TEMPLETON FUNDS (0000225930) (Filer)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

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

Franklin Templeton

One Franklin Parkway

San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant’s telephone number, including area code: (650) 312-2000

Date of fiscal year end: August 31

Date of reporting period: August 31, 2026

(a) The Report to Shareholders is filed herewith

This annual shareholder report contains important information about Templeton Foreign Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class A shares of Templeton Foreign Fund returned 20.18%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 27.35% for the same period.

PERFORMANCE HIGHLIGHTS

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 8/31/2016 — 8/31/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

On January 1, 2026, the Fund’s principal investment strategies were revised to reflect reduced exposure to investments in derivative instruments and equity-linked notes.

In connection with these changes, principal risk disclosure regarding derivative instruments and equity-linked notes was removed from the principal risks section of the prospectus.

Effective September 30, 2025, Peter D. Sartori became a portfolio manager of the Fund.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or [email protected].

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

9450109461093096479381118731006212535141991546418585100001188812266118651285216048129151445117083197172511048.231.617.42.8

This annual shareholder report contains important information about Templeton Foreign Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class C shares of Templeton Foreign Fund returned 19.30%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 27.35% for the same period.

PERFORMANCE HIGHLIGHTS

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT – Class C 8/31/2016 — 8/31/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

On January 1, 2026, the Fund’s principal investment strategies were revised to reflect reduced exposure to investments in derivative instruments and equity-linked notes.

In connection with these changes, principal risk disclosure regarding derivative instruments and equity-linked notes was removed from the principal risks section of the prospectus.

Effective September 30, 2025, Peter D. Sartori became a portfolio manager of the Fund.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or [email protected].

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

10000114921140199879646121101017812586141471529718249100001188812266118651285216048129151445117083197172511048.231.617.42.8

This annual shareholder report contains important information about Templeton Foreign Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class R shares of Templeton Foreign Fund returned 19.86%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 27.35% for the same period.

PERFORMANCE HIGHLIGHTS

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT – Class R 8/31/2016 — 8/31/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

On January 1, 2026, the Fund’s principal investment strategies were revised to reflect reduced exposure to investments in derivative instruments and equity-linked notes.

In connection with these changes, principal risk disclosure regarding derivative instruments and equity-linked notes was removed from the principal risks section of the prospectus.

Effective September 30, 2025, Peter D. Sartori became a portfolio manager of the Fund.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or [email protected].

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

100001155711520101439835124201049013036147421601419194100001188812266118651285216048129151445117083197172511048.231.617.42.8

This annual shareholder report contains important information about Templeton Foreign Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class R6 shares of Templeton Foreign Fund returned 20.56%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 27.35% for the same period.

PERFORMANCE HIGHLIGHTS

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT – Class R6 8/31/2016 — 8/31/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

On January 1, 2026, the Fund’s principal investment strategies were revised to reflect reduced exposure to investments in derivative instruments and equity-linked notes.

In connection with these changes, principal risk disclosure regarding derivative instruments and equity-linked notes was removed from the principal risks section of the prospectus.

Effective September 30, 2025, Peter D. Sartori became a portfolio manager of the Fund.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or [email protected].

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

1000011652116791035510108128391091513646155151696020448100001188812266118651285216048129151445117083197172511048.231.617.42.8

This annual shareholder report contains important information about Templeton Foreign Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Advisor Class shares of Templeton Foreign Fund returned 20.51%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 27.35% for the same period.

PERFORMANCE HIGHLIGHTS

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT – Advisor Class 8/31/2016 — 8/31/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

On January 1, 2026, the Fund’s principal investment strategies were revised to reflect reduced exposure to investments in derivative instruments and equity-linked notes.

In connection with these changes, principal risk disclosure regarding derivative instruments and equity-linked notes was removed from the principal risks section of the prospectus.

Effective September 30, 2025, Peter D. Sartori became a portfolio manager of the Fund.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or [email protected].

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

1000011610116291028810023127181081113497153261672720158100001188812266118651285216048129151445117083197172511048.231.617.42.8

This annual shareholder report contains important information about Templeton World Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class A shares of Templeton World Fund returned 13.89%. The Fund compares its performance to the MSCI All Country World Index-NR, which returned 22.35% for the same period.

