,
Germany
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund's
portfolio.
Net
Return
(NR)
reflects
no
deduction
for
fees,
expenses
or
taxes
but
are
net
of
dividend
tax
withholding.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund's
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
35
.
Templeton
World
Fund
13
franklintempleton.com
Semiannual
Report
On
December
31,
2023,
subsequent
to
period-end,
Herbert
J.
Arnett,
Jr.
(Portfolio
Manager)
left
the
firm
to
pursue
other
opportunities.
We
thank
Herbert
for
his
service
and
contributions
to
the
Fund.
Effective
March
31,
2024,
Peter
D.
Sartori
was
added
as
Portfolio
Manager
of
the
Fund.
Thank
you
for
your
continued
participation
in
Templeton
World
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Warren
Pustam,
CFA
Lead
Portfolio
Manager
Peter
D.
Sartori
Christopher
James
Peel,
CFA
Peter
M.
Moeschter,
CFA
Portfolio
Management
Team
Top
10
Countries
2/29/24
a
%
of
Total
Net
Assets
a
a
United
States
68.5%
United
Kingdom
8.0%
India
5.3%
Germany
5.0%
Japan
3.4%
France
3.4%
Taiwan
3.2%
China
1.2%
Netherlands
1.0%
Performance
Summary
as
of
February
29,
2024
Templeton
World
Fund
14
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund's
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund's
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/29/24
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A
:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
-
A
6-Month
+17.35%
+10.89%
1-Year
+32.28%
+24.99%
5-Year
+29.98%
+4.20%
10-Year
+45.03%
+3.20%
Advisor
6-Month
+17.45%
+17.45%
1-Year
+32.59%
+32.59%
5-Year
+31.49%
+5.63%
10-Year
+48.53%
+4.04%
See
page
15
for
Performance
Summary
footnotes.
Templeton
World
Fund
Performance
Summary
15
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
To
the
extent
the
Fund
invests
in
companies
in
a
spe-
cific
country
or
region,
the
Fund
may
experience
greater
volatility
than
a
Fund
that
is
more
broadly
diversified
geographically.
Derivative
instruments
can
be
illiquid,
may
disproportionately
increase
losses,
and
have
a
potentially
large
impact
on
performance.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund's
prospectus.
1.
The
total
annual
operating
expenses
are
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund's
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund's
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Distributions
(9/1/23-2/29/24)
Share
Class
Net
Investment
Income
A
$0.0938
C
$0.0000
R6
$0.1303
Advisor
$0.1278
Total
Annual
Operating
Expenses
5
Share
Class
A
1.05%
Advisor
0.80%
Your
Fund's
Expenses
Templeton
World
Fund
16
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
"Actual."
In
these
columns
the
Fund's
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
"Ending
Account
Value"
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
"Actual"
and
"Expenses
Paid
During
Period"
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
"Hypothetical"
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund's
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund's
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
"Hypothetical"
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above-in
the
far
right
column-multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period
9/1/23-2/29/24
1,2
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period
9/1/23-2/29/24
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,173.50
$5.55
$1,019.76
$5.16
1.03%
C
$1,000
$1,168.80
$9.67
$1,015.95
$8.99
1.79%
R6
$1,000
$1,175.60
$4.08
$1,021.11
$3.79
0.75%
Advisor
$1,000
$1,174.50
$4.29
$1,020.91
$3.99
0.79%
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$7.78
$6.32
$7.77
$6.22
$6.61
$7.69
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.16
0.13
0.18
c
0.10
0.19
Net
realized
and
unrealized
gains
(losses)
0.17
1.38
(1.28)
1.46
(0.25)
(1.09)
Total
from
investment
operations
........
0.22
1.54
(1.15)
1.64
(0.15)
(0.90)
Less
distributions
from:
Net
investment
income
..............
(0.19)
(0.08)
(0.30)
(0.09)
(0.24)
(0.18)
Net
asset
value,
end
of
period
..........
$7.81
$7.78
$6.32
$7.77
$6.22
$6.61
Total
return
d
.......................
2.87%
24.57%
(15.25)%
26.57%
(2.76)%
(11.73)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.13%
1.12%
1.16%
1.15%
1.19%
1.15%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.10%
1.10%
1.10%
1.07%
1.10%
1.08%
Net
investment
income
...............
1.18%
2.20%
1.80%
2.45%
c
1.55%
2.69%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$1,549,807
$1,605,982
$1,418,293
$1,990,939
$1,766,365
$2,395,260
Portfolio
turnover
rate
................
19.91%
14.85%
29.07%
37.85%
f
42.37%
f
30.81%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.23%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$7.76
$6.29
$7.70
$6.17
$6.54
$7.49
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.02
0.10
0.07
0.13
c
0.05
0.12
Net
realized
and
unrealized
gains
(losses)
0.17
1.39
(1.27)
1.43
(0.25)
(1.05)
Total
from
investment
operations
........
0.19
1.49
(1.20)
1.56
(0.20)
(0.93)
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.02)
(0.21)
(0.03)
(0.17)
(0.02)
Net
asset
value,
end
of
period
..........
$7.83
$7.76
$6.29
$7.70
$6.17
$6.54
Total
return
d
.......................
2.46%
23.65%
(15.95)%
25.55%
(3.42)%
(12.40)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.88%
1.87%
1.91%
1.90%
1.94%
1.90%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.85%
1.85%
1.85%
1.82%
1.85%
1.83%
Net
investment
income
...............
0.44%
1.41%
1.03%
1.81%
c
0.81%
1.94%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$18,341
$21,611
$23,962
$39,083
$54,093
$87,160
Portfolio
turnover
rate
................
19.91%
14.85%
29.07%
37.85%
f
42.37%
f
30.81%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.58%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$7.58
$6.16
$7.58
$6.08
$6.47
$7.53
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.03
0.14
0.11
0.16
c
0.08
0.17
Net
realized
and
unrealized
gains
(losses)
0.18
1.35
(1.25)
1.42
(0.24)
(1.07)
Total
from
investment
operations
........
0.21
1.49
(1.14)
1.58
(0.16)
(0.90)
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.07)
(0.28)
(0.08)
(0.23)
(0.16)
Net
asset
value,
end
of
period
..........
$7.61
$7.58
$6.16
$7.58
$6.08
$6.47
Total
return
d
.......................
2.70%
24.27%
(15.54)%
26.29%
(3.03)%
(11.96)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.38%
1.37%
1.41%
1.40%
1.44%
1.40%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.35%
1.35%
1.35%
1.32%
1.35%
1.33%
Net
investment
income
...............
0.93%
1.95%
1.57%
2.21%
c
1.33%
2.44%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$114,693
$116,518
$103,984
$123,744
$109,187
$127,546
Portfolio
turnover
rate
................
19.91%
14.85%
29.07%
37.85%
f
42.37%
f
30.81%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.98%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$7.63
$6.20
$7.64
$6.12
$6.51
$7.58
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.06
0.18
0.15
0.21
c
0.12
0.22
Net
realized
and
unrealized
gains
(losses)
0.17
1.36
(1.26)
1.43
(0.24)
(1.08)
Total
from
investment
operations
........
0.23
1.54
(1.11)
1.64
(0.12)
(0.86)
Less
distributions
from:
Net
investment
income
..............
(0.22)
(0.11)
(0.33)
(0.12)
(0.27)
(0.21)
Net
asset
value,
end
of
period
..........
$7.64
$7.63
$6.20
$7.64
$6.12
$6.51
Total
return
d
.......................
3.04%
25.02%
(14.98)%
27.02%
(2.38)%
(11.34)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.79%
0.77%
0.81%
0.79%
0.79%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.74%
0.74%
0.73%
0.69%
0.70%
0.68%
Net
investment
income
...............
1.54%
2.57%
2.13%
2.86%
c
1.96%
3.09%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$336,318
$341,058
$290,974
$531,344
$594,452
$906,474
Portfolio
turnover
rate
................
19.91%
14.85%
29.07%
37.85%
f
42.37%
f
30.81%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.63%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$7.64
$6.21
$7.64
$6.12
$6.51
$7.58
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.17
0.15
0.20
c
0.11
0.20
Net
realized
and
unrealized
gains
(losses)
0.17
1.36
(1.26)
1.43
(0.24)
(1.07)
Total
from
investment
operations
........
0.22
1.53
(1.11)
1.63
(0.13)
(0.87)
Less
distributions
from:
Net
investment
income
..............
(0.21)
(0.10)
(0.32)
(0.11)
(0.26)
(0.20)
Net
asset
value,
end
of
period
..........
$7.65
$7.64
$6.21
$7.64
$6.12
$6.51
Total
return
d
.......................
2.92%
24.84%
(14.99)%
26.88%
(2.57)%
(11.53)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.88%
0.87%
0.92%
0.90%
0.94%
0.90%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.85%
0.85%
0.85%
0.82%
0.85%
0.83%
Net
investment
income
...............
1.45%
2.43%
2.06%
2.80%
c
1.79%
2.94%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$637,107
$680,297
$602,921
$620,885
$857,179
$857,482
Portfolio
turnover
rate
................
19.91%
14.85%
29.07%
37.85%
f
42.37%
f
30.81%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.57%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Templeton
Funds
Schedule
of
Investments,
February
29,
2024
(unaudited)
Templeton
Foreign
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Industry
Shares
a
Value
a
Common
Stocks
96.7%
China
6.5%
a
Alibaba
Group
Holding
Ltd.
