2025-09-1174200002100_TempletonForeignFund_ClassA


Templeton Foreign Fund
Class A [TEMFX]
Annual Shareholder Report \| August 31, 2025

This annual shareholder report contains important information about Templeton Foreign Fund for the period September 1, 2024, to August 31, 2025.
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)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$115	1.10%

*	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, 2025, Class A shares of Templeton Foreign Fund returned 8.91%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 15.42% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Standard Chartered, an emerging market-focused bank, delivered a strong year overall, with shares supported by robust earnings growth and capital returns. The bank benefited from higher income in wealth and markets divisions, disciplined cost control, and multiple share buybacks through mid-2025, which bolstered investor confidence.
↑	Alibaba Group, China’s leading e-commerce and cloud provider, saw shares recover strongly over the year as artificial intelligence (AI)-driven growth and cloud momentum boosted sentiment. Active buybacks and supportive policy measures added tailwinds, though volatility persisted amid regulatory uncertainty and competitive pressures.
↑	Dassault Aviation, the French aerospace and defense group behind Rafale jets and Falcon business aircraft, saw strong share gains over the year. Performance was supported by solid results, a healthy order backlog and a new buyback program, though supply chain issues and political uncertainty added some volatility.


Top detractors from performance:
↓	Ørsted A/S, a Danish multinational energy company was the leading stock detractor. Much of its negative contribution related to developments late in the period which included an announcement of a rights issue to shore up its balance sheet along with a U.S. ‘stop work’ order on a major offshore wind project.
↓	Persimmon, one of the UK’s largest housebuilders, saw its shares decline as higher mortgage rates and affordability challenges weighed on demand. Despite some improvement in its order book, persistent cost pressures and regulatory burdens kept margins under strain, leaving investor sentiment cautious.
↓	Stellantis, the multinational carmaker, saw its shares fall over the period as profits slumped and restructuring risks grew. Losses were driven by weaker sales, higher costs and large charges from program cancellations, while tariffs and a negative product mix added pressure. Investor confidence was further hit by suspended guidance and a credit outlook downgrade

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

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

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 8/31/2015 — 8/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2025


	1 Year	5 Year	10 Year
Class A	8.91	10.51	5.41
Class A (with sales charge)	2.93	9.28	4.82
MSCI All Country World ex-U.S. Index-NR	15.42	8.94	7.33

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, 2025)


Total Net Assets	$2,582,933,485
Total Number of Portfolio Holdings	46
Total Management Fee Paid	$16,809,875
Portfolio Turnover Rate	44.39%

HOW HAS THE FUND CHANGED?

Effective December 31, 2024, Peter M. Moeschter retired and stepped down as a member of the Fund’s portfolio management team.

This is a summary of a change to the Fund since September 1, 2024. 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, 2026,
at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or
prospectus.us.franklintempleton@fisglobal.com.


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

HOUSEHOLDING

You will receive the Fund’s shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called “householding,” will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.


Templeton Foreign Fund
Class C [TEFTX]
Annual Shareholder Report \| August 31, 2025

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)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C	$193	1.85%

*	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, 2025, Class C shares of Templeton Foreign Fund returned 8.13%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 15.42% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Standard Chartered, an emerging market-focused bank, delivered a strong year overall, with shares supported by robust earnings growth and capital returns. The bank benefited from higher income in wealth and markets divisions, disciplined cost control, and multiple share buybacks through mid-2025, which bolstered investor confidence.
↑	Alibaba Group, China’s leading e-commerce and cloud provider, saw shares recover strongly over the year as artificial intelligence (AI)-driven growth and cloud momentum boosted sentiment. Active buybacks and supportive policy measures added tailwinds, though volatility persisted amid regulatory uncertainty and competitive pressures.
↑	Dassault Aviation, the French aerospace and defense group behind Rafale jets and Falcon business aircraft, saw strong share gains over the year. Performance was supported by solid results, a healthy order backlog and a new buyback program, though supply chain issues and political uncertainty added some volatility.


Top detractors from performance:
↓	Ørsted A/S, a Danish multinational energy company was the leading stock detractor. Much of its negative contribution related to developments late in the period which included an announcement of a rights issue to shore up its balance sheet along with a U.S. ‘stop work’ order on a major offshore wind project.
↓	Persimmon, one of the UK’s largest housebuilders, saw its shares decline as higher mortgage rates and affordability challenges weighed on demand. Despite some improvement in its order book, persistent cost pressures and regulatory burdens kept margins under strain, leaving investor sentiment cautious.
↓	Stellantis, the multinational carmaker, saw its shares fall over the period as profits slumped and restructuring risks grew. Losses were driven by weaker sales, higher costs and large charges from program cancellations, while tariffs and a negative product mix added pressure. Investor confidence was further hit by suspended guidance and a credit outlook downgrade

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 8/31/2015 — 8/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2025


	1 Year	5 Year	10 Year
Class C	8.13	9.66	4.61
Class C (with sales charge)	7.13	9.66	4.61
MSCI All Country World ex-U.S. Index-NR	15.42	8.94	7.33

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, 2025)


Total Net Assets	$2,582,933,485
Total Number of Portfolio Holdings	46
Total Management Fee Paid	$16,809,875
Portfolio Turnover Rate	44.39%

WHAT DID THE FUND INVEST IN? (as of August 31, 2025)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective December 31, 2024, Peter M. Moeschter retired and stepped down as a member of the Fund’s portfolio management team.


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

HOUSEHOLDING


Templeton Foreign Fund
Class R [TEFRX]
Annual Shareholder Report \| August 31, 2025

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)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R	$141	1.35%

*	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, 2025, Class R shares of Templeton Foreign Fund returned 8.63%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 15.42% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Standard Chartered, an emerging market-focused bank, delivered a strong year overall, with shares supported by robust earnings growth and capital returns. The bank benefited from higher income in wealth and markets divisions, disciplined cost control, and multiple share buybacks through mid-2025, which bolstered investor confidence.
↑	Alibaba Group, China’s leading e-commerce and cloud provider, saw shares recover strongly over the year as artificial intelligence (AI)-driven growth and cloud momentum boosted sentiment. Active buybacks and supportive policy measures added tailwinds, though volatility persisted amid regulatory uncertainty and competitive pressures.
↑	Dassault Aviation, the French aerospace and defense group behind Rafale jets and Falcon business aircraft, saw strong share gains over the year. Performance was supported by solid results, a healthy order backlog and a new buyback program, though supply chain issues and political uncertainty added some volatility.


Top detractors from performance:
↓	Ørsted A/S, a Danish multinational energy company was the leading stock detractor. Much of its negative contribution related to developments late in the period which included an announcement of a rights issue to shore up its balance sheet along with a U.S. ‘stop work’ order on a major offshore wind project.
↓	Persimmon, one of the UK’s largest housebuilders, saw its shares decline as higher mortgage rates and affordability challenges weighed on demand. Despite some improvement in its order book, persistent cost pressures and regulatory burdens kept margins under strain, leaving investor sentiment cautious.
↓	Stellantis, the multinational carmaker, saw its shares fall over the period as profits slumped and restructuring risks grew. Losses were driven by weaker sales, higher costs and large charges from program cancellations, while tariffs and a negative product mix added pressure. Investor confidence was further hit by suspended guidance and a credit outlook downgrade

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R 8/31/2015 — 8/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2025


	1 Year	5 Year	10 Year
Class R	8.63	10.24	5.14
MSCI All Country World ex-U.S. Index-NR	15.42	8.94	7.33

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, 2025)


Total Net Assets	$2,582,933,485
Total Number of Portfolio Holdings	46
Total Management Fee Paid	$16,809,875
Portfolio Turnover Rate	44.39%

WHAT DID THE FUND INVEST IN? (as of August 31, 2025)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective December 31, 2024, Peter M. Moeschter retired and stepped down as a member of the Fund’s portfolio management team.


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

HOUSEHOLDING


Templeton Foreign Fund
Class R6 [FTFGX]
Annual Shareholder Report \| August 31, 2025

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)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R6	$77	0.74%

*	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, 2025, Class R6 shares of Templeton Foreign Fund returned 9.31%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 15.42% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Standard Chartered, an emerging market-focused bank, delivered a strong year overall, with shares supported by robust earnings growth and capital returns. The bank benefited from higher income in wealth and markets divisions, disciplined cost control, and multiple share buybacks through mid-2025, which bolstered investor confidence.
↑	Alibaba Group, China’s leading e-commerce and cloud provider, saw shares recover strongly over the year as artificial intelligence (AI)-driven growth and cloud momentum boosted sentiment. Active buybacks and supportive policy measures added tailwinds, though volatility persisted amid regulatory uncertainty and competitive pressures.
↑	Dassault Aviation, the French aerospace and defense group behind Rafale jets and Falcon business aircraft, saw strong share gains over the year. Performance was supported by solid results, a healthy order backlog and a new buyback program, though supply chain issues and political uncertainty added some volatility.


Top detractors from performance:
↓	Ørsted A/S, a Danish multinational energy company was the leading stock detractor. Much of its negative contribution related to developments late in the period which included an announcement of a rights issue to shore up its balance sheet along with a U.S. ‘stop work’ order on a major offshore wind project.
↓	Persimmon, one of the UK’s largest housebuilders, saw its shares decline as higher mortgage rates and affordability challenges weighed on demand. Despite some improvement in its order book, persistent cost pressures and regulatory burdens kept margins under strain, leaving investor sentiment cautious.
↓	Stellantis, the multinational carmaker, saw its shares fall over the period as profits slumped and restructuring risks grew. Losses were driven by weaker sales, higher costs and large charges from program cancellations, while tariffs and a negative product mix added pressure. Investor confidence was further hit by suspended guidance and a credit outlook downgrade

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R6 8/31/2015 — 8/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2025


	1 Year	5 Year	10 Year
Class R6	9.31	10.90	5.83
MSCI All Country World ex-U.S. Index-NR	15.42	8.94	7.33

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, 2025)


Total Net Assets	$2,582,933,485
Total Number of Portfolio Holdings	46
Total Management Fee Paid	$16,809,875
Portfolio Turnover Rate	44.39%

WHAT DID THE FUND INVEST IN? (as of August 31, 2025)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective December 31, 2024, Peter M. Moeschter retired and stepped down as a member of the Fund’s portfolio management team.


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

HOUSEHOLDING


Templeton Foreign Fund
Advisor Class [TFFAX]
Annual Shareholder Report \| August 31, 2025

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)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Advisor Class	$89	0.85%

*	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, 2025, Advisor Class shares of Templeton Foreign Fund returned 9.14%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 15.42% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Standard Chartered, an emerging market-focused bank, delivered a strong year overall, with shares supported by robust earnings growth and capital returns. The bank benefited from higher income in wealth and markets divisions, disciplined cost control, and multiple share buybacks through mid-2025, which bolstered investor confidence.
↑	Alibaba Group, China’s leading e-commerce and cloud provider, saw shares recover strongly over the year as artificial intelligence (AI)-driven growth and cloud momentum boosted sentiment. Active buybacks and supportive policy measures added tailwinds, though volatility persisted amid regulatory uncertainty and competitive pressures.
↑	Dassault Aviation, the French aerospace and defense group behind Rafale jets and Falcon business aircraft, saw strong share gains over the year. Performance was supported by solid results, a healthy order backlog and a new buyback program, though supply chain issues and political uncertainty added some volatility.


Top detractors from performance:
↓	Ørsted A/S, a Danish multinational energy company was the leading stock detractor. Much of its negative contribution related to developments late in the period which included an announcement of a rights issue to shore up its balance sheet along with a U.S. ‘stop work’ order on a major offshore wind project.
↓	Persimmon, one of the UK’s largest housebuilders, saw its shares decline as higher mortgage rates and affordability challenges weighed on demand. Despite some improvement in its order book, persistent cost pressures and regulatory burdens kept margins under strain, leaving investor sentiment cautious.
↓	Stellantis, the multinational carmaker, saw its shares fall over the period as profits slumped and restructuring risks grew. Losses were driven by weaker sales, higher costs and large charges from program cancellations, while tariffs and a negative product mix added pressure. Investor confidence was further hit by suspended guidance and a credit outlook downgrade

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Advisor Class 8/31/2015 — 8/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2025


	1 Year	5 Year	10 Year
Advisor Class	9.14	10.78	5.66
MSCI All Country World ex-U.S. Index-NR	15.42	8.94	7.33

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, 2025)


Total Net Assets	$2,582,933,485
Total Number of Portfolio Holdings	46
Total Management Fee Paid	$16,809,875
Portfolio Turnover Rate	44.39%

WHAT DID THE FUND INVEST IN? (as of August 31, 2025)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective December 31, 2024, Peter M. Moeschter retired and stepped down as a member of the Fund’s portfolio management team.