PERFORMANCE HIGHLIGHTS

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 8/31/2016 — 8/31/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

On January 1, 2026, the Fund’s principal investment strategies were revised to reflect reduced exposure to investments in derivative instruments and equity-linked notes.

In connection with these changes, principal risk disclosure regarding derivative instruments and equity-linked notes was removed from the principal risks section of the prospectus.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or
[email protected].

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

945011004118641065111127135681053012555160051828320823100001171113048130111516119504164061869423076267213269354.522.818.54.2

This annual shareholder report contains important information about Templeton World Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class C shares of Templeton World Fund returned 12.98%. The Fund compares its performance to the MSCI All Country World Index-NR, which returned 22.35% for the same period.

PERFORMANCE HIGHLIGHTS

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT – Class C 8/31/2016 — 8/31/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

On January 1, 2026, the Fund’s principal investment strategies were revised to reflect reduced exposure to investments in derivative instruments and equity-linked notes.

In connection with these changes, principal risk disclosure regarding derivative instruments and equity-linked notes was removed from the principal risks section of the prospectus.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or
[email protected].

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

1000011559123701101611414138221064212593159301806320407100001171113048130111516119504164061869423076267213269354.522.818.54.2

This annual shareholder report contains important information about Templeton World Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Class R6 shares of Templeton World Fund returned 14.16%. The Fund compares its performance to the MSCI All Country World Index-NR, which returned 22.35% for the same period.

PERFORMANCE HIGHLIGHTS

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT – Class R6 8/31/2016 — 8/31/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

On January 1, 2026, the Fund’s principal investment strategies were revised to reflect reduced exposure to investments in derivative instruments and equity-linked notes.

In connection with these changes, principal risk disclosure regarding derivative instruments and equity-linked notes was removed from the principal risks section of the prospectus.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or
[email protected].

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

1000011687126371138811924145841135513569173481988222698100001171113048130111516119504164061869423076267213269354.522.818.54.2

This annual shareholder report contains important information about Templeton World Fund for the period September 1, 2025, to August 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.  

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended August 31, 2026, Advisor Class shares of Templeton World Fund returned 14.09%. The Fund compares its performance to the MSCI All Country World Index-NR, which returned 22.35% for the same period.

PERFORMANCE HIGHLIGHTS

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT – Advisor Class 8/31/2016 — 8/31/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2026

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of August 31, 2026)

WHAT DID THE FUND INVEST IN? (as of August 31, 2026)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

On January 1, 2026, the Fund’s principal investment strategies were revised to reflect reduced exposure to investments in derivative instruments and equity-linked notes.

In connection with these changes, principal risk disclosure regarding derivative instruments and equity-linked notes was removed from the principal risks section of the prospectus.

This is a summary of certain changes to the Fund since September 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by January 1, 2027, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or
[email protected].

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

1000011674126171135711886145351130513512172701978222570100001171113048130111516119504164061869423076267213269354.522.818.54.2

(b) Not applicable

(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 19(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.

The Board of Trustees of the Registrant has determined that Ann Torre Bates and David W. Niemiec possess the technical attributes identified in Item 3 to Form N-CSR to qualify as “audit committee financial experts,” and has designated Ann Torre Bates and David W. Niemiec as the Audit Committee’s financial experts. Ann Torre Bates and David W. Niemiec are “independent” Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

a) Audit Fees. The aggregate fees billed in the last two fiscal years ending August 31, 2025 and August 31, 2026 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $97,689 in August 31, 2025 and $97,630 in August 31, 2026.

b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s financial statements were $0 in August 31, 2025 and $0 in August 31, 2026.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $21,000 in August 31, 2025 and $21,000 in August 31, 2026. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to the Registrant’s investment manager and any entity controlling, controlled by, or under common control with the

investment manager that provides ongoing services to the Registrant (“Service Affiliates”) during the Reporting Periods that required pre-approval by the Audit Committee.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in August 31, 2025 and $0 in August 31, 2026.

There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.

(e) Audit Committee’s pre–approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

(1) The Registrant’s Audit Committee is directly responsible for approving the services to be provided by the Auditors, including:

(i) pre-approval of all audit and audit related services;

(ii) pre-approval of all non-audit related services to be provided to the Registrant by the Auditors;

(iii) pre-approval of all non-audit related services to be provided by the Auditors to the Registrant and the Service Affiliates where the non-audit services relate directly to the operations or financial reporting of the Registrant; and

(iv) establishment by the Audit Committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the Auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of Audit Committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $218,343 in August 31, 2025 and $579,038 in August 31, 2026.