.........
Broadline
Retail
7,820,130
$
71,896,255
b
NXP
Semiconductors
NV
..........
Semiconductors
&
Semiconductor
Equipment
178,413
44,555,079
Prosus
NV
.....................
Broadline
Retail
1,881,844
54,970,015
171,421,349
Denmark
2.0%
c
Orsted
A/S
,
144A
,
Reg
S
...........
Electric
Utilities
955,620
53,520,264
France
6.7%
Dassault
Aviation
SA
..............
Aerospace
&
Defense
230,060
45,485,833
d
Forvia
SE
......................
Automobile
Components
3,190,019
45,510,836
Kering
SA
......................
Textiles,
Apparel
&
Luxury
Goods
92,090
42,423,162
Valeo
SE
.......................
Automobile
Components
3,939,213
45,462,967
178,882,798
Germany
7.1%
Continental
AG
..................
Automobile
Components
797,919
64,011,218
c,d
Covestro
AG
,
144A
,
Reg
S
.........
Chemicals
880,795
47,944,137
Infineon
Technologies
AG
..........
Semiconductors
&
Semiconductor
Equipment
2,158,653
77,514,906
189,470,261
Hong
Kong
3.5%
AIA
Group
Ltd.
..................
Insurance
5,497,323
44,315,231
Prudential
plc
,
(
GBP
Traded)
........
Insurance
4,433,541
43,684,732
Prudential
plc
,
(
HKD
Traded)
........
Insurance
596,770
5,927,799
93,927,762
India
1.9%
HDFC
Bank
Ltd.
.................
Banks
3,009,824
50,845,833
Ireland
3.0%
b
Smurfit
Kappa
Group
plc
...........
Containers
&
Packaging
1,868,210
79,853,795
Japan
5.1%
Honda
Motor
Co.
Ltd.
.............
Automobiles
4,674,565
55,547,649
Sumitomo
Metal
Mining
Co.
Ltd.
.....
Metals
&
Mining
1,198,173
31,192,330
Sumitomo
Mitsui
Financial
Group,
Inc.
.
Banks
892,043
49,701,442
136,441,421
Netherlands
10.1%
EXOR
NV
......................
Financial
Services
244,893
26,454,855
ING
Groep
NV
..................
Banks
5,583,978
76,853,005
SBM
Offshore
NV
................
Energy
Equipment
&
Services
3,949,134
56,083,677
Shell
plc
.......................
Oil,
Gas
&
Consumable
Fuels
3,469,053
107,301,501
266,693,038
Portugal
0.9%
Galp
Energia
SGPS
SA
,
B
.........
Oil,
Gas
&
Consumable
Fuels
1,465,775
23,067,118
South
Korea
11.7%
KB
Financial
Group,
Inc.
...........
Banks
1,246,886
59,315,813
LG
Chem
Ltd.
...................
Chemicals
135,630
46,205,726
Samsung
Electronics
Co.
Ltd.
.......
Technology
Hardware,
Storage
&
Peripherals
2,663,491
146,626,505
Shinhan
Financial
Group
Co.
Ltd.
....
Banks
1,766,381
57,593,281
309,741,325
Spain
0.8%
d
Tecnicas
Reunidas
SA
............
Energy
Equipment
&
Services
2,417,057
20,492,561
Templeton
Funds
Schedule
of
Investments
Templeton
Foreign
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
Sweden
2.2%
b
Securitas
AB
,
B
..................
Commercial
Services
&
Supplies
5,513,540
$
59,309,266
Switzerland
1.7%
Adecco
Group
AG
................
Professional
Services
1,119,253
44,870,602
Taiwan
3.5%
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
......................
Semiconductors
&
Semiconductor
Equipment
4,233,044
92,702,081
United
Kingdom
20.9%
AstraZeneca
plc
.................
Pharmaceuticals
297,488
37,500,894
Barratt
Developments
plc
..........
Household
Durables
8,825,972
52,076,242
BP
plc
.........................
Oil,
Gas
&
Consumable
Fuels
21,880,182
127,130,449
Imperial
Brands
plc
...............
Tobacco
2,164,156
46,622,757
Lloyds
Banking
Group
plc
..........
Banks
155,109,810
91,716,266
Persimmon
plc
..................
Household
Durables
3,517,427
60,619,809
d
Rolls-Royce
Holdings
plc
..........
Aerospace
&
Defense
12,018,265
56,095,143
b,d
S4
Capital
plc
...................
Media
9,783,800
4,949,987
Standard
Chartered
plc
............
Banks
9,305,105
78,677,482
555,389,029
United
States
9.1%
Albemarle
Corp.
.................
Chemicals
406,218
55,997,151
CNH
Industrial
NV
................
Machinery
4,815,070
57,540,087
CRH
plc
.......................
Construction
Materials
926,279
77,153,136
Freeport-McMoRan,
Inc.
...........
Metals
&
Mining
1,351,650
51,105,886
241,796,260
Total
Common
Stocks
(Cost
$
2,207,842,642
)
....................................
2,568,424,763
Short
Term
Investments
3.7%
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
Time
Deposits
3.7%
Canada
3.7%
National
Bank
of
Canada
,
5.31
%
,
3/01/24
......................
65,300,000
65,300,000
Toronto-Dominion
Bank
(The)
,
5.3
%
,
3/01/24
......................
32,000,000
32,000,000
97,300,000
Total
Time
Deposits
(Cost
$
97,300,000
)
........................................
97,300,000
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$
97,300,000
)
................................
97,300,000
a
a
a
Total
Investments
(Cost
$
2,305,142,642
)
100.4
%
................................
$2,665,724,763
Other
Assets,
less
Liabilities
(
0.4
)
%
...........................................
(9,458,710)
Net
Assets
100.0%
...........................................................
$2,656,266,053
a
a
a
Templeton
Funds
Schedule
of
Investments
Templeton
Foreign
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
See
Abbreviations
on
page
56
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
Variable
interest
entity
(VIE).
See
the
Fund's
statement
of
additional
information
and/or
notes
to
financial
statements
regarding
investments
made
through
a
VIE
structure.
At
February
29,
2024,
the
aggregate
value
of
these
securities
was
$71,896,255,
representing
2.7%
of
net
assets.
b
A
portion
or
all
of
the
security
is
on
loan
at
February
29,
2024.
See
Note
1(c).
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
29,
2024,
the
aggregate
value
of
these
securities
was
$101,464,401,
representing
3.8%
of
net
assets.
d
Non-income
producing.
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a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.57
$9.73
$11.44
Income
from
investment
operations
b
:
Net
investment
income
(loss)
c
.............................................
(0.01)
0.32
0.03
Net
realized
and
unrealized
gains
(losses)
....................................
0.48
2.08
(1.74)
Total
from
investment
operations
.............................................
0.47
2.40
(1.71)
Less
distributions
from:
Net
investment
income
...................................................
(0.21)
(0.15)
-
Net
realized
gains
......................................................
-
(0.41)
-
Total
distributions
........................................................
(0.21)
(0.56)
-
Net
asset
value,
end
of
period
...............................................
$11.83
$11.57
$9.73
Total
return
d
............................................................
4.04%
25.60%
(15.03)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.............
4.52%
3.81%
18.81%
Expenses
net
of
waiver
and
payments
by
affiliates
................................
1.20%
1.23%
1.23%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..............
1.20%
1.22%
1.22%
Net
investment
income
(loss)
...............................................
(0.14)%
2.81%
1.41%
Supplemental
data
Net
assets,
end
of
period
(000's)
.............................................
$568
$974
$4
Portfolio
turnover
rate
.....................................................
7.71%
21.51%
35.15%
a
For
the
period
June
3,
2022
(effective
date)
to
August
31,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
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a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.59
$9.71
$11.44
Income
from
investment
operations
b
:
Net
investment
income
(loss)
c
.............................................
(0.02)
0.30
0.01
Net
realized
and
unrealized
gains
(losses)
....................................
0.47
2.12
(1.74)
Total
from
investment
operations
.............................................
0.45
2.42
(1.73)
Less
distributions
from:
Net
investment
income
...................................................
(0.20)
(0.13)
-
Net
realized
gains
......................................................
-
(0.41)
-
Total
distributions
........................................................
(0.20)
(0.54)
-
Net
asset
value,
end
of
period
...............................................
$11.84
$11.59
$9.71
Total
return
d
............................................................
3.92%
25.64%
(15.12)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.............
4.92%
5.44%
18.95%
Expenses
net
of
waiver
and
payments
by
affiliates
................................
1.47%
1.21%
1.98%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..............
1.47%
1.21%
1.97%
Net
investment
income
(loss)
...............................................
(0.37)%
2.70%
0.57%
Supplemental
data
Net
assets,
end
of
period
(000's)
.............................................
$15
$12
$4
Portfolio
turnover
rate
.....................................................
7.71%
21.51%
35.15%
a
For
the
period
June
3,
2022
(effective
date)
to
August
31,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
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a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
a
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.61
$9.73
$11.44
Income
from
investment
operations
b
:
Net
investment
income
c
..................................................
0.01
0.26
0.04
Net
realized
and
unrealized
gains
(losses)
....................................
0.49
2.18
(1.75)
Total
from
investment
operations
.............................................
0.50
2.44
(1.71)
Less
distributions
from:
Net
investment
income
...................................................
