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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR\n

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT\nINVESTMENT 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\ncode: (650) 312-2000

Date of fiscal year end: August 31

Date of reporting period: August 31, 2026

\n \n \n \n

ITEM 1.

REPORT TO STOCKHOLDERS

(a) The Report to Shareholders is filed herewith

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton Foreign Fund\n \n	\n $\"image\"$ \n
\n Class A [TEMFX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class A \n	\n $121 \n	\n 1.10% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n The strongest positive contribution theme was in artificial intelligence (AI) infrastructure and semiconductors. The top two contributors at the stock level were Samsung Electronics and STMicroelectronics, supported by memory demand, high-bandwidth memory and AI-related supply tightness. ASM International was another key contributor benefiting from these dynamics. \n
\n ↑ \n	\n Elsewhere, SSE, a U.K. network and renewables utility, was a significant contributor during the year, having raised substantial equity funding alongside its Q3 2025 results, confirming 2030 guidance and highlighting significant opportunities in transmission infrastructure over the next decade. \n
\n ↑ \n	\n Information technology was the best performing sector in relative terms followed by communication services. Within the latter sector, no single stock made an especially significant contribution to relative performance, but the Fund benefited from an underweight allocation to a sector which was the worst performing GICS sector for the core benchmark during the period. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection in industrials was the principal source of detraction. Within the sector, Verisure, the Swedish home security company was the largest detractor from performance. The company’s post IPO life has been challenging, as it has so far been unable to strike a satisfactory balance of free-cash-flow generation and subscription growth. Adecco Group and CNH Industrial also detracted due to stock specific reasons. \n
\n ↓ \n	\n Health care detracted during the period owing to adverse stock selection effects. Ireland-based ICON plc was the biggest detractor from the sector as the stock fell sharply after accounting irregularities were disclosed during the first quarter of 2026. Pharmaceuticals group Sanofi was also amongst the top ten detractors at the stock level. \n
\n ↓ \n	\n The single largest detractor at the stock level was India-based HDFC Bank which detracted after the unexpected chairman resignation raised governance concerns. \n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 1 \n

104-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

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.\n

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

$\"image\"$

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class A\n \n	\n 20.18 \n	\n 9.38 \n	\n 7.00 \n
\n Class A (with sales charge)\n \n	\n 13.60 \n	\n 8.15 \n	\n 6.39 \n
\n MSCI All Country World ex-U.S. Index-NR\n \n	\n 27.35 \n	\n 9.37 \n	\n 9.65 \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $2,443,792,095 \n
\n Total Number of Portfolio Holdings \n	\n 47 \n
\n Total Management Fee Paid \n	\n $16,846,479 \n
\n Portfolio Turnover Rate \n	\n 47.28% \n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 2 \n

104-ATSR-1026

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

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

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 prospectus.us.franklintempleton@fisglobal.com.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

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.

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 3 \n

104-ATSR-1026

9450109461093096479381118731006212535141991546418585100001188812266118651285216048129151445117083197172511048.231.617.42.8

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton Foreign Fund\n \n	\n $\"image\"$ \n
\n Class C [TEFTX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class C \n	\n $203 \n	\n 1.85% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n The strongest positive contribution theme was in artificial intelligence (AI) infrastructure and semiconductors. The top two contributors at the stock level were Samsung Electronics and STMicroelectronics, supported by memory demand, high-bandwidth memory and AI-related supply tightness. ASM International was another key contributor benefiting from these dynamics. \n
\n ↑ \n	\n Elsewhere, SSE, a U.K. network and renewables utility, was a significant contributor during the year, having raised substantial equity funding alongside its Q3 2025 results, confirming 2030 guidance and highlighting significant opportunities in transmission infrastructure over the next decade. \n
\n ↑ \n	\n Information technology was the best performing sector in relative terms followed by communication services. Within the latter sector, no single stock made an especially significant contribution to relative performance, but the Fund benefited from an underweight allocation to a sector which was the worst performing GICS sector for the core benchmark during the period. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection in industrials was the principal source of detraction. Within the sector, Verisure, the Swedish home security company was the largest detractor from performance. The company’s post IPO life has been challenging, as it has so far been unable to strike a satisfactory balance of free-cash-flow generation and subscription growth. Adecco Group and CNH Industrial also detracted due to stock specific reasons. \n
\n ↓ \n	\n Health care detracted during the period owing to adverse stock selection effects. Ireland-based ICON plc was the biggest detractor from the sector as the stock fell sharply after accounting irregularities were disclosed during the first quarter of 2026. Pharmaceuticals group Sanofi was also amongst the top ten detractors at the stock level. \n
\n ↓ \n	\n The single largest detractor at the stock level was India-based HDFC Bank which detracted after the unexpected chairman resignation raised governance concerns. \n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 1 \n

204-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

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

$\"image\"$

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class C\n \n	\n 19.30 \n	\n 8.55 \n	\n 6.20 \n
\n Class C (with sales charge)\n \n	\n 18.30 \n	\n 8.55 \n	\n 6.20 \n
\n MSCI All Country World ex-U.S. Index-NR\n \n	\n 27.35 \n	\n 9.37 \n	\n 9.65 \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $2,443,792,095 \n
\n Total Number of Portfolio Holdings \n	\n 47 \n
\n Total Management Fee Paid \n	\n $16,846,479 \n
\n Portfolio Turnover Rate \n	\n 47.28% \n

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

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 2 \n

204-ATSR-1026

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.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 3 \n

204-ATSR-1026

10000114921140199879646121101017812586141471529718249100001188812266118651285216048129151445117083197172511048.231.617.42.8

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton Foreign Fund\n \n	\n $\"image\"$ \n
\n Class R [TEFRX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class R \n	\n $148 \n	\n 1.35% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n The strongest positive contribution theme was in artificial intelligence (AI) infrastructure and semiconductors. The top two contributors at the stock level were Samsung Electronics and STMicroelectronics, supported by memory demand, high-bandwidth memory and AI-related supply tightness. ASM International was another key contributor benefiting from these dynamics. \n
\n ↑ \n	\n Elsewhere, SSE, a U.K. network and renewables utility, was a significant contributor during the year, having raised substantial equity funding alongside its Q3 2025 results, confirming 2030 guidance and highlighting significant opportunities in transmission infrastructure over the next decade. \n
\n ↑ \n	\n Information technology was the best performing sector in relative terms followed by communication services. Within the latter sector, no single stock made an especially significant contribution to relative performance, but the Fund benefited from an underweight allocation to a sector which was the worst performing GICS sector for the core benchmark during the period. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection in industrials was the principal source of detraction. Within the sector, Verisure, the Swedish home security company was the largest detractor from performance. The company’s post IPO life has been challenging, as it has so far been unable to strike a satisfactory balance of free-cash-flow generation and subscription growth. Adecco Group and CNH Industrial also detracted due to stock specific reasons. \n
\n ↓ \n	\n Health care detracted during the period owing to adverse stock selection effects. Ireland-based ICON plc was the biggest detractor from the sector as the stock fell sharply after accounting irregularities were disclosed during the first quarter of 2026. Pharmaceuticals group Sanofi was also amongst the top ten detractors at the stock level. \n
\n ↓ \n	\n The single largest detractor at the stock level was India-based HDFC Bank which detracted after the unexpected chairman resignation raised governance concerns. \n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 1 \n

804-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

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

$\"image\"$

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class R\n \n	\n 19.86 \n	\n 9.10 \n	\n 6.74 \n
\n MSCI All Country World ex-U.S. Index-NR\n \n	\n 27.35 \n	\n 9.37 \n	\n 9.65 \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $2,443,792,095 \n
\n Total Number of Portfolio Holdings \n	\n 47 \n
\n Total Management Fee Paid \n	\n $16,846,479 \n
\n Portfolio Turnover Rate \n	\n 47.28% \n

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

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 2 \n

804-ATSR-1026

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.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 3 \n

804-ATSR-1026

100001155711520101439835124201049013036147421601419194100001188812266118651285216048129151445117083197172511048.231.617.42.8

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton Foreign Fund\n \n	\n $\"image\"$ \n
\n Class R6 [FTFGX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class R6 \n	\n $82 \n	\n 0.74% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n The strongest positive contribution theme was in artificial intelligence (AI) infrastructure and semiconductors. The top two contributors at the stock level were Samsung Electronics and STMicroelectronics, supported by memory demand, high-bandwidth memory and AI-related supply tightness. ASM International was another key contributor benefiting from these dynamics. \n
\n ↑ \n	\n Elsewhere, SSE, a U.K. network and renewables utility, was a significant contributor during the year, having raised substantial equity funding alongside its Q3 2025 results, confirming 2030 guidance and highlighting significant opportunities in transmission infrastructure over the next decade. \n
\n ↑ \n	\n Information technology was the best performing sector in relative terms followed by communication services. Within the latter sector, no single stock made an especially significant contribution to relative performance, but the Fund benefited from an underweight allocation to a sector which was the worst performing GICS sector for the core benchmark during the period. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection in industrials was the principal source of detraction. Within the sector, Verisure, the Swedish home security company was the largest detractor from performance. The company’s post IPO life has been challenging, as it has so far been unable to strike a satisfactory balance of free-cash-flow generation and subscription growth. Adecco Group and CNH Industrial also detracted due to stock specific reasons. \n
\n ↓ \n	\n Health care detracted during the period owing to adverse stock selection effects. Ireland-based ICON plc was the biggest detractor from the sector as the stock fell sharply after accounting irregularities were disclosed during the first quarter of 2026. Pharmaceuticals group Sanofi was also amongst the top ten detractors at the stock level. \n
\n ↓ \n	\n The single largest detractor at the stock level was India-based HDFC Bank which detracted after the unexpected chairman resignation raised governance concerns. \n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 1 \n

340-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

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

$\"image\"$

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class R6\n \n	\n 20.56 \n	\n 9.75 \n	\n 7.41 \n
\n MSCI All Country World ex-U.S. Index-NR\n \n	\n 27.35 \n	\n 9.37 \n	\n 9.65 \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $2,443,792,095 \n
\n Total Number of Portfolio Holdings \n	\n 47 \n
\n Total Management Fee Paid \n	\n $16,846,479 \n
\n Portfolio Turnover Rate \n	\n 47.28% \n

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

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 2 \n

340-ATSR-1026

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.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 3 \n

340-ATSR-1026

1000011652116791035510108128391091513646155151696020448100001188812266118651285216048129151445117083197172511048.231.617.42.8

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton Foreign Fund\n \n	\n $\"image\"$ \n
\n Advisor Class [TFFAX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Advisor Class \n	\n $94 \n	\n 0.85% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n The strongest positive contribution theme was in artificial intelligence (AI) infrastructure and semiconductors. The top two contributors at the stock level were Samsung Electronics and STMicroelectronics, supported by memory demand, high-bandwidth memory and AI-related supply tightness. ASM International was another key contributor benefiting from these dynamics. \n
\n ↑ \n	\n Elsewhere, SSE, a U.K. network and renewables utility, was a significant contributor during the year, having raised substantial equity funding alongside its Q3 2025 results, confirming 2030 guidance and highlighting significant opportunities in transmission infrastructure over the next decade. \n
\n ↑ \n	\n Information technology was the best performing sector in relative terms followed by communication services. Within the latter sector, no single stock made an especially significant contribution to relative performance, but the Fund benefited from an underweight allocation to a sector which was the worst performing GICS sector for the core benchmark during the period. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection in industrials was the principal source of detraction. Within the sector, Verisure, the Swedish home security company was the largest detractor from performance. The company’s post IPO life has been challenging, as it has so far been unable to strike a satisfactory balance of free-cash-flow generation and subscription growth. Adecco Group and CNH Industrial also detracted due to stock specific reasons. \n
\n ↓ \n	\n Health care detracted during the period owing to adverse stock selection effects. Ireland-based ICON plc was the biggest detractor from the sector as the stock fell sharply after accounting irregularities were disclosed during the first quarter of 2026. Pharmaceuticals group Sanofi was also amongst the top ten detractors at the stock level. \n
\n ↓ \n	\n The single largest detractor at the stock level was India-based HDFC Bank which detracted after the unexpected chairman resignation raised governance concerns. \n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 1 \n

604-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

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

$\"image\"$

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Advisor Class\n \n	\n 20.51 \n	\n 9.65 \n	\n 7.26 \n
\n MSCI All Country World ex-U.S. Index-NR\n \n	\n 27.35 \n	\n 9.37 \n	\n 9.65 \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $2,443,792,095 \n
\n Total Number of Portfolio Holdings \n	\n 47 \n
\n Total Management Fee Paid \n	\n $16,846,479 \n
\n Portfolio Turnover Rate \n	\n 47.28% \n

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

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 2 \n

604-ATSR-1026

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.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton Foreign Fund \n

PAGE 3 \n

604-ATSR-1026

1000011610116291028810023127181081113497153261672720158100001188812266118651285216048129151445117083197172511048.231.617.42.8

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton World Fund\n \n	\n $\"image\"$ \n
\n Class A [TEMWX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class A \n	\n $111 \n	\n 1.04% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n The strongest positive contribution at the sector level was from utilities, primarily due to stock selection. Within this sector, SSE, a U.K. networks and renewables utility, was a significant contributor during the year, having raised substantial equity funding alongside its Q3 2025 results, confirming 2030 guidance and highlighting significant opportunities in transmission infrastructure over the next decade. \n
\n ↑ \n	\n Stock selection in industrials also helped with relative performance with Rolls-Royce Holdings, a leading contributor. The shares benefited from continued improvements in profitability and cash generation, supported by stronger civil aerospace aftermarket earnings and robust growth across its defense and power systems businesses. \n
\n ↑ \n	\n The largest stock-level contributor was Samsung Electronics, whose shares benefited from strong memory demand, improving high-bandwidth memory prospects and artificial intelligence (AI)-related supply tightness. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection and an overweight allocation in materials was the principal source of detraction. Within the sector, construction materials group CRH was the largest detractor from relative performance. Its shares were held back by subdued residential construction demand and, later in the period, investor concerns over the cost and execution risks associated with its proposed acquisition of Arcosa. Containers and packing company Smurfit Westrock was another major detractor within the sector. \n
\n ↓ \n	\n Information technology also detracted owing to adverse stock selection, with five of the ten largest relative detractors drawn from the sector. SAP and Microsoft were the two largest detractors, as software shares were de-rated amid concerns over AI-led disruption, elevated capital spending and uncertain near-term returns. SAP also faced weaker-than-expected cloud guidance, while Microsoft was pressured by concerns over AI investment and free cash flow. \n
\n ↓ \n	\n The single largest detractor at the stock level was Ireland-based healthcare group ICON plc as the stock fell sharply after accounting irregularities were disclosed during the first quarter of 2026. \n

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 1 \n

102-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

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

$\"image\"$

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class A\n \n	\n 13.89 \n	\n 8.94 \n	\n 8.22 \n
\n Class A (with sales charge)\n \n	\n 7.62 \n	\n 7.72 \n	\n 7.61 \n
\n MSCI All Country World Index-NR\n \n	\n 22.35 \n	\n 10.89 \n	\n 12.58 \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $2,939,046,127 \n
\n Total Number of Portfolio Holdings \n	\n 47 \n
\n Total Management Fee Paid \n	\n $19,825,255 \n
\n Portfolio Turnover Rate \n	\n 107.93% \n

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 2 \n

102-ATSR-1026

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

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

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.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 3 \n

102-ATSR-1026

945011004118641065111127135681053012555160051828320823100001171113048130111516119504164061869423076267213269354.522.818.54.2

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton World Fund\n \n	\n $\"image\"$ \n
\n Class C [TEWTX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class C \n	\n $191 \n	\n 1.79% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n The strongest positive contribution at the sector level was from utilities, primarily due to stock selection. Within this sector, SSE, a U.K. networks and renewables utility, was a significant contributor during the year, having raised substantial equity funding alongside its Q3 2025 results, confirming 2030 guidance and highlighting significant opportunities in transmission infrastructure over the next decade. \n
\n ↑ \n	\n Stock selection in industrials also helped with relative performance with Rolls-Royce Holdings, a leading contributor. The shares benefited from continued improvements in profitability and cash generation, supported by stronger civil aerospace aftermarket earnings and robust growth across its defense and power systems businesses. \n
\n ↑ \n	\n The largest stock-level contributor was Samsung Electronics, whose shares benefited from strong memory demand, improving high-bandwidth memory prospects and artificial intelligence (AI)-related supply tightness. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection and an overweight allocation in materials was the principal source of detraction. Within the sector, construction materials group CRH was the largest detractor from relative performance. Its shares were held back by subdued residential construction demand and, later in the period, investor concerns over the cost and execution risks associated with its proposed acquisition of Arcosa. Containers and packing company Smurfit Westrock was another major detractor within the sector. \n
\n ↓ \n	\n Information technology also detracted owing to adverse stock selection, with five of the ten largest relative detractors drawn from the sector. SAP and Microsoft were the two largest detractors, as software shares were de-rated amid concerns over AI-led disruption, elevated capital spending and uncertain near-term returns. SAP also faced weaker-than-expected cloud guidance, while Microsoft was pressured by concerns over AI investment and free cash flow. \n
\n ↓ \n	\n The single largest detractor at the stock level was Ireland-based healthcare group ICON plc as the stock fell sharply after accounting irregularities were disclosed during the first quarter of 2026. \n

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 1 \n

202-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

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

$\"image\"$

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class C\n \n	\n 12.98 \n	\n 8.10 \n	\n 7.39 \n
\n Class C (with sales charge)\n \n	\n 11.99 \n	\n 8.10 \n	\n 7.39 \n
\n MSCI All Country World Index-NR\n \n	\n 22.35 \n	\n 10.89 \n	\n 12.58 \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $2,939,046,127 \n
\n Total Number of Portfolio Holdings \n	\n 47 \n
\n Total Management Fee Paid \n	\n $19,825,255 \n
\n Portfolio Turnover Rate \n	\n 107.93% \n

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

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 2 \n

202-ATSR-1026

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.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 3 \n

202-ATSR-1026

1000011559123701101611414138221064212593159301806320407100001171113048130111516119504164061869423076267213269354.522.818.54.2

