2026-09-1874200002100_TempletonForeignFund_ClassA


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

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

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

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


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$121	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, 2026, Class A shares of Templeton Foreign Fund returned 20.18%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 27.35% for the same period.

PERFORMANCE HIGHLIGHTS


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


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

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

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

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

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


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

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

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

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

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

KEY FUND STATISTICS (as of August 31, 2026)


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

HOW HAS THE FUND CHANGED?

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

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

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

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


	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, 2026

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	$203	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, 2026, Class C shares of Templeton Foreign Fund returned 19.30%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 27.35% for the same period.

PERFORMANCE HIGHLIGHTS


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


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

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

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

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


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

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

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

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

KEY FUND STATISTICS (as of August 31, 2026)


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

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

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

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

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

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


	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, 2026

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	$148	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, 2026, Class R shares of Templeton Foreign Fund returned 19.86%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 27.35% for the same period.

PERFORMANCE HIGHLIGHTS


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


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

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

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

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


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

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

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

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

KEY FUND STATISTICS (as of August 31, 2026)


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

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

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

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

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

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


	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, 2026

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	0.74%

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

PERFORMANCE HIGHLIGHTS


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


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

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

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

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


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

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

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

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

KEY FUND STATISTICS (as of August 31, 2026)


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

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

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

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

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

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


	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, 2026

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	$94	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, 2026, Advisor Class shares of Templeton Foreign Fund returned 20.51%. The Fund compares its performance to the MSCI All Country World ex U.S. Index-NR, which returned 27.35% for the same period.

PERFORMANCE HIGHLIGHTS


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


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

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

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

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


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

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

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

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

KEY FUND STATISTICS (as of August 31, 2026)


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

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

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

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

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

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


	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, 2026

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

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

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


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

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

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

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

PERFORMANCE HIGHLIGHTS


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


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

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 8/31/2016 — 8/31/2026

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


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

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

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

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

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

KEY FUND STATISTICS (as of August 31, 2026)


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

HOW HAS THE FUND CHANGED?

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

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


	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, 2026

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	$191	1.79%

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

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

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

PERFORMANCE HIGHLIGHTS


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


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

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

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

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


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

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

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

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

KEY FUND STATISTICS (as of August 31, 2026)


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

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

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

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

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


	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, 2026

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	$81	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, 2026, Class R6 shares of Templeton World Fund returned 14.16%. The Fund compares its performance to the MSCI All Country World Index-NR, which returned 22.35% for the same period.

PERFORMANCE HIGHLIGHTS


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


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

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

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

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


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

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

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

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

KEY FUND STATISTICS (as of August 31, 2026)


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

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

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

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

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


	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, 2026

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	$85	0.79%

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

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

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

PERFORMANCE HIGHLIGHTS


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


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

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

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

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


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

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

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

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

KEY FUND STATISTICS (as of August 31, 2026)


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

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

Portfolio Composition^* (% of Total Investments)

HOW HAS THE FUND CHANGED?

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

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


	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, 2025 and August 31, 2026 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $97,689 in August 31, 2025 and $97,630 in August 31, 2026.

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

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

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

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

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

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

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

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

(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 $218,343 in August 31, 2025 and $579,038 in August 31, 2026.

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

Templeton

Funds

Financial

Highlights

Templeton

Foreign

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$9.15

$8.60

$7.78

$6.32

$7.77

Income

from

investment

operations

Net

investment

income

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

0.15

0.17

0.18

0.16

0.13

Net

realized

and

unrealized

gains

(losses)

...........

1.65

0.56

0.83

1.38

(1.28)

Total

from

investment

operations

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

1.80

0.73

1.01

1.54

(1.15)

Less

distributions

from:

Net

investment

income

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

(0.35)

(0.18)

(0.19)

(0.08)

(0.30)

Net

asset

value,

end

year

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

$10.60

$9.15

$8.60

$7.78

$6.32

Total

return

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

20.18%

8.91%

13.28%

24.57%

(15.25)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.13%

1.12%

1.16%

Expenses

net

waiver

and

payments

affiliates

.......

1.10%

Net

investment

income

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

1.54%

1.99%

2.26%

2.20%

1.80%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$1,677,287

$1,541,500

$1,606,239

$1,605,982

$1,418,293

Portfolio

turnover

rate

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

47.28%

44.39%

42.01%

14.85%

29.07%

The

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.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

(

)

for

prior

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,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$9.16

$8.59

$7.76

$6.29

$7.70

Income

from

investment

operations

Net

investment

income

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

0.08

0.10

0.12

0.10

0.07

Net

realized

and

unrealized

gains

(losses)

...........