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

HOUSEHOLDING


Templeton World Fund
Class A [TEMWX]
Annual Shareholder Report \| August 31, 2025

This annual shareholder report contains important information about Templeton World Fund for the period September 1, 2024, to August 31, 2025.
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)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Class A	$112	1.05%

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

For the twelve months ended August 31, 2025, Class A shares of Templeton World Fund returned 14.23%. The Fund compares its performance to the MSCI All Country World Index-NR, which returned 15.79% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Rolls-Royce Holdings saw shares surge over the year as its turnaround project continued to deliver profits and cash flow stepped up, distributions were reinstated alongside a buyback, and guidance was raised after a strong first half. Sentiment was further supported by civil-aerospace recovery, steady defense and progress on small modular reactors.
↑	A newly established position in Safran SA added value over the period as the company delivered strong results and maintained a positive outlook. Growth in its core businesses and steady demand for services supported confidence, while a favorable environment for aerospace and defense provided an additional boost.
↑	GE Vernova, a U.S.-based electrification and power-equipment provider (wind turbines, gas turbines and grid solutions), benefited from U.S. generation and grid build-out and rising data-center power demand, but the position was closed during the period on valuation after a strong run.


Top detractors from performance:
↓	UnitedHealth detracted as it shares sold off in the second quarter of 2025 after a first quarter earnings miss, higher-than-expected Medicare Advantage medical costs, a surprise CEO change, and news of a federal investigation; the Fund exited the position during the period as these developments undermined the original thesis.
↓	Also from the health care sector, Ireland-based ICON plc underperformed, with its share price declining after it reported weaker-than-expected first quarter 2025 results and lowered full-year guidance, and after it cited delays and cancellations in clinical trial activity—particularly among biotech clients—highlighting ongoing softness in the contract research market.
↓	From the energy sector, BP detracted due to timing rather than thesis. The Fund initiated the position mid-period and held it through a softer phase for the shares; then exited ahead of the late-August recovery, so the holding window captured the drawdown but not the subsequent rebound.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 8/31/2015 — 8/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2025


	1 Year	5 Year	10 Year
Class A	14.23	10.44	6.91
Class A (with sales charge)	7.92	9.20	6.31
MSCI All Country World Index-NR	15.79	12.00	11.10

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, 2025)


Total Net Assets	$2,797,739,781
Total Number of Portfolio Holdings	46
Total Management Fee Paid	$18,583,845
Portfolio Turnover Rate	100.16%

HOW HAS THE FUND CHANGED?

Effective August 1, 2025, Templeton Asset Management Ltd. no longer serves as sub-advisor to the Fund.

In addition, effective December 31, 2024, Peter M. Moeschter stepped down as a member of the Fund’s portfolio management team.

This is a summary of certain changes to the Fund since September 1, 2024. 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, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or
prospectus.us.franklintempleton@fisglobal.com.


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

HOUSEHOLDING


Templeton World Fund
Class C [TEWTX]
Annual Shareholder Report \| August 31, 2025

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)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Class C	$192	1.80%

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

For the twelve months ended August 31, 2025, Class C shares of Templeton World Fund returned 13.39%. The Fund compares its performance to the MSCI All Country World Index-NR, which returned 15.79% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Rolls-Royce Holdings saw shares surge over the year as its turnaround project continued to deliver profits and cash flow stepped up, distributions were reinstated alongside a buyback, and guidance was raised after a strong first half. Sentiment was further supported by civil-aerospace recovery, steady defense and progress on small modular reactors.
↑	A newly established position in Safran SA added value over the period as the company delivered strong results and maintained a positive outlook. Growth in its core businesses and steady demand for services supported confidence, while a favorable environment for aerospace and defense provided an additional boost.
↑	GE Vernova, a U.S.-based electrification and power-equipment provider (wind turbines, gas turbines and grid solutions), benefited from U.S. generation and grid build-out and rising data-center power demand, but the position was closed during the period on valuation after a strong run.


Top detractors from performance:
↓	UnitedHealth detracted as it shares sold off in the second quarter of 2025 after a first quarter earnings miss, higher-than-expected Medicare Advantage medical costs, a surprise CEO change, and news of a federal investigation; the Fund exited the position during the period as these developments undermined the original thesis.
↓	Also from the health care sector, Ireland-based ICON plc underperformed, with its share price declining after it reported weaker-than-expected first quarter 2025 results and lowered full-year guidance, and after it cited delays and cancellations in clinical trial activity—particularly among biotech clients—highlighting ongoing softness in the contract research market.
↓	From the energy sector, BP detracted due to timing rather than thesis. The Fund initiated the position mid-period and held it through a softer phase for the shares; then exited ahead of the late-August recovery, so the holding window captured the drawdown but not the subsequent rebound.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 8/31/2015 — 8/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2025


	1 Year	5 Year	10 Year
Class C	13.39	9.62	6.10
Class C (with sales charge)	12.39	9.62	6.10
MSCI All Country World Index-NR	15.79	12.00	11.10

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, 2025)


Total Net Assets	$2,797,739,781
Total Number of Portfolio Holdings	46
Total Management Fee Paid	$18,583,845
Portfolio Turnover Rate	100.16%

WHAT DID THE FUND INVEST IN? (as of August 31, 2025)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective August 1, 2025, Templeton Asset Management Ltd. no longer serves as sub-advisor to the Fund.

In addition, effective December 31, 2024, Peter M. Moeschter stepped down as a member of the Fund’s portfolio management team.


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

HOUSEHOLDING


Templeton World Fund
Class R6 [FTWRX]
Annual Shareholder Report \| August 31, 2025

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)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R6	$82	0.76%

*	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, 2025, Class R6 shares of Templeton World Fund returned 14.61%. The Fund compares its performance to the MSCI All Country World Index-NR, which returned 15.79% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Rolls-Royce Holdings saw shares surge over the year as its turnaround project continued to deliver profits and cash flow stepped up, distributions were reinstated alongside a buyback, and guidance was raised after a strong first half. Sentiment was further supported by civil-aerospace recovery, steady defense and progress on small modular reactors.
↑	A newly established position in Safran SA added value over the period as the company delivered strong results and maintained a positive outlook. Growth in its core businesses and steady demand for services supported confidence, while a favorable environment for aerospace and defense provided an additional boost.
↑	GE Vernova, a U.S.-based electrification and power-equipment provider (wind turbines, gas turbines and grid solutions), benefited from U.S. generation and grid build-out and rising data-center power demand, but the position was closed during the period on valuation after a strong run.


Top detractors from performance:
↓	UnitedHealth detracted as it shares sold off in the second quarter of 2025 after a first quarter earnings miss, higher-than-expected Medicare Advantage medical costs, a surprise CEO change, and news of a federal investigation; the Fund exited the position during the period as these developments undermined the original thesis.
↓	Also from the health care sector, Ireland-based ICON plc underperformed, with its share price declining after it reported weaker-than-expected first quarter 2025 results and lowered full-year guidance, and after it cited delays and cancellations in clinical trial activity—particularly among biotech clients—highlighting ongoing softness in the contract research market.
↓	From the energy sector, BP detracted due to timing rather than thesis. The Fund initiated the position mid-period and held it through a softer phase for the shares; then exited ahead of the late-August recovery, so the holding window captured the drawdown but not the subsequent rebound.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R6 8/31/2015 — 8/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2025


	1 Year	5 Year	10 Year
Class R6	14.61	10.77	7.24
MSCI All Country World Index-NR	15.79	12.00	11.10

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, 2025)


Total Net Assets	$2,797,739,781
Total Number of Portfolio Holdings	46
Total Management Fee Paid	$18,583,845
Portfolio Turnover Rate	100.16%

WHAT DID THE FUND INVEST IN? (as of August 31, 2025)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective August 1, 2025, Templeton Asset Management Ltd. no longer serves as sub-advisor to the Fund.

In addition, effective December 31, 2024, Peter M. Moeschter stepped down as a member of the Fund’s portfolio management team.


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

HOUSEHOLDING


Templeton World Fund
Advisor Class [TWDAX]
Annual Shareholder Report \| August 31, 2025

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)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Advisor Class	$86	0.80%

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

For the twelve months ended August 31, 2025, Advisor Class shares of Templeton World Fund returned 14.55%. The Fund compares its performance to the MSCI All Country World Index-NR, which returned 15.79% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Rolls-Royce Holdings saw shares surge over the year as its turnaround project continued to deliver profits and cash flow stepped up, distributions were reinstated alongside a buyback, and guidance was raised after a strong first half. Sentiment was further supported by civil-aerospace recovery, steady defense and progress on small modular reactors.
↑	A newly established position in Safran SA added value over the period as the company delivered strong results and maintained a positive outlook. Growth in its core businesses and steady demand for services supported confidence, while a favorable environment for aerospace and defense provided an additional boost.
↑	GE Vernova, a U.S.-based electrification and power-equipment provider (wind turbines, gas turbines and grid solutions), benefited from U.S. generation and grid build-out and rising data-center power demand, but the position was closed during the period on valuation after a strong run.


Top detractors from performance:
↓	UnitedHealth detracted as it shares sold off in the second quarter of 2025 after a first quarter earnings miss, higher-than-expected Medicare Advantage medical costs, a surprise CEO change, and news of a federal investigation; the Fund exited the position during the period as these developments undermined the original thesis.
↓	Also from the health care sector, Ireland-based ICON plc underperformed, with its share price declining after it reported weaker-than-expected first quarter 2025 results and lowered full-year guidance, and after it cited delays and cancellations in clinical trial activity—particularly among biotech clients—highlighting ongoing softness in the contract research market.
↓	From the energy sector, BP detracted due to timing rather than thesis. The Fund initiated the position mid-period and held it through a softer phase for the shares; then exited ahead of the late-August recovery, so the holding window captured the drawdown but not the subsequent rebound.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Advisor Class 8/31/2015 — 8/31/2025

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended August 31, 2025


	1 Year	5 Year	10 Year
Advisor Class	14.55	10.72	7.18
MSCI All Country World Index-NR	15.79	12.00	11.10

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, 2025)


Total Net Assets	$2,797,739,781
Total Number of Portfolio Holdings	46
Total Management Fee Paid	$18,583,845
Portfolio Turnover Rate	100.16%

WHAT DID THE FUND INVEST IN? (as of August 31, 2025)

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective August 1, 2025, Templeton Asset Management Ltd. no longer serves as sub-advisor to the Fund.

In addition, effective December 31, 2024, Peter M. Moeschter stepped down as a member of the Fund’s portfolio management team.


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

HOUSEHOLDING

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

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

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

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

a) Audit Fees. The aggregate fees billed in the last two fiscal years ending August 31, 2024 and August 31, 2025 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $124,940 in August 31, 2024 and $97,689 in August 31, 2025.

b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s financial statements were $6,000 in August 31, 2024 and $0 in August 31, 2025.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $0 in August 31, 2024 and $21,000 in August 31, 2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

The aggregate fees billed for tax services by the Auditors to the Registrant’s investment manager and any entity controlling, controlled by, or under common control with the investment manager that provides ongoing services to the Registrant (“Service Affiliates”) during the Reporting Periods that required pre-approval by the Audit Committee were $140,000 in August 31, 2024 and $0 in August 31, 2025. The services for which these fees were paid included global access to tax platform International Tax View.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in August 31, 2024 and $0 in August 31, 2025.

The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Service Affiliates, other than the services reported in paragraphs (a) through (c) of this item, were $47,804 in August 31, 2024 and $0 in August 31, 2025. The services for which these fees were paid included professional fees in connection with SOC 1 reports.

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

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

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

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

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

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

(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $193,804 in August 31, 2024 and $218,343 in August 31, 2025.

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

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.60

$7.78

$6.32

$7.77

$6.22

Income

from

investment

operations

Net

investment

income

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

0.17

0.18

0.16

0.13

0.18

Net

realized

and

unrealized

gains

(losses)

...........

0.56

0.83

1.38

(1.28)

1.46

Total

from

investment

operations

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

0.73

1.01

1.54

(1.15)

1.64

Less

distributions

from:

Net

investment

income

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

(0.18)

(0.19)

(0.08)

(0.30)

(0.09)

Net

asset

value,

end

year

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

$9.15

$8.60

$7.78

$6.32

$7.77

Total

return

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

8.91%

13.28%

24.57%

(15.25)%

26.57%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.13%

1.12%

1.16%

1.15%

Expenses

net

waiver

and

payments

affiliates

.......