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton World Fund\n \n	\n $\"image\"$ \n
\n Class R6 [FTWRX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Class R6 \n	\n $81 \n	\n 0.76% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n The strongest positive contribution at the sector level was from utilities, primarily due to stock selection. Within this sector, SSE, a U.K. networks and renewables utility, was a significant contributor during the year, having raised substantial equity funding alongside its Q3 2025 results, confirming 2030 guidance and highlighting significant opportunities in transmission infrastructure over the next decade. \n
\n ↑ \n	\n Stock selection in industrials also helped with relative performance with Rolls-Royce Holdings, a leading contributor. The shares benefited from continued improvements in profitability and cash generation, supported by stronger civil aerospace aftermarket earnings and robust growth across its defense and power systems businesses. \n
\n ↑ \n	\n The largest stock-level contributor was Samsung Electronics, whose shares benefited from strong memory demand, improving high-bandwidth memory prospects and artificial intelligence (AI)-related supply tightness. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection and an overweight allocation in materials was the principal source of detraction. Within the sector, construction materials group CRH was the largest detractor from relative performance. Its shares were held back by subdued residential construction demand and, later in the period, investor concerns over the cost and execution risks associated with its proposed acquisition of Arcosa. Containers and packing company Smurfit Westrock was another major detractor within the sector. \n
\n ↓ \n	\n Information technology also detracted owing to adverse stock selection, with five of the ten largest relative detractors drawn from the sector. SAP and Microsoft were the two largest detractors, as software shares were de-rated amid concerns over AI-led disruption, elevated capital spending and uncertain near-term returns. SAP also faced weaker-than-expected cloud guidance, while Microsoft was pressured by concerns over AI investment and free cash flow. \n
\n ↓ \n	\n The single largest detractor at the stock level was Ireland-based healthcare group ICON plc as the stock fell sharply after accounting irregularities were disclosed during the first quarter of 2026. \n

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 1 \n

802-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

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

$\"image\"$

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Class R6\n \n	\n 14.16 \n	\n 9.25 \n	\n 8.54 \n
\n MSCI All Country World Index-NR\n \n	\n 22.35 \n	\n 10.89 \n	\n 12.58 \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $2,939,046,127 \n
\n Total Number of Portfolio Holdings \n	\n 47 \n
\n Total Management Fee Paid \n	\n $19,825,255 \n
\n Portfolio Turnover Rate \n	\n 107.93% \n

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

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 2 \n

802-ATSR-1026

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.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 3 \n

802-ATSR-1026

1000011687126371138811924145841135513569173481988222698100001171113048130111516119504164061869423076267213269354.522.818.54.2

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Templeton World Fund\n \n	\n $\"image\"$ \n
\n Advisor Class [TWDAX] \n
\n Annual Shareholder Report \| August 31, 2026\n \n
\n $\"image\"$ \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n
\n Class Name \n	\n Costs of a $10,000 investment \n	\n Costs paid as a percentage of a $10,000 investment^*\n \n
\n Advisor Class \n	\n $85 \n	\n 0.79% \n

\n \n \n \n \n

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top contributors to performance: \n
\n ↑ \n	\n The strongest positive contribution at the sector level was from utilities, primarily due to stock selection. Within this sector, SSE, a U.K. networks and renewables utility, was a significant contributor during the year, having raised substantial equity funding alongside its Q3 2025 results, confirming 2030 guidance and highlighting significant opportunities in transmission infrastructure over the next decade. \n
\n ↑ \n	\n Stock selection in industrials also helped with relative performance with Rolls-Royce Holdings, a leading contributor. The shares benefited from continued improvements in profitability and cash generation, supported by stronger civil aerospace aftermarket earnings and robust growth across its defense and power systems businesses. \n
\n ↑ \n	\n The largest stock-level contributor was Samsung Electronics, whose shares benefited from strong memory demand, improving high-bandwidth memory prospects and artificial intelligence (AI)-related supply tightness. \n

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Top detractors from performance: \n
\n ↓ \n	\n Stock selection and an overweight allocation in materials was the principal source of detraction. Within the sector, construction materials group CRH was the largest detractor from relative performance. Its shares were held back by subdued residential construction demand and, later in the period, investor concerns over the cost and execution risks associated with its proposed acquisition of Arcosa. Containers and packing company Smurfit Westrock was another major detractor within the sector. \n
\n ↓ \n	\n Information technology also detracted owing to adverse stock selection, with five of the ten largest relative detractors drawn from the sector. SAP and Microsoft were the two largest detractors, as software shares were de-rated amid concerns over AI-led disruption, elevated capital spending and uncertain near-term returns. SAP also faced weaker-than-expected cloud guidance, while Microsoft was pressured by concerns over AI investment and free cash flow. \n
\n ↓ \n	\n The single largest detractor at the stock level was Ireland-based healthcare group ICON plc as the stock fell sharply after accounting irregularities were disclosed during the first quarter of 2026. \n

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 1 \n

602-ATSR-1026

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?\n

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

$\"image\"$

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

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n	\n	\n
\n \n	\n 1 Year \n	\n 5 Year \n	\n 10 Year \n
\n Advisor Class\n \n	\n 14.09 \n	\n 9.20 \n	\n 8.48 \n
\n MSCI All Country World Index-NR\n \n	\n 22.35 \n	\n 10.89 \n	\n 12.58 \n

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)

\n \n

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n Total Net Assets \n	\n $2,939,046,127 \n
\n Total Number of Portfolio Holdings \n	\n 47 \n
\n Total Management Fee Paid \n	\n $19,825,255 \n
\n Portfolio Turnover Rate \n	\n 107.93% \n

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

Portfolio Composition^* (% of Total Investments)

$\"image\"$

\n \n \n \n \n

*	Does not include derivatives, except purchased options, if any.

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 2 \n

602-ATSR-1026

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.

\n \n \n \n \n \n \n \n \n \n \n \n \n

\n	\n
\n $\"image\"$ \n	\n WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? \n
\n Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: \n
\n • prospectus • proxy voting information • financial information • holdings • tax information \n

HOUSEHOLDING\n

\n \n \n \n \n \n

Templeton World Fund \n

PAGE 3 \n

602-ATSR-1026

1000011674126171135711886145351130513512172701978222570100001171113048130111516119504164061869423076267213269354.522.818.54.2

(b) Not applicable

\n \n \n \n

ITEM 2.

CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics that applies\nto its principal executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 19(a) (1), the Registrant is attaching\nas an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

\n \n \n \n

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the Registrant has determined that\nAnn Torre Bates and David W. Niemiec possess the technical attributes identified in Item 3 to Form N-CSR to qualify as “audit committee\nfinancial experts,” and has designated Ann Torre Bates and David W. Niemiec as the Audit Committee’s financial experts. Ann\nTorre 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\nbe an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the\npurposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert.\nThe designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations,\nor liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board\nof directors in the absence of such designation or identification. The designation or identification of a person as an audit committee\nfinancial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

\n \n \n \n

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

a) Audit Fees.\nThe aggregate fees billed in the last two fiscal years ending August 31, 2025 and August 31, 2026 (the “Reporting Periods”)\nfor professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s\nannual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings\nor engagements for the Reporting Periods, were $97,689 in August 31, 2025 and $97,630 in August 31, 2026.

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

(c) Tax Fees.\nThe aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and\ntax planning (“Tax Services”) were $21,000 in August 31, 2025 and $21,000 in August 31, 2026. These services consisted of\n(i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice\nand assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters\nand/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\nto 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\nRegistrant (“Service Affiliates”) during the Reporting Periods that required pre-approval by the Audit Committee.

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

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

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

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

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

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

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

(iv) establishment by the Audit Committee,\nif deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the Auditors, as required\nby paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through\nestablishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are\ndetailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation\nof Audit Committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of\n(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\n(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\nto 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\nwhether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval),\nis compatible with maintaining the Auditor’s independence. All services provided by the Auditor to the Registrant or to the Service\nAffiliates, which were required to be pre-approved, were pre-approved as required.

(i) Not applicable.

(j) Not applicable.

\n \n \n \n

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

\n \n \n \n

ITEM 6.

SCHEDULE OF INVESTMENTS.

\n \n \n \n

(a)

Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.

\n \n \n \n

(b)

Not applicable.

\n \n \n \n

ITEM 7.

FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

Templeton

Funds

Financial\n

Statements\n

and\n

Other\n

Important\n

Information

Annual

|\n

August\n

31, 2026

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

If\n

you\n

need\n

assistance\n

accessing\n

this\n

content,\n

please\n

reach\n

out\n

to\n

your\n

sales\n

representative\n

or\n

send\n

an\n

email\n

accessibility@franklintempleton.com

Table\n

of\n

Contents

franklintempleton.com

Financial\n

Statements\n

and\n

Other\n

Important\n

Information—Annual

Financial\n

Highlights\n

and\n

Schedules\n

of\n

Investments

Financial\n

Statements

Notes\n

to\n

Financial\n

Statements

Report\n

of\n

Independent\n

Registered\n

Public\n

Accounting\n

Firm

Tax\n

Information

Changes\n

In\n

and\n

Disagreements\n

with\n

Accountants

Results\n

of\n

Meeting(s)\n

of\n

Shareholders

Remuneration\n

Paid\n

to\n

Directors,\n

Officers\n

and\n

Others

Board\n

Approval\n

of\n

Management\n

and\n

Subadvisory\n

Agreements\n

Templeton\n

Funds

Financial

Highlights

Templeton\n

Foreign\n

Fund

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Year\n

Ended\n

August\n

31,

2026

2025

2024

2023

2022

Class\n

Per\n

share\n

operating\n

performance

(for

outstanding\n

throughout\n

the

year)

Net

asset

value,

beginning\n

year

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

$9.15

$8.60

$7.78

$6.32

$7.77

Income

from

investment\n

operations

Net

investment\n

income

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

0.15

0.17

0.18

0.16

0.13

Net

realized

and

unrealized\n

gains

(losses)

...........

1.65

0.56

0.83

1.38

(1.28)

Total\n

from

investment\n

operations

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

1.80

0.73

1.01

1.54

(1.15)

Less

distributions\n

from:

Net

investment\n

income

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

(0.35)

(0.18)

(0.19)

(0.08)

(0.30)

Net

asset

value,

end

year

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

$10.60

$9.15

$8.60

$7.78

$6.32

Total\n

return

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

20.18%

8.91%

13.28%

24.57%

(15.25)%

Ratios\n

to\n

average\n

net\n

assets

Expenses

before

waiver

and

payments\n

affiliates

......

1.13%

1.12%

1.16%

Expenses

net

waiver

and

payments\n

affiliates

.......

1.10%

Net

investment\n

income

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

1.54%

1.99%

2.26%

2.20%

1.80%

Supplemental\n

data

Net

assets,

end

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%

42.01%

14.85%

29.07%

The\n

amount\n

shown\n

for\n

a\n

share\n

outstanding\n

throughout\n

the\n

period\n

may\n

not\n

correlate\n

with\n

the\n

Statement\n

of\n

Operations\n

for\n

the\n

period\n

due\n

to\n

the\n

timing\n

of\n

sales\n

and\n

repurchases\n

of\n

the\n

Fund’s\n

shares\n

in\n

relation\n

to\n

income\n

earned\n

and/or\n

fluctuating\n

fair\n

value\n

of\n

the\n

investments\n

of\n

the\n

Fund.

Based\n

on\n

average\n

daily\n

shares\n

outstanding.

Total\n

return\n

does\n

not\n

reflect\n

sales\n

commissions\n

or\n

contingent\n

deferred\n

sales\n

charges,\n

if\n

applicable.

Excludes\n

the\n

value\n

of\n

portfolio\n

activity\n

as\n

a\n

result\n

of\n

in-kind\n

transactions.\n

See\n

Note\n

(

)\n

for\n

prior\n

year\n

information.

Templeton\n

Funds

Financial\n

Highlights

Templeton\n

Foreign\n

Fund\n

(continued)

franklintempleton.com

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Annual\n

Report

Year\n

Ended\n

August\n

31,

2026

2025

2024

2023

2022

Class\n

Per\n

share\n

operating\n

performance

(for

outstanding\n

throughout\n

the

year)

Net

asset

value,

beginning\n

year

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

$9.16

$8.59

$7.76

$6.29

$7.70

Income

from

investment\n

operations

Net

investment\n

income

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

0.08

0.10

0.12

0.10

0.07

Net

realized

and

unrealized\n

gains

(losses)

...........

1.65

0.58

0.83

1.39

(1.27)

Total\n

from

investment\n

operations

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

1.73

0.68

0.95

1.49

(1.20)

Less

distributions\n

from:

Net

investment\n

income

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

(0.27)

(0.11)

(0.12)

(0.02)

(0.21)

Net

asset

value,

end

year

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

$10.62

$9.16

$8.59

$7.76

$6.29

Total\n

return

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

19.30%

8.13%

12.40%

23.65%

(15.95)%

Ratios\n

to\n

average\n

net\n

assets

Expenses

before

waiver

and

payments\n

affiliates

......

1.88%

1.87%

1.91%

Expenses

net

waiver

and

payments\n

affiliates

.......

1.85%

Net

investment\n

income

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

0.77%

1.17%

1.47%

1.41%

1.03%

Supplemental\n

data

Net

assets,

end

year

(000’s)

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

$13,031

$13,876

$17,220

$21,611

$23,962

Portfolio

turnover

rate

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

47.28%

44.39%

42.01%

14.85%

29.07%

The\n

amount\n

shown\n

for\n

a\n

share\n

outstanding\n

throughout\n

the\n

period\n

may\n

not\n

correlate\n

with\n

the\n

Statement\n

of\n

Operations\n

for\n

the\n

period\n

due\n

to\n

the\n

timing\n

of\n

sales\n

and\n

repurchases\n

of\n

the\n

Fund’s\n

shares\n

in\n

relation\n

to\n

income\n

earned\n

and/or\n

fluctuating\n

fair\n

value\n

of\n

the\n

investments\n

of\n

the\n

Fund.

Based\n

on\n

average\n

daily\n

shares\n

outstanding.

Total\n

return\n

does\n

not\n

reflect\n

sales\n

commissions\n

or\n

contingent\n

deferred\n

sales\n

charges,\n

if\n

applicable.

Excludes\n

the\n

value\n

of\n

portfolio\n

activity\n

as\n

a\n

result\n

of\n

in-kind\n

transactions.\n

See\n

Note\n

(

)\n

for\n

prior\n

year\n

information.

Templeton\n

Funds

Financial\n

Highlights

Templeton\n

Foreign\n

Fund\n

(continued)

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Year\n

Ended\n

August\n

31,

2026

2025

2024

2023

2022

Class\n

Per\n

share\n

operating\n

performance

(for

outstanding\n

throughout\n

the

year)

Net

asset

value,

beginning\n

year

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

$8.91

$8.38

$7.58

$6.16

$7.58

Income

from

investment\n

operations

Net

investment\n

income

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

0.12

0.14

0.16

0.14

0.11

Net

realized

and

unrealized\n

gains

(losses)

...........

1.61

0.55

0.82

1.35

(1.25)

Total\n

from

investment\n

operations

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

1.73

0.69

0.98

1.49

(1.14)

Less

distributions\n

from:

Net

investment\n

income

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

(0.33)

(0.16)

(0.18)

(0.07)

(0.28)

Net

asset

value,

end

year

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

$10.31

$8.91

$8.38

$7.58

$6.16

Total\n

return

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

19.86%

8.63%

13.09%

24.27%

(15.54)%

Ratios\n

to\n

average\n

net\n

assets

Expenses

before

waiver

and

payments\n

affiliates

......

1.38%

1.39%

1.38%

1.37%

1.41%

Expenses

net

waiver

and

payments\n

affiliates

.......

1.35%

Net

investment\n

income

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

1.27%

1.74%

2.03%

1.95%

1.57%

Supplemental\n

data

Net

assets,

end

year

(000’s)

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

$111,450

$113,063

$121,214

$116,518

$103,984

Portfolio

turnover

rate

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

47.28%

44.39%

42.01%

14.85%

29.07%

The\n

amount\n

shown\n

for\n

a\n

share\n

outstanding\n

throughout\n

the\n

period\n

may\n

not\n

correlate\n

with\n

the\n

Statement\n

of\n

Operations\n

for\n

the\n

period\n

due\n

to\n

the\n

timing\n

of\n

sales\n

and\n

repurchases\n

of\n

the\n

Fund’s\n

shares\n

in\n

relation\n

to\n

income\n

earned\n

and/or\n

fluctuating\n

fair\n

value\n

of\n

the\n

investments\n

of\n

the\n

Fund.

Based\n

on\n

average\n

daily\n

shares\n

outstanding.

Excludes\n

the\n

value\n

of\n

portfolio\n

activity\n

as\n

a\n

result\n

of\n

in-kind\n

transactions.\n

See\n

Note\n

(

)\n

for\n

prior\n

year\n

information.

Templeton\n

Funds

Financial\n

Highlights

Templeton\n

Foreign\n

Fund\n

(continued)

franklintempleton.com

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Annual\n

Report

Year\n

Ended\n

August\n

31,

2026

2025

2024

2023

2022

Class\n

Per\n

share\n

operating\n

performance

(for

outstanding\n

throughout\n

the

year)

Net

asset

value,

beginning\n

year

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

$8.96

$8.43

$7.63

$6.20

$7.64

Income

from

investment\n

operations

Net

investment\n

income

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

0.18

0.20

0.21

0.18

0.15

Net

realized

and

unrealized\n

gains

(losses)

...........

1.62

0.54

0.81

1.36

(1.26)

Total\n

from

investment\n

operations

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

1.80

0.74

1.02

1.54

(1.11)

Less

distributions\n

from:

Net

investment\n

income

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

(0.38)

(0.21)

(0.22)

(0.11)

(0.33)

Net

asset

value,

end

year

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

$10.38

$8.96

$8.43

$7.63

$6.20

Total\n

return

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

20.56%

9.31%

13.69%

25.02%

(14.98)%

Ratios\n

to\n

average\n

net\n

assets

Expenses

before

waiver

and

payments\n

affiliates

......

0.79%

0.78%

0.77%

0.81%

Expenses

net

waiver

and

payments\n

affiliates

.......

0.74%

0.73%

Net

investment\n

income

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

1.83%

2.37%

2.72%

2.57%

2.13%

Supplemental\n

data

Net

assets,

end

year

(000’s)

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

$242,577

$368,372

$387,773

$341,058

$290,974

Portfolio

turnover

rate

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

47.28%

44.39%

42.01%

14.85%

29.07%

The\n

amount\n

shown\n

for\n

a\n

share\n

outstanding\n

throughout\n

the\n

period\n

may\n

not\n

correlate\n

with\n

the\n

Statement\n

of\n

Operations\n

for\n

the\n

period\n

due\n

to\n

the\n

timing\n

of\n

sales\n

and\n

repurchases\n

of\n

the\n

Fund’s\n

shares\n

in\n

relation\n

to\n

income\n

earned\n

and/or\n

fluctuating\n

fair\n

value\n

of\n

the\n

investments\n

of\n

the\n

Fund.

Based\n

on\n

average\n

daily\n

shares\n

outstanding.

Excludes\n

the\n

value\n

of\n

portfolio\n

activity\n

as\n

a\n

result\n

of\n

in-kind\n

transactions.\n

See\n

Note\n

(

)\n

for\n

prior\n

year\n

information.