1.65

0.58

0.83

1.39

(1.27)

Total

from

investment

operations

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

1.73

0.68

0.95

1.49

(1.20)

Less

distributions

from:

Net

investment

income

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

(0.27)

(0.11)

(0.12)

(0.02)

(0.21)

Net

asset

value,

end

year

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

$10.62

$9.16

$8.59

$7.76

$6.29

Total

return

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

19.30%

8.13%

12.40%

23.65%

(15.95)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.88%

1.87%

1.91%

Expenses

net

waiver

and

payments

affiliates

.......

1.85%

Net

investment

income

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

0.77%

1.17%

1.47%

1.41%

1.03%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$13,031

$13,876

$17,220

$21,611

$23,962

Portfolio

turnover

rate

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

47.28%

44.39%

42.01%

14.85%

29.07%

The

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.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

(

)

for

prior

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,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.91

$8.38

$7.58

$6.16

$7.58

Income

from

investment

operations

Net

investment

income

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

0.12

0.14

0.16

0.14

0.11

Net

realized

and

unrealized

gains

(losses)

...........

1.61

0.55

0.82

1.35

(1.25)

Total

from

investment

operations

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

1.73

0.69

0.98

1.49

(1.14)

Less

distributions

from:

Net

investment

income

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

(0.33)

(0.16)

(0.18)

(0.07)

(0.28)

Net

asset

value,

end

year

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

$10.31

$8.91

$8.38

$7.58

$6.16

Total

return

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

19.86%

8.63%

13.09%

24.27%

(15.54)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.38%

1.39%

1.38%

1.37%

1.41%

Expenses

net

waiver

and

payments

affiliates

.......

1.35%

Net

investment

income

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

1.27%

1.74%

2.03%

1.95%

1.57%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$111,450

$113,063

$121,214

$116,518

$103,984

Portfolio

turnover

rate

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

47.28%

44.39%

42.01%

14.85%

29.07%

The

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.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

(

)

for

prior

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,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.96

$8.43

$7.63

$6.20

$7.64

Income

from

investment

operations

Net

investment

income

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

0.18

0.20

0.21

0.18

0.15

Net

realized

and

unrealized

gains

(losses)

...........

1.62

0.54

0.81

1.36

(1.26)

Total

from

investment

operations

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

1.80

0.74

1.02

1.54

(1.11)

Less

distributions

from:

Net

investment

income

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

(0.38)

(0.21)

(0.22)

(0.11)

(0.33)

Net

asset

value,

end

year

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

$10.38

$8.96

$8.43

$7.63

$6.20

Total

return

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

20.56%

9.31%

13.69%

25.02%

(14.98)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.79%

0.78%

0.77%

0.81%

Expenses

net

waiver

and

payments

affiliates

.......

0.74%

0.73%

Net

investment

income

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

1.83%

2.37%

2.72%

2.57%

2.13%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$242,577

$368,372

$387,773

$341,058

$290,974

Portfolio

turnover

rate

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

47.28%

44.39%

42.01%

14.85%

29.07%

The

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.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

(

)

for

prior

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,

2026

2025

2024

2023

2022

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.97

$8.44

$7.64

$6.21

$7.64

Income

from

investment

operations

Net

investment

income

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

0.17

0.18

0.20

0.17

0.15

Net

realized

and

unrealized

gains

(losses)

...........

1.62

0.55

0.81

1.36

(1.26)

Total

from

investment

operations

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

1.79

0.73

1.01

1.53

(1.11)

Less

distributions

from:

Net

investment

income

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

(0.37)

(0.20)

(0.21)

(0.10)

(0.32)

Net

asset

value,

end

year

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

$10.39

$8.97

$8.44

$7.64

$6.21

Total

return

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

20.51%

9.14%

13.55%

24.84%

(14.99)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.88%

0.87%

0.92%

Expenses

net

waiver

and

payments

affiliates

.......

0.85%

Net

investment

income

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

1.76%

2.19%

2.54%

2.43%

2.06%

Supplemental

data

Net

assets,

end

year

(000’s)

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

$399,447

$546,122

$672,907

$680,297

$602,921

Portfolio

turnover

rate

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

47.28%

44.39%

42.01%

14.85%

29.07%

The

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.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

(

)

for

prior

year

information.

Templeton

Funds

Schedule

Investments,

August

31,

2026

Templeton

Foreign

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Industry

Value

Common

Stocks

98.0%

China

6.3%

Alibaba

Group

Holding

Ltd.

.........

Broadline

Retail

2,127,474

30,411,745

JD.com,

Inc.

ADR

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

Broadline

Retail

1,789,675

50,540,422

Prosus

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

Broadline

Retail

1,015,159

45,221,525

Tencent

Holdings

Ltd.