1.10%

1.07%

Net

investment

income

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

1.99%

2.26%

2.20%

1.80%

2.45%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$1,541,500

$1,606,239

$1,605,982

$1,418,293

$1,990,939

Portfolio

turnover

rate

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

44.39%

42.01%

14.85%

29.07%

37.85%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.09

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.23%.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

August

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.59

$7.76

$6.29

$7.70

$6.17

Income

from

investment

operations

Net

investment

income

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

0.10

0.12

0.10

0.07

0.13

Net

realized

and

unrealized

gains

(losses)

...........

0.58

0.83

1.39

(1.27)

1.43

Total

from

investment

operations

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

0.68

0.95

1.49

(1.20)

1.56

Less

distributions

from:

Net

investment

income

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

(0.11)

(0.12)

(0.02)

(0.21)

(0.03)

Net

asset

value,

end

year

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

$9.16

$8.59

$7.76

$6.29

$7.70

Total

return

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

8.13%

12.40%

23.65%

(15.95)%

25.55%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.88%

1.87%

1.91%

1.90%

Expenses

net

waiver

and

payments

affiliates

.......

1.85%

1.82%

Net

investment

income

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

1.17%

1.47%

1.41%

1.03%

1.81%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$13,876

$17,220

$21,611

$23,962

$39,083

Portfolio

turnover

rate

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

44.39%

42.01%

14.85%

29.07%

37.85%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.09

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

0.58%.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.38

$7.58

$6.16

$7.58

$6.08

Income

from

investment

operations

Net

investment

income

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

0.14

0.16

0.14

0.11

0.16

Net

realized

and

unrealized

gains

(losses)

...........

0.55

0.82

1.35

(1.25)

1.42

Total

from

investment

operations

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

0.69

0.98

1.49

(1.14)

1.58

Less

distributions

from:

Net

investment

income

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

(0.16)

(0.18)

(0.07)

(0.28)

(0.08)

Net

asset

value,

end

year

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

$8.91

$8.38

$7.58

$6.16

$7.58

Total

return

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

8.63%

13.09%

24.27%

(15.54)%

26.29%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.39%

1.38%

1.37%

1.41%

1.40%

Expenses

net

waiver

and

payments

affiliates

.......

1.35%

1.32%

Net

investment

income

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

1.74%

2.03%

1.95%

1.57%

2.21%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$113,063

$121,214

$116,518

$103,984

$123,744

Portfolio

turnover

rate

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

44.39%

42.01%

14.85%

29.07%

37.85%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.09

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

0.98%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

August

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.43

$7.63

$6.20

$7.64

$6.12

Income

from

investment

operations

Net

investment

income

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

0.20

0.21

0.18

0.15

0.21

Net

realized

and

unrealized

gains

(losses)

...........

0.54

0.81

1.36

(1.26)

1.43

Total

from

investment

operations

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

0.74

1.02

1.54

(1.11)

1.64

Less

distributions

from:

Net

investment

income

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

(0.21)

(0.22)

(0.11)

(0.33)

(0.12)

Net

asset

value,

end

year

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

$8.96

$8.43

$7.63

$6.20

$7.64

Total

return

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

9.31%

13.69%

25.02%

(14.98)%

27.02%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.78%

0.77%

0.81%

0.79%

Expenses

net

waiver

and

payments

affiliates

.......

0.74%

0.73%

0.69%

Net

investment

income

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

2.37%

2.72%

2.57%

2.13%

2.86%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$368,372

$387,773

$341,058

$290,974

$531,344

Portfolio

turnover

rate

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

44.39%

42.01%

14.85%

29.07%

37.85%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.09

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.63%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2025

2024

2023

2022

2021

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.44

$7.64

$6.21

$7.64

$6.12

Income

from

investment

operations

Net

investment

income

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

0.18

0.20

0.17

0.15

0.20

Net

realized

and

unrealized

gains

(losses)

...........

0.55

0.81

1.36

(1.26)

1.43

Total

from

investment

operations

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

0.73

1.01

1.53

(1.11)

1.63

Less

distributions

from:

Net

investment

income

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

(0.20)

(0.21)

(0.10)

(0.32)

(0.11)

Net

asset

value,

end

year

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

$8.97

$8.44

$7.64

$6.21

$7.64

Total

return

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

9.14%

13.55%

24.84%

(14.99)%

26.88%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.88%

0.87%

0.92%

0.90%

Expenses

net

waiver

and

payments

affiliates

.......

0.85%

0.82%

Net

investment

income

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

2.19%

2.54%

2.43%

2.06%

2.80%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$546,122

$672,907

$680,297

$602,921

$620,885

Portfolio

turnover

rate

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

44.39%

42.01%

14.85%

29.07%

37.85%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.09

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

1.57%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Templeton

Funds

Schedule

Investments,

August

31,

2025

Templeton

Foreign

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Industry

Value

Common

Stocks

94.7%

China

5.5%

Alibaba

Group

Holding

Ltd.

.........

Broadline

Retail

4,634,725

76,740,245

Tencent

Holdings

Ltd.

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

Interactive

Media

Services

833,937

64,583,841

141,324,086

Denmark

1.9%

Novo

Nordisk

A/S

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

Pharmaceuticals

877,179

49,568,874

France

11.6%

BNP

Paribas

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

Banks

930,639

83,631,690

Carrefour

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

Consumer

Staples

Distribution

Retail

7,529,059

109,004,591

Dassault

Aviation

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

Aerospace

Defense

166,989

52,714,122

Kering

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

Textiles,

Apparel

Luxury

Goods

201,448

53,980,847

299,331,250

Germany

1.0%

Continental

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

Automobile

Components

300,310

26,332,723

Hong

Kong

3.9%

AIA

Group

Ltd.

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

Insurance

2,768,066

26,308,685

Prudential

plc

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

Insurance

5,682,639

75,793,853

102,102,538

India

2.8%

HDFC

Bank

Ltd.

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

Banks

6,651,352

71,790,884

Japan

5.2%

Sumitomo

Mitsui

Financial

Group,

Inc.

Banks

3,065,687

83,495,812

Toyota

Motor

Corp.

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

Automobiles

2,633,070

50,982,650

134,478,462

Netherlands

8.0%

Akzo

Nobel

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

Chemicals

808,055

55,856,628

ASM

International

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

Semiconductors

Semiconductor

Equipment

81,190

38,985,025

Heineken

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

Beverages

483,760

39,237,761

ING

Groep

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

Banks

3,026,876

72,266,617

206,346,031

Portugal

2.0%

Galp

Energia

SGPS

.........

Oil,

Gas

Consumable

Fuels

2,669,290

51,885,013

Singapore

2.4%

STMicroelectronics

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

Semiconductors

Semiconductor

Equipment

2,269,625

61,850,393

South

Korea

3.4%

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

Peripherals

1,749,374

87,398,370

Sweden

1.5%

Securitas

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

Commercial

Services

Supplies

2,484,955

38,027,612

Switzerland

2.3%

Adecco

Group

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

Professional

Services

1,856,598

59,473,191

Taiwan

3.0%

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

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

Semiconductors

Semiconductor

Equipment

2,067,724

77,439,183

United

Kingdom

18.4%

AstraZeneca

plc

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

Pharmaceuticals

573,668

91,450,950

Barratt

Redrow

plc

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

Household

Durables

9,964,049

48,440,888

Sports

Fashion

plc

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

Specialty

Retail

59,095,260

76,707,784

Templeton

Funds

Schedule

Investments

Templeton

Foreign

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Industry

Value

Common

Stocks

(continued)

United

Kingdom

(continued)

Lloyds

Banking

Group

plc

..........

Banks

23,432,935

25,137,298

Persimmon

plc

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

Household

Durables

3,145,867

45,200,213

SSE

plc

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

Electric

Utilities

2,731,763

63,836,752

Standard

Chartered

plc

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

Banks

3,911,296

73,288,259

Unilever

plc

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

Personal

Care

Products

832,670

52,529,081

476,591,225

United

States

21.8%

plc

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

Oil,

Gas

Consumable

Fuels

18,543,706

108,473,714

CNH

Industrial

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

Machinery

6,964,088

79,738,808

CRH

plc

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

Construction

Materials

183,509

20,690,264

Freeport-McMoRan,

Inc.

...........

Metals

Mining

584,741

25,962,500

ICON

plc

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

Life

Sciences

Tools

Services

148,848

26,486,013

ManpowerGroup,

Inc.

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

Professional

Services

721,924

30,609,578

Sanofi

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

Pharmaceuticals

662,103

65,688,576

Shell

plc

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

Oil,

Gas

Consumable

Fuels

1,822,771

67,113,279

Smurfit

WestRock

plc

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

Containers

Packaging

1,821,480

86,265,293

Stellantis

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

Automobiles

2,615,571

25,044,873

Swiss

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

Insurance

143,782

26,059,642

562,132,540

Total

Common

Stocks

(Cost

2,013,877,392

)

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

2,446,072,375

Short

Term

Investments

6.3%

Industry

Principal

Amount

Value

Time

Deposits

6.3%

Canada

3.8%

National

Bank

Canada

4.33

9/02/25

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

55,000,000

Royal

Bank

Canada

4.3

9/02/25

42,200,000

97,200,000

France

2.5%

Credit

Agricole

Corporate

and

Investment

Bank

4.31

9/02/25

65,000,000

Total

Time

Deposits

(Cost

162,200,000

)

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

162,200,000

Total

Short

Term

Investments

(Cost

162,200,000

)

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

162,200,000

Total

Investments

(Cost

2,176,077,392

)

101.0

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

$2,608,272,375

Other

Assets,

less

Liabilities

(

1.0

)

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

(25,338,890)

Net

Assets

100.0%

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

$2,582,933,485

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

Variable

interest

entity

(VIE).

See

Note

regarding

investments

made

through

VIE

structure.

August

31,

2025,

the

aggregate

value

these

securities

was

$141,324,086,

representing

5.5%

net

assets.

Non-income

producing.

Templeton

Funds

Financial

Highlights

Templeton

World

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

August

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$17.62

$13.91

$11.85

$15.52

$12.71

Income

from

investment

operations

Net

investment

income

(loss)

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

0.05

0.01

0.04

(—)

0.20

Net

realized

and

unrealized

gains

(losses)

...........

2.31

3.79

2.21

(3.44)

2.61

Total

from

investment

operations

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

2.36

3.80

2.25

(3.44)

2.81

Less

distributions

from:

Net

investment

income

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

(—)

(0.09)

(0.05)

(0.23)

—

Net

realized

gains

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

(1.11)

—

(0.14)

—

Total

distributions

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

(1.11)

(0.09)

(0.19)

(0.23)

—

Net

asset

value,

end

year

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

$18.87

$17.62

$13.91

$11.85

$15.52

Total

return

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

14.23%

27.48%

19.23%

(22.39)%

22.11%

Ratios

average

net

assets

Expenses

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

1.05%

1.03%

1.04%

1.03%

Net

investment

income

(loss)

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

0.26%

0.09%

0.32%

(—)%

1.42%

Supplemental

data

Net

assets

end

year

(000’s)

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

$2,667,444

$2,592,377

$2,289,332

$2,138,297

$3,060,714

Portfolio

turnover

rate

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

100.16%

52.04%

47.28%

81.20%

41.83%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Amount

rounds

less

than

$0.01

per

share.

Net

investment

income

per

includes

approximately

$0.13

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

0.48%.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Templeton

Funds

Financial

Highlights

Templeton

World

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$16.71

$13.21

$11.30

$14.76

$12.18

Income

from

investment

operations

Net

investment

income

(loss)

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

(0.08)

(0.10)

(0.06)

(0.10)

0.10

Net

realized

and

unrealized

gains

(losses)

...........

2.18

3.60

2.11

(3.29)

2.48

Total

from

investment

operations

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

2.10

3.50

2.05

(3.39)

2.58

Less

distributions

from:

Net

investment

income

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

—

(0.07)

—

Net

realized

gains

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

(1.11)

—

(0.14)

—

Total

distributions

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

(1.11)

—

(0.14)

(0.07)

—

Net

asset

value,

end

year

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

$17.70

$16.71

$13.21

$11.30

$14.76

Total

return

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

13.39%

26.50%

18.33%

(23.01)%

21.18%

Ratios

average

net

assets

Expenses

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

1.80%

1.79%

1.81%

1.80%

Net

investment

income

(loss)

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

(0.50)%

(0.67)%

(0.48)%

(0.77)%

0.70%

Supplemental

data

Net

assets

end

year

(000’s)

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

$5,360

$6,187

$6,476

$7,348

$12,585

Portfolio

turnover

rate

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

100.16%

52.04%

47.28%

81.20%

41.83%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.13

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

(0.24)%.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Templeton

Funds

Financial

Highlights

Templeton

World

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

August

31,

2025

2024

2023

2022

2021

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$17.64

$13.92

$11.86

$15.53

$12.69

Income

from

investment

operations

Net

investment

income

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

0.10

0.06

0.08

0.04

0.24

Net

realized

and

unrealized

gains

(losses)

...........