Templeton\n

Funds

Financial\n

Highlights

Templeton\n

Foreign\n

Fund\n

(continued)

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Year\n

Ended\n

August\n

31,

2026

2025

2024

2023

2022

Advisor\n

Class

Per\n

share\n

operating\n

performance

(for

outstanding\n

throughout\n

the

year)

Net

asset

value,

beginning\n

year

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

$8.97

$8.44

$7.64

$6.21

$7.64

Income

from

investment\n

operations

Net

investment\n

income

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

0.17

0.18

0.20

0.17

0.15

Net

realized

and

unrealized\n

gains

(losses)

...........

1.62

0.55

0.81

1.36

(1.26)

Total\n

from

investment\n

operations

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

1.79

0.73

1.01

1.53

(1.11)

Less

distributions\n

from:

Net

investment\n

income

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

(0.37)

(0.20)

(0.21)

(0.10)

(0.32)

Net

asset

value,

end

year

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

$10.39

$8.97

$8.44

$7.64

$6.21

Total\n

return

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

20.51%

9.14%

13.55%

24.84%

(14.99)%

Ratios\n

to\n

average\n

net\n

assets

Expenses

before

waiver

and

payments\n

affiliates

......

0.88%

0.87%

0.92%

Expenses

net

waiver

and

payments\n

affiliates

.......

0.85%

Net

investment\n

income

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

1.76%

2.19%

2.54%

2.43%

2.06%

Supplemental\n

data

Net

assets,

end

year

(000’s)

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

$399,447

$546,122

$672,907

$680,297

$602,921

Portfolio

turnover

rate

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

47.28%

44.39%

42.01%

14.85%

29.07%

The\n

amount\n

shown\n

for\n

a\n

share\n

outstanding\n

throughout\n

the\n

period\n

may\n

not\n

correlate\n

with\n

the\n

Statement\n

of\n

Operations\n

for\n

the\n

period\n

due\n

to\n

the\n

timing\n

of\n

sales\n

and\n

repurchases\n

of\n

the\n

Fund’s\n

shares\n

in\n

relation\n

to\n

income\n

earned\n

and/or\n

fluctuating\n

fair\n

value\n

of\n

the\n

investments\n

of\n

the\n

Fund.

Based\n

on\n

average\n

daily\n

shares\n

outstanding.

Excludes\n

the\n

value\n

of\n

portfolio\n

activity\n

as\n

a\n

result\n

of\n

in-kind\n

transactions.\n

See\n

Note\n

(

)\n

for\n

prior\n

year\n

information.

Templeton\n

Funds

Schedule

Investments,\n

August

31,

2026

Templeton\n

Foreign\n

Fund

franklintempleton.com

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Annual\n

Report

Industry

Value

Common\n

Stocks\n

98.0%\n

China\n

6.3%

Alibaba

Group

Holding

Ltd.

.........

Broadline\n

Retail

2,127,474

30,411,745

JD.com,

Inc.

ADR

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

Broadline\n

Retail

1,789,675

50,540,422

Prosus

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

Broadline\n

Retail

1,015,159

45,221,525

Tencent\n

Holdings\n

Ltd.

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

Interactive\n

Media

Services

470,551

27,026,183

153,199,875

Denmark\n

1.6%

Novo

Nordisk

A/S

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

Pharmaceuticals

892,296

40,410,287

France\n

7.0%

Carrefour

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

Consumer\n

Staples

Distribution\n

Retail

4,077,284

74,080,072

Cie

Saint-Gobain\n

...........

Building\n

Products

480,206

43,523,404

Dassault

Aviation\n

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

Aerospace\n

Defense

159,849

52,697,153

170,300,629

Germany\n

3.6%

adidas

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

Textiles,\n

Apparel

Luxury

Goods

280,896

49,198,187

Heidelberg

Materials\n

...........

Construction\n

Materials

199,410

38,008,484

87,206,671

Hong\n

Kong\n

2.3%

AIA\n

Group

Ltd.

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

Insurance

2,588,509

25,024,671

Prudential

plc

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

Insurance

2,314,134

31,474,784

56,499,455

Japan\n

8.5%

Daiwa

Securities\n

Group,

Inc.

........

Capital

Markets

5,079,031

58,321,666

Mizuho

Financial\n

Group,

Inc.

........

Banks

472,550

25,172,048

Sumitomo

Mitsui

Financial\n

Group,

Inc.

Banks

1,740,249

74,705,046

Toyota\n

Motor

Corp.

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

Automobiles

2,525,051

49,594,626

207,793,386

Netherlands\n

9.6%

Akzo

Nobel

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

Chemicals

585,913

41,920,118

Euronext

144A

Reg

.........

Capital

Markets

258,270

48,894,854

EXOR

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

Financial\n

Services

51,960

4,416,821

Heineken

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

Beverages

545,449

46,050,569

ING

Groep

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

Banks

2,627,638

93,019,774

234,302,136

Singapore\n

2.9%

STMicroelectronics\n

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

Semiconductors\n

Semiconductor\n

Equipment

1,441,917

72,165,282

South\n

Korea\n

5.5%

Samsung

Electronics\n

Co.

Ltd.

.......

Technology\n

Hardware,\n

Storage

Peripherals

470,241

88,773,456

Hynix,

Inc.

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

Semiconductors\n

Semiconductor\n

Equipment

14,570

17,633,893

Hynix,

Inc.

ADR

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

Semiconductors\n

Semiconductor\n

Equipment

165,600

27,254,448

133,661,797

Switzerland\n

3.0%

UBS

Group

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

Capital\n

Markets

1,342,295

73,499,339

Taiwan\n

6.4%

Taiwan\n

Semiconductor\n

Manufacturing\n

Co.

Ltd.

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

Semiconductors\n

Semiconductor\n

Equipment

2,081,094

156,398,117

United\n

Kingdom\n

23.8%

AstraZeneca\n

plc

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

Pharmaceuticals

442,602

71,355,375

Barratt

Redrow

plc

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

Household\n

Durables

12,117,794

51,654,013

Templeton\n

Funds

Schedule\n

of\n

Investments

Templeton\n

Foreign\n

Fund\n

(continued)

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Industry

Value

Common\n

Stocks\n

(continued)

United\n

Kingdom\n

(continued)

Diageo

plc

ADR

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

Beverages

529,894

48,670,764

Sports

Fashion

plc

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

Specialty\n

Retail

49,787,254

57,734,596

Lloyds

Banking

Group

plc

..........

Banks

40,004,930

58,980,545

Persimmon

plc

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

Household\n

Durables

3,843,109

60,741,943

SSE

plc

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

Electric\n

Utilities

1,901,037

62,491,943

Standard

Chartered\n

plc

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

Banks

2,994,336

86,962,023

Unilever

plc

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

Personal

Care

Products

765,732

49,297,433

Verisure\n

plc

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

Commercial\n

Services\n

Supplies

3,294,878

34,020,467

581,909,102

United\n

States\n

17.5%

Booking

Holdings,\n

Inc.

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

Hotels,

Restaurants\n

Leisure

235,654

46,916,355

BP\n

plc

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

Oil,

Gas

Consumable\n

Fuels

9,834,453

70,343,803

CNH

Industrial\n

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

Machinery

6,749,929

79,851,660

CRH

plc

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

Construction\n

Materials

474,849

44,773,512

Sanofi\n

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

Pharmaceuticals

697,937

62,052,915

Shell

plc

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

Oil,

Gas

Consumable\n

Fuels

1,203,360

55,133,411

Smurfit\n

Westrock\n

plc

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

Containers\n

Packaging

1,479,558

69,391,270

428,462,926

Total\n

Common\n

Stocks

(Cost

1,759,273,559

)

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

2,395,809,002

Short\n

Term\n

Investments\n

2.9%

Industry

Principal\n

Amount

Value

Time\n

Deposits\n

1.9%

Canada\n

1.9%

Royal

Bank

Canada

3.58

9/01/26

44,900,000

Total\n

Time\n

Deposits

(Cost

44,900,000

)

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

44,900,000

Investments\n

from\n

Cash\n

Collateral\n

Received\n

for\n

Loaned\n

Securities\n

1.0%

Money\n

Market\n

Funds\n

1.0%

f,g

Franklin

Institutional\n

U.S.

Government\n

Money

Market

Fund

3.629

......

25,016,440

Total\n

Investments\n

from\n

Cash\n

Collateral\n

Received\n

for\n

Loaned\n

Securities

(Cost

25,016,440

)

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

25,016,440

Total\n

Short\n

Term\n

Investments\n

(Cost

69,916,440

)

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

69,916,440

Total\n

Investments\n

(Cost

1,829,189,999

)\n

100.9

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

$2,465,725,442

Other\n

Assets,\n

less\n

Liabilities\n

(

0.9

)

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

(21,933,347)

Net\n

Assets\n

100.0%

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

$2,443,792,095

Templeton\n

Funds

Schedule\n

of\n

Investments

Templeton\n

Foreign\n

Fund\n

(continued)

franklintempleton.com

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Annual\n

Report

See\n

Abbreviations\n

on\n

page\n

33.

The\n

principal\n

amount\n

is\n

stated\n

in\n

U.S.\n

dollars\n

unless\n

otherwise\n

indicated.

Variable\n

interest\n

entity\n

(VIE).\n

See\n

Note\n

6\n

regarding\n

investments\n

made\n

through\n

a\n

VIE\n

structure.\n

At\n

August\n

31,\n

2026,\n

the\n

aggregate\n

value\n

of\n

these\n

securities\n

was\n

$107,978,350,\n

representing\n

4.4%\n

of\n

net\n

assets.

A\n

portion\n

or\n

all\n

of\n

the\n

security\n

is\n

on\n

loan\n

at\n

August\n

31,\n

2026.\n

See\n

Note\n

1(c).

Security\n

was\n

purchased\n

pursuant\n

to\n

Rule\n

144A\n

or\n

Regulation\n

S\n

under\n

the\n

Securities\n

Act\n

of\n

1933.\n

144A\n

securities\n

may\n

be\n

sold\n

in\n

transactions\n

exempt\n

from\n

registration\n

only\n

qualified\n

institutional\n

buyers\n

or\n

in\n

a\n

public\n

offering\n

registered\n

under\n

the\n

Securities\n

Act\n

of\n

1933.\n

Regulation\n

S\n

securities\n

cannot\n

be\n

sold\n

in\n

the\n

United\n

States\n

without\n

either\n

an\n

effective\n

registration\n

statement\n

filed\n

pursuant\n

to\n

the\n

Securities\n

Act\n

of\n

1933,\n

or\n

pursuant\n

to\n

an\n

exemption\n

from\n

registration.\n

At\n

August\n

31,\n

2026,\n

the\n

value\n

of\n

this\n

security\n

was\n

$48,894,854,\n

representing\n

2.0%\n

of\n

net\n

assets.

Non-income\n

producing.

See\n

Note\n

1(c)\n

regarding\n

securities\n

on\n

loan.

See\n

Note\n

3(f)\n

regarding\n

investments\n

in\n

affiliated\n

management\n

investment\n

companies.

The\n

rate\n

shown\n

is\n

the\n

annualized\n

seven-day\n

effective\n

yield\n

at\n

period\n

end.

Templeton\n

Funds

Financial

Highlights

Templeton\n

World\n

Fund

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Year\n

Ended\n

August\n

31,

2026

2025

2024

2023

2022

Class\n

Per\n

share\n

operating\n

performance

(for

outstanding\n

throughout\n

the

year)

Net

asset

value,

beginning\n

year

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

$18.87

$17.62

$13.91

$11.85

$15.52

Income

from

investment\n

operations

Net

investment\n

income

(loss)

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

(—)

0.05

0.01

0.04

(—)

Net

realized

and

unrealized\n

gains

(losses)

...........

2.44

2.31

3.79

2.21

(3.44)

Total\n

from

investment\n

operations

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

2.44

2.36

3.80

2.25

(3.44)

Less

distributions\n

from:

Net

investment\n

income

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

—

(—)

(0.09)

(0.05)

(0.23)

Net

realized

gains

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

(2.37)

(1.11)

—

(0.14)

—

Total\n

distributions

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

(2.37)

(1.11)

(0.09)

(0.19)

(0.23)

Net

asset

value,

end

year

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

$18.94

$18.87

$17.62

$13.91

$11.85

Total\n

return

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

13.89%

14.23%

27.48%

19.23%

(22.39)%

Ratios\n

to\n

average\n

net\n

assets

Expenses

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

1.04%

1.05%

1.03%

1.04%

Net

investment\n

income

(loss)

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

(0.02)%

0.26%

0.09%

0.32%

(—)%

Supplemental\n

data

Net

assets

end

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%

The\n

amount\n

shown\n

for\n

a\n

share\n

outstanding\n

throughout\n

the\n

period\n

may\n

not\n

correlate\n

with\n

the\n

Statement\n

of\n

Operations\n

for\n

the\n

period\n

due\n

to\n

the\n

timing\n

of\n

sales\n

and\n

repurchases\n

of\n

the\n

Fund’s\n

shares\n

in\n

relation\n

to\n

income\n

earned\n

and/or\n

fluctuating\n

fair\n

value\n

of\n

the\n

investments\n

of\n

the\n

Fund.

Based\n

on\n

average\n

daily\n

shares\n

outstanding.

Amount\n

rounds\n

to\n

less\n

than\n

$0.01\n

per\n

share.

Total\n

return\n

does\n

not\n

reflect\n

sales\n

commissions\n

or\n

contingent\n

deferred\n

sales\n

charges,\n

if\n

applicable.

Benefit\n

of\n

waiver\n

and\n

payments\n

by\n

affiliates\n

rounds\n

to\n

less\n

than\n

0.01%.\n

Rounds\n

to\n

less\n

than\n

0.01%.

Templeton\n

Funds

Financial\n

Highlights

Templeton\n

World\n

Fund\n

(continued)

franklintempleton.com

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Annual\n

Report

Year\n

Ended\n

August\n

31,

2026

2025

2024

2023

2022

Class\n

Per\n

share\n

operating\n

performance

(for

outstanding\n

throughout\n

the

year)

Net

asset

value,

beginning\n

year

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

$17.70

$16.71

$13.21

$11.30

$14.76

Income

from

investment\n

operations

Net

investment\n

(loss)

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

(0.13)

(0.08)

(0.10)

(0.06)

(0.10)

Net

realized

and

unrealized\n

gains

(losses)

...........

2.27

2.18

3.60

2.11

(3.29)

Total\n

from

investment\n

operations

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

2.14

2.10

3.50

2.05

(3.39)

Less

distributions\n

from:

Net

investment\n

income

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

—

(0.07)

Net

realized

gains

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

(2.37)

(1.11)

—

(0.14)

—

Total\n

distributions

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

(2.37)

(1.11)

—

(0.14)

(0.07)

Net

asset

value,

end

year

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

$17.47

$17.70

$16.71

$13.21

$11.30

Total\n

return

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

12.98%

13.39%

26.50%

18.33%

(23.01)%

Ratios\n

to\n

average\n

net\n

assets

Expenses

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

1.79%

1.80%

1.79%

1.81%

Net

investment\n

(loss)

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

(0.77)%

(0.50)%

(0.67)%

(0.48)%

(0.77)%

Supplemental\n

data

Net

assets

end

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%

The\n

amount\n

shown\n

for\n

a\n

share\n

outstanding\n

throughout\n

the\n

period\n

may\n

not\n

correlate\n

with\n

the\n

Statement\n

of\n

Operations\n

for\n

the\n

period\n

due\n

to\n

the\n

timing\n

of\n

sales\n

and\n

repurchases\n

of\n

the\n

Fund’s\n

shares\n

in\n

relation\n

to\n

income\n

earned\n

and/or\n

fluctuating\n

fair\n

value\n

of\n

the\n

investments\n

of\n

the\n

Fund.

Based\n

on\n

average\n

daily\n

shares\n

outstanding.

Total\n

return\n

does\n

not\n

reflect\n

sales\n

commissions\n

or\n

contingent\n

deferred\n

sales\n

charges,\n

if\n

applicable.

Benefit\n

of\n

waiver\n

and\n

payments\n

by\n

affiliates\n

rounds\n

to\n

less\n

than\n

0.01%.\n

Templeton\n

Funds

Financial\n

Highlights

Templeton\n

World\n

Fund\n

(continued)

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Year\n

Ended\n

August\n

31,

2026

2025

2024

2023

2022

Class\n

Per\n

share\n

operating\n

performance

(for

outstanding\n

throughout\n

the

year)

Net

asset

value,

beginning\n

year

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

$18.90

$17.64

$13.92

$11.86

$15.53

Income

from

investment\n

operations

Net

investment\n

income

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

0.05

0.10

0.06

0.08

0.04

Net

realized

and

unrealized\n

gains

(losses)

...........

2.45

2.32

3.79

2.19

(3.43)

Total\n

from

investment\n

operations

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

2.50

2.42

3.85

2.27

(3.39)

Less

distributions\n

from:

Net

investment\n

income

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

—

(0.05)

(0.13)

(0.07)

(0.28)

Net

realized

gains

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

(2.37)

(1.11)

—

(0.14)

—

Total\n

distributions

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

(2.37)

(1.16)

(0.13)

(0.21)

(0.28)

Net

asset

value,

end

year

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

$19.03

$18.90

$17.64

$13.92

$11.86

Total\n

return

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

14.16%

14.61%

27.85%

19.50%

(22.14)%

Ratios\n

to\n

average\n

net\n

assets

Expenses

before

waiver

and

payments\n

affiliates

......

0.79%

0.78%

0.77%

0.78%

Expenses

net

waiver

and

payments\n

affiliates

.......

0.76%

0.75%

0.76%

Net

investment\n

income

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

0.26%

0.55%

0.41%

0.61%

0.29%

Supplemental\n

data

Net

assets

end

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%

The\n

amount\n

shown\n

for\n

a\n

share\n

outstanding\n

throughout\n

the\n

period\n

may\n

not\n

correlate\n

with\n

the\n

Statement\n

of\n

Operations\n

for\n

the\n

period\n

due\n

to\n

the\n

timing\n

of\n

sales\n

and\n

repurchases\n

of\n

the\n

Fund’s\n

shares\n

in\n

relation\n

to\n

income\n

earned\n

and/or\n

fluctuating\n

fair\n

value\n

of\n

the\n

investments\n

of\n

the\n

Fund.

Based\n

on\n

average\n

daily\n

shares\n

outstanding.

Templeton\n

Funds

Financial\n

Highlights

Templeton\n

World\n

Fund\n

(continued)

franklintempleton.com

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Annual\n

Report

Year\n

Ended\n

August\n

31,

2026

2025

2024

2023

2022

Advisor\n

Class

Per\n

share\n

operating\n

performance

(for

outstanding\n

throughout\n

the

year)

Net

asset

value,

beginning\n

year

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

$18.91

$17.65

$13.93

$11.86

$15.54

Income

from

investment\n

operations

Net

investment\n

income

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

0.04

0.09

0.05

0.07

0.03

Net

realized

and

unrealized\n

gains

(losses)

...........