(h) Yes. The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor’s independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.

(i) Not applicable.

(j) Not applicable.

Not applicable.

Templeton

Funds

Financial

Statements

and

Other

Important

Information

Annual

|

August

31, 2026

Templeton

Foreign

Fund

Templeton

World

Fund

If

you

need

assistance

accessing

this

content,

please

reach

out

to

your

sales

representative

or

send

an

email

to

[email protected]

.

Table

of

Contents

franklintempleton.com

Financial

Statements

and

Other

Important

Information—Annual

1

Financial

Highlights

and

Schedules

of

Investments

2

Financial

Statements

17

Notes

to

Financial

Statements

21

Report

of

Independent

Registered

Public

Accounting

Firm

34

Tax

Information

35

Changes

In

and

Disagreements

with

Accountants

36

Results

of

Meeting(s)

of

Shareholders

36

Remuneration

Paid

to

Directors,

Officers

and

Others

36

Board

Approval

of

Management

and

Subadvisory

Agreements

36

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

2

a

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$9.15

$8.60

$7.78

$6.32

$7.77

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.15

0.17

0.18

0.16

0.13

Net

realized

and

unrealized

gains

(losses)

...........

1.65

0.56

0.83

1.38

(1.28)

Total

from

investment

operations

....................

1.80

0.73

1.01

1.54

(1.15)

Less

distributions

from:

Net

investment

income

..........................

(0.35)

(0.18)

(0.19)

(0.08)

(0.30)

Net

asset

value,

end

of

year

.......................

$10.60

$9.15

$8.60

$7.78

$6.32

Total

return

c

...................................

20.18%

8.91%

13.28%

24.57%

(15.25)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.13%

1.13%

1.13%

1.12%

1.16%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.10%

1.10%

1.10%

1.10%

1.10%

Net

investment

income

...........................

1.54%

1.99%

2.26%

2.20%

1.80%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,677,287

$1,541,500

$1,606,239

$1,605,982

$1,418,293

Portfolio

turnover

rate

............................

47.28%

44.39%

d

42.01%

14.85%

29.07%

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

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3

(

h

)

for

prior

year

information.

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

3

a

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$9.16

$8.59

$7.76

$6.29

$7.70

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.08

0.10

0.12

0.10

0.07

Net

realized

and

unrealized

gains

(losses)

...........

1.65

0.58

0.83

1.39

(1.27)

Total

from

investment

operations

....................

1.73

0.68

0.95

1.49

(1.20)

Less

distributions

from:

Net

investment

income

..........................

(0.27)

(0.11)

(0.12)

(0.02)

(0.21)

Net

asset

value,

end

of

year

.......................

$10.62

$9.16

$8.59

$7.76

$6.29

Total

return

c

...................................

19.30%

8.13%

12.40%

23.65%

(15.95)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.88%

1.88%

1.87%

1.87%

1.91%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.85%

1.85%

1.85%

1.85%

1.85%

Net

investment

income

...........................

0.77%

1.17%

1.47%

1.41%

1.03%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$13,031

$13,876

$17,220

$21,611

$23,962

Portfolio

turnover

rate

............................

47.28%

44.39%

d

42.01%

14.85%

29.07%

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

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3

(

h

)

for

prior

year

information.

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

4

a

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.91

$8.38

$7.58

$6.16

$7.58

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.12

0.14

0.16

0.14

0.11

Net

realized

and

unrealized

gains

(losses)

...........

1.61

0.55

0.82

1.35

(1.25)

Total

from

investment

operations

....................

1.73

0.69

0.98

1.49

(1.14)

Less

distributions

from:

Net

investment

income

..........................

(0.33)

(0.16)

(0.18)

(0.07)

(0.28)

Net

asset

value,

end

of

year

.......................

$10.31

$8.91

$8.38

$7.58

$6.16

Total

return

....................................

19.86%

8.63%

13.09%

24.27%

(15.54)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.38%

1.39%

1.38%

1.37%

1.41%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.35%

1.35%

1.35%

1.35%

1.35%

Net

investment

income

...........................

1.27%

1.74%

2.03%

1.95%

1.57%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$111,450

$113,063

$121,214

$116,518

$103,984

Portfolio

turnover

rate

............................