2.32

3.79

2.19

(3.43)

2.60

Total

from

investment

operations

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

2.42

3.85

2.27

(3.39)

2.84

Less

distributions

from:

Net

investment

income

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

(0.05)

(0.13)

(0.07)

(0.28)

—

Net

realized

gains

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

(1.11)

—

(0.14)

—

Total

distributions

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

(1.16)

(0.13)

(0.21)

(0.28)

—

Net

asset

value,

end

year

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

$18.90

$17.64

$13.92

$11.86

$15.53

Total

return

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

14.61%

27.85%

19.50%

(22.14)%

22.38%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.78%

0.77%

0.78%

Expenses

net

waiver

and

payments

affiliates

.......

0.76%

0.75%

0.76%

Net

investment

income

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

0.55%

0.41%

0.61%

0.29%

1.68%

Supplemental

data

Net

assets

end

year

(000’s)

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

$25,997

$26,493

$38,834

$34,238

$42,010

Portfolio

turnover

rate

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

100.16%

52.04%

47.28%

81.20%

41.83%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.13

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

0.74%.

Templeton

Funds

Financial

Highlights

Templeton

World

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2025

2024

2023

2022

2021

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$17.65

$13.93

$11.86

$15.54

$12.70

Income

from

investment

operations

Net

investment

income

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

0.09

0.05

0.07

0.03

0.24

Net

realized

and

unrealized

gains

(losses)

...........

2.33

3.80

2.21

(3.44)

2.60

Total

from

investment

operations

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

2.42

3.85

2.28

(3.41)

2.84

Less

distributions

from:

Net

investment

income

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

(0.05)

(0.13)

(0.07)

(0.27)

—

Net

realized

gains

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

(1.11)

—

(0.14)

—

Total

distributions

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

(1.16)

(0.13)

(0.21)

(0.27)

—

Net

asset

value,

end

year

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

$18.91

$17.65

$13.93

$11.86

$15.54

Total

return

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

14.55%

27.81%

19.52%

(22.22)%

22.36%

Ratios

average

net

assets

Expenses

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

0.80%

0.79%

0.81%

0.80%

Net

investment

income

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

0.51%

0.33%

0.57%

0.24%

1.64%

Supplemental

data

Net

assets

end

year

(000’s)

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

$98,938

$93,548

$99,935

$86,424

$115,823

Portfolio

turnover

rate

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

100.16%

52.04%

47.28%

81.20%

41.83%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Net

investment

income

per

includes

approximately

$0.13

per

adjustment

for

reclaims

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

net

investment

income

average

net

assets

would

have

been

0.70%.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Templeton

Funds

Schedule

Investments,

August

31,

2025

Templeton

World

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Industry

Value

Common

Stocks

98.7%

China

1.9%

Tencent

Holdings

Ltd.

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

Interactive

Media

Services

695,703

53,878,377

France

11.4%

Airbus

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

Aerospace

Defense

389,677

81,469,416

LVMH

Moet

Hennessy

Louis

Vuitton

Textiles,

Apparel

Luxury

Goods

73,989

43,685,634

Safran

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

Aerospace

Defense

401,262

133,350,810

Vinci

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

Construction

Engineering

444,925

60,345,859

318,851,719

Germany

3.6%

SAP

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

Software

236,887

64,479,786

Siemens

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

Industrial

Conglomerates

133,153

36,910,738

101,390,524

India

2.0%

HDFC

Bank

Ltd.

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

Banks

5,121,974

55,283,654

Japan

1.6%

Mizuho

Financial

Group,

Inc.

........

Banks

1,388,119

45,666,201

Netherlands

4.7%

Akzo

Nobel

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

Chemicals

542,741

37,516,855

ASM

International

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

Semiconductors

Semiconductor

Equipment

69,226

33,240,268

ING

Groep

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

Banks

1,190,857

28,431,692

Universal

Music

Group

.........

Entertainment

1,115,052

31,521,749

130,710,564

Taiwan

5.3%

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

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

Semiconductors

Semiconductor

Equipment

3,020,074

113,106,035

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

ADR

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

Semiconductors

Semiconductor

Equipment

155,074

35,801,934

148,907,969

United

Kingdom

5.3%

AstraZeneca

plc

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

Pharmaceuticals

317,369

50,593,194

Rolls-Royce

Holdings

plc

..........

Aerospace

Defense

6,688,866

96,455,792

147,048,986

United

States

62.9%

Alcon

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

Health

Care

Equipment

Supplies

344,458

27,450,884

Alphabet,

Inc.

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

Interactive

Media

Services

495,737

105,547,365

Amazon.com,

Inc.

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

Broadline

Retail

756,012

173,126,748

Apple,

Inc.

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

Technology

Hardware,

Storage

Peripherals

260,525

60,478,274

AT&T,

Inc.

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

Diversified

Telecommunication

Services

1,529,890

44,810,478

Bank

America

Corp.

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

Banks

563,225

28,578,037

Booking

Holdings,

Inc.

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

Hotels,

Restaurants

Leisure

5,017

28,090,434

Builders

FirstSource,

Inc.

..........

Building

Products

314,250

43,580,190

Charles

Schwab

Corp.

(The)

........

Capital

Markets

592,679

56,802,355

CRH

plc

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

Construction

Materials

622,955

70,362,767

Eli

Lilly

Co.

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

Pharmaceuticals

64,107

46,963,506

Ferguson

Enterprises,

Inc.

.........

Trading

Companies

Distributors

306,573

70,864,349

HCA

Healthcare,

Inc.

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

Health

Care

Providers

Services

67,638

27,323,047

ICON

plc

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

Life

Sciences

Tools

Services

360,448

64,138,117

Intercontinental

Exchange,

Inc.

......

Capital

Markets

175,210

30,942,086

Intuit,

Inc.

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

Software

53,142

35,445,714

KeyCorp

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

Banks

1,496,539

28,972,995

Meta

Platforms,

Inc.

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

Interactive

Media

Services

64,687

47,784,287

Microsoft

Corp.

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

Software

389,946

197,581,739

Templeton

Funds

Schedule

Investments

Templeton

World

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

See

Abbreviations

page

30.

Industry

Value

Common

Stocks

(continued)

United

States

(continued)

MongoDB,

Inc.

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

Services

95,294

30,075,739

NIKE,

Inc.

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

Textiles,

Apparel

Luxury

Goods

724,800

56,077,776

NVIDIA

Corp.

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

Semiconductors

Semiconductor

Equipment

978,282

170,397,159

Pinterest,

Inc.

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

Interactive

Media

Services

1,278,808

46,842,737

Salesforce,

Inc.

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

Software

307,072

78,687,200

Schneider

Electric

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

Electrical

Equipment

146,756

36,055,961

Smurfit

WestRock

plc

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

Containers

Packaging

871,754

41,286,269

Thermo

Fisher

Scientific,

Inc.

.......

Life

Sciences

Tools

Services

65,375

32,211,570

Wells

Fargo

Co.

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

Banks

970,182

79,729,557

1,760,207,340

Total

Common

Stocks

(Cost

2,071,915,066

)

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

2,761,945,334

Short

Term

Investments

1.6%

Industry

Principal

Amount

Value

Time

Deposits

1.6%

Canada

1.6%

National

Bank

Canada

4.33

9/02/25

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

45,800,000

Total

Time

Deposits

(Cost

45,800,000

)

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

45,800,000

Total

Short

Term

Investments

(Cost

45,800,000

)

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

45,800,000

Total

Investments

(Cost

2,117,715,066

)

100.3

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

$2,807,745,334

Other

Assets,

less

Liabilities

(

0.3

)

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

(10,005,553)

Net

Assets

100.0%

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

$2,797,739,781

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

Variable

interest

entity

(VIE).

See

Note

regarding

investments

made

through

VIE

structure.

August

31,

2025,

the

value

this

security

was

$53,878,377,

representing

1.9%

net

assets.

Non-income

producing.

Templeton

Funds

Financial

Statements

Assets

and

Liabilities

August

31,

2025

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Templeton

Foreign

Fund

Templeton

World

Fund

Assets:

Investments

securities:

Cost

Unaffiliated

issuers

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

$2,176,077,392

$2,117,715,066

Value

Unaffiliated

issuers

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

$2,608,272,375

$2,807,745,334

Cash

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

68,388

83,890

Foreign

currency,

value

(cost

16,148,428

and

12,594,669

respectively)

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

16,148,429

12,594,669

Receivables:

Investment

securities

sold

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

29,792,115

—

Capital

sold

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

845,048

312,205

Dividends

and

interest

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

13,678,972

5,763,428

European

Union

tax

reclaims

(Note

)

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

—

725,647

Other

assets

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

38,833

—

Total

assets

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

2,668,844,160

2,827,225,173

Liabilities:

Payables:

Investment

securities

purchased

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

74,983,722

17,433,037

Capital

redeemed

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

1,536,162

1,308,595

Management

fees

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

1,654,015

1,653,985

Distribution

fees

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

387,474

571,574

Transfer

agent

fees

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

991,777

499,511

Trustees'

fees

and

expenses

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

8,354

9,279

IRS

closing

agreement

payments

for

European

Union

tax

reclaims

(Note

)

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

—

1,110,522

Deferred

taxes

unrealized

appreciation

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

6,055,493

6,662,306

Accrued

expenses

and

other

liabilities

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

293,678

236,583

Total

liabilities

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

85,910,675

29,485,392

Net

assets,

value

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

$2,582,933,485

$2,797,739,781

Net

assets

consist

of:

Paid-in

capital

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

$2,202,981,154

$1,824,156,913

Total

distributable

earnings

(losses)

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

379,952,331

973,582,868

Net

assets,

value

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

$2,582,933,485

$2,797,739,781

Templeton

Funds

Financial

Statements

Assets

and

Liabilities

(continued)

August

31,

2025

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Templeton

Foreign

Fund

Templeton

World

Fund

Class

Net

assets,

value

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

$1,541,500,072

$2,667,444,244

outstanding

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

168,525,862

141,329,236

Net

asset

value

per

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

$9.15

$18.87

Maximum

offering

price

per

(net

asset

value

per

.50

)

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

$9.68

$19.97

Class

Net

assets,

value

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

$13,876,145

$5,360,465

outstanding

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

1,514,789

302,807

Net

asset

value

and

maximum

offering

price

per

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

$9.16

$17.70

Class

Net

assets,

value

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

$113,063,195

$—

outstanding

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

12,693,827

—

Net

asset

value

and

maximum

offering

price

per

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

$8.91

$—

Class

R6:

Net

assets,

value

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

$368,372,411

$25,997,370

outstanding

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

41,114,729

1,375,644

Net

asset

value

and

maximum

offering

price

per

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

$8.96

$18.90

Advisor

Class:

Net

assets,

value

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

$546,121,662

$98,937,702

outstanding

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

60,879,120

5,232,993

Net

asset

value

and

maximum

offering

price

per

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

$8.97

$18.91

Redemption

price

equal

net

asset

value

less

contingent

deferred

sales

charges,

applicable.

Net

asset

value

per

may

not

recalculate

due

rounding.