2.45

2.33

3.80

2.21

(3.44)

Total\n

from

investment\n

operations

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

2.49

2.42

3.85

2.28

(3.41)

Less

distributions\n

from:

Net

investment\n

income

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

—

(0.05)

(0.13)

(0.07)

(0.27)

Net

realized

gains

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

(2.37)

(1.11)

—

(0.14)

—

Total\n

distributions

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

(2.37)

(1.16)

(0.13)

(0.21)

(0.27)

Net

asset

value,

end

year

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

$19.03

$18.91

$17.65

$13.93

$11.86

Total\n

return

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

14.09%

14.55%

27.81%

19.52%

(22.22)%

Ratios\n

to\n

average\n

net\n

assets

Expenses

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

0.79%

0.80%

0.79%

0.81%

Net

investment\n

income

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

0.23%

0.51%

0.33%

0.57%

0.24%

Supplemental\n

data

Net

assets

end

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%

The\n

amount\n

shown\n

for\n

a\n

share\n

outstanding\n

throughout\n

the\n

period\n

may\n

not\n

correlate\n

with\n

the\n

Statement\n

of\n

Operations\n

for\n

the\n

period\n

due\n

to\n

the\n

timing\n

of\n

sales\n

and\n

repurchases\n

of\n

the\n

Fund’s\n

shares\n

in\n

relation\n

to\n

income\n

earned\n

and/or\n

fluctuating\n

fair\n

value\n

of\n

the\n

investments\n

of\n

the\n

Fund.

Based\n

on\n

average\n

daily\n

shares\n

outstanding.

Benefit\n

of\n

waiver\n

and\n

payments\n

by\n

affiliates\n

rounds\n

to\n

less\n

than\n

0.01%.\n

Templeton\n

Funds

Schedule

Investments,\n

August

31,

2026

Templeton\n

World\n

Fund

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Industry

Value

Common\n

Stocks\n

95.5%\n

China\n

2.8%

a,b

Alibaba

Group

Holding

Ltd.

ADR

....

Broadline\n

Retail

486,030

55,417,141

BYD

Co.

Ltd.

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

Automobiles

2,432,320

26,847,579

82,264,720

France\n

5.7%

Airbus

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

Aerospace\n

Defense

266,327

60,782,383

Safran

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

Aerospace\n

Defense

271,982

106,301,487

167,083,870

Germany\n

4.3%

Infineon\n

Technologies\n

..........

Semiconductors\n

Semiconductor\n

Equipment

411,206

26,805,332

Siemens

Energy

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

Electrical\n

Equipment

597,080

98,343,625

125,148,957

Hong\n

Kong\n

3.2%

AIA\n

Group

Ltd.

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

Insurance

6,496,297

62,803,605

Hong

Kong

Exchanges\n

Clearing\n

Ltd.

Capital

Markets

586,930

31,733,219

94,536,824

Japan\n

2.8%

IHI

Corp.

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

Machinery

1,800,790

30,087,555

Mitsubishi

Heavy

Industries\n

Ltd.

.....

Machinery

973,260

23,584,517

Mizuho

Financial\n

Group,

Inc.

........

Banks

563,630

30,023,746

83,695,818

Netherlands\n

4.0%

ASML\n

Holding

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

Semiconductors\n

Semiconductor\n

Equipment

28,995

49,176,493

ING

Groep

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

Banks

1,903,827

67,396,482

116,572,975

South\n

Korea\n

4.8%

Samsung

Electronics\n

Co.

Ltd.

.......

Technology\n

Hardware,\n

Storage

Peripherals

387,369

73,128,640

Hynix,

Inc.

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

Semiconductors\n

Semiconductor\n

Equipment

57,230

69,264,771

142,393,411

Taiwan\n

4.8%

Taiwan\n

Semiconductor\n

Manufacturing\n

Co.

Ltd.

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

Semiconductors\n

Semiconductor\n

Equipment

927,655

69,715,013

Taiwan\n

Semiconductor\n

Manufacturing\n

Co.

Ltd.

ADR

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

Semiconductors\n

Semiconductor\n

Equipment

172,256

71,541,362

141,256,375

United\n

Kingdom\n

8.8%

AstraZeneca

plc

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

Pharmaceuticals

291,610

47,012,758

HSBC

Holdings

plc

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

Banks

3,613,270

74,012,210

Rolls-Royce

Holdings\n

plc

..........

Aerospace\n

Defense

5,340,939

108,550,143

SSE

plc

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

Electric\n

Utilities

864,353

28,413,492

257,988,603

United\n

States\n

54.3%

Alphabet,

Inc.

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

Interactive\n

Media

Services

407,819

138,393,378

Amazon.com,\n

Inc.

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

Broadline\n

Retail

488,778

126,969,861

Applied

Materials,\n

Inc.

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

Semiconductors\n

Semiconductor\n

Equipment

80,260

36,790,381

AppLovin

Corp.

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

Media

68,630

21,416,678

Arista

Networks,\n

Inc.

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

Communications\n

Equipment

147,720

28,907,327

Booking

Holdings,\n

Inc.

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

Hotels,\n

Restaurants\n

Leisure

265,490

52,856,404

Broadcom,

Inc.

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

Semiconductors\n

Semiconductor\n

Equipment

278,025

102,963,778

Templeton\n

Funds

Schedule\n

of\n

Investments

Templeton\n

World\n

Fund\n

(continued)

franklintempleton.com

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Annual\n

Report

Industry

Value

Common\n

Stocks\n

(continued)

United\n

States\n

(continued)

CNH

Industrial\n

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

Machinery

2,590,430

30,644,787

CRH

plc

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

Construction\n

Materials

572,065

53,940,009

a,c

Illumina,

Inc.

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

Life

Sciences\n

Tools\n

Services

127,700

27,280,551

Intel

Corp.

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

Semiconductors\n

Semiconductor\n

Equipment

810,533

72,550,809

IQVIA\n

Holdings,\n

Inc.

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

Life

Sciences\n

Tools\n

Services

238,670

62,338,217

JPMorgan

Chase

Co.

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

Banks

82,110

29,232,802

Linde

plc

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

Chemicals

132,470

64,854,663

Medtronic

plc

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

Health

Care

Equipment\n

Supplies

624,890

56,646,278

Meta

Platforms,\n

Inc.

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

Interactive\n

Media

Services

144,859

82,908,600

Microsoft

Corp.

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

Software

350,466

177,787,897

NVIDIA\n

Corp.

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

Semiconductors\n

Semiconductor\n

Equipment

631,280

139,373,998

Progressive

Corp.

(The)

...........

Insurance

200,590

43,744,667

S&P\n

Global,

Inc.

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

Capital

Markets

129,570

56,471,789

Smurfit\n

Westrock\n

plc

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

Containers\n

Packaging

1,124,830

52,754,527

Thermo

Fisher

Scientific,\n

Inc.

.......

Life

Sciences\n

Tools\n

Services

119,296

73,617,562

Visa,\n

Inc.

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

Financial\n

Services

169,410

64,269,072

1,596,714,035

Total\n

Common\n

Stocks

(Cost

2,085,282,873

)

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

2,807,655,588

Short\n

Term\n

Investments\n

4.2%

Industry

Principal\n

Amount

Value

Time\n

Deposits\n

4.2%

Canada\n

4.2%

National

Bank

Canada

3.58

9/01/26

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

50,000,000

Royal

Bank

Canada

3.58

9/01/26

72,700,000

122,700,000

Total\n

Time\n

Deposits

(Cost

122,700,000

)

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

122,700,000

Investments\n

from\n

Cash\n

Collateral\n

Received\n

for\n

Loaned\n

Securities\n

0.0%

†

Money\n

Market\n

Funds\n

0.0%

†

e,f

Franklin

Institutional\n

U.S.

Government\n

Money

Market

Fund

3.629

......

351,649

Total\n

Investments\n

from\n

Cash\n

Collateral\n

Received\n

for\n

Loaned\n

Securities

(Cost

351,649

)

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

351,649

Total\n

Short\n

Term\n

Investments\n

(Cost

123,051,649

)

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

123,051,649

Total\n

Investments\n

(Cost

2,208,334,522

)\n

99.7

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

$2,930,707,237

Other\n

Assets,\n

less\n

Liabilities\n

0.3

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

8,338,890

Net\n

Assets\n

100.0%

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

$2,939,046,127

Templeton\n

Funds

Schedule\n

of\n

Investments

Templeton\n

World\n

Fund\n

(continued)

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

See

Abbreviations\n

on\n

page

33.

The\n

principal\n

amount\n

is\n

stated\n

in\n

U.S.\n

dollars\n

unless\n

otherwise\n

indicated.

†\n

Rounds\n

to\n

less\n

than\n

0.1%\n

of\n

net\n

assets.

A\n

portion\n

or\n

all\n

of\n

the\n

security\n

is\n

on\n

loan\n

at\n

August\n

31,\n

2026.\n

See\n

Note\n

1(c).

Variable\n

interest\n

entity\n

(VIE).\n

See\n

Note\n

6\n

regarding\n

investments\n

made\n

through\n

a\n

VIE\n

structure.\n

At\n

August\n

31,\n

2026,\n

the\n

value\n

of\n

this\n

security\n

was\n

$55,417,141,\n

representing\n

1.9%\n

of\n

net\n

assets.

Non-income\n

producing.

See\n

Note\n

1(c)\n

regarding\n

securities\n

on\n

loan.

See\n

Note\n

3(f)\n

regarding\n

investments\n

in\n

affiliated\n

management\n

investment\n

companies.

The\n

rate\n

shown\n

is\n

the\n

annualized\n

seven-day\n

effective\n

yield\n

at\n

period\n

end.

Templeton\n

Funds

Financial\n

Statements

Assets

and

Liabilities

August

31,

2026

franklintempleton.com

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Annual\n

Report

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Assets:

Investments

securities:

Cost

Unaffiliated\n

issuers

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

$1,804,173,559

$2,207,982,873

Cost

Non-controlled\n

affiliates\n

(Note

)

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

25,016,440

351,649

Value\n

Unaffiliated\n

issuers

(Includes\n

securities\n

loaned

83,167,789

and

97,545,451

respectively)

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

$2,440,709,002

$2,930,355,588

Value\n

Non-controlled\n

affiliates\n

(Note

)

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

25,016,440

351,649

Cash

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

19,236

999,807

Foreign

currency,\n

value

(cost

1,305

and

955

respectively)

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

1,308

957

Receivables:

Investment

securities\n

sold

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

28,016,453

8,007,389

Capital

sold

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

449,336

324,998

Dividends

and

interest

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

9,164,030

4,240,733

Foreign

tax

refund

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

359,618

—

European

Union

tax

reclaims\n

(Note

)

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

—

747,987

Total\n

assets

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

2,503,735,423

2,945,029,108

Liabilities:

Payables:

Investment

securities\n

purchased

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

29,461,924

—

Capital

redeemed

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

2,433,692

1,444,079

Management

fees

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

1,359,980

1,714,881

Distribution

fees

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

419,528

591,506

Transfer\n

agent

fees

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

983,027

576,108

Trustees'

fees

and

expenses

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

7,497

3,119

IRS

closing

agreement\n

payments\n

for

European\n

Union

tax

reclaims\n

(Note

)

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

—

1,110,522

Payable

upon

return

securities\n

loaned

(Note

)

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

25,016,440

351,649

Accrued

expenses

and

other

liabilities

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

261,240

191,117

Total\n

liabilities

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

59,943,328

5,982,981

Net

assets,

value

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

$2,443,792,095

$2,939,046,127

Net

assets

consist

of:

Paid-in

capital

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

$1,694,144,721

$1,948,954,055

Total\n

distributable\n

earnings

(losses)

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

749,647,374

990,092,072

Net

assets,

value

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

$2,443,792,095

$2,939,046,127

Templeton\n

Funds

Financial\n

Statements

Assets

and

Liabilities\n

(continued)

August

31,

2026

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Class\n

Net

assets,

value

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

$1,677,287,185

$2,800,950,723

outstanding

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

158,260,191

147,846,740

Net

asset

value

per

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

$10.60

$18.94

Maximum

offering\n

price

per

(net

asset

value

per

.50

)

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

$11.22

$20.04

Class\n

Net

assets,

value

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

$13,031,061

$4,716,105

outstanding

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

1,226,955

269,895

Net

asset

value

and

maximum

offering\n

price

per

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

$10.62

$17.47

Class\n

Net

assets,

value

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

$111,450,200

$—

outstanding

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

10,810,222

—

Net

asset

value

and

maximum

offering\n

price

per

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

$10.31

$—

Class\n

R6:

Net

assets,

value

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

$242,576,766

$29,085,275

outstanding

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

23,379,066

1,528,576

Net

asset

value

and

maximum

offering\n

price

per

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

$10.38

$19.03

Advisor\n

Class:

Net

assets,

value

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

$399,446,883

$104,294,024

outstanding

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

38,449,160

5,479,314

Net

asset

value

and

maximum

offering\n

price

per

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

$10.39

$19.03

Redemption\n

price\n

is\n

equal\n

to\n

net\n

asset\n

value\n

less\n

contingent\n

deferred\n

sales\n

charges,\n

if\n

applicable.

Net\n

asset\n

value\n

per\n

share\n

may\n

not\n

recalculate\n

due\n

to\n

rounding.

Templeton\n

Funds

Financial\n

Statements

Operations

for

the

year

ended

August

31,

2026

franklintempleton.com

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Annual\n

Report

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Investment

income:

Dividends:

(net

foreign

taxes

$5,740,948\n

and

$3,701,724,\n

respectively)

Unaffiliated\n

issuers

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

$63,550,493

$26,664,451

Interest:

Unaffiliated\n

issuers

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

2,755,044

2,236,199

Income

from

securities\n

loaned:

Unaffiliated\n

entities\n

(net

fees

and

rebates)

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

(692,723)

(87,771)

Non-controlled\n

affiliates\n

(Note

)

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

865,040

125,176

Other

income

(Note

1d)

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

—

27,489

Total\n

investment\n

income

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

66,477,854

28,965,544

Expenses:

Management

fees

(Note

)

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

17,649,256

19,829,780

Distribution\n

fees:

(Note

)

Class\n

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

4,080,044

6,797,340

Class\n

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

136,848

52,316

Class\n

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

565,312

—

Transfer\n

agent

fees:

(Note

)

Class\n

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

2,324,907

1,682,155

Class\n

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

19,514

3,221

Class\n

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

161,168

—

Class\n

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

177,229

17,126

Advisor\n

Class

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

648,578

62,001

Custodian

fees

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

168,995

113,841

Reports

shareholders\n

fees

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

178,039

61,723

Registration\n

and

filing\n

fees

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

75,707

106,994

Professional\n

fees

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

118,051

119,124

Trustees'\n

fees

and

expenses

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

303,009

331,506

Other

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

246,979

134,438

Total\n

expenses

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

26,853,636

29,311,565

Expenses

waived/paid\n

affiliates\n

(Note

and

)

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

(883,163)

(13,295)

Net

expenses

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

25,970,473

29,298,270

Net

investment\n

income

(loss)

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

40,507,381

(332,726)

Realized

and

unrealized\n

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:\n

(net

foreign

taxes

$5,028,358\n

and

$4,884,688,\n

respectively)

Unaffiliated\n

issuers

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

222,108,077

330,209,053

Foreign

currency

transactions

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

371,269

119,728

Net

realized

gain

(loss)

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

222,479,346

330,328,781

Net

change

unrealized\n

appreciation\n

(depreciation)\n

on:

Investments:

Unaffiliated\n

issuers

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

204,340,460

32,342,447

Translation\n

other

assets

and

liabilities\n

denominated\n

foreign

currencies

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

(129,793)

(164,078)

Change

deferred\n

taxes

unrealized\n

appreciation

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

5,850,541

6,662,306

Net

change

unrealized\n

appreciation\n

(depreciation)

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

210,061,208

38,840,675

Net

realized\n

and

unrealized\n

gain

(loss)

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

432,540,554

369,169,456

Net

increase\n

(decrease)\n

net

assets

resulting\n

from

operations

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

$473,047,935

$368,836,730

Templeton\n

Funds

Financial\n

Statements

Changes

Net

Assets

franklintempleton.com

Annual\n

Report

The\n

accompanying\n

notes\n

are\n

an\n

integral\n

part\n

of\n

these\n

financial\n

statements.

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Year\n

Ended

August\n

31,\n

2026

Year\n

Ended

August\n

31,\n

2025

Year\n

Ended

August\n

31,\n

2026

Year\n

Ended

August\n

31,\n

2025

Increase

(decrease)\n

net

assets:

Operations:

Net

investment\n

income

(loss)

.......

$40,507,381

$52,719,497

$(332,726)

$7,289,113

Net

realized

gain

(loss)

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

222,479,346

129,871,782

330,328,781

397,555,118

Net

change

unrealized\n

appreciation\n

(depreciation)

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

210,061,208

21,201,442

38,840,675

(46,449,257)

Net

increase

(decrease)\n

net

assets

resulting\n

from

operations

473,047,935

203,792,721

368,836,730

358,394,974

Distributions\n

shareholders:

Class

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

(57,268,704)

(32,084,926)

(325,153,474)

(158,900,136)

Class

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

(377,447)

(199,047)

(698,632)

(382,723)

Class

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

(3,886,174)

(2,255,243)

—

Class

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

(14,615,493)

(9,520,094)

(3,299,351)

(1,680,416)

Advisor

Class

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

(18,375,080)

(13,240,139)

(11,806,783)

(6,032,030)

Total\n

distributions\n

shareholders

.....

(94,522,898)

(57,299,449)

(340,958,240)

(166,995,305)

Capital

transactions:\n

(Note

)

Class

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

(104,465,422)

(154,386,205)

107,180,010

(107,578,857)

Class

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

(2,903,322)

(4,109,409)

(584,382)

(1,117,407)

Class

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

(18,298,280)

(15,048,062)

—

Class

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

(176,342,219)

(42,582,011)

2,728,291

(2,258,995)

Advisor

Class

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

(215,657,184)

(152,786,832)

4,103,937

(1,309,258)

Total\n

capital

transactions

.......

(517,666,427)

(368,912,519)

113,427,856

(112,264,517)

Net

increase

(decrease)\n

net

assets

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

(139,141,390)

(222,419,247)

141,306,346

79,135,152

Net

assets:

Beginning

year

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

2,582,933,485

2,805,352,732

2,797,739,781

2,718,604,629

End

year

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

$2,443,792,095

$2,582,933,485

$2,939,046,127

$2,797,739,781

Templeton\n

Funds

franklintempleton.com

Annual\n

Report

Notes\n

to\n

Financial\n

Statements

1.\n

Organization\n

and\n

Significant\n

Accounting\n

Policies

Templeton\n

Funds (Trust)\n

registered

under

the

Investment

Company

Act

1940

(1940

Act)

open-end

management

investment

company,\n

consisting

of two separate\n

funds

(Funds).