47.28%

44.39%

c

42.01%

14.85%

29.07%

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

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3

(

h

)

for

prior

year

information.

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

5

a

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.96

$8.43

$7.63

$6.20

$7.64

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.18

0.20

0.21

0.18

0.15

Net

realized

and

unrealized

gains

(losses)

...........

1.62

0.54

0.81

1.36

(1.26)

Total

from

investment

operations

....................

1.80

0.74

1.02

1.54

(1.11)

Less

distributions

from:

Net

investment

income

..........................

(0.38)

(0.21)

(0.22)

(0.11)

(0.33)

Net

asset

value,

end

of

year

.......................

$10.38

$8.96

$8.43

$7.63

$6.20

Total

return

....................................

20.56%

9.31%

13.69%

25.02%

(14.98)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.79%

0.78%

0.78%

0.77%

0.81%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.74%

0.74%

0.74%

0.74%

0.73%

Net

investment

income

...........................

1.83%

2.37%

2.72%

2.57%

2.13%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$242,577

$368,372

$387,773

$341,058

$290,974

Portfolio

turnover

rate

............................

47.28%

44.39%

c

42.01%

14.85%

29.07%

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

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3

(

h

)

for

prior

year

information.

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

a

Year

Ended

August

31,

2026

2025

2024

2023

2022

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.97

$8.44

$7.64

$6.21

$7.64

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.17

0.18

0.20

0.17

0.15

Net

realized

and

unrealized

gains

(losses)

...........

1.62

0.55

0.81

1.36

(1.26)

Total

from

investment

operations

....................

1.79

0.73

1.01

1.53

(1.11)

Less

distributions

from:

Net

investment

income

..........................

(0.37)

(0.20)

(0.21)

(0.10)

(0.32)

Net

asset

value,

end

of

year

.......................

$10.39

$8.97

$8.44

$7.64

$6.21

Total

return

....................................

20.51%

9.14%

13.55%

24.84%

(14.99)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.88%

0.88%

0.88%

0.87%

0.92%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.85%

0.85%

0.85%

0.85%

0.85%

Net

investment

income

...........................

1.76%

2.19%

2.54%

2.43%

2.06%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$399,447

$546,122

$672,907

$680,297

$602,921

Portfolio

turnover

rate

............................

47.28%

44.39%

c

42.01%

14.85%

29.07%

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

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3

(

h

)

for

prior

year

information.

Templeton

Funds

Schedule

of

Investments,

August

31,

2026

Templeton

Foreign

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

7

a

a

Industry

Shares

a

Value

a

Common

Stocks

98.0%

China

6.3%

a

Alibaba

Group

Holding

Ltd.

.........

Broadline

Retail

2,127,474

$

30,411,745

a

JD.com,

Inc.

,

ADR

................

Broadline

Retail

1,789,675

50,540,422

Prosus

NV

.....................

Broadline

Retail

1,015,159

45,221,525

a

Tencent

Holdings

Ltd.

.............

Interactive

Media

&

Services

470,551

27,026,183

153,199,875

Denmark

1.6%

Novo

Nordisk

A/S

,

B

..............

Pharmaceuticals

892,296

40,410,287

France

7.0%

Carrefour

SA

....................

Consumer

Staples

Distribution

&

Retail

4,077,284

74,080,072

Cie

de

Saint-Gobain

SA

...........

Building

Products

480,206

43,523,404

Dassault

Aviation

SA

..............

Aerospace

&

Defense

159,849

52,697,153

170,300,629

Germany

3.6%

adidas

AG

......................

Textiles,

Apparel

&

Luxury

Goods

280,896

49,198,187

Heidelberg

Materials

AG

...........

Construction

Materials

199,410

38,008,484

87,206,671

Hong

Kong

2.3%

AIA

Group

Ltd.

..................

Insurance

2,588,509

25,024,671

Prudential

plc

...................

Insurance

2,314,134

31,474,784

56,499,455

Japan

8.5%

Daiwa

Securities

Group,

Inc.

........

Capital

Markets

5,079,031

58,321,666

Mizuho

Financial

Group,

Inc.

........

Banks

472,550

25,172,048

Sumitomo

Mitsui

Financial

Group,

Inc.

.

Banks

1,740,249

74,705,046

Toyota

Motor

Corp.

...............