(0.22)
(0.15)
-
Net
realized
gains
......................................................
-
(0.41)
-
Total
distributions
........................................................
(0.22)
(0.56)
-
Net
asset
value,
end
of
period
...............................................
$11.89
$11.61
$9.73
Total
return
d
............................................................
4.28%
25.89%
(14.95)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.............
4.76%
7.05%
20.46%
Expenses
net
of
waiver
and
payments
by
affiliates
................................
0.94%
0.94%
0.98%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..............
0.94%
0.94%
0.97%
Net
investment
income
....................................................
0.16%
2.37%
1.57%
Supplemental
data
Net
assets,
end
of
period
(000's)
.............................................
$5
$5
$4
Portfolio
turnover
rate
.....................................................
7.71%
21.51%
35.15%
a
For
the
period
June
3,
2022
(effective
date)
to
August
31,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
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a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.62
$9.74
$14.68
$10.71
$8.91
$9.64
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.01
0.26
0.18
0.10
0.07
0.27
Net
realized
and
unrealized
gains
(losses)
0.47
2.18
(4.39)
3.96
2.03
(0.93)
Total
from
investment
operations
........
0.48
2.44
(4.21)
4.06
2.10
(0.66)
Less
distributions
from:
Net
investment
income
..............
(0.21)
(0.15)
(0.13)
(0.09)
(0.30)
(0.05)
Net
realized
gains
.................
-
(0.41)
(0.60)
-
-
(0.02)
Total
distributions
...................
(0.21)
(0.56)
(0.73)
(0.09)
(0.30)
(0.07)
Net
asset
value,
end
of
period
..........
$11.89
$11.62
$9.74
$14.68
$10.71
$8.91
Total
return
c
.......................
4.25%
25.88%
(29.83)%
37.89%
23.70%
(6.75)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
........
4.41%
6.25%
9.16%
8.16%
6.48%
9.65%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.93%
0.97%
0.98%
0.97%
0.97%
0.97%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
........
0.93%
0.97%
0.97%
0.97%
e
0.97%
0.97%
Net
investment
income
...............
0.17%
2.39%
1.47%
0.80%
0.74%
2.94%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$2,572
$2,500
$1,968
$2,935
$2,142
$1,783
Portfolio
turnover
rate
................
7.71%
21.51%
35.15%
53.37%
39.99%
9.55%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
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29,
2024
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a
a
Industry
Shares
a
Value
a
Common
Stocks
91.2%
Chile
1.4%
Antofagasta
plc
..................
Metals
&
Mining
1,891
$
43,448
Denmark
6.1%
a
Orsted
A/S,
144A,
Reg
S
...........
Electric
Utilities
1,625
91,010
b
Vestas
Wind
Systems
A/S
..........
Electrical
Equipment
3,637
101,363
192,373
France
11.4%
Cie
de
Saint-Gobain
SA
...........
Building
Products
2,140
164,989
Valeo
SE
.......................
Automobile
Components
5,858
67,608
Veolia
Environnement
SA
..........
Multi-Utilities
4,095
126,950
359,547
Germany
10.2%
Bayerische
Motoren
Werke
AG
......
Automobiles
1,032
122,085
E.ON
SE
.......................
Multi-Utilities
6,034
77,057
Infineon
Technologies
AG
..........
Semiconductors
&
Semiconductor
Equipment
3,442
123,598
322,740
India
4.9%
Kaveri
Seed
Co.
Ltd.
..............
Food
Products
6,549
52,437
NHPC
Ltd.
.....................
Independent
Power
and
Renewable
Electricity
Producers
95,114
100,767
153,204
Ireland
5.5%
Smurfit
Kappa
Group
plc
...........
Containers
&
Packaging
4,063
173,667
Italy
4.7%
Prysmian
SpA
...................
Electrical
Equipment
2,974
148,434
Japan
7.3%
Honda
Motor
Co.
Ltd.
.............
Automobiles
11,495
136,595
Sumitomo
Metal
Mining
Co.
Ltd.
.....
Metals
&
Mining
3,642
94,813
231,408
Netherlands
5.2%
ING
Groep
NV
..................
Banks
11,996
165,103
Norway
3.3%
Norsk
Hydro
ASA
................
Metals
&
Mining
20,364
104,550
Singapore
3.0%
STMicroelectronics
NV
............
Semiconductors
&
Semiconductor
Equipment
2,098
95,273
South
Korea
1.3%
Samsung
SDI
Co.
Ltd.
............
Electronic
Equipment,
Instruments
&
Components
145
41,087
Spain
0.8%
b
Soltec
Power
Holdings
SA
..........
Electrical
Equipment
8,535
24,478
Taiwan
4.9%
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.,
ADR
..................
Semiconductors
&
Semiconductor
Equipment
1,198
154,147
United
Kingdom
11.2%
AstraZeneca
plc
.................
Pharmaceuticals
250
31,515
Lloyds
Banking
Group
plc
..........
Banks
131,872
77,976
SSE
plc
.......................
Electric
Utilities
5,669
116,516
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a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
United
Kingdom
(continued)
Standard
Chartered
plc
............
Banks
15,156
$
128,148
354,155
United
States
10.0%
CNH
Industrial
NV
................
Machinery
6,606
78,942
Schneider
Electric
SE
.............
Electrical
Equipment
514
116,839
a
Signify
NV,
144A,
Reg
S
...........
Electrical
Equipment
4,478
120,350
316,131
Total
Common
Stocks
(Cost
$2,362,200)
.......................................
2,879,745
Short
Term
Investments
10.2%
a
a
Industry
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
10.2%
United
States
10.2%
c,d
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.984%
.........
320,746
320,746
Total
Money
Market
Funds
(Cost
$320,746)
.....................................
320,746
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$320,746
)
..................................
320,746
a
a
a
Total
Investments
(Cost
$2,682,946)
101.4%
....................................
$3,200,491
Other
Assets,
less
Liabilities
(1.4)%
...........................................
(41,385)
Net
Assets
100.0%
...........................................................
$3,159,106
a
a
a
See
Abbreviations
on
page
56
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
29,
2024,
the
aggregate
value
of
these
securities
was
$211,360,
representing
6.7%
of
net
assets.
b
Non-income
producing.
c
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
d
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
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a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$13.91
$11.85
$15.52
$12.71
$12.76
$17.24
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.01
0.04
(-)
c
0.20
d
0.16
0.29
Net
realized
and
unrealized
gains
(losses)
2.39
2.21
(3.44)
2.61
0.45
(2.17)
Total
from
investment
operations
........
2.40
2.25
(3.44)
2.81
0.61
(1.88)
Less
distributions
from:
Net
investment
income
..............
(0.09)
(0.05)
(0.23)
-
(0.50)
(0.67)
Net
realized
gains
.................
-
(0.14)
-
-
(0.16)
(1.93)
Total
distributions
...................
(0.09)
(0.19)
(0.23)
-
(0.66)
(2.60)
Net
asset
value,
end
of
period
..........
$16.22
$13.91
$11.85
$15.52
$12.71
$12.76
Total
return
e
.......................
17.35%
19.23%
(22.39)%
22.11%
4.47%
(10.22)%
Ratios
to
average
net
assets
f
Expenses
.........................
1.03%
g
1.04%
g
1.04%
1.03%
g
1.05%
1.05%
g
Net
investment
income
(loss)
..........
0.17%
0.32%
(-)%
h
1.42%
d
1.29%
2.06%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$2,518,409
$2,289,332
$2,138,297
$3,060,714
$2,831,844
$3,150,057
Portfolio
turnover
rate
................
20.00%
47.28%
81.20%
41.83%
52.25%
25.16%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Amount
rounds
to
less
than
$0.01
per
share.
d
Net
investment
income
per
share
includes
approximately
$0.13
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.48%.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
h
Rounds
to
less
than
0.01%.
Templeton
Funds
Financial
Highlights
Templeton
World
Fund
(continued)
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Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$13.21
$11.30
$14.76
$12.18
$12.26
$16.35
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.04)
(0.06)
(0.10)
0.10
c
0.07
0.13
Net
realized
and
unrealized
gains
(losses)
2.27
2.11
(3.29)
2.48
0.42
(2.01)
Total
from
investment
operations
........
2.23
2.05
(3.39)
2.58
0.49
(1.88)
Less
distributions
from:
Net
investment
income
..............
-
-
(0.07)
-
(0.41)
(0.28)
Net
realized
gains
.................
-
(0.14)
-
-
(0.16)
(1.93)
Total
distributions
...................
-
(0.14)
(0.07)
-
(0.57)
(2.21)
Net
asset
value,
end
of
period
..........
$15.44
$13.21
$11.30
$14.76
$12.18
$12.26
Total
return
d
.......................
16.88%
18.33%
(23.01)%
21.18%
3.61%
(10.94)%
Ratios
to
average
net
assets
e
Expenses
.........................
1.79%
f
1.79%
f
1.81%
1.80%
f
1.82%
1.80%
f
Net
investment
income
(loss)
..........
(0.62)%
(0.48)%
(0.77)%
0.70%
c
0.54%
1.31%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$6,345
$6,476
$7,348
$12,585
$18,630
$28,850
Portfolio
turnover
rate
................