The

Funds

the

accounting

and

reporting

guidance

Financial

Accounting

Standards

Board

(FASB)\n

Accounting

Standards

Codification\n

Topic\n

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized\n

accounting

and

reporting

guidance

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

classes

offered\n

within

each

the

Funds

are

indicated

below.\n

Class

automatically\n

convert

Class

A\n

monthly

basis,

after

they

have

been

held

for

years.

Each

class

may

differ\n

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

matters

affecting\n

single

class,

its

exchange

privilege

and

fees

due

differing\n

arrangements\n

for

distribution\n

and

transfer

agent

fees.

Class\n

A,\n

Class\n

C,\n

Class\n

R,\n

Class\n

R6\n

&\n

Advisor\n

Class

Templeton\n

Foreign

Fund

Class\n

A,\n

Class\n

C,\n

Class\n

R6\n

&\n

Advisor\n

Class

Templeton\n

World\n

Fund

Effective\n

January

15,

2027,

Templeton\n

World\n

Fund

will

renamed

Templeton\n

Global

Leaders

Fund.

The

following

summarizes

the Funds'\n

significant\n

accounting

policies

a.\n

Financial\n

Instrument\n

Valuation

The Funds'\n

investments

financial\n

instruments\n

are

carried

fair

value

daily.\n

Fair

value

the

price

that

would

received

sell

asset

paid

transfer

liability

orderly

transaction

between

market

participants\n

the

measurement

date.

The Funds calculate the\n

net

asset

value

(NAV)\n

per

each

business

day

p.m.

Eastern

time

the

regularly

scheduled

the

New

York\n

Stock

Exchange

(NYSE),

whichever

earlier. Under\n

compliance\n

policies

and

procedures\n

approved

the

Trust’s\n

Board

Trustees\n

(the

Board),

the

Board

has

designated

the

Funds’\n

investment

manager

the

valuation

designee

and

has

responsibility

for

oversight

valuation.\n

The

investment\n

manager

assisted

the

Funds'\n

administrator\n

performing

this

responsibility,\n

including

leading

the

cross-

functional

Valuation\n

Committee\n

(VC).

The

Funds

may

utilize

independent

pricing

services,\n

quotations\n

from

securities\n

and

financial\n

instrument\n

dealers,

and

other

market

sources

determine

fair

value.

Equity

securities\n

listed

exchange\n

the

NASDAQ

National

Market

System

are

valued

the

last

quoted

sale

price

the

official\n

closing

price of\n

the

day,\n

respectively.\n

Foreign

equity

securities\n

are

valued

the

trading

the

foreign

stock

exchange\n

which

the

security\n

primarily

traded,

p.m.

Eastern

time.

The

value

then

converted\n

into

its

U.S.

dollar

equivalent\n

the

foreign

exchange

rate

effect\n

p.m.

Eastern

time

the

day

that

the

value

the

security\n

determined.\n

Over-the-counter\n

(OTC)

securities\n

are

valued

within

the

range

the

most

recent

quoted

bid

and

ask

prices.

Securities\n

that

trade

multiple\n

markets

multiple\n

exchanges\n

are

valued

according

the

broadest\n

and

most

representative\n

market.

Certain

equity

securities\n

are

valued

based

upon

fundamental\n

characteristics\n

relationships\n

similar

securities.

Investments\n

in open-end mutual\n

funds

are

valued

the

closing

NAV.\n

Investments\n

in time\n

deposits are\n

valued

cost,

which

approximates\n

fair

value.

The

Funds

have

procedures\n

determine\n

the

fair

value

financial\n

instruments\n

for

which

market

prices

are

not

reliable

readily

available.\n

Under

these

procedures,\n

the

Funds

primarily\n

employ

market-based\n

approach\n

which

may

use

comparable\n

assets

liabilities,\n

recent

transactions,\n

market

multiples,\n

and

other

relevant\n

information\n

for

the

investment\n

determine\n

the

fair

value

the

investment.\n

income-based\n

valuation\n

approach\n

may

also

used

which

the

anticipated\n

future

cash

flows\n

the

investment

are

discounted\n

calculate\n

fair

value.

Discounts\n

may

also

applied

due

the

nature

duration\n

any

restrictions\n

the

disposition\n

the

investments.\n

Due

the

inherent

uncertainty\n

valuations\n

such

investments,\n

the

fair

values

may

differ\n

significantly\n

from

the

values

that

would

have

been

used

had

active

market

existed.

Trading\n

securities\n

foreign

securities\n

stock

exchanges\n

and

OTC

markets\n

may

completed\n

before

p.m.

Eastern\n

time.

addition,\n

trading\n

certain\n

foreign

markets\n

may

not

take

place

every

Funds'\n

business\n

day.\n

Events

can occur\n

between

the

time

which

trading\n

foreign\n

security\n

completed

and

p.m.

Eastern\n

time

that

might

call

into

question

the

reliability\n

the

value

portfolio\n

security\n

held

the

Fund.

result,

differences\n

may

arise

between\n

the

value

the

Funds'\n

portfolio\n

securities\n

determined\n

the

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

foreign

market

and

the

latest

indications

value

p.m.

Eastern

time.

order

minimize

the

potential

for

these

differences,\n

independent\n

pricing

service

may

used

adjust

the

value

the

Funds'

portfolio

securities

the

latest

indications

fair

value

p.m.

Eastern

time.

August

31,

2026,

certain

securities

may

have

been

fair

valued

using

these

procedures,\n

which

case

the

securities

were

categorized

Level

within

the

fair

value

hierarchy

(referred

“market\n

level

fair

value”).\n

See

the

Fair

Value\n

Measurements

note

for

information.

When

the

last

day

the

reporting

period

non-business\n

day,\n

certain

foreign

markets

may

open

those

days

that

the

Funds'

NAV\n

not

calculated,\n

which

could

result

differences\n

between

the

value

the

Funds'

portfolio

securities

the

last

business

day

and

the

last

calendar

day

the

reporting

period.

Any

security

valuation

changes

due

open

foreign

market

are

adjusted

and

reflected\n

the

Funds

for

financial\n

reporting

purposes.

b.\n

Foreign\n

Currency\n

Translation

Portfolio

securities

and

other

assets

and

liabilities\n

denominated

foreign

currencies

are

translated

into

U.S.

dollars

based

the

exchange

rate

such

currencies

against

U.S.

dollars

the

date

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

facilitate

transactions

denominated

foreign

currency.\n

Purchases

and

sales

securities,\n

income

and

expense

items

denominated

foreign

currencies

are

translated

into

U.S.

dollars

the

exchange

rate

effect\n

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities\n

denominated\n

foreign

currencies

contain

risks

that

those

currencies

will

decline

value

relative

the

U.S.

dollar.\n

Occasionally,\n

events

may

impact

the

availability\n

reliability\n

foreign

exchange

rates

used

convert

the

U.S.

dollar

equivalent

value.

such

event

occurs,

the

foreign

exchange

rate

will

valued

fair

value

using

procedures\n

established\n

and

approved

the

Board.

The

Funds

not

separately\n

report

the

effect\n

changes

foreign

exchange

rates

from

changes

market

prices

securities

held.

Such

changes

are

included

net

realized

and

unrealized\n

gain

loss

from

investments\n

the

Statements

Operations.

Realized

foreign

exchange

gains

losses

arise

from

sales

foreign

currencies,\n

currency

gains

losses

realized

between

the

trade

and

settlement\n

dates

securities\n

transactions\n

and

the

difference\n

between

the

recorded

amounts

dividends,\n

interest,\n

and

foreign

withholding\n

taxes

and

the

U.S.

dollar

equivalent\n

the

amounts

actually\n

received

paid.

Net

unrealized\n

foreign

exchange\n

gains

and

losses

arise

from

changes

foreign

exchange\n

rates

foreign

denominated\n

assets

and

liabilities\n

other

than

investments\n

securities\n

held

the

end

the

reporting\n

period.

c.\n

Securities\n

Lending

Certain

all

Funds

participate\n

agency

based

securities

lending

program

earn

additional\n

income.

The

Fund

receives\n

collateral\n

the

form

cash

and/or

U.S.

Government

and

Agency

securities\n

against

the

loaned

securities

amount

equal

least

102%

the

fair

value

the

loaned

securities.\n

Collateral\n

maintained\n

over

the

life

the

loan

amount

not

less

than

100%

the

fair

value

loaned

securities,\n

determined\n

the

Fund

business\n

each

day;

any

additional\n

collateral

required\n

due

changes

security\n

values

delivered

the

Fund

the

business\n

day.\n

Any

cash

collateral

received\n

deposited\n

into

joint

cash

account

with

other

funds

and

used

invest

money

market

fund

managed

Franklin\n

Advisers,\n

Inc.,

affiliate\n

the

Funds.

Additionally,\n

August

31,

2026,

Templeton\n

Foreign

Fund

and

Templeton\n

World\n

Fund

held

$62,531,419\n

and

$102,876,220,\n

respectively,\n

U.S.

Government\n

and

Agency

securities\n

collateral.\n

These

securities\n

are

held

collateral

segregated\n

accounts\n

with

the

Funds'\n

custodian.\n

The

Fund

cannot

repledge\n

resell

these

securities\n

held

collateral.\n

such,

the

non-cash\n

collateral\n

excluded\n

from

the

Statements\n

Assets

and

Liabilities. The\n

Fund

may

receive

income

from

the

investment\n

cash

collateral,\n

addition

lending

fees

paid

the

borrower.\n

Income

from

securities

loaned,

net

fees

paid

the

securities\n

lending

agent

and/or

third-party\n

vendor,\n

reported\n

separately\n

the Statements of\n

Operations.\n

The

Fund

bears

the

market

risk

with

respect\n

any

cash

collateral\n

investment,\n

securities\n

loaned,\n

and

the

risk

that

the

agent

may

default

its

obligations\n

the

Fund.

the

borrower\n

defaults\n

its

obligation\n

return

the

securities\n

loaned,\n

the

Fund

has

the

right

repurchase\n

the

securities\n

the

open

market

using

the

collateral\n

received.\n

The

securities\n

lending\n

agent

has

agreed

indemnify\n

the

Fund

the

event

default\n

1.\n

Organization\n

and\n

Significant\n

Accounting\n

Policies

(continued)

a.\n

Financial\n

Instrument\n

Valuation\n

(continued)

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

third

party

borrower.\n

Securities

loan

outstanding

period

end,

any,\n

are

listed

the

Funds'

Schedules

Investments.

d.\n

Income\n

and\n

Deferred\n

Taxes

is each\n

Fund's

policy

qualify

regulated

investment

company

under

the

Internal

Revenue

Code. Each\n

Fund

intends

distribute

shareholders\n

substantially\n

all

its

taxable

income

and

net

realized

gains

relieve

from

federal

income

and excise\n

taxes.

result,

provision

for

U.S.

federal

income

taxes

required.

The

Funds

may

subject

foreign

taxation

income

received,

capital

gains

the

sale

securities

and

certain

foreign

currency

transactions\n

the

foreign

jurisdictions

which the\n

Funds invest.\n

Foreign

taxes,

any,\n

are

recorded

based

the

tax

regulations

and

rates

that

exist

the

foreign

markets

which

the

Funds

invest.

some

cases,

the

Funds

may

entitled

reclaim

all

portion

such

taxes,

and

such

reclaim

amounts,

any,\n

are

reflected\n

dividend

receivable

the

Statements

Assets

and

Liabilities

and

dividend

income

the

Statements

Operations.

many

cases,

however,\n

the

Funds

may

not

receive

such

amounts

for

extended

period

time,

depending

the

country

investment.\n

When

capital

gain

tax

determined

apply,\n

certain

all Funds\n

record

estimated

deferred

tax

liability

amount

that

would

payable

the

securities

were

disposed

the

valuation

date.

result

several

court

cases,

certain

countries

across

the

European

Union, certain\n

all

Funds

filed\n

additional

tax

reclaims

for

previously

withheld

taxes

dividends

earned

those

countries

(EU

reclaims). Income\n

recognized,\n

any,\n

for

reclaims

reflected\n

other

income

the

Statements

Operations

and

any

receivable,\n

any,\n

reflected\n

European

Union

tax

reclaims

the

Statements

Assets

and

Liabilities.\n

Any

fees

associated\n

with

these

filings\n

are

reflected\n

other

expenses

the

Statements\n

Operations.\n

When

uncertainty\n

exists

the

ultimate

resolution\n

these

proceedings,\n

the

likelihood\n

receipt

these

reclaims,

and

the

potential

timing

payment,

amounts

are

reflected\n

the

financial\n

statements.\n

For

U.S.

income

tax

purposes,

reclaims

received

the

Funds,

any,\n

reduce

the

amount

foreign

taxes

Fund

shareholders\n

can

use

tax

deductions\n

or credits\n

their

income

tax

returns.

the

event

that

reclaims

received

the Funds\n

during a\n

fiscal\n

year

exceed

foreign

withholding\n

taxes

paid

the

Funds,

and

the

Funds previously\n

passed

through to\n

its

shareholders\n

foreign

taxes

incurred

the

Funds

used

credit

deduction

shareholder’s\n

income

tax

return,

the Funds\n

will enter\n

into

closing

agreement\n

with

the

Internal

Revenue

Service

(IRS)

order

pay

the

associated\n

tax

liability\n

behalf

the Funds'\n

shareholders.\n

The

Funds

previously\n

determined

enter

into

closing

agreement\n

with

the

IRS

and

recorded\n

any

adjustments\n

estimated\n

payments

other

income,

reflected\n

the

Statements\n

Operations.

Each

Fund

may

recognize\n

income

tax

liability\n

its

uncertain\n

tax

positions\n

under

U.S.

GAAP\n

when

the

uncertain

tax

position\n

has

less

than

50%

probability\n

that

will

sustained\n

upon

examination\n

the

tax

authorities\n

based

its

technical\n

merits.

August

31,

2026, each\n

Fund

has

determined\n

that

tax

liability\n

required\n

its

financial\n

statements\n

uncertain\n

tax

positions\n

for

any

open

tax

years

(or

expected\n

taken

future

tax

years).

The

Funds'\n

federal

and

state

income

and

federal

excise

tax

returns

for

the

prior

three

fiscal\n

years

are

subject

examination\n

the

Internal\n

Revenue

Service

and

state

departments\n

revenue.

e.\n

Security\n

Transactions,\n

Investment\n

Income,\n

Expenses\n

and\n

Distributions

Security

transactions\n

are

accounted\n

for

trade

date.

Realized

gains

and

losses

security

transactions\n

are

determined

specific\n

identification\n

basis. Interest\n

income

(including\n

interest\n

income

from

payment-in-kind\n

securities,\n

any)

and

estimated\n

expenses\n

are

accrued

daily.\n

Dividend\n

income

recorded\n

the

ex-dividend\n

date

except

for

certain

dividends\n

from

securities\n

where

the

dividend

rate

not

available.\n

such cases,\n

the

dividend\n

recorded

soon

the

information\n

received\n

the

Funds. Distributions\n

shareholders\n

are recorded\n

the

ex-dividend\n

date.

Distributable\n

earnings

are

determined\n

according

income

tax

regulations\n

(tax

basis)

and

may

differ\n

from

earnings\n

recorded\n

accordance\n

with

U.S.

GAAP.\n

These

differences\n

may

permanent\n

temporary.\n

Permanent

differences\n

are

reclassified\n

among

capital\n

accounts

reflect\n

their

tax

character.\n

These

reclassifications\n

have

impact

net

assets

the

results\n

operations.\n

Temporary\n

differences\n

are

not

reclassified,\n

they

may

reverse

subsequent\n

periods.

1.\n

Organization\n

and\n

Significant\n

Accounting\n

Policies

(continued)

c.\n

Securities\n

Lending\n

(continued)

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

Common

expenses

incurred

the

Trust\n

are

allocated

among

the

Funds

based

the

ratio

net

assets

each

Fund

the

combined

net

assets

the

Trust\n

based

the

ratio

number

shareholders\n

each

Fund

the

combined

number

shareholders\n

the

Trust.\n

Fund

specific\n

expenses

are

charged

directly

the

Fund

that

incurred

the

expense.

Realized

and

unrealized gains\n

and

losses

and

net

investment

income,

excluding

class

specific\n

expenses,

are

allocated

daily

each

class

based

upon

the

relative

proportion

net

assets

each

class.

Differences\n

per

distributions\n

class

are

generally

due

differences\n

class

specific\n

expenses.

f.\n

Accounting\n

Estimates

The

preparation\n

financial\n

statements\n

accordance\n

with

U.S.

GAAP\n

requires

management\n

make

estimates\n

and

assumptions

that

affect\n

the

reported

amounts

assets

and

liabilities\n

the

date

the

financial\n

statements\n

and

the

amounts

income

and

expenses\n

during

the

reporting\n

period.

Actual

results

could

differ\n

from

those

estimates.

g.\n

Guarantees\n

and\n

Indemnifications

Under

the Trust's\n

organizational\n

documents,\n

its

officers\n

and trustees\n

are

indemnified\n

the Trust against\n

certain

liabilities\n

arising

out

the

performance\n

their

duties

the

Trust.\n

Additionally,\n

the

normal

course

business,\n

the Trust,\n

behalf

the

Funds, enters\n

into

contracts\n

with

service

providers\n

that

contain

general

indemnification\n

clauses.

The Trust's\n

maximum

exposure\n

under

these

arrangements\n

unknown

this

would

involve

future

claims

that

may

made

against

the Trust\n

that

have

not

yet

occurred.

Currently,\n

the Trust\n

expects

the

risk

loss

remote.

2.\n

Shares\n

of\n

Beneficial\n

Interest

August

31,

2026,

there

were

unlimited\n

number

authorized\n

(without\n

par value).\n

Transactions\n

the

Funds'\n

were

follows:

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Amount

Class\n

A\n

Year\n

ended

August

31,

2026

sold

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

8,940,258

$88,910,502

10,457,196

$197,111,061

issued

reinvestment\n

distributions

..........

5,775,629

54,175,399

17,288,539

305,661,362

redeemed

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

(24,981,558)

(247,551,323)

(21,228,231)

(395,592,413)

Net

increase

(decrease)

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

(10,265,671)

$(104,465,422)

6,517,504

$107,180,010

Year\n

ended

August

31,

2025

sold

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

8,146,651

$68,114,745

5,103,637

$89,005,165

issued

reinvestment\n

distributions

..........

3,989,681

30,321,574

8,899,573

149,067,843

redeemed

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

(30,400,498)

(252,822,524)

(19,822,496)

(345,651,865)

Net

increase

(decrease)

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

(18,264,166)

$(154,386,205)

(5,819,286)

$(107,578,857)

Class\n

1.\n

Organization\n

and\n

Significant\n

Accounting\n

Policies

(continued)

e.\n

Security\n

Transactions,\n

Investment\n

Income,\n

Expenses\n

and\n

Distributions\n

(continued)

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Amount

Class\n

C\n

Year\n

ended

August

31,

2026

sold

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

208,922

$2,068,025

34,057

$594,545

issued

reinvestment\n

distributions

..........