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

Interactive

Media

Services

470,551

27,026,183

153,199,875

Denmark

1.6%

Novo

Nordisk

A/S

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

Pharmaceuticals

892,296

40,410,287

France

7.0%

Carrefour

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

Consumer

Staples

Distribution

Retail

4,077,284

74,080,072

Cie

Saint-Gobain

...........

Building

Products

480,206

43,523,404

Dassault

Aviation

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

Aerospace

Defense

159,849

52,697,153

170,300,629

Germany

3.6%

adidas

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

Textiles,

Apparel

Luxury

Goods

280,896

49,198,187

Heidelberg

Materials

...........

Construction

Materials

199,410

38,008,484

87,206,671

Hong

Kong

2.3%

AIA

Group

Ltd.

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

Insurance

2,588,509

25,024,671

Prudential

plc

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

Insurance

2,314,134

31,474,784

56,499,455

Japan

8.5%

Daiwa

Securities

Group,

Inc.

........

Capital

Markets

5,079,031

58,321,666

Mizuho

Financial

Group,

Inc.

........

Banks

472,550

25,172,048

Sumitomo

Mitsui

Financial

Group,

Inc.

Banks

1,740,249

74,705,046

Toyota

Motor

Corp.

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

Automobiles

2,525,051

49,594,626

207,793,386

Netherlands

9.6%

Akzo

Nobel

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

Chemicals

585,913

41,920,118

Euronext

144A

Reg

.........

Capital

Markets

258,270

48,894,854

EXOR

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

Financial

Services

51,960

4,416,821

Heineken

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

Beverages

545,449

46,050,569

ING

Groep

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

Banks

2,627,638

93,019,774

234,302,136

Singapore

2.9%

STMicroelectronics

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

Semiconductors

Semiconductor

Equipment

1,441,917

72,165,282

South

Korea

5.5%

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

Peripherals

470,241

88,773,456

Hynix,

Inc.

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

Semiconductors

Semiconductor

Equipment

14,570

17,633,893

Hynix,

Inc.

ADR

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

Semiconductors

Semiconductor

Equipment

165,600

27,254,448

133,661,797

Switzerland

3.0%

UBS

Group

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

Capital

Markets

1,342,295

73,499,339

Taiwan

6.4%

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

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

Semiconductors

Semiconductor

Equipment

2,081,094

156,398,117

United

Kingdom

23.8%

AstraZeneca

plc

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

Pharmaceuticals

442,602

71,355,375

Barratt

Redrow

plc

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

Household

Durables

12,117,794

51,654,013

Templeton

Funds

Schedule

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)

Diageo

plc

ADR

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

Beverages

529,894

48,670,764

Sports

Fashion

plc

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

Specialty

Retail

49,787,254

57,734,596

Lloyds

Banking

Group

plc

..........

Banks

40,004,930

58,980,545

Persimmon

plc

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

Household

Durables

3,843,109

60,741,943

SSE

plc

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

Electric

Utilities

1,901,037

62,491,943

Standard

Chartered

plc

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

Banks

2,994,336

86,962,023

Unilever

plc

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

Personal

Care

Products

765,732

49,297,433

Verisure

plc

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

Commercial

Services

Supplies

3,294,878

34,020,467

581,909,102

United

States

17.5%

Booking

Holdings,

Inc.

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

Hotels,

Restaurants

Leisure

235,654

46,916,355

plc

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

Oil,

Gas

Consumable

Fuels

9,834,453

70,343,803

CNH

Industrial

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

Machinery

6,749,929

79,851,660

CRH

plc

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

Construction

Materials

474,849

44,773,512

Sanofi

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

Pharmaceuticals

697,937

62,052,915

Shell

plc

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

Oil,

Gas

Consumable

Fuels

1,203,360

55,133,411

Smurfit

Westrock

plc

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

Containers

Packaging

1,479,558

69,391,270

428,462,926

Total

Common

Stocks

(Cost

1,759,273,559

)

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

2,395,809,002

Short

Term

Investments

2.9%

Industry

Principal

Amount

Value

Time

Deposits

1.9%

Canada

1.9%

Royal

Bank

Canada

3.58

9/01/26

44,900,000

Total

Time

Deposits

(Cost

44,900,000

)

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

44,900,000

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.0%

Money

Market

Funds

1.0%

f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.629

......

25,016,440

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

25,016,440

)

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

25,016,440

Total

Short

Term

Investments

(Cost

69,916,440

)

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

69,916,440

Total

Investments

(Cost

1,829,189,999

)

100.9

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

$2,465,725,442

Other

Assets,

less

Liabilities

(

0.9

)

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

(21,933,347)

Net

Assets

100.0%

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

$2,443,792,095

Templeton

Funds

Schedule

Investments

Templeton

Foreign

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

See

Abbreviations

page

33.