20.00%
47.28%
81.20%
41.83%
52.25%
25.16%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.13
per
share
related
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
(0.24)%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Templeton
Funds
Financial
Highlights
Templeton
World
Fund
(continued)
franklintempleton.com
The
accompanying
notes
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an
integral
part
of
these
financial
statements.
Semiannual
Report
33
a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$13.92
$11.86
$15.53
$12.69
$12.73
$17.21
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.08
0.04
0.24
c
0.20
0.34
Net
realized
and
unrealized
gains
(losses)
2.39
2.19
(3.43)
2.60
0.45
(2.17)
Total
from
investment
operations
........
2.43
2.27
(3.39)
2.84
0.65
(1.83)
Less
distributions
from:
Net
investment
income
..............
(0.13)
(0.07)
(0.28)
-
(0.53)
(0.72)
Net
realized
gains
.................
-
(0.14)
-
-
(0.16)
(1.93)
Total
distributions
...................
(0.13)
(0.21)
(0.28)
-
(0.69)
(2.65)
Net
asset
value,
end
of
period
..........
$16.22
$13.92
$11.86
$15.53
$12.69
$12.73
Total
return
d
.......................
17.56%
19.50%
(22.14)%
22.38%
4.71%
(9.88)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.77%
0.77%
0.78%
0.78%
0.79%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.75%
0.75%
0.76%
0.76%
0.76%
0.75%
Net
investment
income
...............
0.51%
0.61%
0.29%
1.68%
c
1.59%
2.36%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$25,244
$38,834
$34,238
$42,010
$38,885
$43,595
Portfolio
turnover
rate
................
20.00%
47.28%
81.20%
41.83%
52.25%
25.16%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.13
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.74%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
Templeton
Funds
Financial
Highlights
Templeton
World
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
a
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$13.93
$11.86
$15.54
$12.70
$12.74
$17.23
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.03
0.07
0.03
0.24
c
0.19
0.33
Net
realized
and
unrealized
gains
(losses)
2.39
2.21
(3.44)
2.60
0.45
(2.17)
Total
from
investment
operations
........
2.42
2.28
(3.41)
2.84
0.64
(1.84)
Less
distributions
from:
Net
investment
income
..............
(0.13)
(0.07)
(0.27)
-
(0.52)
(0.72)
Net
realized
gains
.................
-
(0.14)
-
-
(0.16)
(1.93)
Total
distributions
...................
(0.13)
(0.21)
(0.27)
-
(0.68)
(2.65)
Net
asset
value,
end
of
period
..........
$16.22
$13.93
$11.86
$15.54
$12.70
$12.74
Total
return
d
.......................
17.45%
19.52%
(22.22)%
22.36%
4.66%
(9.99)%
Ratios
to
average
net
assets
e
Expenses
.........................
0.79%
f
0.79%
f
0.81%
0.80%
f
0.81%
0.80%
f
Net
investment
income
...............
0.41%
0.57%
0.24%
1.64%
c
1.53%
2.31%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$117,863
$99,935
$86,424
$115,823
$99,546
$112,891
Portfolio
turnover
rate
................
20.00%
47.28%
81.20%
41.83%
52.25%
25.16%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund's
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.13
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.70%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Templeton
Funds
Schedule
of
Investments,
February
29,
2024
(unaudited)
Templeton
World
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
35
a
a
Industry
Shares
a
Value
a
Common
Stocks
99.0%
China
1.2%
Li
Ning
Co.
Ltd.
..................
Textiles,
Apparel
&
Luxury
Goods
13,117,000
$
32,453,112
France
3.4%
LVMH
Moet
Hennessy
Louis
Vuitton
SE
Textiles,
Apparel
&
Luxury
Goods
72,429
66,114,642
a
SOITEC
.......................
Semiconductors
&
Semiconductor
Equipment
168,562
24,680,733
90,795,375
Germany
5.0%
Deutsche
Boerse
AG
..............
Capital
Markets
64,586
13,522,163
Infineon
Technologies
AG
..........
Semiconductors
&
Semiconductor
Equipment
890,349
31,971,474
SAP
SE
.......................
Software
468,832
87,864,151
133,357,788
India
5.3%
HDFC
Bank
Ltd.
.................
Banks
3,372,604
56,974,381
Reliance
Industries
Ltd.
............
Oil,
Gas
&
Consumable
Fuels
2,362,742
83,178,608
140,152,989
Japan
3.4%
Tokyo
Electron
Ltd.
...............
Semiconductors
&
Semiconductor
Equipment
367,350
91,145,847
Netherlands
1.0%
Shell
plc
.......................
Oil,
Gas
&
Consumable
Fuels
820,598
25,784,941
Taiwan
3.2%
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
......................
Semiconductors
&
Semiconductor
Equipment
3,923,559
85,924,476
United
Kingdom
8.0%
Barratt
Developments
plc
..........
Household
Durables
4,618,075
27,248,216
Persimmon
plc
..................
Household
Durables
1,929,804
33,258,501
a
Rolls-Royce
Holdings
plc
..........
Aerospace
&
Defense
32,850,961
153,331,563
213,838,280
United
States
68.5%
Albemarle
Corp.
.................
Chemicals
267,990
36,942,421
a
Alphabet,
Inc.
,
A
.................
Interactive
Media
&
Services
928,383
128,543,910
a
Amazon.com,
Inc.
................
Broadline
Retail
1,009,836
178,498,612
Applied
Materials,
Inc.
.............
Semiconductors
&
Semiconductor
Equipment
396,690
79,980,638
a
Booking
Holdings,
Inc.
............
Hotels,
Restaurants
&
Leisure
15,067
52,264,862
CNH
Industrial
NV
................
Machinery
4,322,841
51,657,950
Comcast
Corp.
,
A
................
Media
639,971
27,422,757
Equifax,
Inc.
....................
Professional
Services
155,330
42,496,735
Exxon
Mobil
Corp.
................
Oil,
Gas
&
Consumable
Fuels
365,989
38,253,170
Freeport-McMoRan,
Inc.
...........
Metals
&
Mining
1,685,753
63,738,321
HCA
Healthcare,
Inc.
..............
Health
Care
Providers
&
Services
130,730
40,748,541
a
ICON
plc
.......................
Life
Sciences
Tools
&
Services
256,060
82,097,957
Intercontinental
Exchange,
Inc.
......
Capital
Markets
642,557
88,942,740
Kenvue,
Inc.
....................
Personal
Care
Products
699,029
13,281,551
Meta
Platforms,
Inc.
,
A
............
Interactive
Media
&
Services
215,782
105,761,232
Micron
Technology,
Inc.
............
Semiconductors
&
Semiconductor
Equipment
827,576
74,986,661
Microsoft
Corp.
..................
Software
318,930
131,922,205
a
Salesforce,
Inc.
..................
Software
340,364
105,111,210
Schneider
Electric
SE
.............
Electrical
Equipment
295,530
67,177,927
Target
Corp.
....................
Consumer
Staples
Distribution
&
Retail
196,163
29,997,246
Thermo
Fisher
Scientific,
Inc.
.......
Life
Sciences
Tools
&
Services
173,317
98,821,887
T-Mobile
US,
Inc.
................
Wireless
Telecommunication
Services
228,277
37,277,634
Union
Pacific
Corp.
...............
Ground
Transportation
302,613
76,769,892
UnitedHealth
Group,
Inc.
...........
Health
Care
Providers
&
Services
138,626
68,425,794
Templeton
Funds
Schedule
of
Investments
Templeton
World
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
United
States
(continued)
b
Visa,
Inc.
,
A
.....................
Financial
Services
287,959
$
81,388,732
Zimmer
Biomet
Holdings,
Inc.
.......
Health
Care
Equipment
&
Supplies
196,932
24,490,464
1,827,001,049
Total
Common
Stocks
(Cost
$
1,911,380,386
)
....................................
2,640,453,857
Short
Term
Investments
1.5%
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
Time
Deposits
1.5%
Canada
1.5%
National
Bank
of
Canada
,
5.31
%
,
3/01/24
......................
40,000,000
40,000,000
Total
Time
Deposits
(Cost
$
40,000,000
)
........................................
40,000,000
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$
40,000,000
)
................................
40,000,000
a
a
a
Total
Investments
(Cost
$
1,951,380,386
)
100.5
%
................................
$2,680,453,857
Other
Assets,
less
Liabilities
(
0.5
)
%
...........................................
(12,592,099)
Net
Assets
100.0%
...........................................................
$2,667,861,758
a
a
a
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
February
29,
2024.
See
Note
1(c).
Templeton
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
February
29,
2024
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$2,305,142,642
$2,362,200
$1,951,380,386
Cost
-
Non-controlled
affiliates
(Note
3
f
)
......................
-
320,746
-
Value
-
Unaffiliated
issuers
................................
$2,665,724,763
$2,879,745
$2,680,453,857
Value
-
Non-controlled
affiliates
(Note
3
f
)
......................
-
320,746
-
Cash
..................................................
62,510
-
85,904
Foreign
currency,
at
value
(cost
$1,
$36
and
$-
respectively)
........
-
36
-
Receivables:
Investment
securities
sold
.................................
10,485,526
2,312
-
Capital
shares
sold
......................................
4,758,377
11,781
568,759
Dividends
and
interest
...................................
12,515,629
4,717
5,395,625
European
Union
tax
reclaims
(Note
1
d
)
.......................
372,462
-
804,682
Affiliates
..............................................
-
11,924
-
Total
assets
........................................