39,398

372,315

42,623

698,589

redeemed

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

(536,154)

(5,343,662)

(109,592)

(1,877,516)

Net

increase

(decrease)

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

(287,834)

$(2,903,322)

(32,912)

$(584,382)

Year\n

ended

August

31,

2025

sold

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

174,802

$1,466,613

37,667

$624,154

issued

reinvestment\n

distributions

..........

25,725

196,796

23,995

378,875

redeemed

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

(689,398)

(5,772,818)

(129,129)

(2,120,436)

Net

increase

(decrease)

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

(488,871)

$(4,109,409)

(67,467)

$(1,117,407)

Class\n

R\n

Year\n

ended

August

31,

2026

sold

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

615,767

$5,988,930

—

$—

issued

reinvestment\n

distributions

..........

425,136

3,885,743

—

redeemed

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

(2,924,508)

(28,172,953)

—

Net

increase

(decrease)

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

(1,883,605)

$(18,298,280)

—

$—

Year\n

ended

August

31,

2025

sold

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

1,050,534

$8,499,430

—

$—

issued

reinvestment\n

distributions

..........

304,180

2,253,972

—

redeemed

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

(3,128,651)

(25,801,464)

—

Net

increase

(decrease)

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

(1,773,937)

$(15,048,062)

—

$—

Class\n

R6\n

Year\n

ended

August

31,

2026

sold

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

4,560,815

$44,176,344

315,058

$5,928,107

issued

reinvestment\n

distributions

..........

1,392,869

12,758,678

176,187

3,122,038

redeemed

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

(23,689,347)

(233,277,241)

(338,313)

(6,321,854)

Net

increase

(decrease)

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

(17,735,663)

$(176,342,219)

152,932

$2,728,291

Year\n

ended

August

31,

2025

sold

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

8,400,845

$68,212,528

231,637

$4,057,103

issued

reinvestment\n

distributions

..........

1,137,609

8,452,433

95,503

1,598,721

redeemed

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

(14,411,793)

(119,246,972)

(453,337)

(7,914,819)

Net

increase

(decrease)

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

(4,873,339)

$(42,582,011)

(126,197)

$(2,258,995)

Advisor\n

Class

2.\n

Shares\n

of\n

Beneficial\n

Interest

(continued)

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

3.\n

Transactions\n

with\n

Affiliates

Effective\n

August

17,

2026,

Franklin\n

Resources,\n

Inc.

was

renamed

Franklin\n

Templeton,\n

Inc.

Franklin\n

Templeton,\n

Inc.

the

holding

company

for

various

subsidiaries.\n

Certain

officers\n

and

trustees

the Trust are\n

also

officers\n

and/or

directors\n

the

following

subsidiaries:\n

a.\n

Management\n

Fees

Templeton\n

Foreign

Fund pays\n

investment\n

management fee,\n

calculated\n

daily

and

paid

monthly,\n

to Global\n

Advisors based\n

on the

average

daily

net

assets

the

Fund

follows:

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Amount

Advisor\n

Class\n

Year\n

ended

August

31,

2026

sold

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

6,369,757

$61,143,608

1,405,990

$26,361,561

issued

reinvestment\n

distributions

..........

1,790,065

16,432,798

619,677

10,986,883

redeemed

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

(30,589,782)

(293,233,590)

(1,779,346)

(33,244,507)

Net

increase

(decrease)

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

(22,429,960)

$(215,657,184)

246,321

$4,103,937

Year\n

ended

August

31,

2025

sold

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

13,045,343

$105,600,853

977,752

$17,085,499

issued

reinvestment\n

distributions

..........

1,587,795

11,813,196

336,737

5,640,353

redeemed

in-kind

(Not

3h)

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

(14,642,321)

(116,113,608)

—

redeemed

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

(18,843,371)

(154,087,273)

(1,383,044)

(24,035,110)

Net

increase

(decrease)

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

(18,852,554)

$(152,786,832)

(68,555)

$(1,309,258)

May\n

include\n

a\n

portion\n

of\n

Class\n

C\n

shares\n

that\n

were\n

automatically\n

converted\n

to\n

Class\n

Subsidiary

Affiliation

Templeton\n

Global

Advisors\n

Limited

(Global

Advisors)

Investment

manager

Franklin

Templeton\n

Services,\n

LLC

(FT\n

Services)

Administrative\n

manager

Franklin

Distributors,\n

LLC

(Distributors)\n

Principal

underwriter

Franklin

Templeton\n

Investor\n

Services,\n

LLC

(Investor\n

Services)

Transfer\n

agent

Annualized\n

Fee\n

Rate

Net\n

Assets

0.705%

and

including\n

billion

0.690%

Over

billion,\n

and

including\n

billion

0.675%

Over

billion,\n

and

including\n

$10

billion

0.655%

Over

$10

billion,

and

including\n

$15

billion

0.635%

Over

$15

billion,\n

and

including\n

$20

billion

0.615%

Over

$20

billion,\n

and

including\n

$25

billion

0.605%

Over

$25

billion,\n

and

including\n

$30

billion

0.595%

Over

$30

billion,\n

and

including\n

$35

billion

0.585%

excess

$35

billion

2.\n

Shares\n

of\n

Beneficial\n

Interest

(continued)

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

Templeton\n

World\n

Fund pays\n

investment

management fee,\n

calculated

daily

and

paid

monthly,\n

to Global\n

Advisors based\n

on the

average

daily

net

assets

the

Fund

follows:

For

the

year

ended

August

31,

2026,

each

Fund's\n

gross

effective\n

investment\n

management\n

fee

rate

based

average

daily

net

assets

was

follows:

b.\n

Administrative\n

Fees

Under

agreement\n

with

Global

Advisors,\n

FT\n

Services\n

provides\n

administrative\n

services\n

the

Funds.

The

fee

paid

Global Advisors\n

based

the

Funds'\n

average

daily

net

assets,

and

not

additional\n

expense

the

Funds.

c.\n

Distribution\n

Fees

The

Board

has

adopted

distribution\n

plans

for

each

class,

with

the

exception\n

Class

and

Advisor

Class

shares,

pursuant

Rule

12b-1

under

the

1940

Act.

Under

the

Funds'\n

Class

A\n

reimbursement\n

distribution\n

plans,

the

Funds

reimburse\n

Distributors

for

costs

incurred

connection\n

with

the

servicing,\n

sale

and

distribution\n

of each\n

Fund's\n

the

maximum

annual

plan

rate.

Under

the

Class

A\n

reimbursement\n

distribution\n

plans,

costs

exceeding\n

the

maximum

for

the

current

plan

year

cannot

reimbursed\n

subsequent\n

periods.\n

addition,\n

under

the

Funds'\n

Class

and

R compensation\n

distribution\n

plans,

the

Funds

pay

Distributors\n

for

costs

incurred\n

connection\n

with

the

servicing,\n

sale

and

distribution\n

of each\n

Fund's\n

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,\n

for

purposes\n

monitoring

compliance\n

with

the

maximum

annual

plan

rates,

February\n

through

January

for

each

Fund.

The

maximum

annual

plan

rates,

based

the

average

daily

net

assets,

for

each

class,

are

follows:

d.\n

Sales\n

Charges/Underwriting\n

Agreements

Front-end

sales

charges\n

and

contingent\n

deferred\n

sales

charges\n

(CDSC)

not

represent\n

expenses\n

the

Funds.

These

charges

are

deducted\n

from

the

proceeds\n

sales

fund

prior

investment\n

from

redemption\n

proceeds\n

prior

remittance,

applicable.\n

Distributors\n

has

advised\n

the

Funds

the

following\n

commission\n

transactions\n

related\n

the

sales

and

redemptions

the

Funds'\n

for

the

year:

Annualized\n

Fee\n

Rate

Net\n

Assets

0.705%

and

including\n

billion

0.690%

Over

billion,\n

and

including\n

billion

0.675%

Over

billion,\n

and

including\n

$10

billion

0.655%

Over

$10

billion,\n

and

including\n

$15

billion

0.635%

Over

$15

billion,\n

and

including\n

$20

billion

0.615%

excess

$20

billion

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Gross

effective\n

investment\n

management\n

fee

rate

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

0.696%

0.695%

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Class

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

0.25%

Class

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

1.00%

Class

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

0.50%

—%

3.\n

Transactions\n

with\n

Affiliates

(continued)

a.\n

Management\n

Fees\n

(continued)

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

e.\n

Transfer\n

Agent\n

Fees

Each

class

pays

transfer\n

agent

fees,

calculated\n

monthly

and

paid

monthly, to\n

Investor\n

Services\n

for

its

performance\n

shareholder\n

servicing\n

obligations. The\n

fees

are based\n

fixed\n

margin

earned

Investor

Services\n

and

are allocated\n

the Funds\n

based

upon

relative

assets

and

relative\n

transactions. In\n

addition,\n

each

class reimburses\n

Investor\n

Services\n

for

out

pocket

expenses

incurred\n

and,

except

for

Class

R6, reimburses\n

shareholder\n

servicing\n

fees

paid

third

parties.\n

These

fees

paid

third

parties

are

accrued

and

allocated\n

daily

based

upon

their

relative\n

proportion\n

such

classes'\n

aggregate\n

net

assets.

Class

pays

Investor\n

Services\n

transfer\n

agent

fees

allocated\n

specifically\n

that

class

based

upon

its

relative\n

assets

and

relative

transactions.

For

the

year

ended

August

31,

2026,

the Funds\n

paid

transfer\n

agent

fees

noted

the

Statements of\n

Operations,\n

which

the

following\n

amounts

were

retained\n

Investor

Services:

f.\n

Investments\n

in\n

Affiliated\n

Management\n

Investment\n

Companies

Certain

all

Funds

invest

one

affiliated\n

management\n

investment\n

companies.\n

defined\n

the

1940

Act,

investment

deemed

“Controlled\n

Affiliate”\n

fund

when

fund

owns,

either

directly\n

indirectly,\n

25%

the

affiliated\n

fund’s\n

outstanding\n

has

the

power

exercise\n

control

over

management\n

policies\n

such

fund.

The

Funds

not

invest

for

purposes\n

exercising\n

controlling\n

influence\n

over

the

management\n

policies\n

such

fund.

Management

fees

paid

the

Funds

are

generally\n

waived

assets

invested\n

affiliated\n

management\n

investment\n

companies,

noted

the

Statements\n

Operations,\n

amount

not

exceed

the

management\n

and

administrative\n

fees,

applicable, paid\n

directly\n

indirectly\n

each

affiliate.\n

For

securities\n

lending

cash

collateral\n

invested\n

affiliated\n

management\n

investment

companies,\n

however,\n

the

applicable\n

waiver

subject

contractual\n

cap

and

may

not

fully

offset\n

the

fees

attributable

those

investments.

During

the

year

ended

August

31,

2026,

investments\n

affiliated\n

management\n

investment\n

companies\n

were

follows:

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Sales

charges

retained\n

net

commissions\n

paid

unaffiliated\n

brokers/dealers

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

$37,293

$25,778

CDSC

retained

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

$3,407

$704

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Transfer\n

agent

fees

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

$888,567

$649,711

3.\n

Transactions\n

with\n

Affiliates

(continued)

d.\n

Sales\n

Charges/Underwriting\n

Agreements\n

(continued)

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

g.\n

Waiver\n

and\n

Expense\n

Reimbursements

Global

Advisors has contractually\n

agreed

advance

waive

limit

its fees\n

and

assume

its

own

expense

certain

expenses

otherwise\n

payable

by Templeton\n

Foreign

Fund

that

the

operating expenses\n

(excluding\n

distribution\n

fees,

acquired\n

fund

fees

and

expenses\n

and

certain

non-routine\n

expenses\n

costs,

including\n

those

relating\n

litigation,\n

indemnification,\n

reorganizations,\n

and

liquidations)\n

for

each

class

the

Fund

not

exceed

0.85%,

and

for

not

exceed

0.74%,

based

the

average

net

assets

each

class

until

December

31,

2026.

Total\n

expenses\n

waived

paid

are

not

subject

recapture\n

subsequent

the

Fund's\n

fiscal\n

year

end.

Transfer\n

agent

fees

Class

the

Funds have\n

been

capped

that

transfer\n

agent

fees

for

that

class

not

exceed

0.03%

based

the

average

net

assets

the

class

until

December\n

31,

2026.

h.\n

Other\n

Affiliated\n

Transactions

During

the year\n

ended August\n

31,

2025,

the

New

Jersey

Better

Educational\n

Savings

Trust\n

Program

–

Franklin

Templeton\n

Managed

Investments\n

Options

(529

Portfolios)\n

redeemed\n

out

Templeton\n

Foreign

Fund.

result,

November

22,

2024,

the

Fund

delivered\n

portfolio\n

securities\n

and

cash

that

were

transferred\n

in-kind

the

529

Portfolios,\n

which

included\n

$1,397,640

net

realized\n

gains.

such

gains

are

not

taxable\n

the

Fund

and

are

not

distributed\n

remaining\n

shareholders,\n

they

are

reclassified\n

from

accumulated\n

net

realized\n

gains

paid-in\n

capital.

Value\n

Beginning

of\n

Year

Purchases

Sales

Realized\n

Gain\n

(Loss)

Net\n

Change\n

Unrealized\n

Appreciation\n

(Depreciation)

Value

at\n

End

of\n

Year

Number\n

of\n

Shares\n

Held\n

at\n

End

of\n

Year

Investment\n

Income

a \n

Templeton\n

Foreign\n

Fund

Non-Controlled\n

Affiliates

Income\n

from\n

securities\n

loaned

Franklin\n

Institutional\n

U.S.\n

Government\n

Money\n

Market\n

Fund,\n

3.629%

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

$—

$397,414,874

$(372,398,434)

$—

$25,016,440

25,016,440

$865,040

Total\n

Affiliated\n

Securities

...

$—

$397,414,874

$(372,398,434)

$—

$25,016,440

$865,040

Templeton\n

World\n

Fund

Non-Controlled\n

Affiliates

Income\n

from\n

securities\n

loaned

Franklin\n

Institutional\n

U.S.\n

Government\n

Money\n

Market\n

Fund,\n

3.629%

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

$—

$169,859,595

$(169,507,946)

$—

$351,649

351,649

$125,176

Total\n

Affiliated\n

Securities

...

$—

$169,859,595

$(169,507,946)

$—

$351,649

$125,176

3.\n

Transactions\n

with\n

Affiliates

(continued)

f.\n

Investments\n

in\n

Affiliated\n

Management\n

Investment\n

Companies\n

(continued)

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

4.\n

Income\n

Taxes

For

tax

purposes,

capital

losses

may

carried

over

offset\n

future

capital

gains.

During

the

year

ended

August

31,

2026,

the

utilized

capital

loss

carryforwards\n

were

follows:

The

tax

character

distributions\n

paid

during

the

years

ended

August

31,

2026

and

2025,

was

follows:

August

31,

2026,

the

cost

investments,\n

net

unrealized\n

appreciation\n

(depreciation),\n

undistributed\n

ordinary\n

income

and

undistributed

long

term

capital

gains for\n

income

tax

purposes\n

were

follows:

Differences\n

between

income

and/or

capital

gains

determined\n

book

basis

and

tax

basis

are

primarily\n

due

differing\n

treatments

wash

sales,

passive

foreign

investment\n

company

shares,

foreign

capital

gains

tax

and

net

operating\n

losses.

The

Funds

utilized

tax

accounting\n

practice\n

treat

portion

the

proceeds\n

from

capital

redeemed\n

distribution\n

from

net

investment\n

income

and

realized\n

capital

gains.

5.\n

Investment\n

Transactions

Purchases

and

sales

investments\n

(excluding\n

short

term

securities)\n

for

the

year

ended

August

31,

2026,

were

follows:

Templeton\n

Foreign\n

Fund

Capital

loss

utilized

carryforwards

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

$124,369,053

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

2026

2025

2026

2025

Distributions

paid

from:

Ordinary

income

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

$94,522,898

$57,299,449

$4,615,900

$42,362,374

Long

term

capital

gain

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

—

336,342,340

124,632,931

$94,522,898

$57,299,449

$340,958,240

$166,995,305

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Cost

investments

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

$1,844,255,487

$2,226,137,038

Unrealized

appreciation

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

$712,215,811

$780,588,517

Unrealized

depreciation

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

(90,745,856)

(76,018,318)

Net

unrealized\n

appreciation\n

(depreciation)

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

$621,469,955

$704,570,199

Distributable

earnings:

Undistributed

ordinary

income

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

$64,834,906

$99,397,430

Undistributed

long

term

capital

gains

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

68,388,193

190,399,876

Total\n

distributable\n

earnings

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

$133,223,099

$289,797,306

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Purchases

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

$1,164,064,371

$3,027,132,605

Sales

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

$1,645,609,239

$3,347,848,466

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

August

31,

2026,

connection

with

securities

lending

transactions,\n

certain

all

Funds

loaned

investments

and

received

cash

collateral

follows:

6.\n

Concentration\n

of\n

Risk

Investing

foreign

securities\n

may

include

certain

risks

and

considerations\n

not

typically\n

associated\n

with

investing\n

U.S.

securities,

such

fluctuating\n

currency\n

values

and

changing\n

local,

regional

and

global

economic,\n

political\n

and

social

conditions,

which

may

result

greater

market

volatility.\n

Political\n

and

financial\n

uncertainty\n

many

foreign

regions

may

increase

market

volatility\n

and

the

economic\n

risk

investing\n

foreign

securities.\n

addition,\n

certain

foreign

securities\n

may

not

liquid

U.S.

securities.\n

Ongoing

threatened\n

military\n

conflicts\n

throughout\n

the

world

may

cause

significant\n

market

disruptions

and

volatility.\n

The

hostilities\n

and

sanctions\n

resulting\n

from

those

conflicts\n

may

also

have

significant\n

impact

certain

investments\n

the

Funds

well

the

Funds'\n

performance\n

and

liquidity.

Certain

investments\n

Chinese

companies\n

are

made

through

special

structure\n

known

VIE.

VIE

structure,\n

foreign

investors,

such

Templeton\n

Foreign

Fund

and

Templeton\n

World\n

Fund,

will

only

own

stock

shell

company

rather

than

directly

the

VIE,

which

must

owned

Chinese

nationals\n

(and/or

Chinese

companies)\n

obtain

the

licenses\n

and/or

assets

required

operate

restricted\n

prohibited\n

sector

China.