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

Variable

interest

entity

(VIE).

See

Note

regarding

investments

made

through

VIE

structure.

August

31,

2026,

the

aggregate

value

these

securities

was

$107,978,350,

representing

4.4%

net

assets.

portion

all

the

security

loan

August

31,

2026.

See

Note

1(c).

Security

was

purchased

pursuant

Rule

144A

Regulation

under

the

Securities

Act

1933.

144A

securities

may

sold

transactions

exempt

from

registration

only

qualified

institutional

buyers

public

offering

registered

under

the

Securities

Act

1933.

Regulation

securities

cannot

sold

the

United

States

without

either

effective

registration

statement

filed

pursuant

the

Securities

Act

1933,

pursuant

exemption

from

registration.

August

31,

2026,

the

value

this

security

was

$48,894,854,

representing

2.0%

net

assets.

Non-income

producing.

See

Note

1(c)

regarding

securities

loan.

See

Note

3(f)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

Templeton

Funds

Financial

Highlights

Templeton

World

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$18.87

$17.62

$13.91

$11.85

$15.52

Income

from

investment

operations

Net

investment

income

(loss)

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

(—)

0.05

0.01

0.04

(—)

Net

realized

and

unrealized

gains

(losses)

...........

2.44

2.31

3.79

2.21

(3.44)

Total

from

investment

operations

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

2.44

2.36

3.80

2.25

(3.44)

Less

distributions

from:

Net

investment

income

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

—

(—)

(0.09)

(0.05)

(0.23)

Net

realized

gains

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

(2.37)

(1.11)

—

(0.14)

—

Total

distributions

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

(2.37)

(1.11)

(0.09)

(0.19)

(0.23)

Net

asset

value,

end

year

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

$18.94

$18.87

$17.62

$13.91

$11.85

Total

return

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

13.89%

14.23%

27.48%

19.23%

(22.39)%

Ratios

average

net

assets

Expenses

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

1.04%

1.05%

1.03%

1.04%

Net

investment

income

(loss)

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

(0.02)%

0.26%

0.09%

0.32%

(—)%

Supplemental

data

Net

assets

end

year

(000’s)

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

$2,800,951

$2,667,444

$2,592,377

$2,289,332

$2,138,297

Portfolio

turnover

rate

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

107.93%

100.16%

52.04%

47.28%

81.20%

The

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.

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

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$17.70

$16.71

$13.21

$11.30

$14.76

Income

from

investment

operations

Net

investment

(loss)

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

(0.13)

(0.08)

(0.10)

(0.06)

(0.10)

Net

realized

and

unrealized

gains

(losses)

...........

2.27

2.18

3.60

2.11

(3.29)

Total

from

investment

operations

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

2.14

2.10

3.50

2.05

(3.39)

Less

distributions

from:

Net

investment

income

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

—

(0.07)

Net

realized

gains

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

(2.37)

(1.11)

—

(0.14)

—

Total

distributions

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

(2.37)

(1.11)

—

(0.14)

(0.07)

Net

asset

value,

end

year

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

$17.47

$17.70

$16.71

$13.21

$11.30

Total

return

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

12.98%

13.39%

26.50%

18.33%

(23.01)%

Ratios

average

net

assets

Expenses

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

1.79%

1.80%

1.79%

1.81%

Net

investment

(loss)

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

(0.77)%

(0.50)%

(0.67)%

(0.48)%

(0.77)%

Supplemental

data

Net

assets

end

year

(000’s)

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

$4,716

$5,360

$6,187

$6,476

$7,348

Portfolio

turnover

rate

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

107.93%

100.16%

52.04%

47.28%

81.20%

The

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.

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

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

August

31,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$18.90

$17.64

$13.92

$11.86

$15.53

Income

from

investment

operations

Net

investment

income

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

0.05

0.10

0.06

0.08

0.04

Net

realized

and

unrealized

gains

(losses)

...........

2.45

2.32

3.79

2.19

(3.43)

Total

from

investment

operations

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

2.50

2.42

3.85

2.27

(3.39)

Less

distributions

from:

Net

investment

income

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

—

(0.05)

(0.13)

(0.07)

(0.28)

Net

realized

gains

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

(2.37)

(1.11)

—

(0.14)

—

Total

distributions

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

(2.37)

(1.16)

(0.13)

(0.21)

(0.28)

Net

asset

value,

end

year

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

$19.03

$18.90

$17.64

$13.92

$11.86

Total

return

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

14.16%

14.61%

27.85%

19.50%

(22.14)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.79%

0.78%

0.77%

0.78%

Expenses

net

waiver

and

payments

affiliates

.......