Templeton

Funds

Financial

Statements

Operations

for

the

year

ended

August

31,

2025

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Templeton

Foreign

Fund

Templeton

World

Fund

Investment

income:

Dividends:

(net

foreign

taxes

$5,000,998

and

$1,832,575,

respectively)

Unaffiliated

issuers

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

$75,265,064

$32,051,911

Interest:

Unaffiliated

issuers

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

3,093,956

2,945,101

Income

from

securities

loaned:

Unaffiliated

entities

(net

fees

and

rebates)

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

9,346

46,253

Non-controlled

affiliates

(Note

3f)

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

9,554

—

Other

income

(Note

)

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

—

425

Total

investment

income

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

78,377,920

35,043,690

Expenses:

Management

fees

(Note

)

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

17,710,122

18,583,845

Distribution

fees:

(Note

)

Class

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

3,727,053

6,369,243

Class

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

148,404

56,253

Class

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

565,845

—

Transfer

agent

fees:

(Note

)

Class

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

2,083,291

1,695,270

Class

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

20,770

3,712

Class

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

158,404

—

Class

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

145,962

12,237

Advisor

Class

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

776,709

61,860

Custodian

fees

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

172,858

101,369

Reports

shareholders

fees

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

186,163

142,735

Registration

and

filing

fees

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

142,700

122,033

Professional

fees

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

111,999

134,513

Trustees'

fees

and

expenses

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

330,546

345,061

Other

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

304,725

131,059

Total

expenses

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

26,585,551

27,759,190

Expenses

waived/paid

affiliates

(Note

)

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

(927,128)

(4,613)

Net

expenses

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

25,658,423

27,754,577

Net

investment

income

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

52,719,497

7,289,113

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

foreign

taxes

$506,113

and

$7,422,945,

respectively)

Unaffiliated

issuers

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

129,830,998

397,875,600

Foreign

currency

transactions

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

40,784

(320,482)

Net

realized

gain

(loss)

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

129,871,782

397,555,118

Net

change

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

24,670,661

(41,058,703)

Translation

other

assets

and

liabilities

denominated

foreign

currencies

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

(253,458)

156,155

Change

deferred

taxes

unrealized

appreciation

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

(3,215,761)

(5,546,709)

Net

change

unrealized

appreciation

(depreciation)

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

21,201,442

(46,449,257)

Net

realized

and

unrealized

gain

(loss)

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

151,073,224

351,105,861

Net

increase

(decrease)

net

assets

resulting

from

operations

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

$203,792,721

$358,394,974

Includes

gains

from

redemption

in-kind

(Note

3h).

Templeton

Funds

Financial

Statements

Changes

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Templeton

Foreign

Fund

Templeton

World

Fund

Year

Ended

August

31,

2025

Year

Ended

August

31,

2024

Year

Ended

August

31,

2025

Year

Ended

August

31,

2024

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

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

$52,719,497

$64,339,019

$7,289,113

$2,583,412

Net

realized

gain

(loss)

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

129,871,782

103,748,878

397,555,118

100,666,254

Net

change

unrealized

appreciation

(depreciation)

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

21,201,442

171,507,654

(46,449,257)

520,751,727

Net

increase

(decrease)

net

assets

resulting

from

operations

203,792,721

339,595,551

358,394,974

624,001,393

Distributions

shareholders:

Class

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

(32,084,926)

(38,812,451)

(158,900,136)

(14,953,871)

Class

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

(199,047)

(295,894)

(382,723)

—

Class

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

(2,255,243)

(2,632,847)

—

Class

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

(9,520,094)

(9,644,844)

(1,680,416)

(205,885)

Advisor

Class

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

(13,240,139)

(17,081,011)

(6,032,030)

(895,055)

Total

distributions

shareholders

.....

(57,299,449)

(68,467,047)

(166,995,305)

(16,054,811)

Capital

transactions:

(Note

)

Class

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

(154,386,205)

(157,603,357)

(107,578,857)

(272,123,294)

Class

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

(4,109,409)

(6,197,267)

(1,117,407)

(1,777,651)

Class

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

(15,048,062)

(7,085,712)

—

Class

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

(42,582,011)

9,999,335

(2,258,995)

(17,165,412)

Advisor

Class

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

(152,786,832)

(70,354,689)

(1,309,258)

(32,853,217)

Total

capital

transactions

.......

(368,912,519)

(231,241,690)

(112,264,517)

(323,919,574)

Net

increase

(decrease)

net

assets

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

(222,419,247)

39,886,814

79,135,152

284,027,008

Net

assets:

Beginning

year

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

2,805,352,732

2,765,465,918

2,718,604,629

2,434,577,621

End

year

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

$2,582,933,485

$2,805,352,732

$2,797,739,781

$2,718,604,629

Templeton

Funds

franklintempleton.com

Annual

Report

Notes

Financial

Statements

Organization

and

Significant

Accounting

Policies

Templeton

Funds (Trust)

registered

under

the

Investment

Company

Act

1940

(1940

Act)

open-end

management

investment

company,

consisting

of two separate

funds

(Funds).

The

Funds

the

accounting

and

reporting

guidance

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

classes

offered

within

each

the

Funds

are

indicated

below.

Class

automatically

convert

Class

monthly

basis,

after

they

have

been

held

for

years.

Each

class

may

differ

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

matters

affecting

single

class,

its

exchange

privilege

and

fees

due

differing

arrangements

for

distribution

and

transfer

agent

fees.

Class

Advisor

Class

Templeton

Foreign

Fund

Class

Advisor

Class

Templeton

World

Fund

The

following

summarizes

the Funds'

significant

accounting

policies

Financial

Instrument

Valuation

The Funds'

investments

financial

instruments

are

carried

fair

value

daily.

Fair

value

the

price

that

would

received

sell

asset

paid

transfer

liability

orderly

transaction

between

market

participants

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

each

business

day

p.m.

Eastern

time

the

regularly

scheduled

the

New

York

Stock

Exchange

(NYSE),

whichever

earlier. Under

compliance

policies

and

procedures

approved

the

Trust’s

Board

Trustees

(the

Board),

the

Board

has

designated

the

Funds’

investment

manager

the

valuation

designee

and

has

responsibility

for

oversight

valuation.

The

investment

manager

assisted

the

Funds'

administrator

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

determine

fair

value.

Equity

securities

listed

exchange

the

NASDAQ

National

Market

System

are

valued

the

last

quoted

sale

price

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

the

trading

the

foreign

stock

exchange

which

the

security

primarily

traded,

p.m.

Eastern

time.

The

value

then

converted

into

its

U.S.

dollar

equivalent

the

foreign

exchange

rate

effect

p.m.

Eastern

time

the

day

that

the

value

the

security

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

multiple

markets

multiple

exchanges

are

valued

according

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

relationships

similar

securities.

Investments

in open-end mutual

funds

are

valued

the

closing

NAV.

Investments

in time

deposits are

valued

cost,

which

approximates

fair

value.

The

Funds

have

procedures

determine

the

fair

value

financial

instruments

for

which

market

prices

are

not

reliable

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

market-based

approach

which

may

use

comparable

assets

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

determine

the

fair

value

the

investment.

income-based

valuation

approach

may

also

used

which

the

anticipated

future

cash

flows

the

investment

are

discounted

calculate

fair

value.

Discounts

may

also

applied

due

the

nature

duration

any

restrictions

the

disposition

the

investments.

Due

the

inherent

uncertainty

valuations

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

active

market

existed.

Trading

securities

foreign

securities

stock

exchanges

and

OTC

markets

may

completed

before

p.m.

Eastern

time.

addition,

trading

certain

foreign

markets

may

not

take

place

every

Funds'

business

day.

Events

can occur

between

the

time

which

trading

foreign

security

completed

and

p.m.

Eastern

time

that

might

call

into

question

the

reliability

the

value

portfolio

security

held

the

Fund.

result,

differences

may

arise

between

the

value

the

Funds'

portfolio

securities

determined

the

foreign

market

and

the

latest

indications

value

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

p.m.

Eastern

time.

order

minimize

the

potential

for

these

differences,

independent

pricing

service

may

used

adjust

the

value

the

Funds'

portfolio

securities

the

latest

indications

fair

value

p.m.

Eastern

time.

August

31,

2025,

certain

securities

may

have

been

fair

valued

using

these

procedures,

which

case

the

securities

were

categorized

Level

within

the

fair

value

hierarchy

(referred

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

information.

When

the

last

day

the

reporting

period

non-business

day,

certain

foreign

markets

may

open

those

days

that

the

Funds'

NAV

not

calculated,

which

could

result

differences

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

the

Funds

for

financial

reporting

purposes.

Foreign

Currency

Translation

Portfolio

securities

and

other

assets

and

liabilities

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.

Purchases

and

sales

securities,

income

and

expense

items

denominated

foreign

currencies

are

translated

into

U.S.

dollars

the

exchange

rate

effect

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

foreign

currencies

contain

risks

that

those

currencies

will

decline

value

relative

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

reliability

foreign

exchange

rates

used

convert

the

U.S.

dollar

equivalent

value.

such

event

occurs,

the

foreign

exchange

rate

will

valued

fair

value

using

procedures

established

and

approved

the

Board.

The

Funds

not

separately

report

the

effect

changes

foreign

exchange

rates

from

changes

market

prices

securities

held.

Such

changes

are

included

net

realized

and

unrealized

gain

loss

from

investments

the

Statements

Operations.

Realized

foreign

exchange

gains

losses

arise

from

sales

foreign

currencies,

currency

gains

losses

realized

between

the

trade

and

settlement

dates

securities

transactions

and

the

difference

between

the

recorded

amounts

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

the

amounts

actually

received

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

foreign

exchange

rates

foreign

denominated

assets

and

liabilities

other

than

investments

securities

held

the

end

the

reporting

period.

Securities

Lending

Certain

all

Funds

participate

agency

based

securities

lending

program

earn

additional

income.

The

Fund

receives

collateral

the

form

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

amount

equal

least

102%

the

fair

value

the

loaned

securities.

Collateral

maintained

over

the

life

the

loan

amount

not

less

than

100%

the

fair

value

loaned

securities,

determined

the

Fund

business

each

day;

any

additional

collateral

required

due

changes

security

values

delivered

the

Fund

the

business

day.

Any

cash

collateral

received

deposited

into

joint

cash

account

with

other

funds

and

used

invest

money

market

fund

managed

Franklin

Advisers,

Inc.,

affiliate

the

Funds. The

Fund

may

receive

income

from

the

investment

cash

collateral,

addition

lending

fees

paid

the

borrower.

Income

from

securities

loaned,

net

fees

paid

the

securities

lending

agent

and/or

third-party

vendor,

reported

separately

the Statements of

Operations.

The

Fund

bears

the

market

risk

with

respect

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

its

obligations

the

Fund.

the

borrower

defaults

its

obligation

return

the

securities

loaned,

the

Fund

has

the

right

repurchase

the

securities

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

indemnify

the

Fund

the

event

default

third

party

borrower.

August

31,

2025,

the

Funds

had

securities

loan.

Income

and

Deferred

Taxes

is each

Fund's

policy

qualify

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

distribute

shareholders

substantially

all

its

Organization

and

Significant

Accounting

Policies

(continued)

Financial

Instrument

Valuation

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

taxable

income

and

net

realized

gains

relieve

from

federal

income

and excise

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

the

foreign

jurisdictions

which the

Funds invest.

Foreign

taxes,

any,

are

recorded

based

the

tax

regulations

and

rates

that

exist

the

foreign

markets

which

the

Funds

invest.

When

capital

gain

tax

determined

apply,

certain

all Funds

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

all

Funds

filed

additional

tax

reclaims

for

previously

withheld

taxes

dividends

earned

those

countries

(EU

reclaims). Income

recognized,

any,

for

reclaims

reflected

other

income

the

Statements

Operations

and

any

receivable,

any,

reflected

European

Union

tax

reclaims

the

Statements

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

other

expenses

the

Statements

Operations.

When

uncertainty

exists

the

ultimate

resolution

these

proceedings,

the

likelihood

receipt

these

reclaims,

and

the

potential

timing

payment,

amounts

are

reflected

the

financial

statements.

For

U.S.

income

tax

purposes,

reclaims

received

the

Funds,

any,

reduce

the

amount

foreign

taxes

Fund

shareholders

can

use

tax

deductions

or credits

their

income

tax

returns.

the

event

that

reclaims

received

the Funds

during a

fiscal

year

exceed

foreign

withholding

taxes

paid

the

Funds,

and

the

Funds previously

passed

through to

its

shareholders

foreign

taxes

incurred

the

Funds

used

credit

deduction

shareholder’s

income

tax

return,

the Funds

will enter

into

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

order

pay

the

associated

tax

liability

behalf

the Funds'

shareholders.

Each

Fund

may

recognize

income

tax

liability

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

less

than

50%

probability

that

will

sustained

upon

examination

the

tax

authorities

based

its

technical

merits.

August

31,

2025, each

Fund

has

determined

that

tax

liability

required

its

financial

statements

uncertain

tax

positions

for

any

open

tax

years

(or

expected

taken

future

tax

years).

Open

tax

years

are

those

that

remain

subject

examination

and

are

based

the

statute

limitations

each

jurisdiction

which

the

Fund

invests.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

trade

date.

Realized

gains

and

losses

security

transactions

are

determined

specific

identification

basis. Interest

income

(including

interest

income

from

payment-in-kind

securities,

any)

and

estimated

expenses

are

accrued

daily.

Dividend

income

recorded

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

not

available.

such cases,

the

dividend

recorded

soon

the

information

received

the

Funds. Distributions

shareholders

are recorded

the

ex-dividend

date.