The

value

the

shell

company

derived

from

its

ability

consolidate\n

the

VIE

into

its

financials\n

pursuant

contractual\n

arrangements\n

that

allow

the

shell

company

exert

degree

control

over,\n

and

obtain

economic

benefits\n

arising

from,

the

VIE

without

formal

legal

ownership.\n

While

VIEs

are

longstanding

industry\n

practice\n

and

are

well

known

Chinese

officials\n

and

regulators,\n

the

structure\n

historically\n

has

not

been

formally

recognized\n

under

Chinese

law

and

uncertain\n

whether

Chinese

officials\n

regulators

will

withdraw

their

implicit\n

acceptance

the

structure.\n

also

uncertain\n

whether

the

contractual\n

arrangements,\n

which

may

subject

conflicts\n

interest

between

the

legal

owners

the

VIE

and

foreign

investors,\n

would

enforced\n

Chinese

courts

arbitration\n

bodies.

Prohibitions

these

structures

the

Chinese

government,\n

the

inability\n

enforce

such

contracts,\n

from

which

the

shell

company

derives

its

value,

would

likely

cause

the

VIE-structured\n

holding(s)\n

suffer\n

significant,\n

detrimental,\n

and

possibly\n

permanent

losses,

and

turn,

adversely\n

affect\n

the Funds'\n

returns

and

net

asset

value.

7.\n

Credit\n

Facility

The

Funds,

together

with

other

U.S.

registered\n

and

foreign

investment\n

funds

(collectively,\n

Borrowers),\n

managed

Franklin\n

Templeton,\n

are

borrowers\n

joint

syndicated\n

senior

unsecured\n

credit

facility\n

totaling\n

$2.995

billion

(Global

Credit

Facility)\n

which

matures

January

29,

2027.

This

Global

Credit

Facility

provides\n

source

funds

the

Borrowers\n

for

temporary\n

and

emergency

purposes,\n

including\n

the

ability\n

meet

future

unanticipated\n

unusually\n

large

redemption\n

requests.\n

Under

the

terms

the

Global

Credit

Facility,\n

the

Funds

may,\n

addition\n

interest\n

charged\n

any

borrowings\n

made

the

Funds

and

other

costs

incurred\n

the

Funds,

pay

their

fees

and

expenses\n

incurred\n

connection\n

with

the

implementation\n

and

maintenance\n

the

Global

Credit

Facility,\n

based

upon

their

relative\n

the

aggregate\n

net

assets

all

the

Borrowers,\n

including\n

annual

commitment\n

fee

0.15%

based

upon

the

unused

portion\n

the

Global

Credit

Facility.\n

These

fees

are

reflected\n

other

expenses\n

the

Statements\n

Operations.\n

During

the

year ended\n

August

31,

2026,

the

Funds

did

not

use

the

Global

Credit

Facility.

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Securities\n

lending\n

transactions

Equity

investments

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

$25,016,440

$351,649

The\n

agreements\n

can\n

be\n

terminated\n

at\n

any\n

time.

The\n

gross\n

amount\n

of\n

recognized\n

liability\n

for\n

such\n

transactions\n

is\n

included\n

in\n

payable\n

upon\n

return\n

of\n

securities\n

loaned\n

in\n

the\n

Statements\n

of\n

Assets\n

and\n

Liabilities.

5.\n

Investment\n

Transactions

(continued)

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

8.\n

Fair\n

Value\n

Measurements

The Funds

fair

value

hierarchy

that

distinguishes\n

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'\n

own

market

assumptions

(unobservable\n

inputs).

These

inputs

are

used

determining

the

value

the Funds' financial\n

instruments

and

are

summarized

the

following

fair

value

hierarchy:

Level

–

quoted

prices

active

markets

for

identical

financial\n

instruments

Level

–

other

significant\n

observable

inputs

(including

quoted

prices

for

similar

financial\n

instruments,\n

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

–

significant\n

unobservable\n

inputs

(including

the Funds'\n

own

assumptions\n

determining\n

the

fair

value

financial\n

instruments)

The

input

levels

are

not

necessarily\n

indication

the

risk

liquidity

associated

with

financial\n

instruments\n

that

level.

A\n

summary

inputs

used

August

31,

2026,

valuing

the

Funds' assets\n

carried

fair

value,

follows:

Level\n

Total

Templeton\n

Foreign\n

Fund

Assets:

Investments

Securities:

Common

Stocks

China

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

50,540,422

102,659,453

—

153,199,875

Denmark

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

—

40,410,287

—

40,410,287

France

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

—

170,300,629

—

170,300,629

Germany

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

—

87,206,671

—

87,206,671

Hong

Kong

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

—

56,499,455

—

56,499,455

Japan

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

—

207,793,386

—

207,793,386

Netherlands

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

—

234,302,136

—

234,302,136

Singapore

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

—

72,165,282

—

72,165,282

South

Korea

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

27,254,448

106,407,349

—

133,661,797

Switzerland

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

—

73,499,339

—

73,499,339

Taiwan

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

—

156,398,117

—

156,398,117

United

Kingdom

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

48,670,764

533,238,338

—

581,909,102

United

States

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

240,932,797

187,530,129

—

428,462,926

Short

Term\n

Investments

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

25,016,440

44,900,000

—

69,916,440

Total\n

Investments\n

Securities

...........

$392,414,871

$2,073,310,571

$—

$2,465,725,442

Templeton\n

World\n

Fund

Assets:

Investments

Securities:

Common

Stocks

China

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

55,417,141

26,847,579

—

82,264,720

France

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

—

167,083,870

—

167,083,870

Germany

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

—

125,148,957

—

125,148,957

Hong

Kong

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

—

94,536,824

—

94,536,824

Japan

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

—

83,695,818

—

83,695,818

Netherlands

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

—

116,572,975

—

116,572,975

South

Korea

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

—

142,393,411

—

142,393,411

Taiwan

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

71,541,362

69,715,013

—

141,256,375

United

Kingdom

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

—

257,988,603

—

257,988,603

United

States

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

1,596,714,035

—

1,596,714,035

Short

Term\n

Investments

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

351,649

122,700,000

—

123,051,649

Total\n

Investments\n

Securities

...........

$1,724,024,187

$1,206,683,050

$—

$2,930,707,237

Templeton\n

Funds

Notes\n

to\n

Financial\n

Statements

franklintempleton.com

Annual\n

Report

9.\n

Operating\n

Segments

Each

Fund

operates

single

operating\n

segment,\n

which

investment\n

portfolio.\n

The

chief

investment\n

officer of\n

the Funds'\n

investment

manager

serves

the

Chief

Operating\n

Decision\n

Maker

(“CODM”)\n

and is\n

responsible\n

for

evaluating each\n

Fund's\n

operating

results

and

allocating\n

resources\n

accordance\n

with each\n

Fund’s\n

investment\n

strategy.\n

Internal\n

reporting\n

provided\n

the

CODM

aligns

with

the

accounting\n

policies\n

and

measurement\n

principles\n

used

the

financial\n

statements.

For

information\n

regarding\n

segment

assets,

segment

profit\n

loss,

and

significant\n

expenses,\n

refer

the

Statements\n

Assets

and

Liabilities\n

and

the

Statements\n

Operations,\n

along

with

the

notes

the

financial\n

statements.\n

The

Schedules\n

Investments

provide

details

the

Funds'\n

investments\n

that

generate\n

returns

such

interest,\n

dividends,\n

and

realized\n

and

unrealized

gains

losses.

Performance\n

metrics,\n

including\n

portfolio\n

turnover\n

and

expense

ratios,

are

disclosed\n

the

Financial\n

Highlights.

10.\n

New\n

Accounting\n

Pronouncements

September\n

2026,

the

FASB\n

issued

Accounting\n

Standards\n

Update

(ASU)

No.

2026-03,\n

Fair

Value\n

Measurement\n

(Topic\n

820)—Investment\n

Companies\n

with

Equity

Securities\n

Subject

Contractual\n

Sale

Restrictions.\n

The

amendments\n

the

ASU

require

contractual\n

sale

restrictions\n

considered\n

measuring\n

the

fair

value

equity

securities\n

and

require

disclosure\n

the

amount

the

discount\n

attributable\n

the

contractual\n

sale

restriction.\n

The

ASU

effective\n

for

interim

and

annual

reporting\n

periods

beginning\n

after

December

15,

2027,

with

early

adoption\n

permitted.\n

Management\n

currently\n

evaluating\n

the

impact

the

financial\n

statements.

11.\n

Subsequent\n

Events

The

Funds

have

evaluated\n

subsequent\n

events

through

the

issuance\n

the financial\n

statements\n

and

determined\n

that

events

have

occurred

that

require

disclosure\n

other

than

those

already

disclosed\n

the

financial\n

statements.

Abbreviations

For\n

detailed\n

categories,\n

see\n

the\n

accompanying\n

Schedule\n

of\n

Investments.

Includes\n

foreign\n

securities\n

valued\n

at\n

$2,028,410,571,\n

which\n

were\n

categorized\n

as\n

Level\n

2\n

as\n

a\n

result\n

of\n

the\n

application\n

of\n

market\n

level\n

fair\n

value\n

procedures.\n

See\n

the\n

Financial\n

Instrument\n

Valuation\n

note\n

for\n

more\n

information.

Includes\n

foreign\n

securities\n

valued\n

at\n

$1,083,983,050,\n

which\n

were\n

categorized\n

as\n

Level\n

2\n

as\n

a\n

result\n

of\n

the\n

application\n

of\n

market\n

level\n

fair\n

value\n

procedures.\n

See\n

the\n

Financial\n

Instrument\n

Valuation\n

note\n

for\n

more\n

information.

Selected\n

Portfolio

ADR

American

Depositary\n

Receipt

8.\n

Fair\n

Value\n

Measurements

(continued)

Templeton\n

Funds

Report

Independent\n

Registered\n

Public

Accounting\n

Firm

franklintempleton.com

Annual\n

Report

To\n

the

Board

Trustees\n

Templeton\n

Funds

and

Shareholders\n

Templeton\n

Foreign

Fund

and

Templeton\n

World\n

Fund

Opinions\n

on\n

the\n

Financial\n

Statements

We\n

have

audited

the

accompanying\n

statements\n

assets

and

liabilities,\n

including\n

the

schedules\n

investments,\n

Templeton\n

Foreign

Fund

and

Templeton\n

World\n

Fund

(constituting\n

Templeton\n

Funds,

hereafter\n

collectively\n

referred\n

the

\"Funds\")\n

August

31,

2026,

the

statements\n

operations\n

for

the

year

ended

August

31,

2026,

the

statements\n

changes

net

assets

for

each

the

two

years

the

period

ended

August

31,

2026,

including\n

the

notes,

and

the

financial\n

highlights\n

for

each

the

five\n

years

the

period

ended

August

31,

2026

(collectively\n

referred\n

the

“financial\n

statements”).\n

our

opinion,

the

financial\n

statements\n

present

fairly,\n

all

material

respects,\n

the

financial\n

position\n

each

the

Funds

August

31,

2026,

the

results

each

their

operations\n

for

the

year

then

ended,

the

changes

each

their

net

assets

for

each

the

two

years

the

period

ended

August

31,

2026

and

each

the

financial\n

highlights\n

for

each

the

five\n

years

the

period

ended

August

31,

2026

conformity\n

with

accounting\n

principles\n

generally\n

accepted

the

United

States

America.\n

Basis\n

for\n

Opinions

These

financial\n

statements\n

are

the

responsibility\n

the

Funds’\n

management.\n

Our

responsibility\n

express

opinion

the

Funds’\n

financial\n

statements\n

based

our

audits.

We\n

are

public

accounting\n

firm\n

registered\n

with

the

Public

Company

Accounting

Oversight\n

Board

(United

States)

(PCAOB)

and

are

required\n

independent\n

with

respect

the

Funds

accordance

with

the

U.S.

federal

securities\n

laws

and

the

applicable\n

rules

and

regulations\n

the

Securities\n

and

Exchange\n

Commission

and

the

PCAOB.

We\n

conducted\n

our

audits

these

financial\n

statements\n

accordance\n

with

the

standards\n

the

PCAOB.

Those

standards\n

require

that

plan

and

perform

the

audit

obtain

reasonable\n

assurance\n

about

whether

the

financial\n

statements\n

are

free

material

misstatement,\n

whether

due

error

fraud.

Our

audits

included

performing\n

procedures\n

assess

the

risks

material\n

misstatement\n

the

financial\n

statements,\n

whether

due

error

fraud,

and

performing\n

procedures\n

that

respond

those

risks.

Such

procedures\n

included\n

examining,\n

test

basis,

evidence

regarding\n

the

amounts

and

disclosures\n

the

financial\n

statements.\n

Our

audits

also

included

evaluating\n

the

accounting

principles\n

used

and

significant\n

estimates\n

made

management,\n

well

evaluating\n

the

overall

presentation\n

the

financial\n

statements.\n

Our

procedures\n

included\n

confirmation\n

securities\n

owned

August

31,

2026

correspondence\n

with

the

custodian,\n

transfer

agent

and

brokers.\n

We\n

believe

that

our

audits

provide

reasonable\n

basis

for

our

opinions.

/s/

PricewaterhouseCoopers\n

LLP

San

Francisco,\n

California

October

19,

2026

We\n

have

served

the

auditor

one

investment\n

companies\n

the

Franklin\n

Templeton\n

Group

Funds

since

1948.

Templeton\n

Funds

Tax\n

Information\n

(unaudited)

franklintempleton.com

Annual\n

Report

mid-February,\n

tax

information\n

shareholder's\n

proportionate\n

distributions\n

paid

during

the

preceding\n

calendar

year

will

received,\n

applicable.\n

Please

also

refer

www.franklintempleton.com\n

for

per

tax

information\n

any

distributions\n

paid

during

the

preceding\n

calendar

year.\n

Shareholders\n

are

advised

consult

with

their

tax

advisors

for

further

information\n

the

treatment\n

these

amounts

their

tax

returns.

The

following\n

tax

information\n

for

the

Funds

required\n

furnished\n

shareholders\n

with

respect

income

earned

and

distributions

paid

during their\n

fiscal\n

year.

The

Funds

hereby

report

the

following\n

amounts,\n

subsequently\n

determined\n

different,\n

the

maximum

allowable\n

amounts,

for

the

fiscal\n

year

ended

August

31,

2026:

Under

Section

853

the

Internal

Revenue

Code,

the

Funds

below intend\n

elect

pass

through

their

shareholders\n

the

following

amounts,

amounts

finally\n

determined,\n

foreign

taxes

paid

and

foreign

source

income

earned

the

Funds

during

the

fiscal\n

year

ended

August

31,

2026:

Pursuant\n

to:

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Long-Term\n

Capital

Gain

Dividends\n

Distributed

§852(b)(3)(C)

$415,045

$336,342,340

Income

Eligible

for

Dividends\n

Received\n

Deduction

(DRD)

§854(b)(1)(A)

$703,112

$7,808,624

Qualified\n

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$63,024,060

$26,047,608

Short-Term\n

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$2,573,757

$15,983,980

Section

163(j)

Interest\n

Dividends\n

Earned

§163(j)

$2,122,316

$1,733,145

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

Foreign

Taxes\n

Paid

$5,595,807

—

Foreign

Source

Income

Earned

$52,255,026

—

Templeton\n

Funds

franklintempleton.com

Annual\n

Report

TEMPLETON\n

FUNDS

(unaudited)

Templeton\n

Foreign\n

Fund

Templeton\n

World\n

Fund

(each

Fund)

in-person

meeting

held

May

18-19,

2026

(Meeting),\n

the

Board

Trustees\n

(Board)

Templeton\n

Funds

(Trust),\n

including

majority

the

trustees\n

who

are

not

“interested\n

persons”\n

defined\n

the

Investment\n

Company

Act

1940

(Independent

Trustees),\n

reviewed\n

and

approved\n

the

continuance\n

the

investment\n

management\n

agreement\n

between

Templeton\n

Global

Advisors\n

Limited

(Manager)\n

and

the

Trust,\n

behalf

each

Fund

(each

Management\n

Agreement)\n

for

additional\n

one-year\n

period.

The

Independent\n

Trustees\n

received\n

advice

from

and

met

separately

with

Independent\n

Trustee\n

counsel

consider

the

renewal

each

Management\n

Agreement.

considering\n

the

continuance\n

each

Management\n

Agreement,\n

the

Board

reviewed\n

and

considered\n

information\n

provided\n

the

Manager

the

Meeting\n

and

throughout\n

the

year

meetings\n

the

Board

and

its

committees.\n

The

Board

also

reviewed\n

and

considered\n

information\n

provided\n

response\n

detailed\n

set

requests\n

for

information\n

submitted\n

the

Manager

Independent

Trustee\n

counsel

behalf

the

Independent\n

Trustees\n

connection\n

with

the

annual

contract\n

renewal\n

process.\n

addition,\n

prior

the

Meeting,\n

the

Independent\n

Trustees\n

held

virtual

contract\n

renewal\n

meeting\n

which

the

Independent\n

Trustees\n

first\n

conferred\n

amongst\n

themselves\n

and

Independent\n

Trustee\n

counsel\n

about

contract\n

renewal\n

matters,\n

and

then

met

with

management\n

request\n

additional\n

information\n

that

the

Independent\n

Trustees\n

also

considered\n

prior

and

the

Meeting.

The

Board

further\n

considered\n

all

the

factors\n

deemed

relevant\n

approving\n

the

continuance\n

each

Management\n

Changes\n

In\n

and\n

Disagreements\n

with\n

Accountants

For

the

period

covered

this

report

Not

applicable.

Results\n

of\n

Meeting(s)\n

of\n

Shareholders

For

the

period

covered

this

report

Not

applicable.

Remuneration\n

Paid\n

to\n

Directors,\n

Officers\n

and\n

Others

For

the

period

covered

this

report

Refer

the

financial\n

statements\n

included

herein.

Remuneration\n

officers\n

paid

the

Funds’\n

investment\n

manager

according

the

terms

the

agreement.

Board\n

Approval\n

of\n

Management\n

and\n

Subadvisory\n

Agreements

For

the

period

covered

this

report

Templeton\n

Funds

franklintempleton.com

Annual\n

Report

Agreement,

including,\n

but

not

limited

to:

(i)

the

nature,

extent

and

quality

the

services

provided

the

Manager;

(ii)

the

investment

performance\n

each

Fund;

(iii)

the

costs

the

services

provided

and

profits\n

realized

the

Manager

and

its

affiliates\n

from

the

relationship\n

with

each

Fund;

(iv)

the

extent

which

economies

scale

are

realized

each

Fund

grows;

and

(v)

whether

fee

levels

reflect\n

these

economies\n

scale

for

the

benefit\n

Fund

investors.

approving\n

the

continuance\n

each

Management\n

Agreement,\n

the

Board,

including\n

majority\n

the

Independent\n

Trustees,\n

determined,

through

the

exercise\n

its

business\n

judgment,\n

that

the

terms

the

Management\n

Agreements\n

are

fair

and

reasonable

and

that

the

continuance\n

each

Management\n

Agreement\n

the

best

interests\n

the

applicable\n

Fund

and

its

shareholders.

While

attention\n

was

given

all

information\n

furnished,\n

the

following\n

discusses\n

some

primary

factors

relevant\n

the

Board’s\n

determination.