0.76%

0.75%

0.76%

Net

investment

income

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

0.26%

0.55%

0.41%

0.61%

0.29%

Supplemental

data

Net

assets

end

year

(000’s)

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

$29,085

$25,997

$26,493

$38,834

$34,238

Portfolio

turnover

rate

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

107.93%

100.16%

52.04%

47.28%

81.20%

The

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.

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,

2026

2025

2024

2023

2022

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$18.91

$17.65

$13.93

$11.86

$15.54

Income

from

investment

operations

Net

investment

income

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

0.04

0.09

0.05

0.07

0.03

Net

realized

and

unrealized

gains

(losses)

...........

2.45

2.33

3.80

2.21

(3.44)

Total

from

investment

operations

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

2.49

2.42

3.85

2.28

(3.41)

Less

distributions

from:

Net

investment

income

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

—

(0.05)

(0.13)

(0.07)

(0.27)

Net

realized

gains

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

(2.37)

(1.11)

—

(0.14)

—

Total

distributions

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

(2.37)

(1.16)

(0.13)

(0.21)

(0.27)

Net

asset

value,

end

year

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

$19.03

$18.91

$17.65

$13.93

$11.86

Total

return

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

14.09%

14.55%

27.81%

19.52%

(22.22)%

Ratios

average

net

assets

Expenses

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

0.79%

0.80%

0.79%

0.81%

Net

investment

income

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

0.23%

0.51%

0.33%

0.57%

0.24%

Supplemental

data

Net

assets

end

year

(000’s)

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

$104,294

$98,938

$93,548

$99,935

$86,424

Portfolio

turnover

rate

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

107.93%

100.16%

52.04%

47.28%

81.20%

The

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.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Templeton

Funds

Schedule

Investments,

August

31,

2026

Templeton

World

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Industry

Value

Common

Stocks

95.5%

China

2.8%

a,b

Alibaba

Group

Holding

Ltd.

ADR

....

Broadline

Retail

486,030

55,417,141

BYD

Co.

Ltd.

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

Automobiles

2,432,320

26,847,579

82,264,720

France

5.7%

Airbus

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

Aerospace

Defense

266,327

60,782,383

Safran

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

Aerospace

Defense

271,982

106,301,487

167,083,870

Germany

4.3%

Infineon

Technologies

..........

Semiconductors

Semiconductor

Equipment

411,206

26,805,332

Siemens

Energy

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

Electrical

Equipment

597,080

98,343,625

125,148,957

Hong

Kong

3.2%

AIA

Group

Ltd.

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

Insurance

6,496,297

62,803,605

Hong

Kong

Exchanges

Clearing

Ltd.

Capital

Markets

586,930

31,733,219

94,536,824

Japan

2.8%

IHI

Corp.

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

Machinery

1,800,790

30,087,555

Mitsubishi

Heavy

Industries

Ltd.

.....

Machinery

973,260

23,584,517

Mizuho

Financial

Group,

Inc.

........

Banks

563,630

30,023,746

83,695,818

Netherlands

4.0%

ASML

Holding

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

Semiconductors

Semiconductor

Equipment

28,995

49,176,493

ING

Groep

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

Banks

1,903,827

67,396,482

116,572,975

South

Korea

4.8%

Samsung

Electronics

Co.

Ltd.

.......

Technology

Hardware,

Storage

Peripherals

387,369

73,128,640

Hynix,

Inc.

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

Semiconductors

Semiconductor

Equipment

57,230

69,264,771

142,393,411

Taiwan

4.8%

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

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

Semiconductors

Semiconductor

Equipment

927,655

69,715,013

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

ADR

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

Semiconductors

Semiconductor

Equipment

172,256

71,541,362

141,256,375

United

Kingdom

8.8%

AstraZeneca

plc

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

Pharmaceuticals

291,610

47,012,758

HSBC

Holdings

plc

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

Banks

3,613,270

74,012,210

Rolls-Royce

Holdings

plc

..........

Aerospace

Defense

5,340,939

108,550,143

SSE

plc

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

Electric

Utilities

864,353

28,413,492

257,988,603

United

States

54.3%

Alphabet,

Inc.

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

Interactive

Media

Services

407,819

138,393,378

Amazon.com,

Inc.

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

Broadline

Retail

488,778

126,969,861

Applied

Materials,

Inc.

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

Semiconductors

Semiconductor

Equipment

80,260

36,790,381

AppLovin

Corp.

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

Media

68,630

21,416,678

Arista

Networks,

Inc.

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

Communications

Equipment

147,720

28,907,327

Booking

Holdings,

Inc.