Automobiles

2,525,051

49,594,626

207,793,386

Netherlands

9.6%

b

Akzo

Nobel

NV

..................

Chemicals

585,913

41,920,118

c

Euronext

NV

,

144A

,

Reg

S

.........

Capital

Markets

258,270

48,894,854

EXOR

NV

......................

Financial

Services

51,960

4,416,821

Heineken

NV

...................

Beverages

545,449

46,050,569

ING

Groep

NV

..................

Banks

2,627,638

93,019,774

234,302,136

Singapore

2.9%

STMicroelectronics

NV

............

Semiconductors

&

Semiconductor

Equipment

1,441,917

72,165,282

South

Korea

5.5%

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

&

Peripherals

470,241

88,773,456

SK

Hynix,

Inc.

...................

Semiconductors

&

Semiconductor

Equipment

14,570

17,633,893

d

SK

Hynix,

Inc.

,

ADR

..............

Semiconductors

&

Semiconductor

Equipment

165,600

27,254,448

133,661,797

Switzerland

3.0%

UBS

Group

AG

..................

Capital

Markets

1,342,295

73,499,339

Taiwan

6.4%

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

......................

Semiconductors

&

Semiconductor

Equipment

2,081,094

156,398,117

United

Kingdom

23.8%

AstraZeneca

plc

.................

Pharmaceuticals

442,602

71,355,375

Barratt

Redrow

plc

...............

Household

Durables

12,117,794

51,654,013

Templeton

Funds

Schedule

of

Investments

Templeton

Foreign

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

8

a

a

Industry

Shares

a

Value

a

Common

Stocks

(continued)

United

Kingdom

(continued)

b

Diageo

plc

,

ADR

.................

Beverages

529,894

$

48,670,764

JD

Sports

Fashion

plc

.............

Specialty

Retail

49,787,254

57,734,596

Lloyds

Banking

Group

plc

..........

Banks

40,004,930

58,980,545

Persimmon

plc

..................

Household

Durables

3,843,109

60,741,943

SSE

plc

.......................

Electric

Utilities

1,901,037

62,491,943

Standard

Chartered

plc

............

Banks

2,994,336

86,962,023

Unilever

plc

.....................

Personal

Care

Products

765,732

49,297,433

d

Verisure

plc

.....................

Commercial

Services

&

Supplies

3,294,878

34,020,467

581,909,102

United

States

17.5%

Booking

Holdings,

Inc.

............

Hotels,

Restaurants

&

Leisure

235,654

46,916,355

BP

plc

.........................

Oil,

Gas

&

Consumable

Fuels

9,834,453

70,343,803

b

CNH

Industrial

NV

................

Machinery

6,749,929

79,851,660

CRH

plc

.......................

Construction

Materials

474,849

44,773,512

Sanofi

SA

......................

Pharmaceuticals

697,937

62,052,915

Shell

plc

.......................

Oil,

Gas

&

Consumable

Fuels

1,203,360

55,133,411

Smurfit

Westrock

plc

..............

Containers

&

Packaging

1,479,558

69,391,270

428,462,926

Total

Common

Stocks

(Cost

$

1,759,273,559

)

....................................

2,395,809,002

Short

Term

Investments

2.9%

a

a

Industry

Principal

Amount

*

a

Value

a

a

a

a

a

a

Time

Deposits

1.9%

Canada

1.9%

Royal

Bank

of

Canada

,

3.58

%

,

9/01/26

44,900,000

44,900,000

Total

Time

Deposits

(Cost

$

44,900,000

)

........................................

44,900,000

Shares

e

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.0%

Money

Market

Funds

1.0%

f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund

,

3.629

%

......

25,016,440

25,016,440

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$

25,016,440

)

................................................................

25,016,440

a

a

a

a

a

Total

Short

Term

Investments

(Cost

$

69,916,440

)

................................

69,916,440

a

a

a

Total

Investments

(Cost

$

1,829,189,999

)

100.9

%

................................

$2,465,725,442

Other

Assets,

less

Liabilities

(

0.9

)

%

...........................................

(21,933,347)

Net

Assets

100.0%

...........................................................

$2,443,792,095

a

a

a

Templeton

Funds

Schedule

of

Investments

Templeton

Foreign

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

9

See

Abbreviations

on

page

33.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Variable

interest

entity

(VIE).

See

Note

6

regarding

investments

made

through

a

VIE

structure.