2,693,919,267
3,231,261
2,687,308,827
Liabilities:
Payables:
Investment
securities
purchased
............................
7,990,720
-
-
Capital
shares
redeemed
.................................
2,955,424
-
1,986,295
Management
fees
.......................................
1,363,941
-
1,435,395
Distribution
fees
........................................
365,385
126
492,355
Transfer
agent
fees
......................................
1,161,449
-
367,120
Registration
and
filing
fees
................................
-
34,614
-
Professional
fees
.......................................
-
23,371
-
Trustees'
fees
and
expenses
...............................
30,238
586
16,892
IRS
closing
agreement
payments
for
European
Union
tax
reclaims
(Note
1
d
)
.............................................
21,888,293
-
14,339,844
Deferred
tax
.............................................
1,425,619
10,442
536,263
Accrued
expenses
and
other
liabilities
.........................
472,145
3,016
272,905
Total
liabilities
.......................................
37,653,214
72,155
19,447,069
Net
assets,
at
value
...............................
$2,656,266,053
$3,159,106
$2,667,861,758
Net
assets
consist
of:
Paid-in
capital
...........................................
$2,682,262,061
$2,740,681
$2,092,139,479
Total
distributable
earnings
(losses)
...........................
(25,996,008)
418,425
575,722,279
Net
assets,
at
value
...............................
$2,656,266,053
$3,159,106
$2,667,861,758
Templeton
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
29,
2024
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
Class
A:
Net
assets,
at
value
.....................................
$1,549,806,576
$567,508
$2,518,409,215
Shares
outstanding
......................................
198,545,717
47,951
155,255,463
Net
asset
value
per
share
a,b
................................
$7.81
$11.83
$16.22
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
b
..............................................
$8.26
$12.53
$17.16
Class
C:
Net
assets,
at
value
.....................................
$18,341,114
$14,716
$6,345,255
Shares
outstanding
......................................
2,342,164
1,243
410,849
Net
asset
value
and
maximum
offering
price
per
share
a,b
..........
$7.83
$11.84
$15.44
Class
R:
Net
assets,
at
value
.....................................
$114,692,780
$-
$-
Shares
outstanding
......................................
15,061,993
-
-
Net
asset
value
and
maximum
offering
price
per
share
b
...........
$7.61
$-
$-
Class
R6:
Net
assets,
at
value
.....................................
$336,318,389
$5,196
$25,244,072
Shares
outstanding
......................................
44,017,912
437
1,556,466
Net
asset
value
and
maximum
offering
price
per
share
b
...........
$7.64
$11.89
$16.22
Advisor
Class:
Net
assets,
at
value
.....................................
$637,107,194
$2,571,686
$117,863,216
Shares
outstanding
......................................
83,267,032
216,224
7,264,340
Net
asset
value
and
maximum
offering
price
per
share
b
...........
$7.65
$11.89
$16.22
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Templeton
Funds
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
February
29,
2024
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
39
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$1,481,959,
$1,660
and
$301,875,
respectively)
Unaffiliated
issuers
......................................
$25,142,499
$11,917
$9,988,197
Non-controlled
affiliates
(Note
3f)
...........................
-
6,498
-
Interest:
Unaffiliated
issuers
......................................
5,451,542
-
1,127,659
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
36,982
-
29,780
Non-controlled
affiliates
(Note
3
f
)
...........................
28,951
-
528
Other
income
(Note
1
d
)
....................................
11,479
-
3,659,599
Less:
IRS
closing
agreement
payments
for
European
Union
tax
reclaims
(Note
1
d
)
...............................................
(600,332)
-
(395,512)
Total
investment
income
.................................
30,071,121
18,415
14,410,251
Expenses:
Management
fees
(Note
3
a
)
.................................
9,160,190
11,926
8,399,083
Distribution
fees:
(Note
3c
)
Class
A
..............................................
1,936,671
1,148
2,662,474
Class
C
..............................................
97,526
38
31,436
Class
R
..............................................
283,045
-
-
Transfer
agent
fees:
(Note
3e
)
Class
A
..............................................
1,058,924
127
762,524
Class
C
..............................................
13,338
2
2,103
Class
R
..............................................
77,378
-
-
Class
R6
.............................................
77,744
10
5,868
Advisor
Class
..........................................
425,220
337
33,706
Custodian
fees
...........................................
117,473
497
43,998
Reports
to
shareholders
fees
................................
117,108
953
51,521
Registration
and
filing
fees
..................................
55,961
27,837
38,896
Professional
fees
.........................................
37,067
24,824
47,289
Trustees'
fees
and
expenses
................................
174,629
792
152,703
Other
..................................................
79,884
6,676
35,029
Total
expenses
.......................................
13,712,158
75,167
12,266,630
Expenses
waived/paid
by
affiliates
(Note
3f
and
3g)
............
(429,565)
(58,116)
(2,065)
Net
expenses
.......................................
13,282,593
17,051
12,264,565
Net
investment
income
..............................
16,788,528
1,364
2,145,686
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
(net
of
foreign
taxes
of
$-,
$1,543
and
$497,287
respectively)
Unaffiliated
issuers
....................................
(70,439,135)
(26,138)
(121,255,185)
Foreign
currency
transactions
..............................
(75,572)
1,947
(98,914)
Net
realized
gain
(loss)
................................
(70,514,707)
(24,191)
(121,354,099)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
124,780,095
164,829
519,734,038
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
(85,407)
14
(8,604)
Change
in
deferred
taxes
on
unrealized
appreciation
.............
767,672
(6,672)
(536,263)
Net
change
in
unrealized
appreciation
(depreciation)
..........
125,462,360
158,171
519,189,171
Net
realized
and
unrealized
gain
(loss)
..........................
54,947,653
133,980
397,835,072
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$71,736,181
$135,344
$399,980,758
Templeton
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$16,788,528
$59,940,318
$1,364
$65,413
Net
realized
gain
(loss)
............
(70,514,707)
90,928,670
(24,191)
(50,264)
Net
change
in
unrealized
appreciation
(depreciation)
.................
125,462,360
417,063,152
158,171
508,176
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
71,736,181
567,932,140
135,344
523,325
Distributions
to
shareholders:
Class
A
........................
(38,812,451)
(17,674,304)
(19,768)
(6,003)
Class
C
........................
(295,894)
(51,405)
(266)
(235)
Class
R
........................
(2,632,847)
(1,094,380)
-
-
Class
R6
.......................
(9,644,844)
(4,832,491)
(95)
(246)
Advisor
Class
...................
(17,081,011)
(8,718,598)
(46,008)
(113,511)
Total
distributions
to
shareholders
.....
(68,467,047)
(32,371,178)
(66,137)
(119,995)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(60,372,693)
(127,590,385)
(415,229)
941,636
Class
C
........................
(3,421,330)
(6,998,992)
2,782
6,454
Class
R
........................
(2,191,808)
(10,994,510)
-
-
Class
R6
.......................
(4,703,709)
(15,350,359)
-
-
Advisor
Class
...................
(41,779,459)
(49,294,028)
11,926
158,680
Total
capital
share
transactions
.......
(112,468,999)
(210,228,274)
(400,521)
1,106,770
Net
increase
(decrease)
in
net
assets
.....................
(109,199,865)
325,332,688
(331,314)
1,510,100
Net
assets:
Beginning
of
period
................
2,765,465,918
2,440,133,230
3,490,420
1,980,320
End
of
period
.....................
$2,656,266,053
$2,765,465,918
$3,159,106
$3,490,420
Templeton
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
41
Templeton
World
Fund
Six
Months
Ended
February
29,
2024
(unaudited)
Year
Ended
August
31,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$2,145,686
$7,436,986
Net
realized
gain
(loss)
.................................................
(121,354,099)
1,027,156
Net
change
in
unrealized
appreciation
(depreciation)
...........................
519,189,171
393,255,988
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
399,980,758
401,720,130
Distributions
to
shareholders:
Class
A
.............................................................
(14,953,871)
(31,728,587)
Class
C
.............................................................
-
(79,288)
Class
R6
............................................................
(205,885)
(605,219)
Advisor
Class
........................................................
(895,055)
(1,357,839)
Total
distributions
to
shareholders
..........................................
(16,054,811)
(33,770,933)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(134,908,817)
(197,637,235)
Class
C
.............................................................
(1,127,261)
(1,899,715)
Class
R6
............................................................
(16,221,465)
(1,391,055)
Advisor
Class
........................................................
1,615,733
1,248,719
Total
capital
share
transactions
............................................
(150,641,810)
(199,679,286)
Net
increase
(decrease)
in
net
assets
...................................
233,284,137
168,269,911
Net
assets:
Beginning
of
period
.....................................................
2,434,577,621
2,266,307,710
End
of
period
..........................................................
$2,667,861,758
$2,434,577,621
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
42
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Templeton
Funds (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of three separate
funds
(Funds).
The
Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
-
Investment
Companies
(ASC
946)
and apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
classes
of
shares
offered
within
each
of
the
Funds
are
indicated
below.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
Class
A,
Class
C,
Class
R,
Class
R6
&
Advisor
Class
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Class
A,
Class
C,
Class
R6
&
Advisor
Class
Templeton
World
Fund
The
following
summarizes
the Funds'
significant
accounting
policies
.
a.
Financial
Instrument
Valuation
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier. Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds'
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
time
deposits
are
valued
at
cost,
which
approximates
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Funds'
business
day.
Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Funds.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
43
franklintempleton.com
Semiannual
Report
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
February
29,
2024,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
within
the
fair
value
hierarchy
(referred
to
as
"market
level
fair
value").
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds'
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds'
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds.
Additionally,
at
February
29
,
2024
,
Templeton
Foreign
Fund
and
Templeton
World
Fund
held
$50,821,086
and
$31,440,319,
respectively,
in
U.S.
Government
and
Agency
securities
as
collateral.
These
securities
are
held
as
collateral
in
segregated
accounts
with
the
Funds'
custodian.
The
Fund
cannot
repledge
or
resell
these
securities
held
as
collateral.
As
such,
the
non-cash
collateral
is
excluded
from
the
Statements
of
Assets
and
Liabilities.
The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the
Statements
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
44
franklintempleton.com
Semiannual
Report
by
a
third
party
borrower.
At
February
29
,
2024
,
Templeton
International
Climate
Change
Fund
had
no
securities
on
loan.
d.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union,
certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their income
tax
returns.
In
the
event
that
EU
reclaims
received
by
the
Funds during a
fiscal
year
exceed
foreign
withholding
taxes
paid
by
the
Funds,
and
the Funds
previously
passed through
to
its
shareholders
foreign
taxes
incurred
by
the
Funds
to
be
used
as
a
credit
or
deduction
on
a
shareholder's
income
tax
return,
the
Funds will
enter
into
a
closing
agreement
with
the
Internal
Revenue
Service
(IRS)
in
order
to
pay
the
associated
tax
liability
on
behalf
of
the Funds'
shareholders.
Templeton
Foreign
Fund
and
Templeton
World
Fund
determined
to
enter
into
closing
agreements
with
the
IRS
and
recorded
the
estimated
payments
as
a
reduction
to
income,
as
reflected
in
the
Statements
of
Operations.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
February
29,
2024, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis. Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds. Distributions
to
shareholders
are recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Securities
Lending
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
45
franklintempleton.com
Semiannual
Report
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the Trust against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Funds, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
February
29,
2024,
there
were
an
unlimited
number
of
shares
authorized
(without
par value).
Transactions
in
the
Funds'
shares
were
as
follows:
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
February
29,
2024
Shares
sold
a
...................................
5,773,875
$44,011,720
71,561
$818,965
Shares
issued
in
reinvestment
of
distributions
..........
4,666,811
36,681,131
1,662
19,677
Shares
redeemed
...............................
(18,383,341)
(141,065,544)
(109,409)
(1,253,871)
Net
increase
(decrease)
..........................
(7,942,655)
$(60,372,693)
(36,186)
$(415,229)
Year
ended
August
31,
2023
Shares
sold
a
...................................
18,464,161
$134,477,091
121,328
$1,361,086
Shares
issued
in
reinvestment
of
distributions
..........
2,451,683
16,720,477
559
5,758
Shares
redeemed
...............................
(38,885,805)
(278,787,953)
(38,187)
(425,208)
Net
increase
(decrease)
..........................
(17,969,961)
$(127,590,385)
83,700
$941,636
Class
C
1.
Organization
and
Significant
Accounting
Policies
(continued)
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
46
franklintempleton.com
Semiannual
Report
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Shares
Amount
Shares
Amount
Class
C
Shares:
Six
Months
ended
February
29,
2024
Shares
sold
...................................
132,931
$1,023,363
337
$3,829
Shares
issued
in
reinvestment
of
distributions
..........
36,830
290,964
15
177
Shares
redeemed
a
..............................
(612,364)
(4,735,657)
(104)
(1,224)
Net
increase
(decrease)
..........................
(442,603)
$(3,421,330)
248
$2,782
Year
ended
August
31,
2023
Shares
sold
...................................
634,917
$4,603,951
558
$6,454
Shares
issued
in
reinvestment
of
distributions
..........
7,484
51,192
-
-
Shares
redeemed
a
..............................
(1,666,045)
(11,654,135)
-
-
Net
increase
(decrease)
..........................
(1,023,644)
$(6,998,992)
558
$6,454
Class
R
Class
R
Shares:
Six
Months
ended
February
29,
2024
Shares
sold
...................................
827,171
$6,216,199
-
$-
Shares
issued
in
reinvestment
of
distributions
..........
342,528
2,627,190
-
-
Shares
redeemed
...............................
(1,473,280)
(11,035,197)
-
-
Net
increase
(decrease)
..........................
(303,581)
$(2,191,808)
-
$-
Six
Months
ended
August
31,
2023
Shares
sold
...................................
2,067,697
$14,539,898
-
$-
Shares
issued
in
reinvestment
of
distributions
..........
163,984
1,092,131
-
-
Shares
redeemed
...............................
(3,736,121)
(26,626,539)
-
-
Net
increase
(decrease)
..........................
(1,504,440)
$(10,994,510)
-
$-
Class
R6
Class
R6
Shares:
Six
Months
ended
February
29,
2024
Shares
sold
...................................
4,408,032
$33,221,163
-
$-
Shares
issued
in
reinvestment
of
distributions
..........
1,089,371
8,377,264
-
-
Shares
redeemed
...............................
(6,171,651)
(46,302,136)
-
-
Net
increase
(decrease)
..........................
(674,248)
$(4,703,709)
-
$-
Year
ended
August
31,
2023
Shares
sold
...................................
11,025,849
$78,141,072
-
$-
Shares
issued
in
reinvestment
of
distributions
..........
634,986
4,241,705
-
-
Shares
redeemed
...............................
(13,888,696)
(97,733,136)
-
-
Net
increase
(decrease)
..........................
(2,227,861)
$(15,350,359)
-
$-
Advisor
Class
2.
Shares
of
Beneficial
Interest
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
47
franklintempleton.com
Semiannual
Report
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Shares
Amount
Shares
Amount
Advisor
Class
Shares:
Six
Months
ended
February
29,
2024
Shares
sold
...................................
9,722,394
$72,733,903
1,233
$14,738
Shares
issued
in
reinvestment
of
distributions
..........
2,040,870
15,714,698
275
3,267
Shares
redeemed
...............................
(17,567,121)
(130,228,060)
(524)
(6,079)
Net
increase
(decrease)
..........................
(5,803,857)
$(41,779,459)
984
$11,926
Year
ended
August
31,
2023
Shares
sold
...................................
23,938,302
$170,152,009
18,449
$219,837
Shares
issued
in
reinvestment
of
distributions
..........
1,223,343
8,184,167
118
1,212
Shares
redeemed
...............................
(33,228,043)
(227,630,204)
(5,425)
(62,369)
Net
increase
(decrease)
..........................
(8,066,398)
$(49,294,028)
13,142
$158,680
Templeton
World
Fund
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
February
29,
2024
Shares
sold
a
...................................
3,211,586
$46,224,512
Shares
issued
in
reinvestment
of
distributions
..........
928,168
13,616,230
Shares
redeemed
...............................
(13,444,342)
(194,749,559)
Net
increase
(decrease)
..........................
(9,304,588)
$(134,908,817)
Year
ended
August
31,
2023
Shares
sold
a
...................................
11,879,311
$152,104,842
Shares
issued
in
reinvestment
of
distributions
..........
2,535,772
29,423,758
Shares
redeemed
...............................
(30,260,078)
(379,165,835)
Net
increase
(decrease)
..........................
(15,844,995)
$(197,637,235)
Class
C
Class
C
Shares:
Six
Months
ended
February
29,
2024
Shares
sold
...................................
32,086
$429,372
Shares
redeemed
a
..............................
(111,439)
(1,556,633)
Net
increase
(decrease)
..........................
(79,353)
$(1,127,261)
Year
ended
August
31,
2023
Shares
sold
...................................
181,830
$2,243,324
Shares
issued
in
reinvestment
of
distributions
..........
7,104
78,786
Shares
redeemed
a
..............................
(348,831)
(4,221,825)
Net
increase
(decrease)
..........................
(159,897)
$(1,899,715)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
48
franklintempleton.com
Semiannual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Templeton
World
Fund
Shares
Amount
Class
R6
Shares:
Six
Months
ended
February
29,
2024
Shares
sold
...................................
177,139
$2,521,763
Shares
issued
in
reinvestment
of
distributions
..........
13,687
200,657
Shares
redeemed
...............................
(1,423,534)
(18,943,885)
Net
increase
(decrease)
..........................
(1,232,708)
$(16,221,465)
Year
ended
August
31,
2023
Shares
sold
...................................
464,419
$5,841,348
Shares
issued
in
reinvestment
of
distributions
..........
27,679
320,529
Shares
redeemed
...............................
(590,728)
(7,552,932)
Net
increase
(decrease)
..........................
(98,630)
$(1,391,055)
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
February
29,
2024
Shares
sold
...................................
795,088
$11,619,816
Shares
issued
in
reinvestment
of
distributions
..........
57,657
845,823
Shares
redeemed
...............................
(762,010)
(10,849,906)
Net
increase
(decrease)
..........................
90,735
$1,615,733
Year
ended
August
31,
2023
Shares
sold
...................................
3,260,778
$42,886,023
Shares
issued
in
reinvestment
of
distributions
..........
109,395
1,268,495
Shares
redeemed
...............................
(3,482,114)
(42,905,799)
Net
increase
(decrease)
..........................