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

Hotels,

Restaurants

Leisure

265,490

52,856,404

Broadcom,

Inc.

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

Semiconductors

Semiconductor

Equipment

278,025

102,963,778

Templeton

Funds

Schedule

Investments

Templeton

World

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Industry

Value

Common

Stocks

(continued)

United

States

(continued)

CNH

Industrial

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

Machinery

2,590,430

30,644,787

CRH

plc

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

Construction

Materials

572,065

53,940,009

a,c

Illumina,

Inc.

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

Life

Sciences

Tools

Services

127,700

27,280,551

Intel

Corp.

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

Semiconductors

Semiconductor

Equipment

810,533

72,550,809

IQVIA

Holdings,

Inc.

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

Life

Sciences

Tools

Services

238,670

62,338,217

JPMorgan

Chase

Co.

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

Banks

82,110

29,232,802

Linde

plc

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

Chemicals

132,470

64,854,663

Medtronic

plc

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

Health

Care

Equipment

Supplies

624,890

56,646,278

Meta

Platforms,

Inc.

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

Interactive

Media

Services

144,859

82,908,600

Microsoft

Corp.

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

Software

350,466

177,787,897

NVIDIA

Corp.

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

Semiconductors

Semiconductor

Equipment

631,280

139,373,998

Progressive

Corp.

(The)

...........

Insurance

200,590

43,744,667

S&P

Global,

Inc.

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

Capital

Markets

129,570

56,471,789

Smurfit

Westrock

plc

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

Containers

Packaging

1,124,830

52,754,527

Thermo

Fisher

Scientific,

Inc.

.......

Life

Sciences

Tools

Services

119,296

73,617,562

Visa,

Inc.

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

Financial

Services

169,410

64,269,072

1,596,714,035

Total

Common

Stocks

(Cost

2,085,282,873

)

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

2,807,655,588

Short

Term

Investments

4.2%

Industry

Principal

Amount

Value

Time

Deposits

4.2%

Canada

4.2%

National

Bank

Canada

3.58

9/01/26

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

50,000,000

Royal

Bank

Canada

3.58

9/01/26

72,700,000

122,700,000

Total

Time

Deposits

(Cost

122,700,000

)

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

122,700,000

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.0%

†

Money

Market

Funds

0.0%

†

e,f

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.629

......

351,649

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

351,649

)

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

351,649

Total

Short

Term

Investments

(Cost

123,051,649

)

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

123,051,649

Total

Investments

(Cost

2,208,334,522

)

99.7

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

$2,930,707,237

Other

Assets,

less

Liabilities

0.3

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

8,338,890

Net

Assets

100.0%

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

$2,939,046,127

Templeton

Funds

Financial

Statements

Assets

and

Liabilities

August

31,

2026

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

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

$1,804,173,559

$2,207,982,873

Cost

Non-controlled

affiliates

(Note

)

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

25,016,440

351,649

Value

Unaffiliated

issuers

(Includes

securities

loaned

83,167,789

and

97,545,451

respectively)

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

$2,440,709,002

$2,930,355,588

Value

Non-controlled

affiliates

(Note

)

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

25,016,440

351,649

Cash

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

19,236

999,807

Foreign

currency,

value

(cost

1,305

and

955

respectively)

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

1,308

957

Receivables:

Investment

securities

sold

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

28,016,453

8,007,389

Capital

sold

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

449,336

324,998

Dividends

and

interest

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

9,164,030

4,240,733

Foreign

tax

refund

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

359,618

—

European

Union

tax

reclaims

(Note

)

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

—

747,987

Total

assets

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

2,503,735,423

2,945,029,108

Liabilities:

Payables:

Investment

securities

purchased

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

29,461,924

—

Capital

redeemed

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

2,433,692

1,444,079

Management

fees

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

1,359,980

1,714,881

Distribution

fees

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

419,528

591,506

Transfer

agent

fees

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

983,027

576,108

Trustees'

fees

and

expenses

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

7,497

3,119

IRS

closing

agreement

payments

for

European

Union

tax

reclaims

(Note

)

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

—

1,110,522

Payable

upon

return

securities

loaned

(Note

)

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

25,016,440

351,649

Accrued

expenses

and

other

liabilities

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

261,240

191,117

Total

liabilities

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

59,943,328

5,982,981

Net

assets,

value

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

$2,443,792,095

$2,939,046,127

Net

assets

consist

of:

Paid-in

capital

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

$1,694,144,721

$1,948,954,055

Total

distributable

earnings

(losses)

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

749,647,374

990,092,072

Net

assets,

value

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

$2,443,792,095

$2,939,046,127

Templeton

Funds

Financial

Statements

Assets

and

Liabilities

(continued)

