Glossary

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Sector Fund: A mutual fund that concentrates on a particular industry such as health care and telecommunications. Franklin Templeton Investments offers the following sector funds: Franklin Technology Corporate Class, Franklin World Health Sciences and Biotech Fund.

Simplified Prospectus: A document that must be distributed to each new mutual fund investor. The simplified prospectus contains pertinent information such as the stated investment objective of the fund, the fees and commissions payable, and purchase/redemption options.

Small Cap Canadian Fund: Market capitalization between C$100 million and C$1 billion.

Small Cap U.S. Equity Fund: Companies with market caps not exceeding (i) U.S. $1.5 billion, and (ii) highest market cap value in the Russell 2000 Index.

Systematic Withdrawal Plan (SWP): A withdrawal plan option that allows an investor to receive regular payments through the automatic redemption of units from his/her mutual fund account. To participate in this plan, Franklin Templeton Investments investors must have a minimum account balance of $10,000.

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