At

August

31,

2026,

the

aggregate

value

of

these

securities

was

$107,978,350,

representing

4.4%

of

net

assets.

b

A

portion

or

all

of

the

security

is

on

loan

at

August

31,

2026.

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

August

31,

2026,

the

value

of

this

security

was

$48,894,854,

representing

2.0%

of

net

assets.

d

Non-income

producing.

e

See

Note

1(c)

regarding

securities

on

loan.

f

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Templeton

Funds

Financial

Highlights

Templeton

World

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$18.87

$17.62

$13.91

$11.85

$15.52

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

....................

(—)

c

0.05

0.01

0.04

(—)

c

Net

realized

and

unrealized

gains

(losses)

...........

2.44

2.31

3.79

2.21

(3.44)

Total

from

investment

operations

....................

2.44

2.36

3.80

2.25

(3.44)

Less

distributions

from:

Net

investment

income

..........................

—

(—)

c

(0.09)

(0.05)

(0.23)

Net

realized

gains

.............................

(2.37)

(1.11)

—

(0.14)

—

Total

distributions

...............................

(2.37)

(1.11)

(0.09)

(0.19)

(0.23)

Net

asset

value,

end

of

year

.......................

$18.94

$18.87

$17.62

$13.91

$11.85

Total

return

d

...................................

13.89%

14.23%

27.48%

19.23%

(22.39)%

Ratios

to

average

net

assets

Expenses

.....................................

1.04%

e

1.05%

1.03%

e

1.04%

e

1.04%

Net

investment

income

(loss)

......................

(0.02)%

0.26%

0.09%

0.32%

(—)%

f

Supplemental

data

Net

assets

,

end

of

year

(000’s)

.....................

$2,800,951

$2,667,444

$2,592,377

$2,289,332

$2,138,297

Portfolio

turnover

rate

............................

107.93%

100.16%

52.04%

47.28%

81.20%

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

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Rounds

to

less

than

0.01%.

Templeton

Funds

Financial

Highlights

Templeton

World

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

11

a

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$17.70

$16.71

$13.21

$11.30

$14.76

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.13)

(0.08)

(0.10)

(0.06)

(0.10)

Net

realized

and

unrealized

gains

(losses)

...........

2.27

2.18

3.60

2.11

(3.29)

Total

from

investment

operations

....................

2.14

2.10

3.50

2.05

(3.39)

Less

distributions

from:

Net

investment

income

..........................

—

—

—

—

(0.07)

Net

realized

gains

.............................

(2.37)

(1.11)

—

(0.14)

—

Total

distributions

...............................

(2.37)

(1.11)

—

(0.14)

(0.07)

Net

asset

value,

end

of

year

.......................

$17.47

$17.70

$16.71

$13.21

$11.30

Total

return

c

...................................

12.98%

13.39%

26.50%

18.33%

(23.01)%

Ratios

to

average

net

assets

Expenses

.....................................

1.79%

d

1.80%

1.79%

d

1.79%

d

1.81%

Net

investment

(loss)

............................

(0.77)%

(0.50)%

(0.67)%

(0.48)%

(0.77)%

Supplemental

data

Net

assets

,

end

of

year

(000’s)

.....................

$4,716

$5,360

$6,187

$6,476

$7,348

Portfolio

turnover

rate

............................

107.93%

100.16%

52.04%

47.28%

81.20%

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

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Templeton

Funds

Financial

Highlights

Templeton

World

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$18.90

$17.64

$13.92

$11.86

$15.53

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.05

0.10

0.06

0.08

0.04

Net

realized

and

unrealized

gains

(losses)

...........

2.45

2.32

3.79

2.19

(3.43)

Total

from

investment

operations

....................

2.50

2.42

3.85

2.27

(3.39)

Less

distributions

from:

Net

investment

income

..........................

—

(0.05)

(0.13)

(0.07)

(0.28)

Net

realized

gains

.............................

(2.37)

(1.11)

—

(0.14)

—

Total

distributions

...............................

(2.37)

(1.16)

(0.13)

(0.21)

(0.28)

Net

asset

value,

end

of

year

.......................

$19.03

$18.90

$17.64

$13.92

$11.86

Total

return

....................................