(111,941)
$1,248,719
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Templeton
Investments
Corp.
(FTIC)
Investment
manager
Franklin
Templeton
Investment
Management
Ltd.
(FTIML)
Investment
manager
Templeton
Global
Advisors
Limited
(Global
Advisors)
Investment
manager
Templeton
Asset
Management
Ltd
(Asset
Management)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
49
franklintempleton.com
Semiannual
Report
a.
Management
Fees
Templeton
Foreign
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Global
Advisors
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Templeton
International
Climate
Change
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
FTIC
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Templeton
World
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Global
Advisors
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
February
29,
2024,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
Annualized
Fee
Rate
Net
Assets
0.705%
Up
to
and
including
$1
billion
0.690%
Over
$1
billion,
up
to
and
including
$5
billion
0.675%
Over
$5
billion,
up
to
and
including
$10
billion
0.655%
Over
$10
billion,
up
to
and
including
$15
billion
0.635%
Over
$15
billion,
up
to
and
including
$20
billion
0.615%
Over
$20
billion,
up
to
and
including
$25
billion
0.605%
Over
$25
billion,
up
to
and
including
$30
billion
0.595%
Over
$30
billion,
up
to
and
including
$35
billion
0.585%
In
excess
of
$35
billion
Annualized
Fee
Rate
Net
Assets
0.705%
Up
to
and
including
$500
million
0.690%
Over
$500
million,
up
to
and
including
$1
billion
0.675%
Over
$1
billion,
up
to
and
including
$5
billion
0.655%
Over
$5
billion,
up
to
and
including
$10
billion
0.635%
Over
$10
billion,
up
to
and
including
$15
billion
0.615%
Over
$15
billion,
up
to
and
including
$20
billion
0.605%
Over
$20
billion,
up
to
and
including
$25
billion
0.595%
Over
$25
billion,
up
to
and
including
$30
billion
0.585%
In
excess
of
$30
billion
Annualized
Fee
Rate
Net
Assets
0.705%
Up
to
and
including
$1
billion
0.690%
Over
$1
billion,
up
to
and
including
$5
billion
0.675%
Over
$5
billion,
up
to
and
including
$10
billion
0.655%
Over
$10
billion,
up
to
and
including
$15
billion
0.635%
Over
$15
billion,
up
to
and
including
$20
billion
0.615%
In
excess
of
$20
billion
3.
Transactions
with
Affiliates
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
50
franklintempleton.com
Semiannual
Report
Under
a
subadvisory
agreement,
FTIML
and
Global
Advisors,
affiliates
of
FTIC,
provide
subadvisory
services
to
Templeton
International
Climate
Change
Fund.
The
subadvisory
fee
is
paid
by
FTIC
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
Effective
March
31,
2024,
under
a
subadvisory
agreement,
Asset
Management,
an
affiliate
of
Global
Advisors,
will
provide
subadvisory
services
to
Templeton
World
Fund.
The
subadvisory
fee
will
be
paid
by
Global
Advisors
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
b.
Administrative
Fees
Under
an
agreement
with
Global
Advisors,
FT
Services
provides
administrative
services
to
Templeton
Foreign
Fund
and
Templeton
World
Fund.
The
fee
is
paid
by
Global
Advisors
based
on
the
Funds'
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
Under
an
agreement
with
FTIC,
FT
Services
provides
administrative
services
to
Templeton
International
Climate
Change
Fund.
The
fee
is
paid
by
FTIC
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds'
Class A reimbursement
distribution
plan,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plan,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds'
Class C
and
R
compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Funds'
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
Gross
effective
investment
management
fee
rate
........
0.695%
0.705%
0.696%
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
Class
A
...............................
0.25%
0.25%
0.25%
Class
C
...............................
1.00%
1.00%
1.00%
Class
R
...............................
0.50%
0.50%
-%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
51
franklintempleton.com
Semiannual
Report
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2023,
the
fees
are
based
on
a
fixed
margin
earned
by
Investor
Services
and
are
allocated
to
the
Funds based
upon
relative
assets
and
relative
transactions.
Prior
to
October
1,
2023,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period ended
February
29,
2024,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
"Controlled
Affiliate"
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund's
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
February
29,
2024,
investments
in
affiliated
management
investment
companies
were
as
follows:
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$20,876
$122
$16,612
CDSC
retained
...........................
$2,441
$-
$121
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
Transfer
agent
fees
........................
$553,038
$476
$331,795
3.
Transactions
with
Affiliates
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
52
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
Global
Advisors
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
Templeton
Foreign
Fund
so
that
the
operating
expenses
(excluding
distribution
fees,
acquired
fund
fees
and
expenses,
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
do
not
exceed
0.85%,
based
on
the
average
net
assets
of
each
class
until
December
31,
2024.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
FTIC
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
Templeton
International
Climate
Change
Fund
so
that
the
operating
expenses
(excluding
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
does
not
exceed
0.97%
based
on
the
average
net
assets
of
each
class
until
December
31,
2024.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
Transfer
agent
fees
on
Class
R6
shares
of
the
Funds have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
December
31,
2024.
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Templeton
Foreign
Fund
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.984%
$-
$22,751,798
$(22,751,798)
$-
$-
$-
-
$28,951
Total
Affiliated
Securities
...
$-
$22,751,798
$(22,751,798)
$-
$-
$-
$28,951
Templeton
International
Climate
Change
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.984%
$289,072
$774,323
$(742,649)
$-
$-
$320,746
320,746
$6,498
Total
Affiliated
Securities
...
$289,072
$774,323
$(742,649)
$-
$-
$320,746
$6,498
Templeton
World
Fund
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.984%
$-
$585,625
$(585,625)
$-
$-
$-
-
$528
Total
Affiliated
Securities
...
$-
$585,625
$(585,625)
$-
$-
$-
$528
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
53
franklintempleton.com
Semiannual
Report
h.
Other
Affiliated
Transactions
At
February
29,
2024,
Franklin
Resources,
Inc.
owned
75.2%
of
Templeton
International
Climate
Change
Fund's
outstanding
shares.
Investment
activities
of
this
shareholder
could
have
a
material
impact
on
the
Fund.
4.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
August
31,
2023,
the
capital
loss
carryforwards
were
as
follows:
For
tax
purposes,
the
Funds
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At
August
31,
2023,
Templeton
World
Fund
deferred
post-October
capital
losses
of
$15,884,478.
At
February
29,
2024,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales,
passive
foreign
investment
company
shares
and
corporate
actions.
5.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
February
29,
2024,
were
as
follows:
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Long
term
.............................
$
282,123,323
$
40,703
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
a
a
a
a
Cost
of
investments
.......................
$2,343,315,550
$2,707,990
$1,967,898,808
Unrealized
appreciation
.....................
$585,149,388
$671,833
$753,559,673
Unrealized
depreciation
.....................
(262,740,175)
(179,332)
(41,004,624)
Net
unrealized
appreciation
(depreciation)
.......
$322,409,213
$492,501
$712,555,049
Templeton
Foreign
Fund
Templeton
International
Climate
Change
Fund
Templeton
World
Fund
Purchases
..............................
$494,680,334
$242,725
$479,891,107
Sales
..................................
$490,640,051
$781,379
$631,200,308
3.
Transactions
with
Affiliates
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
54
franklintempleton.com
Semiannual
Report
6.
Concentration
of
Risk
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
7.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
January
31,
2025.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
February
29,
2024,
the
Funds
did
not
use
the
Global
Credit
Facility.
8.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
-
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
-
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
-
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
February
29,
2024,
in
valuing
the
Funds'
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Templeton
Foreign
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
China
...............................
$
44,555,079
$
126,866,270
$
-
$
171,421,349
Denmark
.............................
-
53,520,264
-
53,520,264
France
...............................
-
178,882,798
-
178,882,798
Germany
.............................
-
189,470,261
-
189,470,261
Hong
Kong
...........................
-
93,927,762
-
93,927,762
India
................................
-
50,845,833
-
50,845,833
Ireland
...............................
-
79,853,795
-
79,853,795
Japan
...............................
-
136,441,421
-
136,441,421
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
55
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Templeton
Foreign
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Netherlands
...........................
$
-
$
266,693,038
$
-
$
266,693,038
Portugal
..............................
-
23,067,118
-
23,067,118
South
Korea
..........................
-
309,741,325
-
309,741,325
Spain
................................
-
20,492,561
-
20,492,561
Sweden
..............................
-
59,309,266
-
59,309,266
Switzerland
...........................
-
44,870,602
-
44,870,602
Taiwan
...............................
-
92,702,081
-
92,702,081
United
Kingdom
........................
-
555,389,029
-
555,389,029
United
States
..........................
164,643,124
77,153,136
-
241,796,260
Short
Term
Investments
...................
-
97,300,000
-
97,300,000
Total
Investments
in
Securities
...........
$209,198,203
$2,456,526,560
a
$-
$2,665,724,763
Templeton
International
Climate
Change
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Chile
................................
-
43,448
-
43,448
Denmark
.............................
-
192,373
-
192,373
France
...............................
-
359,547
-
359,547
Germany
.............................
-
322,740
-
322,740
India
................................
-
153,204
-
153,204
Ireland
...............................
-
173,667
-
173,667
Italy
.................................
-
148,434
-
148,434
Japan
...............................
-
231,408
-
231,408
Netherlands
...........................