Distributable

earnings

are

determined

according

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

accordance

with

U.S.

GAAP.

These

differences

may

permanent

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

reflect

their

tax

character.

These

reclassifications

have

impact

net

assets

the

results

operations.

Temporary

differences

are

not

reclassified,

they

may

reverse

subsequent

periods.

Common

expenses

incurred

the

Trust

are

allocated

among

the

Funds

based

the

ratio

net

assets

each

Fund

the

combined

net

assets

the

Trust

based

the

ratio

number

shareholders

each

Fund

the

combined

number

shareholders

the

Trust.

Fund

specific

expenses

are

charged

directly

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

each

class

based

upon

the

relative

proportion

net

assets

each

class.

Differences

per

distributions

class

are

generally

due

differences

class

specific

expenses.

Accounting

Estimates

The

preparation

financial

statements

accordance

with

U.S.

GAAP

requires

management

make

estimates

and

assumptions

that

affect

the

reported

amounts

assets

Organization

and

Significant

Accounting

Policies

(continued)

Income

and

Deferred

Taxes

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

and

liabilities

the

date

the

financial

statements

and

the

amounts

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Guarantees

and

Indemnifications

Under

the Trust's

organizational

documents,

its

officers

and trustees

are

indemnified

the Trust against

certain

liabilities

arising

out

the

performance

their

duties

the

Trust.

Additionally,

the

normal

course

business,

the Trust,

behalf

the

Funds, enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The Trust's

maximum

exposure

under

these

arrangements

unknown

this

would

involve

future

claims

that

may

made

against

the Trust

that

have

not

yet

occurred.

Currently,

the Trust

expects

the

risk

loss

remote.

Beneficial

Interest

August

31,

2025,

there

were

unlimited

number

authorized

(without

par value).

Transactions

the

Funds'

were

follows:

Templeton

Foreign

Fund

Templeton

World

Fund

Amount

Class

Year

ended

August

31,

2025

sold

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

8,146,651

$68,114,745

5,103,637

$89,005,165

issued

reinvestment

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)

Year

ended

August

31,

2024

sold

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

9,555,624

$75,231,692

6,353,386

$99,358,967

issued

reinvestment

distributions

..........

4,666,810

36,681,131

928,168

13,616,230

redeemed

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

(33,920,778)

(269,516,180)

(24,693,083)

(385,098,491)

Net

increase

(decrease)

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

(19,698,344)

$(157,603,357)

(17,411,529)

$(272,123,294)

Class

Year

ended

August

31,

2025

sold

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

174,802

$1,466,613

37,667

$624,154

issued

reinvestment

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)

Year

ended

August

31,

2024

sold

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

265,488

$2,125,389

56,191

$817,772

issued

reinvestment

distributions

..........

36,831

290,964

—

redeemed

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

(1,083,426)

(8,613,620)

(176,119)

(2,595,423)

Net

increase

(decrease)

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

(781,107)

$(6,197,267)

(119,928)

$(1,777,651)

Class

Organization

and

Significant

Accounting

Policies

(continued)

Accounting

Estimates

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Templeton

Foreign

Fund

Templeton

World

Fund

Amount

Class

Year

ended

August

31,

2025

sold

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

1,050,534

$8,499,430

—

$—

issued

reinvestment

distributions

..........

304,180

2,253,972

—

redeemed

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

(3,128,651)

(25,801,464)

—

Net

increase

(decrease)

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

(1,773,937)

$(15,048,062)

—

$—

Year

ended

August

31,

2024

sold

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

1,479,757

$11,427,166

—

$—

issued

reinvestment

distributions

..........

342,528

2,627,190

—

redeemed

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

(2,720,095)

(21,140,068)

—

Net

increase

(decrease)

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

(897,810)

$(7,085,712)

—

$—

Class

Year

ended

August

31,

2025

sold

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

8,400,845

$68,212,528

231,637

$4,057,103

issued

reinvestment

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)

Year

ended

August

31,

2024

sold

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

13,717,923

$107,363,530

309,898

$4,753,315

issued

reinvestment

distributions

..........

1,089,371

8,377,264

13,688

200,657

redeemed

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

(13,511,386)

(105,741,459)

(1,610,919)

(22,119,384)

Net

increase

(decrease)

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

1,295,908

$9,999,335

(1,287,333)

$(17,165,412)

Advisor

Class

Advisor

Class

Year

ended

August

31,

2025

sold

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

13,045,343

$105,600,853

977,752

$17,085,499

issued

reinvestment

distributions

..........

1,587,795

11,813,196

336,737

5,640,353

redeemed

in-kind

(Note

)

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

(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)

Year

ended

August

31,

2024

sold

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

15,356,768

$118,242,979

1,505,746

$23,667,750

issued

reinvestment

distributions

..........

2,040,870

15,714,698

57,657

845,823

redeemed

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

(26,736,853)

(204,312,366)

(3,435,460)

(57,366,790)

Net

increase

(decrease)

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

(9,339,215)

$(70,354,689)

(1,872,057)

$(32,853,217)

May

include

portion

Class

that

were

automatically

converted

Class

Beneficial

Interest

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Transactions

with

Affiliates

Franklin

Resources,

Inc.

the

holding

company

for

various

subsidiaries

that

together

are

referred

Franklin

Templeton.

Certain

officers

and

trustees

the Trust are

also

officers

and/or

directors

the

following

subsidiaries:

Management

Fees

Templeton

Foreign

Fund pays

investment

management fee,

calculated

daily

and

paid

monthly,

to Global

Advisors based

on the

average

daily

net

assets

the

Fund

follows:

Templeton

World

Fund pays

investment

management fee,

calculated

daily

and

paid

monthly,

to Global

Advisors based

on the

average

daily

net

assets

the

Fund

follows:

For

the

year

ended

August

31,

2025,

each

Fund's

gross

effective

investment

management

fee

rate

based

average

daily

net

assets

was

follows:

Subsidiary

Affiliation

Templeton

Global

Advisors

Limited

(Global

Advisors)

Investment

manager

Templeton

Asset

Management

Ltd

(Asset

Management)

Subadvisor

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.705%

and

including

billion

0.690%

Over

billion,

and

including

billion

0.675%

Over

billion,

and

including

$10

billion

0.655%

Over

$10

billion,

and

including

$15

billion

0.635%

Over

$15

billion,

and

including

$20

billion

0.615%

Over

$20

billion,

and

including

$25

billion

0.605%

Over

$25

billion,

and

including

$30

billion

0.595%

Over

$30

billion,

and

including

$35

billion

0.585%

excess

$35

billion

Annualized

Fee

Rate

Net

Assets

0.705%

and

including

billion

0.690%

Over

billion,

and

including

billion

0.675%

Over

billion,

and

including

$10

billion

0.655%

Over

$10

billion,

and

including

$15

billion

0.635%

Over

$15

billion,

and

including

$20

billion

0.615%

excess

$20

billion

Templeton

Foreign

Fund

Templeton

World

Fund

Gross

effective

investment

management

fee

rate

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

0.696%

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Under

subadvisory

agreement,

Asset

Management,

affiliate

Global

Advisors,

provides

subadvisory

services

Templeton

World

Fund.

The

subadvisory

fee

paid

by Global

Advisors based

the

Fund's

average

daily

net

assets,

and

not

additional

expense

the

Fund.

Effective

August

2025,

the

subadvisory

agreement

was

terminated

for

Templeton

World

Fund.

Administrative

Fees

Under

agreement

with

Global

Advisors,

Services

provides

administrative

services

the

Funds.

The

fee

paid

Global Advisors

based

the

Funds'

average

daily

net

assets,

and

not

additional

expense

the

Funds.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

class,

with

the

exception

Class

and

Advisor

Class

shares,

pursuant

Rule

12b-1

under

the

1940

Act.

Under

the

Funds'

Class

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

the

maximum

annual

plan

rate.

Under

the

Class

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

reimbursed

subsequent

periods.

addition,

under

the

Funds'

Class

and

R compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

monitoring

compliance

with

the

maximum

annual

plan

rates,

February

through

January

for

each

Fund.

The

maximum

annual

plan

rates,

based

the

average

daily

net

assets,

for

each

class,

are

follows:

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

not

represent

expenses

the

Funds.

These

charges

are

deducted

from

the

proceeds

sales

Fund

prior

investment

from

redemption

proceeds

prior

remittance,

applicable.

Distributors

has

advised

the

Funds

the

following

commission

transactions

the

sales

and

redemptions

the

Funds'

for

the

year:

Transfer

Agent

Fees

Each

class

pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

shareholder

servicing

obligations. The

fees

are based

fixed

margin

earned

Investor

Services

and

are allocated

the Funds

based

upon

relative

assets

and

relative

transactions. In

addition,

each

class reimburses

Investor

Services

for

out

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

third

parties.

These

fees

Templeton

Foreign

Fund

Templeton

World

Fund

Class

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

0.25%

Class

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

1.00%

Class

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

0.50%

—%

Templeton

Foreign

Fund

Templeton

World

Fund

Sales

charges

retained

net

commissions

paid

unaffiliated

brokers/dealers

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

$31,437

$24,485

CDSC

retained

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

$3,035

$610

Transactions

with

Affiliates

(continued)

Management

Fees

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

paid

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

such

classes'

aggregate

net

assets.

Class

pays

Investor

Services

transfer

agent

fees

allocated

specifically

that

class

based

upon

its

relative

assets

and

relative

transactions.

For

the

year

ended

August

31,

2025,

the Funds

paid

transfer

agent

fees

noted

the

Statements of

Operations

which

the

following

amounts

were

retained

Investor

Services:

Investments

Affiliated

Management

Investment

Companies

Certain

all

Funds

invest

one

affiliated

management

investment

companies.

defined

the

1940

Act,

investment

deemed

“Controlled

Affiliate”

fund

when

fund

owns,

either

directly

indirectly,

25%

the

affiliated

fund’s

outstanding

has

the

power

exercise

control

over

management

policies

such

fund.

The

Funds

not

invest

for

purposes

exercising

controlling

influence

over

the

management

policies.

Management

fees

paid

the

Funds

are

waived

assets

invested

the

affiliated

management

investment

companies,

noted

the

Statements

Operations,

amount

not

exceed

the

management

and

administrative

fees,

applicable, paid

directly

indirectly

each

affiliate.

During

the

year

ended

August

31,

2025,

investments

affiliated

management

investment

companies

were

follows:

Waiver

and

Expense

Reimbursements

Global

Advisors has contractually

agreed

advance

waive

limit

its fees

and

assume

its

own

expense

certain

expenses

otherwise

payable

by Templeton

Foreign

Fund

that

the

operating expenses

(excluding

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

costs,

including

those

relating

litigation,

indemnification,

reorganizations,

and

liquidations)

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,

2025.

Total

expenses

waived

paid

are

not

subject

recapture

subsequent

the

Fund's

fiscal

year

end.

Transfer

agent

fees

Class

the

Funds have

been

capped

that

transfer

agent

fees

for

that

class

not

exceed

0.03%

based

the

average

net

assets

the

class

until

December

31,

2025.

Templeton

Foreign

Fund

Templeton

World

Fund

Transfer

agent

fees

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

$845,622

$608,983

Value

Beginning

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Year

Number

Held

End

Year

Investment

Income

Templeton

Foreign

Fund

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

Money

Market

Portfolio,

4.25%

$—

$23,768,717

$(23,768,717)

$—

—

$9,554

Total

Affiliated

Securities

...

$—

$23,768,717

$(23,768,717)

$—

$9,554

Transactions

with

Affiliates

(continued)

Transfer

Agent

Fees

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Other

Affiliated

Transactions

During

the

year

ended

August

31,

2025,

the

New

Jersey

Better

Educational

Savings

Trust

Program

–

Franklin

Templeton

Managed

Investments

Options

(529

Portfolios)

redeemed

out

Templeton

Foreign

Fund.

result,

November

22,

2024,

the

Fund

delivered

portfolio

securities

and

cash

that

were

transferred

in-kind

the

529

Portfolios,

which

included

$1,397,640

net

realized

gains.

such

gains

are

not

taxable

the

Fund

and

are

not

distributed

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gains

paid-in

capital.

Income

Taxes

For

tax

purposes,

capital

losses

may

carried

over

offset

future

capital

gains.