August

31,

2026

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Templeton

Foreign

Fund

Templeton

World

Fund

Class

Net

assets,

value

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

$1,677,287,185

$2,800,950,723

outstanding

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

158,260,191

147,846,740

Net

asset

value

per

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

$10.60

$18.94

Maximum

offering

price

per

(net

asset

value

per

.50

)

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

$11.22

$20.04

Class

Net

assets,

value

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

$13,031,061

$4,716,105

outstanding

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

1,226,955

269,895

Net

asset

value

and

maximum

offering

price

per

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

$10.62

$17.47

Class

Net

assets,

value

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

$111,450,200

$—

outstanding

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

10,810,222

—

Net

asset

value

and

maximum

offering

price

per

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

$10.31

$—

Class

R6:

Net

assets,

value

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

$242,576,766

$29,085,275

outstanding

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

23,379,066

1,528,576

Net

asset

value

and

maximum

offering

price

per

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

$10.38

$19.03

Advisor

Class:

Net

assets,

value

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

$399,446,883

$104,294,024

outstanding

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

38,449,160

5,479,314

Net

asset

value

and

maximum

offering

price

per

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

$10.39

$19.03

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,

2026

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

$5,740,948

and

$3,701,724,

respectively)

Unaffiliated

issuers

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

$63,550,493

$26,664,451

Interest:

Unaffiliated

issuers

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

2,755,044

2,236,199

Income

from

securities

loaned:

Unaffiliated

entities

(net

fees

and

rebates)

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

(692,723)

(87,771)

Non-controlled

affiliates

(Note

)

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

865,040

125,176

Other

income

(Note

1d)

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

—

27,489

Total

investment

income

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

66,477,854

28,965,544

Expenses:

Management

fees

(Note

)

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

17,649,256

19,829,780

Distribution

fees:

(Note

)

Class

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

4,080,044

6,797,340

Class

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

136,848

52,316

Class

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

565,312

—

Transfer

agent

fees:

(Note

)

Class

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

2,324,907

1,682,155

Class

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

19,514

3,221

Class

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

161,168

—

Class

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

177,229

17,126

Advisor

Class

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

648,578

62,001

Custodian

fees

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

168,995

113,841

Reports

shareholders

fees

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

178,039

61,723

Registration

and

filing

fees

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

75,707

106,994

Professional

fees

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

118,051

119,124

Trustees'

fees

and

expenses

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

303,009

331,506

Other

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

246,979

134,438

Total

expenses

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

26,853,636

29,311,565

Expenses

waived/paid

affiliates

(Note

and

)

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

(883,163)

(13,295)

Net

expenses

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

25,970,473

29,298,270

Net

investment

income

(loss)

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

40,507,381

(332,726)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

(net

foreign

taxes

$5,028,358

and

$4,884,688,

respectively)

Unaffiliated

issuers

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

222,108,077

330,209,053

Foreign

currency

transactions

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

371,269

119,728

Net

realized

gain

(loss)

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

222,479,346

330,328,781

Net

change

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

204,340,460

32,342,447

Translation

other

assets

and

liabilities

denominated

foreign

currencies

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

(129,793)

(164,078)

Change

deferred

taxes

unrealized

appreciation

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

5,850,541

6,662,306

Net

change

unrealized

appreciation

(depreciation)

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

210,061,208

38,840,675

Net

realized

and

unrealized

gain

(loss)

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

432,540,554

369,169,456

Net

increase

(decrease)

net

assets

resulting

from

operations

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

$473,047,935

$368,836,730

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,

2026

Year

Ended

August

31,

2025

Year

Ended

August

31,

2026

Year

Ended

August

31,

2025

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

(loss)

.......

$40,507,381

$52,719,497

$(332,726)

$7,289,113

Net

realized

gain

(loss)

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

222,479,346

129,871,782

330,328,781

397,555,118

Net

change

unrealized

appreciation

(depreciation)

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

210,061,208

21,201,442

38,840,675

(46,449,257)

Net

increase

(decrease)

net

assets

resulting

from

operations

473,047,935

203,792,721

368,836,730

358,394,974

Distributions

shareholders:

Class

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

(57,268,704)

(32,084,926)

(325,153,474)

(158,900,136)

Class

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

(377,447)

(199,047)

(698,632)

(382,723)

Class

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

(3,886,174)

(2,255,243)

—

Class

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

(14,615,493)

(9,520,094)

(3,299,351)

(1,680,416)

Advisor

Class

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

(18,375,080)

(13,240,139)

(11,806,783)

(6,032,030)

Total

distributions

shareholders

.....