Nature,\n

Extent\n

and\n

Quality\n

of\n

Services

The

Board

reviewed

the

information\n

received\n

regarding\n

the

nature,

extent

and

quality

investment\n

management\n

services\n

provided

the

Manager

and

its

affiliates\n

the

Funds

and

their

shareholders.\n

This

information\n

included,\n

among

other

things,

the

qualifications,\n

background\n

and

experience\n

the

senior

management\n

and

investment\n

personnel\n

the

Manager;\n

well

information

succession\n

planning\n

where

appropriate;\n

the

structure\n

investment\n

personnel\n

compensation;\n

oversight\n

third-

party

service

providers;\n

investment\n

performance\n

reports

and

financial\n

information\n

for

each

Fund;

reports

expenses\n

and

shareholder\n

services;\n

legal

and

compliance\n

matters;\n

risk

controls;\n

pricing

and

other

services\n

provided\n

the

Manager

and

its

affiliates;\n

and

management\n

fees

charged

the

Manager

and

its

affiliates\n

funds

and

other

accounts,\n

including\n

management’s\n

explanation\n

differences\n

among

accounts\n

where

relevant.\n

The

Board

also

reviewed\n

and

considered\n

annual

report

payments

made

Franklin\n

Templeton\n

(FT)

the

Funds

financial\n

intermediaries,\n

well

memorandum\n

relating

third-party\n

servicing\n

arrangements.\n

The

Board

acknowledged\n

FT’s\n

regular

updates

the

Board

strategic\n

initiatives,

ongoing

attention\n

the

service

level

quality

third-party\n

service

providers,\n

ongoing

efforts\n

modernize\n

its

mutual

fund

lineup,

mutual

fund

ETF

conversions,\n

integration\n

private

market

investments\n

into

existing

mutual

funds,

creation\n

additional

blockchain-compatible\n

money

market

funds,

and

sharpening\n

its

active,

income-oriented\n

offerings,\n

along

with

the

impact

FT\n

team

integrations\n

and

staff\n

reductions.

The

Board

also

reviewed\n

and

considered\n

the

benefits\n

provided\n

Fund

shareholders\n

investing\n

fund

that

part

the

FT\n

family

funds.

The

Board

noted

the

financial\n

position\n

the

Manager’s\n

parent,

Franklin\n

Templeton,\n

Inc.

(FTI),

FTI’s\n

continued

growth

its

global,

multi-asset\n

franchise,\n

and

its

commitment\n

the

mutual

fund

business.\n

The

Board

further

noted

FTI’s\n

continued\n

reassessment\n

fund

offerings\n

response\n

FT\n

acquisitions\n

and

the

market

environment,\n

FTI’s\n

focus

technology-driven\n

transformation,\n

expansion\n

its

private

market

investment\n

capabilities\n

and

global

alternatives\n

platform,\n

and

leveraging

artificial\n

intelligence\n

(AI),

blockchain\n

and

digital

wealth

platforms.

Following

consideration\n

such

information,\n

the

Board

was

satisfied\n

with

the

nature,

extent

and

quality

services\n

provided\n

the

Manager

and

its

affiliates\n

the

Funds

and

their

shareholders.

Fund\n

Performance

The

Board

reviewed

and

considered\n

the

performance\n

results

each

Fund

over

various

time

periods

ended

December\n

31,

2025.

The

Board

considered\n

the

performance\n

returns

for

each

Fund

comparison\n

the

performance\n

returns

mutual

funds

deemed

comparable\n

the

Fund

included\n

universe\n

(Performance\n

Universe)\n

selected\n

Broadridge\n

Financial\n

Solutions,\n

Inc.

(Broadridge),\n

independent\n

provider\n

investment\n

company\n

data.

The

Board

received\n

description\n

the

methodology\n

used

Broadridge\n

select

the

mutual

funds

included\n

Performance\n

Universe.\n

The

Board

also

reviewed\n

and

considered\n

Fund

performance\n

reports\n

provided

and

discussions\n

that

occurred\n

with

portfolio\n

managers\n

Board

meetings\n

throughout\n

the

year.\n

A\n

summary

each

Fund’s\n

performance\n

results\n

below.\n

This

year,\n

addition\n

providing\n

Class

A\n

performance\n

(and

expense)

data,

Broadridge\n

included\n

Advisor\n

Class

performance\n

data

for

each

Fund

align

with

the

performance\n

reporting\n

provided

Board

meetings\n

throughout\n

the

year.\n

Going

forward,\n

Broadridge\n

will

provide\n

the

Board

solely

with

the

Funds’\n

Advisor

Class

performance\n

information.

Templeton\n

Funds

franklintempleton.com

Annual\n

Report

Templeton\n

Foreign\n

Fund

The

Performance\n

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional\n

international

multi-cap\n

value

funds.

The

Board

noted

that

the

Fund’s\n

annualized\n

total

return

for

the

one-,

three-,

five-\n

and

10-

year

periods

was

below

the

median

its

Performance\n

Universe.\n

The

Board

discussed\n

this

performance\n

with

management\n

and

management\n

explained\n

that

the

Fund’s\n

blend-oriented\n

approach

with

increased\n

growth

and

quality

characteristics\n

versus

the

Performance\n

Universe’s\n

value-orientation\n

negatively\n

impacted

the

Fund’s\n

relative

returns

value

outperformed\n

growth

over

the

one-year

period.

Management\n

also

explained\n

that

stock

selection\n

detracted\n

from

performance\n

both

the

one-

and

three-year

periods.

Management\n

discussed\n

with

the

Board

the

actions

that

are

being

taken/have\n

been

taken

effort\n

improve

the

overall

performance\n

the

Fund,

including,\n

among

others,

changes

the

Fund’s\n

portfolio\n

positioning,\n

risk

management

and

sell

discipline.\n

Management\n

further

discussed\n

its

conviction\n

the

Fund’s\n

current

portfolio\n

positioning\n

and

investment

processes\n

and

its

view

that,

despite

the

recent

market

environment,\n

believes

the

Fund’s\n

positioning\n

will

positively\n

impact

the

Fund’s\n

performance\n

over

the

longer

term.

The

Board

concluded\n

that

the

Fund’s\n

Management\n

Agreement\n

should

continued

for

additional\n

one-year\n

period,

while

management’s\n

efforts\n

continue\n

closely

monitored.

Templeton\n

World\n

Fund

The

Performance\n

Universe\n

for

the

Fund

included

the

Fund

and

all

retail

and

institutional\n

global

multi-cap\n

value

funds.

The

Board

noted

that

the

Fund’s\n

annualized\n

total

return

for

the

three-year\n

period

was

above

the

median

its

Performance\n

Universe,\n

but

for

the

one-,

five-\n

and

10-year

periods

was

below

the

median

its

Performance\n

Universe.

Management\n

attributed\n

this

the

fact

that

the

Fund

has

quality

bias

than

its

value-oriented\n

peers.

To\n

that

end,

management\n

explained

that

the

Fund’s\n

underweight\n

relative\n

value-oriented\n

peers

the

financial\n

sector

pressured\n

returns

given

the

recent

outperformance\n

the

sector.\n

Management\n

further

explained\n

that

the

Fund’s\n

overweight\n

relative\n

peers

the

challenging\n

health

care

sector

also

negatively\n

impacted\n

relative\n

performance.\n

addition,\n

management\n

noted

that

the

Fund

was

overweight\n

Europe

and

underweight\n

the

U.S.

and

emerging\n

markets

relative\n

peers.

Management\n

represented

that

April

2022,

the

Fund

transitioned\n

concentrated\n

portfolio\n

focused

quality

industry\n

leaders.\n

With

respect

the

Fund’s\n

one-year\n

underperformance,\n

management\n

noted

that

this

was

largely

linked

stock

selection\n

the

health

care

sector,\n

which

currently\n

under

review.\n

The

Board

noted

that

the

Fund’s\n

annualized\n

total

return

was

positive

for

all

periods

with

one-

and

three-year\n

returns

21.33%

and

23.77%,

respectively,\n

and

three-year\n

returns

ranking

the

first\n

quintile\n

the

Fund’s\n

Performance\n

Universe.\n

The

Board

concluded\n

that

the

Fund’s\n

Management\n

Agreement\n

should

continued\n

for

additional\n

one-year\n

period,

while

management’s\n

efforts\n

continue\n

closely

monitored.

Comparative\n

Fees\n

and\n

Expenses

The

Board

reviewed

and

considered\n

information\n

regarding\n

each

Fund’s\n

actual

total

expense

ratio

and

its

various

components,\n

including,

applicable,\n

management\n

fees;

transfer\n

agent

expenses;\n

underlying\n

fund

expenses;\n

Rule

12b-1

and

non-Rule\n

12b-1

service

fees;

and

other

non-management\n

fees.

The

Board

also

noted

the

quarterly\n

and

annual

reports

receives\n

all

marketing

support

payments\n

made

FT\n

financial\n

intermediaries.\n

The

Board

considered\n

the

actual

total

expense

ratio

and,

separately,\n

the

contractual\n

management\n

fee

rate,

without

the

effect\n

fee

waivers,

any

(Management\n

Rate)

each

Fund

comparison\n

the

median

expense

ratio

and

median

Management\n

Rate,

respectively,\n

other

mutual

funds

deemed

comparable

and

with

similar

expense

structure\n

the

Fund

selected\n

Broadridge\n

(Expense\n

Group).

Broadridge\n

fee

and

expense

data

based

upon

information\n

taken

from

each

fund’s\n

most

recent

annual

semi-annual\n

report,

which

reflects\n

historical

asset

levels

that

may

quite

different\n

from

those

currently\n

existing,\n

particularly\n

period

market

volatility.\n

While

recognizing\n

such

inherent

limitation\n

and

the

fact

that

expense

ratios

and

Management\n

Rates

generally\n

increase\n

assets

decline

and

decrease\n

assets

grow,\n

the

Board

believed\n

the

independent\n

analysis\n

conducted\n

Broadridge\n

appropriate

measure

comparative\n

fees

and

expenses.\n

The

Broadridge\n

Management\n

Rate

includes\n

administrative\n

charges,\n

and

the

actual

total

expense\n

ratio,

for

comparative\n

consistency,\n

was

shown

for

Class

A\n

for

the

Templeton\n

World\n

Fund

and

Templeton\n

Foreign\n

Fund

and

for

each

other

fund

their

applicable\n

Expense\n

Group.

The

Board

received\n

description\n

the

methodology\n

used

Broadridge\n

select

the

mutual

funds

included\n

Expense\n

Group.

Templeton\n

Foreign\n

Fund

The

Expense\n

Group

for

the

Fund

included\n

the

Fund,

four

other

international\n

multi-cap\n

value

funds,

three

international\n

multi-cap\n

core

funds,

and

two

international\n

multi-cap\n

growth

funds.

The

Board

noted

that

the

Management\n

Rate

and

actual

total

expense\n

ratio

for

the

Fund

were

below

the

medians\n

and

the

first\n

quintile\n

(least

expensive)

its

Expense\n

Group.

The

Board

also

noted

that

the

Fund’s\n

actual

total

expense\n

ratio

reflected\n

expense\n

cap

operating

expenses.\n

The

Board

concluded\n

that

the

Management\n

Rate

charged\n

the

Fund

reasonable.

Templeton\n

Funds

franklintempleton.com

Annual\n

Report

Templeton\n

World\n

Fund

The

Expense

Group

for

the

Fund

included

the

Fund

and

five\n

other

global

multi-cap\n

value

funds.

The

Board

noted

that

the

Management\n

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

its

Expense

Group

and

that

the

Fund’s\n

actual

total

expense

ratio

was

the

first\n

quintile

(least

expensive)\n

its

Expense

Group.

The

Board

concluded

that

the

Management\n

Rate

charged

the

Fund

reasonable.

Profitability

The

Board

reviewed

and

considered\n

information\n

regarding\n

the

profits\n

realized\n

the

Manager

and

its

affiliates\n

connection\n

with

the

operation\n

each

Fund.

this

respect,\n

the

Board

considered\n

the

Fund

profitability\n

analysis\n

provided\n

the

Manager

that

addresses\n

the

overall

profitability\n

FT’s\n

fund

business,\n

well

its

profits\n

providing\n

investment\n

management\n

and

other

services

each

the

individual\n

funds

during

the

12-month\n

period

ended

September\n

30,

2025,

being

the

most

recent

fiscal\n

year-end\n

for

FTI.

The

Board

noted

that

although\n

management\n

continually\n

makes

refinements\n

its

methodologies\n

used

calculating\n

profitability\n

response\n

organizational\n

and

product-related\n

changes,\n

the

overall

methodology\n

has

remained

consistent\n

with

that

used

the

Funds’\n

profitability\n

report

presentations\n

from

prior

years.

The

Board

also

noted

that

independent\n

registered\n

public

accounting\n

firm\n

has

been

engaged

the

Manager

periodically\n

review

and

assess

the

allocation

methodologies\n

used

solely

the

Funds’\n

Board

with

respect

the

profitability\n

analysis.

The

Board

noted

management’s\n

belief

that

costs

incurred\n

establishing\n

the

infrastructure\n

necessary\n

for

the

type

mutual

fund

operations\n

conducted\n

the

Manager

and

its

affiliates\n

may

not

fully

reflected\n

the

expenses\n

allocated\n

each

Fund

determining\n

its

profitability,\n

well

the

fact

that

the

level

profits,\n

certain

extent,

reflected\n

operational\n

cost

savings

and

efficiencies\n

initiated\n

management.\n

part

this

evaluation,\n

the

Board

considered\n

management’s\n

outsourcing\n

certain

operations,\n

which

effort\n

has

required\n

considerable\n

up-front\n

expenditures\n

the

Manager,\n

but

over

the

long

run

expected

result

greater

efficiencies.\n

The

Board

also

noted

management’s\n

expenditures\n

improving\n

shareholder\n

services\n

provided

the

Funds,

well

the

need

implement\n

systems

and

meet

additional\n

regulatory\n

and

compliance\n

requirements\n

resulting

from

recent

Securities\n

and

Exchange\n

Commission\n

and

other

regulatory\n

requirements.

The

Board

also

considered\n

the

extent

which

the

Manager

and

its

affiliates\n

might

derive

ancillary\n

benefits\n

from

fund

operations,

including\n

revenues\n

generated\n

from

transfer\n

agent

services,\n

potential\n

benefits\n

resulting\n

from

personnel\n

and

systems

enhancements\n

necessitated\n

fund

growth,

well

increased\n

leverage

with

service

providers\n

and

counterparties.\n

Based

upon

its

consideration\n

all

these

factors,

the

Board

concluded\n

that

the

level

profits\n

realized\n

the

Manager

and

its

affiliates\n

from

providing\n

services\n

each

Fund

was

not

excessive\n

view

the

nature,

extent

and

quality

services\n

provided\n

each

Fund.

Economies\n

of\n

Scale

The

Board

reviewed

and

considered\n

the

extent

which

the

Manager

may

realize

economies\n

scale,

any,\n

each

Fund

grows

larger

and

whether

each

Fund’s\n

management\n

fee

structure\n

reflects\n

any

economies\n

scale

for

the

benefit\n

shareholders.

With

respect

possible\n

economies\n

scale,

the

Board

noted

the

existence\n

management\n

fee

breakpoints,\n

which

operate

generally\n

any

economies\n

scale

with

Fund’s\n

shareholders\n

reducing\n

the

Fund’s\n

effective\n

management

fees

the

Fund

grows

size.

The

Board

considered\n

the

Manager’s\n

view

that

any

analyses\n

potential\n

economies

scale

managing\n

particular\n

fund

are

inherently\n

limited

light

the

joint

and

common

costs

and

investments\n

the

Manager’s\n

incur

across

the

FT\n

family

funds

whole.

The

Board

concluded\n

that

the

extent

economies\n

scale

may

realized\n

the

Manager\n

and

its

affiliates,\n

each

Fund’s\n

management\n

fee

structure\n

provided\n

sharing\n

benefits\n

with

the

Fund

and

its

shareholders\n

the

Fund

grows.

Conclusion

Based

its

review,\n

consideration\n

and

evaluation\n

all

factors\n

believed\n

relevant,\n

including\n

the

above-described\n

factors\n

and

conclusions,

the

Board

unanimously\n

approved\n

the

continuance\n

each

Management\n

Agreement\n

for

additional\n

one-year\n

period.

TLF-AFSOI\n

10/26

©\n

2026\n

Franklin\n

Templeton.\n

All\n

rights\n

reserved.

\n \n \n \n

ITEM 8.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements\nincluded in Item 7 of this Form N-CSR.

\n \n \n \n

ITEM 9.

PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements\nincluded in Item 7 of this Form N-CSR.

\n \n \n \n

ITEM 10.

REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.

The information is disclosed as part of the Financial Statements\nincluded in Item 7 of this Form N-CSR.

\n \n \n \n

ITEM 11.

STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.

The information is disclosed as part of the Financial Statements\nincluded in Item 7 of this Form N-CSR, as applicable.

\n \n \n \n

ITEM 12.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

\n \n \n \n

ITEM 13.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

\n \n \n \n

ITEM 14.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

\n \n \n \n

ITEM 15.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no changes to the procedures by which shareholders\nmay recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

\n \n \n \n

ITEM 16.

CONTROLS AND PROCEDURES.

\n \n \n \n

(a)

The Registrants acknowledge the Staff’s comment. In future filings on Form N-CSR, the certifications required by Rule 30a-2 and\n Item 19(a)(3) will include the designations “Principal Executive Officer” and “Principal Financial Officer” in\n the signature blocks, reflecting the capacity in which each signatory executes the certification, in conformity with the language of the\n Rule and Form N-CSR. The Registrants may also include each signatory’s actual title with respect to the Funds alongside the required\n designation.

\n \n \n \n

(b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940\n Act) that occurred during the period covered by this report that have materially affected or are likely to materially affect the Registrant’s\n internal control over financial reporting.

\n \n \n \n

ITEM 17.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

\n \n \n \n

ITEM 18.

RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

\n \n \n \n

(a)

Not applicable.

\n \n \n \n

(b)

Not applicable.

\n \n \n \n

ITEM 19.

EXHIBITS.

(a) (1) Code of Ethics\nattached hereto.

Exhibit 99.CODE ETH

(a) (3) Certifications\npursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

(b) Certifications\npursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and\nthe Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto\nduly authorized.

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

Templeton Funds

By:	/s/ Christopher Kings
	Christopher Kings
	Chief Executive Officer – Finance and Administration

Date:	October 28, 2026

Pursuant to the requirements of the Securities Exchange Act of 1934 and\nthe Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the\ncapacities and on the dates indicated.

\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n

By:	/s/ Christopher\n Kings
	Christopher Kings
	Chief Executive Officer – Finance and Administration

Date:	October 28, 2026

By:	/s/ Jeffrey White
	Jeffrey White
	Chief Financial Officer, Chief Accounting Officer and\n Treasurer

Date:	October 28, 2026

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