-
165,103
-
165,103
Norway
..............................
-
104,550
-
104,550
Singapore
............................
-
95,273
-
95,273
South
Korea
..........................
-
41,087
-
41,087
Spain
................................
-
24,478
-
24,478
Taiwan
...............................
154,147
-
-
154,147
United
Kingdom
........................
-
354,155
-
354,155
United
States
..........................
78,942
237,189
-
316,131
Short
Term
Investments
...................
320,746
-
-
320,746
Total
Investments
in
Securities
...........
$553,835
$2,646,656
b
$-
$3,200,491
Templeton
World
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
China
...............................
-
32,453,112
-
32,453,112
France
...............................
-
90,795,375
-
90,795,375
Germany
.............................
-
133,357,788
-
133,357,788
India
................................
-
140,152,989
-
140,152,989
Japan
...............................
-
91,145,847
-
91,145,847
Netherlands
...........................
-
25,784,941
-
25,784,941
Taiwan
...............................
-
85,924,476
-
85,924,476
United
Kingdom
........................
-
213,838,280
-
213,838,280
United
States
..........................
1,759,823,122
67,177,927
-
1,827,001,049
Short
Term
Investments
...................
-
40,000,000
-
40,000,000
Total
Investments
in
Securities
...........
$1,759,823,122
$920,630,735
c
$-
$2,680,453,857
a
Includes
foreign
securities
valued
at
$2,359,226,560,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
8.
Fair
Value
Measurements
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
56
franklintempleton.com
Semiannual
Report
10.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
b
Includes
foreign
securities
valued
at
$2,646,656,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$880,630,735,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
Currency
GBP
British
Pound
HKD
Hong
Kong
Dollar
Selected
Portfolio
ADR
American
Depositary
Receipt
8.
Fair
Value
Measurements
(continued)
Templeton
Funds
Shareholder
Information
57
franklintempleton.com
Semiannual
Report
Board
Approval
of
Investment
Management
Agreements
TEMPLETON
FUNDS
Templeton
World
Fund
(Fund)
At
an
in-person
meeting
held
on
February
26,
2024
(Meeting),
the
Board
of
Trustees
(Board)
of
Templeton
Funds
(Trust),
including
a
majority
of
the
trustees
who
are
not
"interested
persons"
as
defined
in
the
Investment
Company
Act
of
1940)
(Independent
Trustees),
reviewed
and
approved
a
new
investment
sub-advisory
agreement
between
Templeton
Global
Advisors
Limited
(Manager),
the
Fund's
investment
manager,
and
Templeton
Asset
Management
Ltd.
(Sub-Adviser),
an
affiliate
of
the
Manager,
on
behalf
of
the
Fund
(Sub-Advisory
Agreement),
for
an
initial
two-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
Sub-Advisory
Agreement.
The
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
with
respect
to
the
Sub-Advisory
Agreement.
The
Board
also
reviewed
and
considered
the
factors
it
deemed
relevant
in
approving
the
Sub-Advisory
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent,
and
quality
of
the
services
to
be
provided
by
the
Sub-
Adviser;
and
(ii)
the
costs
of
the
services
to
be
provided
by
the
Sub-Adviser.
The
Board
further
reviewed
and
considered
information
provided
by
management
showing
the
expected
impact
of
hiring
the
Sub-Adviser
on
the
Manager's
profitability
consistent
with
the
Order
(as
defined
below).
The
Board
also
considered
that
management
proposed
that
the
Board
approve
the
Sub-Advisory
Agreement
in
order
to
facilitate
portfolio
management
team
changes,
effective
March
31,
2024.
The
Board
reviewed
and
further
considered
the
form
of
Sub-Advisory
Agreement
and
the
terms
of
the
Sub-Advisory
Agreement,
which
were
discussed
at
the
Meeting,
noting
that
the
terms
and
conditions
of
the
Sub-
Advisory
Agreement
were
identical
(except
with
respect
to
the
sub-advisory
fee)
to
the
terms
and
conditions
of
sub-
advisory
agreements
for
other
Franklin
Templeton
(FT)
mutual
funds.
In
approving
the
Sub-Advisory
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
hiring
of
the
Sub-Adviser
is
in
the
best
interests
of
the
Fund
and
its
shareholders
and
does
not
involve
a
conflict
of
interest
from
which
the
Manager
or
Sub-Adviser
derives
an
inappropriate
advantage.
The
Board
also
determined
that
the
terms
of
the
Sub-Advisory
Agreement
are
fair
and
reasonable.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board's
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
to
be
provided
by
the
Sub-Adviser
and
currently
being
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
In
doing
so,
the
Board
noted
that
the
Fund
employs
a
"manager
of
managers"
structure
pursuant
to
an
exemptive
order
(Order)
granted
to
the
Manager
by
the
U.S.
Securities
and
Exchange
Commission,
whereby
the
Manager
and
the
Fund
may,
without
shareholder
approval,
enter
into
sub-advisory
agreements
with
sub-advisers
that
are
indirect
or
direct
wholly
owned
subsidiaries
of
Franklin
Resources,
Inc.
(FRI).
In
particular,
with
respect
to
the
Sub-Adviser,
the
Board
took
into
account
that
the
new
portfolio
manager
proposed
to
serve
as
a
portfolio
manager
for
the
Fund
is
an
employee
of
the
Sub-Adviser.
The
Board
reviewed
and
considered
information
regarding
the
nature,
quality
and
extent
of
investment
sub-advisory
services
to
be
provided
by
the
Sub-Adviser
to
the
Fund
and
its
shareholders
under
the
Sub-Advisory
Agreement;
the
Sub-Adviser's
experience
as
a
manager
of
other
funds
and
accounts,
including
those
within
the
FT
organization;
the
personnel,
operations,
financial
condition,
and
investment
management
capabilities,
methodologies
and
resources
of
the
Sub-Adviser
and
the
Sub-Adviser's
capabilities,
as
demonstrated
by,
among
other
things,
its
policies
and
procedures
reasonably
designed
to
prevent
violations
of
the
federal
securities
laws.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
FRI,
the
parent
of
the
Manager
and
the
Sub-
Adviser,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
Templeton
Funds
Shareholder
Information
58
franklintempleton.com
Semiannual
Report
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT's
commitment
to
technological
innovation
and
advancement
and
investments
to
promote
alternative
investing.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
to
be
provided
by
the
Sub-Adviser
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
noted
its
review
and
consideration
of
and
conclusions
made
regarding
the
performance
results
of
the
Fund
in
connection
with
the
2023
annual
contract
renewals
("Annual
Contract
Renewal")
of
the
Fund's
investment
management
agreement
and
at
regular
Board
meetings
throughout
the
year.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
investment
sub-advisory
fee
to
be
charged
by
the
Sub-Adviser.
The
Board
noted
that
the
addition
of
the
Sub-
Adviser
will
have
no
impact
on
the
amount
of
management
fees
that
are
currently
paid
by
the
Fund
as
the
Sub-Adviser
will
be
paid
by
the
Manager
out
of
the
management
fee
that
the
Manager
receives
from
the
Fund.
The
Board
further
noted
that
the
allocation
of
the
fee
between
the
Manager
and
the
Sub-Adviser
reflected
the
services
to
be
provided
by
the
Sub-Adviser.
The
Board
concluded
that
the
proposed
investment
sub-advisory
fee
to
be
paid
to
the
Sub-Adviser
is
reasonable.
Management
Profitability
and
Economies
of
Scale
The
Board
noted
management's
belief
that
the
Manager's
profitability
is
not
expected
to
materially
change
as
a
result
of
the
addition
of
the
Sub-Adviser.
The
Board
determined
that
its
conclusions
regarding
profitability
and
economies
of
scale
reached
in
connection
with
the
Annual
Contract
Renewal
of
the
investment
management
agreement
with
the
Manager
had
not
changed
as
a
result
of
the
proposal
to
approve
the
Sub-Advisory
Agreement.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
Sub-Advisory
Agreement
for
an
initial
two-year
period.
Proxy
Voting
Policies
and
Procedures
The
Trust's
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust's
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust's
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission's
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission's
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission's
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund's
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
"householding,"
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
TLF
S
04/24
©
2024
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund's
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
Templeton
Funds
Investment
Manager
Distributor
Shareholder
Services
Franklin
Templeton
Investments
Corp.
Templeton
Global
Advisors
Limited
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f)Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial experts are Ann Torre Bates andDavid W. Niemiec and they are "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4.
Principal Accountant Fees and Services. N/A
Item 5. Audit Committee
of Listed Registrants.
N/A
Item 6. Schedule of Investments.
N/A
Item 7
. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)
Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective.
(b)
Changes in Internal Controls. There have been no changes in the Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Recovery of Erroneously Awarded Compensation.
(a) N/A
(b) N/A
Item 14. Exhibits.
(a)(1) Code of Ethics
codeofethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
section302
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
(a)(2)(2) There was no change in the Registrant's independent public accountant during the period covered by the report.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
section906
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TEMPLETON FUNDS
By S\CHRISTOPHER KINGS _________________
Christopher Kings
Chief Executive Officer - Finance and Administration
Date April 29, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By S\CHRISTOPHER KINGS _________________
Christopher Kings
Chief Executive Officer - Finance and Administration
Date April 29, 2024
By S\JEFFREY WHITE______________________
Jeffrey White
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date April 29, 2024