14.16%

14.61%

27.85%

19.50%

(22.14)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.79%

0.78%

0.78%

0.77%

0.78%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.76%

0.76%

0.75%

0.75%

0.76%

Net

investment

income

...........................

0.26%

0.55%

0.41%

0.61%

0.29%

Supplemental

data

Net

assets

,

end

of

year

(000’s)

.....................

$29,085

$25,997

$26,493

$38,834

$34,238

Portfolio

turnover

rate

............................

107.93%

100.16%

52.04%

47.28%

81.20%

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.

Templeton

Funds

Financial

Highlights

Templeton

World

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

August

31,

2026

2025

2024

2023

2022

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$18.91

$17.65

$13.93

$11.86

$15.54

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.04

0.09

0.05

0.07

0.03

Net

realized

and

unrealized

gains

(losses)

...........

2.45

2.33

3.80

2.21

(3.44)

Total

from

investment

operations

....................

2.49

2.42

3.85

2.28

(3.41)

Less

distributions

from:

Net

investment

income

..........................

—

(0.05)

(0.13)

(0.07)

(0.27)

Net

realized

gains

.............................

(2.37)

(1.11)

—

(0.14)

—

Total

distributions

...............................

(2.37)

(1.16)

(0.13)

(0.21)

(0.27)

Net

asset

value,

end

of

year

.......................

$19.03

$18.91

$17.65

$13.93

$11.86

Total

return

....................................

14.09%

14.55%

27.81%

19.52%

(22.22)%

Ratios

to

average

net

assets

Expenses

.....................................

0.79%

c

0.80%

0.79%

c

0.79%

c

0.81%

Net

investment

income

...........................

0.23%

0.51%

0.33%

0.57%

0.24%

Supplemental

data

Net

assets

,

end

of

year

(000’s)

.....................

$104,294

$98,938

$93,548

$99,935

$86,424

Portfolio

turnover

rate

............................

107.93%

100.16%

52.04%

47.28%

81.20%

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

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Templeton

Funds

Schedule

of

Investments,

August

31,

2026

Templeton

World

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Industry

Shares

a

Value

a

Common

Stocks

95.5%

China

2.8%

a,b

Alibaba

Group

Holding

Ltd.

,

ADR

....

Broadline

Retail

486,030

$

55,417,141

BYD

Co.

Ltd.

,

H

.................

Automobiles

2,432,320

26,847,579

82,264,720

France

5.7%

Airbus

SE

......................

Aerospace

&

Defense

266,327

60,782,383

Safran

SA

......................

Aerospace

&

Defense

271,982

106,301,487

167,083,870

Germany

4.3%

Infineon

Technologies

AG

..........

Semiconductors

&

Semiconductor

Equipment

411,206

26,805,332

Siemens

Energy

AG

..............

Electrical

Equipment

597,080

98,343,625

125,148,957

Hong

Kong

3.2%

AIA

Group

Ltd.

..................

Insurance

6,496,297

62,803,605

Hong

Kong

Exchanges

&

Clearing

Ltd.

Capital

Markets

586,930

31,733,219

94,536,824

Japan

2.8%

IHI

Corp.

.......................

Machinery

1,800,790

30,087,555

Mitsubishi

Heavy

Industries

Ltd.

.....

Machinery

973,260

23,584,517

Mizuho

Financial

Group,

Inc.

........

Banks

563,630

30,023,746

83,695,818

Netherlands

4.0%

ASML

Holding

NV

................

Semiconductors

&

Semiconductor

Equipment

28,995

49,176,493

ING

Groep

NV

..................

Banks

1,903,827

67,396,482

116,572,975

South

Korea

4.8%

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

&

Peripherals

387,369

73,128,640

SK

Hynix,

Inc.

...................

Semiconductors

&

Semiconductor

Equipment

57,230

69,264,771

142,393,411

Taiwan

4.8%

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

......................

Semiconductors

&

Semiconductor

Equipment

927,655

69,715,013

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

,

ADR

..................

Semiconductors

&

Semiconductor

Equipment

172,256

71,541,362

141,256,375

United

Kingdom

8.8%

AstraZeneca

plc

.................

Pharmaceuticals

291,610

47,012,758

HSBC

Holdings

plc

...............

Banks

3,613,270

74,012,210

Rolls-Royce

Holdings

plc

..........

Aerospace

&

Defense

5,340,939

108,550,143

SSE

plc

.......................

Electric

Utilities

864,353