August

31,

2025,

the

capital

loss

carryforwards

were

follows:

During

the

year

ended August

31,

2025,

the

utilized

capital

loss

carryforwards

were

follows:

The

tax

character

distributions

paid

during

the

years

ended

August

31,

2025

and

2024,

was

follows:

August

31,

2025,

the

cost

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains for

income

tax

purposes

were

follows:

Templeton

Foreign

Fund

Templeton

World

Fund

Capital

loss

carryforwards

not

subject

expiration:

Long

term

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

124,369,053

—

Templeton

Foreign

Fund

Templeton

World

Fund

Capital

loss

utilized

carryforwards

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

$78,264,738

$—

Templeton

Foreign

Fund

Templeton

World

Fund

2025

2024

2025

2024

Distributions

paid

from:

Ordinary

income

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

$57,299,449

$68,467,047

$42,362,374

$16,054,811

Long

term

capital

gain

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

—

124,632,931

—

$57,299,449

$68,467,047

$166,995,305

$16,054,811

Templeton

Foreign

Fund

Templeton

World

Fund

Cost

investments

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

$2,187,391,571

$2,128,030,320

Unrealized

appreciation

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

$530,136,751

$704,708,154

Unrealized

depreciation

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

(109,255,947)

(24,993,140)

Net

unrealized

appreciation

(depreciation)

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

$420,880,804

$679,715,014

Distributable

earnings:

Undistributed

ordinary

income

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

$89,219,069

$—

Undistributed

long

term

capital

gains

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

—

306,794,156

Total

distributable

earnings

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

$89,219,069

$306,794,156

Transactions

with

Affiliates

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Differences

between

income

and/or

capital

gains

determined

book

basis

and

tax

basis

are

primarily

due

differing

treatments

wash

sales,

passive

foreign

investment

company

shares,

foreign

capital

gains

tax,

corporate

actions

and

in-kind

transactions.

Investment

Transactions

Purchases

and

sales

investments

(excluding

short

term

securities)

for

the

year

ended

August

31,

2025,

were

follows:

Concentration

Risk

Investing

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

U.S.

securities,

such

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

greater

market

volatility.

Political

and

financial

uncertainty

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

investing

foreign

securities.

addition,

certain

foreign

securities

may

not

liquid

U.S.

securities.

Certain

investments

Chinese

companies

are

made

through

special

structure

known

VIE.

VIE

structure,

foreign

investors,

such

Templeton

Foreign

Fund,

will

only

own

stock

shell

company

rather

than

directly

the

VIE,

which

must

owned

Chinese

nationals

(and/or

Chinese

companies)

obtain

the

licenses

and/or

assets

required

operate

restricted

prohibited

sector

China.

The

value

the

shell

company

derived

from

its

ability

consolidate

the

VIE

into

its

financials

pursuant

contractual

arrangements

that

allow

the

shell

company

exert

degree

control

over,

and

obtain

economic

benefits

arising

from,

the

VIE

without

formal

legal

ownership.

While

VIEs

are

longstanding

industry

practice

and

are

well

known

Chinese

officials

and

regulators,

the

structure

historically

has

not

been

formally

recognized

under

Chinese

law

and

uncertain

whether

Chinese

officials

regulators

will

withdraw

their

implicit

acceptance

the

structure.

also

uncertain

whether

the

contractual

arrangements,

which

may

subject

conflicts

interest

between

the

legal

owners

the

VIE

and

foreign

investors,

would

enforced

Chinese

courts

arbitration

bodies.

Prohibitions

these

structures

the

Chinese

government,

the

inability

enforce

such

contracts,

from

which

the

shell

company

derives

its

value,

would

likely

cause

the

VIE-structured

holding(s)

suffer

significant,

detrimental,

and

possibly

permanent

losses,

and

turn,

adversely

affect

the Fund's

returns

and

net

asset

value.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

Franklin

Templeton,

are

borrowers

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.995

billion

(Global

Credit

Facility)

which

matures

January

30,

2026.

This

Global

Credit

Facility

provides

source

funds

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

meet

future

unanticipated

unusually

large

redemption

requests.

Under

the

terms

the

Global

Credit

Facility,

the

Funds

may,

addition

interest

charged

any

borrowings

made

the

Funds

and

other

costs

incurred

the

Funds,

pay

their

fees

and

expenses

incurred

connection

with

the

implementation

and

maintenance

the

Global

Credit

Facility,

based

upon

their

relative

the

aggregate

net

assets

all

the

Borrowers,

including

annual

commitment

fee

0.15%

based

upon

the

unused

portion

the

Global

Credit

Facility.

These

fees

are

reflected

other

expenses

the

Statements

Operations.

During

the

year ended

August

31,

2025,

the

Funds

did

not

use

the

Global

Credit

Facility.

Templeton

Foreign

Fund

Templeton

World

Fund

Purchases

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

$1,100,513,218

$2,641,417,872

Sales

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

$1,443,917,515

$2,941,095,846

Income

Taxes

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Fair

Value

Measurements

The Funds

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

determining

the

value

the Funds' financial

instruments

and

are

summarized

the

following

fair

value

hierarchy:

Level

–

quoted

prices

active

markets

for

identical

financial

instruments

Level

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

determining

the

fair

value

financial

instruments)

The

input

levels

are

not

necessarily

indication

the

risk

liquidity

associated

with

financial

instruments

that

level.

summary

inputs

used

August

31,

2025,

valuing

the

Funds'

assets

carried

fair

value,

follows:

Level

Total

Templeton

Foreign

Fund

Assets:

Investments

Securities:

Common

Stocks

China

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

—

141,324,086

—

141,324,086

Denmark

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

—

49,568,874

—

49,568,874

France

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

—

299,331,250

—

299,331,250

Germany

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

—

26,332,723

—

26,332,723

Hong

Kong

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

—

102,102,538

—

102,102,538

India

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

—

71,790,884

—

71,790,884

Japan

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

—

134,478,462

—

134,478,462

Netherlands

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

—

206,346,031

—

206,346,031

Portugal

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

—

51,885,013

—

51,885,013

Singapore

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

—

61,850,393

—

61,850,393

South

Korea

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

—

87,398,370

—

87,398,370

Sweden

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

—

38,027,612

—

38,027,612

Switzerland

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

—

59,473,191

—

59,473,191

Taiwan

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

—

77,439,183

—

77,439,183

United

Kingdom

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

—

476,591,225

—

476,591,225

United

States

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

249,062,192

313,070,348

—

562,132,540

Short

Term

Investments

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

—

162,200,000

—

162,200,000

Total

Investments

Securities

...........

$249,062,192

$2,359,210,183

$—

$2,608,272,375

Templeton

World

Fund

Assets:

Investments

Securities:

Common

Stocks

China

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

—

53,878,377

—

53,878,377

France

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

—

318,851,719

—

318,851,719

Germany

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

—

101,390,524

—

101,390,524

India

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

—

55,283,654

—

55,283,654

Japan

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

—

45,666,201

—

45,666,201

Netherlands

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

—

130,710,564

—

130,710,564

Taiwan

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

35,801,934

113,106,035

—

148,907,969

United

Kingdom

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

—

147,048,986

—

147,048,986

United

States

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

1,696,700,495

63,506,845

—

1,760,207,340

Short

Term

Investments

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

—

45,800,000

—

45,800,000

Total

Investments

Securities

...........

$1,732,502,429

$1,075,242,905

$—

$2,807,745,334

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Operating

Segments

The Funds

have

adopted

the

FASB

Accounting

Standards

Update

(ASU)

2023-07,

Segment

Reporting

(Topic

280)

Improvements

Reportable

Segment

Disclosures.

The

update

limited

disclosure

requirements

and

does

not

impact

the Funds'

financial

position

results

operations.

Each

Fund

operates

single

operating

segment,

which

investment

portfolio.

The

chief

investment

officer

each

Fund's

Investment

manager

serves

the

Chief

Operating

Decision

Maker

(“CODM”)

and is

responsible

for

evaluating each

Fund's

operating

results

and

allocating

resources

accordance

with each

Fund’s

investment

strategy.

Internal

reporting

provided

the

CODM

aligns

with

the

accounting

policies

and

measurement

principles

used

the

financial

statements.

For

information

regarding

segment

assets,

segment

profit

loss,

and

significant

expenses,

refer

the

Statements

Assets

and

Liabilities

and

the

Statements

Operations,

along

with

the

notes

the

financial

statements.

The

Schedules

Investments

provides

details

the

Funds'

investments

that

generate

returns

such

interest,

dividends,

and

realized

and

unrealized

gains

losses.

Performance

metrics,

including

portfolio

turnover

and

expense

ratios,

are

disclosed

the

Financial

Highlights.

10.

New

Accounting

Pronouncements

December

2023,

the

FASB

issued

ASU

No.

2023-09,

Income

Taxes

(Topic

740)

–

Improvements

Income

Tax

Disclosures.

The

amendments

enhance

income

tax

disclosures

requiring

greater

disaggregation

the

rate

reconciliation

and

income

taxes

paid

jurisdiction,

while

removing

certain

disclosure

requirements.

The

ASU

effective

for

annual

periods

beginning

after

December

15,

2024,

with

early

adoption

permitted.

Management

currently

evaluating

the

impact

and

believes

that

the

adoption

the

ASU

will

not

have

material

impact

the

financial

statements.

11.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

the

financial

statements

and

determined

that

events

have

occurred

that

require

disclosure.

Abbreviations

Includes

foreign

securities

valued

$2,197,010,183,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Includes

foreign

securities

valued

$1,029,442,905,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Selected

Portfolio

ADR

American

Depositary

Receipt

Fair

Value

Measurements

(continued)

Templeton

Funds

Report

Independent

Registered

Public

Accounting

Firm

franklintempleton.com

Annual

Report

the

Board

Trustees

Templeton

Funds

and

Shareholders

Templeton

World

Fund

and

Templeton

Foreign

Fund

Opinions

the

Financial

Statements

have

audited

the

accompanying

statements

assets

and

liabilities,

including

the

schedules

investments,

Templeton

World

Fund

and

Templeton

Foreign

Fund

(constituting

Templeton

Funds,

hereafter

collectively

referred

the

"Funds")

August

31,

2025,

the

statements

operations

for

the

year

ended

August

31,

2025,

the

statements

changes

net

assets

for

each

the

two

years

the

period

ended

August

31,

2025,

including

the

notes,

and

the

financial

highlights

for

each

the

five

years

the

period

ended

August

31,

2025

(collectively

referred

the

“financial

statements”).

our

opinion,

the

financial

statements

present

fairly,

all

material

respects,

the

financial

position

each

the

Funds

August

31,

2025,

the

results

each

their

operations

for

the

year

then

ended,

the

changes

each

their

net

assets

for

each

the

two

years

the

period

ended

August

31,

2025

and

each

the

financial

highlights

for

each

the

five

years

the

period

ended

August

31,

2025

conformity

with

accounting

principles

generally

accepted

the

United

States

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

the

Funds’

management.

Our

responsibility

express

opinion

the

Funds’

financial

statements

based

our

audits.

are

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

independent

with

respect

the

Funds

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

the

Securities

and

Exchange

Commission

and

the

PCAOB.

conducted

our

audits

these

financial

statements

accordance

with

the

standards

the

PCAOB.

Those

standards

require

that

plan

and

perform

the

audit

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

material

misstatement,

whether

due

error

fraud.

Our

audits

included

performing

procedures

assess

the

risks

material

misstatement

the

financial

statements,

whether

due

error

fraud,

and

performing

procedures

that

respond

those

risks.

Such

procedures

included

examining,

test

basis,

evidence

regarding

the

amounts

and

disclosures

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

management,

well

evaluating

the

overall

presentation

the

financial

statements.

Our

procedures

included

confirmation

securities

owned

August

31,

2025

correspondence

with

the

custodian

and

brokers;

when

replies

were

not

received

from

brokers,

performed

other

auditing

procedures.

believe

that

our

audits

provide

reasonable

basis

for

our

opinions.

/s/PricewaterhouseCoopers

LLP

San

Francisco,

California

October

20,

2025

have

served

the

auditor

one

investment

companies

the

Franklin

Templeton

Group

Funds

since

1948.

Templeton

Funds

Tax

Information

(unaudited)

franklintempleton.com

Annual

Report

mid-February,

tax

information

shareholder's

proportionate

distributions

paid

during

the

preceding

calendar

year

will

received,

applicable.

Please

also

refer

www.franklintempleton.com

for

per

tax

information

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

consult

with

their

tax

advisors

for

further

information

the

treatment

these

amounts

their

tax

returns.

The

following

tax

information

for

the

Funds

required

furnished

shareholders

with

respect

income

earned

and

distributions

paid

during their

fiscal

year.

The

Funds

below

hereby

report

the

following

amounts,

subsequently

determined

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

August

31,

2025:

Under

Section

853

the

Internal

Revenue

Code,

the

Funds

below intend

elect

pass

through

their

shareholders

the

following

amounts,

amounts

finally

determined,

foreign

taxes

paid

and

foreign

source

income

earned

the

Funds

during

the

fiscal

year

ended

August

31,

2025:

Pursuant

to:

Templeton

Foreign

Fund

Templeton

World

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

—

$139,259,889

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$1,933,756

$13,890,112

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$72,791,684

$30,676,444

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

—

$36,298,814

Section

163(j)

Interest

Dividends

Earned

§163(j)

$2,367,924

$1,743,774

Templeton

Foreign

Fund

Templeton

World

Fund

Foreign

Taxes

Paid

$3,700,503

—

Foreign

Source

Income

Earned

$57,506,029

—

Templeton

Funds

franklintempleton.com

Annual

Report

BOARD

APPROVAL

INVESTMENT

MANAGEMENT

AGREEMENTS

(unaudited)

TEMPLETON

FUNDS

Templeton

Foreign

Fund

Templeton

World

Fund

(each

Fund)

in-person

meeting

held

May

29,

2025

(Meeting),

the

Board

Trustees

(Board)

Templeton

Funds

(Trust),

including

majority

the

trustees

who

are

not

“interested

persons”

defined

the

Investment

Company

Act

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

(i)

the

investment

management

agreement

between

Templeton

Global

Advisors

Limited

(TGAL)

and

the

Trust,

behalf

each

Fund

(Investment

Management

Agreement);

and

(ii)

the

investment

sub-advisory

agreement

between

TGAL

and

Templeton

Asset

Management

Ltd

(Sub-Adviser),

affiliate

TGAL,

behalf

Templeton

World

Fund

(Sub-Advisory

Agreement)

for

additional

one-year

period.

The

Board

also

considered

and

approved

amendment

the

Sub-Advisory

Agreement

between

TGAL

and

the

Sub-Adviser

behalf

Templeton

World

Fund

(Sub-Advisory

Agreement

Amendment,

together

with

the

Sub-Advisory

Agreement,

the

Amended

Sub-Advisory

Agreement).

The

Investment

Management

Agreement

and

the

Amended

Sub-Advisory

Agreement

are

each

referred

Management

Agreement.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

consider

the

renewal

each

Management

Agreement.

TGAL

and

the

Sub-Adviser

are

each

referred

herein

Manager.

considering

the

continuance

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

each

Manager

the

Meeting

and

throughout

the

year

meetings

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

response

detailed

set

requests

for

information

submitted

the

Managers

Independent

Trustee

counsel

behalf

the

Independent

Trustees

connection

with

the

annual

contract

renewal

process.

addition,

prior

the

Meeting,

the

Independent

Trustees

held

virtual

contract

renewal

meeting

which

the

Independent

Changes

and

Disagreements

with

Accountants

For

the

period

covered

this

report

Not

applicable.

Results

Meeting(s)

Shareholders

For

the

period

covered

this

report

Not

applicable.

Remuneration

Paid

Directors,

Officers

and

Others

For

the

period

covered

this

report

Refer

the

financial

statements

included

herein.

Remuneration

officers

paid

the

Fund’s

investment

manager

according

the

terms

the

agreement.

Board

Approval

Management

and

Subadvisory

Agreements

For

the

period

covered

this

report

Templeton

Funds

franklintempleton.com

Annual

Report

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters,

and

then

met

with

management

request

additional

information

that

the

Independent

Trustees

also

considered

prior

and

the

Meeting.

The

Board

further

considered

all

the

factors

deemed

relevant

approving

the

continuance

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

the

services

provided

each

Manager;

(ii)

the

investment

performance

each

Fund;

(iii)

the

costs

the

services

provided

and

profits

realized

each

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

which

economies

scale

are

realized

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

scale

for

the

benefit

Fund

investors.

approving

the

continuance

each

Management

Agreement,

the

Board,

including

majority

the

Independent

Trustees,

determined,

through

the

exercise

its

business

judgment,

that

the

terms

the

Management

Agreements

are

fair

and

reasonable

and

that

the

continuance

each

Management

Agreement

the

best

interests

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

the

Board’s

determination.

Nature,

Extent

and

Quality

Services

The

Board

reviewed

the

information

received

regarding

the

nature,

extent

and

quality

investment

management

services

provided

each

Manager

and

its

affiliates

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

the

senior

management

and

investment

personnel

each

Manager;

well

information

succession

planning

where

appropriate;

the

structure

investment

personnel

compensation;

oversight

third-party

service

providers;

investment

performance

reports

and

financial

information

for

each

Fund;

reports

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

each

Manager

and

its

affiliates;

and

management

fees

charged

each

Manager

and

its

affiliates

funds

and

other

accounts,

including

management’s

explanation

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

annual

report

payments

made

Franklin

Templeton

(FT)

the

Funds

financial

intermediaries,

well

memorandum

relating

third-party

servicing

arrangements.

The

Board

acknowledged

the

ongoing

integration

acquired

third-party

fund

families

into

the

family

funds

and

management’s

continued

development

strategies

address

evolving

changes

domestic

policy

and

continuing

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

Fund

shareholders

investing

fund

that

part

the

family

funds.

The

Board

noted

the

financial

position

Franklin

Resources,

Inc.

(FRI),

the

Managers’

parent,

and

its

commitment

the

mutual

fund

business

evidenced

its

continued

reassessment

the

fund

offerings

response

acquisitions

and

the

market

environment,

well

its

evaluation

ways

incorporate

private

assets

into

traditional

investment

vehicles.

The

Board

specifically

noted

FT’s

commitment

technological

innovation

and

advancement,

including

its

continued

focus

developing

potential

use

cases

for

tokenization

and

the

blockchain

and

the

use

artificial

intelligence

tools

help

streamline

day-to-day

tasks.

Following

consideration

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

services

provided

each

Manager

and

its

affiliates

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

each

Fund

over

various

time

periods

ended

December

31,

2024.

The

Board

considered

the

performance

returns

for

each

Fund

comparison

the

performance

returns

mutual

funds

deemed

comparable

the

Fund

included

universe

(Performance

Universe)

selected

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

independent

provider

investment

company

data.

The

Board

received

description

the

methodology

used

Broadridge

select

the

mutual

funds

included

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

Board

meetings

throughout

the

year.

summary

each

Fund’s

performance

results

below.

Templeton

Funds

franklintempleton.com

Annual

Report

Templeton

Foreign

Fund

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

international

multi-cap

value

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

three-year

period

was

above

the

median

its

Performance

Universe,

but

for

the

one-,

five-

and

10-year

periods

was

below

the

median

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

the

Fund’s

deeper

value

strategy

and

lower

quality

characteristics

versus

the

Performance

Universe

negatively

impacted

the

Fund’s

relative

returns

given

the

challenging

market

environment

for

the

Fund’s

value

investment

style

over

the

one-

and

five-year

periods.

Management

discussed

with

the

Board

the

actions

that

are

being

taken/have

been

taken

effort

improve

the

overall

performance

the

Fund,

including,

among

others,

changes

the

Fund’s

portfolio

positioning.

Management

further

discussed

its

conviction

the

Fund’s

current

portfolio

positioning

and

investment

processes

and

its

view

that,

despite

the

recent

market

environment,

believes

the

Fund’s

current

portfolio

positioning

will

positively

impact

the

Fund’s

performance

over

the

longer

term.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

continued

for

additional

one-

year

period,

while

management’s

efforts

continue

closely

monitored.

Templeton

World

Fund

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

global

multi-cap

value

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

above

the

median

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

below

the

median

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

was

positive

for

all

periods

with

one-year

return

18.11%

that

fell

within

the

first

quintile

the

Fund’s

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

receives

all

marketing

support

payments

made

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

fee

waivers,

any

(Management

Rate)

each

Fund

comparison

the

median

expense

ratio

and

median

Management

Rate,

respectively,

other

mutual

funds

deemed

comparable

and

with

similar

expense

structure

the

Fund

selected

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

based

upon

information

taken

from

each

fund’s

most

recent

annual

semi-annual

report,

which

reflects

historical

asset

levels

that

may

quite

different

from

those

currently

existing,

particularly

period

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

assets

decline

and

decrease

assets

grow,

the

Board

believed

the

independent

analysis

conducted

Broadridge

appropriate

measure

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

for

the

Templeton

World

Fund

and

Templeton

Foreign

Fund

and

for

each

other

fund

their

applicable

Expense

Group.

The

Board

received

description

the

methodology

used

Broadridge

select

the

mutual

funds

included

Expense

Group.

Templeton

Foreign

Fund

The

Expense

Group

for

the

Fund

included

the

Fund,

four

other

international

multi-cap

value

funds,

three

international

multi-cap

core

funds,

and

three

international

multi-cap

growth

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

and

the

first

quintile

(least

expensive)

its

Expense

Group.

The

Board

also

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

expense

cap

operating

expenses.

The

Board

concluded

that

the

Management

Rate

charged

the

Fund

reasonable.

Templeton

World

Fund

The

Expense

Group

for

the

Fund

included

the

Fund

and

five

other

global

multi-cap

value

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

its

Expense

Group.

The

Board

reviewed

and

considered

information

from

the

Managers

with

respect

the

Sub-Advisory

Agreement

Amendment,

which

included

information

increase

the

sub-advisory

fee

paid

TGAL

the

Sub-Adviser

from

25%

33%

the

“net

advisory

fee”

paid

the

Fund

TGAL,

light

the

retirement

portfolio

manager

the

Fund

employed

TGAL

and

the

reallocation

responsibilities

between

TGAL

and

the

Sub-Adviser.

The

Board

also

noted

that

the

amended

sub-advisory

fee

does

not

impact

the

amount

management

fees

that

are

currently

paid

the

Fund

Templeton

Funds

franklintempleton.com

Annual

Report

the

Sub-Adviser

paid

TGAL

out

the

management

fee

that

TGAL

receives

from

the

Fund.

The

Board

further

noted

that

the

allocation

the

fee

between

TGAL

and

the

Sub-Adviser

reflects

the

services

provided

the

Sub-Adviser

pursuant

the

Sub-Advisory

Agreement.

The

Board

concluded

that

the

Management

Rate

charged

the

Fund

and

the

sub-advisory

fee

paid

the

Sub-Adviser

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

TGAL

and

its

affiliates

connection

with

the

operation

each

Fund.

this

respect,

the

Board

considered

the

Fund

profitability

analysis

that

addresses

the

overall

profitability

FT’s

fund

business,

well

its

profits

providing

investment

management

and

other

services

each

the

individual

funds

during

the

12-month

period

ended

September

30,

2024,

being

the

most

recent

fiscal

year-end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

its

methodologies

used

calculating

profitability

response

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

independent

registered

public

accounting

firm

has

been

engaged

periodically

review

and

assess

the

allocation

methodologies

used

solely

the

Funds’

Board

with

respect

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

establishing

the

infrastructure

necessary

for

the

type

mutual

fund

operations

conducted

each

Manager

and

its

affiliates

may

not

fully

reflected

the

expenses

allocated

each

Fund

determining

its

profitability,

well

the

fact

that

the

level

profits,

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

management.

part

this

evaluation,

the

Board

considered

management’s

outsourcing

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

each

Manager,

but

over

the

long

run

expected

result

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

improving

shareholder

services

provided

the

Funds,

well

the

need

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

which

each

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

fund

growth,

well

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

all

these

factors,

the

Board

concluded

that

the

level

profits

realized

each

Manager

and

its

affiliates

from

providing

services

each

Fund

was

not

excessive

view

the

nature,

extent

and

quality

services

provided

each

Fund.

Economies

Scale

The

Board

reviewed

and

considered

the

extent

which

each

Manager

may

realize

economies

scale,

any,

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

scale

for

the

benefit

shareholders.

With

respect

possible

economies

scale,

the

Board

noted

the

existence

management

fee

breakpoints,

which

operate

generally

any

economies

scale

with

Fund’s

shareholders

reducing

the

Fund’s

effective

management

fees

the

Fund

grows

size.

The

Board

considered

the

Managers’

view

that

any

analyses

potential

economies

scale

managing

particular

fund

are

inherently

limited

light

the

joint

and

common

costs

and

investments

the

Managers

incur

across

the

family

funds

whole.

The

Board

concluded

that

the

extent

economies

scale

may

realized

each

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

sharing

benefits

with

the

Fund

and

its

shareholders

the

Fund

grows.

Conclusion

Based

its

review,

consideration

and

evaluation

all

factors

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuance

each

Management

Agreement

for

additional

one-year

period.

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

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

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

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

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

Templeton Funds

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

Date:	October 29, 2025

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

Date:	October 29, 2025

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

Date:	October 29, 2025