(94,522,898)

(57,299,449)

(340,958,240)

(166,995,305)

Capital

transactions:

(Note

)

Class

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

(104,465,422)

(154,386,205)

107,180,010

(107,578,857)

Class

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

(2,903,322)

(4,109,409)

(584,382)

(1,117,407)

Class

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

(18,298,280)

(15,048,062)

—

Class

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

(176,342,219)

(42,582,011)

2,728,291

(2,258,995)

Advisor

Class

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

(215,657,184)

(152,786,832)

4,103,937

(1,309,258)

Total

capital

transactions

.......

(517,666,427)

(368,912,519)

113,427,856

(112,264,517)

Net

increase

(decrease)

net

assets

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

(139,141,390)

(222,419,247)

141,306,346

79,135,152

Net

assets:

Beginning

year

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

2,582,933,485

2,805,352,732

2,797,739,781

2,718,604,629

End

year

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

$2,443,792,095

$2,582,933,485

$2,939,046,127

$2,797,739,781

Templeton

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

Effective

January

15,

2027,

Templeton

World

Fund

will

renamed

Templeton

Global

Leaders

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

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

foreign

market

and

the

latest

indications

value

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,

2026,

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.

Additionally,

August

31,

2026,

Templeton

Foreign

Fund

and

Templeton

World

Fund

held

$62,531,419

and

$102,876,220,

respectively,

U.S.

Government

and

Agency

securities

collateral.

These

securities

are

held

collateral

segregated

accounts

with

the

Funds'

custodian.

The

Fund

cannot

repledge

resell

these

securities

held

collateral.

such,

the

non-cash

collateral

excluded

from

the

Statements

Assets

and

Liabilities. 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

Organization

and

Significant

Accounting

Policies

(continued)

Financial

Instrument

Valuation

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

third

party

borrower.

Securities

loan

outstanding

period

end,

any,

are

listed

the

Funds'

Schedules

Investments.

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

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.

some

cases,

the

Funds

may

entitled

reclaim

all

portion

such

taxes,

and

such

reclaim

amounts,

any,

are

reflected

dividend

receivable

the

Statements

Assets

and

Liabilities

and

dividend

income

the

Statements

Operations.

many

cases,

however,

the

Funds

may

not

receive

such

amounts

for

extended

period

time,

depending

the

country

investment.

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.

The

Funds

previously

determined

enter

into

closing

agreement

with

the

IRS

and

recorded

any

adjustments

estimated

payments

other

income,

reflected

the

Statements

Operations.

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,

2026, 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).

The

Funds'

federal

and

state

income

and

federal

excise

tax

returns

for

the

prior

three

fiscal

years

are

subject

examination

the

Internal

Revenue

Service

and

state

departments

revenue.

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.

Organization

and

Significant

Accounting

Policies

(continued)

Securities

Lending

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

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

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,

2026,

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,

2026

sold

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

8,940,258

$88,910,502

10,457,196

$197,111,061

issued

reinvestment

distributions

..........

5,775,629

54,175,399

17,288,539

305,661,362

redeemed

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

(24,981,558)

(247,551,323)

(21,228,231)

(395,592,413)

Net

increase

(decrease)

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

(10,265,671)

$(104,465,422)

6,517,504

$107,180,010

Year

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)

Class

Organization

and

Significant

Accounting

Policies

(continued)

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Templeton

Foreign

Fund

Templeton

World

Fund

Amount

Class

Year

ended

August

31,

2026

sold

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

208,922

$2,068,025

34,057

$594,545

issued

reinvestment

distributions

..........

39,398

372,315

42,623

698,589

redeemed

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

(536,154)

(5,343,662)

(109,592)

(1,877,516)

Net

increase

(decrease)

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

(287,834)

$(2,903,322)

(32,912)

$(584,382)

Year

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)

Class

Year

ended

August

31,

2026

sold

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

615,767

$5,988,930

—

$—

issued

reinvestment

distributions

..........

425,136

3,885,743

—

redeemed

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

(2,924,508)

(28,172,953)

—

Net

increase

(decrease)

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

(1,883,605)

$(18,298,280)

—

$—

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)

—

$—

Class

Year

ended

August

31,

2026

sold

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

4,560,815

$44,176,344

315,058

$5,928,107

issued

reinvestment

distributions

..........

1,392,869

12,758,678

176,187

3,122,038

redeemed

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

(23,689,347)

(233,277,241)

(338,313)

(6,321,854)

Net

increase

(decrease)

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

(17,735,663)

$(176,342,219)

152,932

$2,728,291

Year

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)

Advisor

Class

Beneficial

Interest

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Transactions

with

Affiliates

Effective

August

17,

2026,

Franklin

Resources,

Inc.

was

renamed

Franklin

Templeton,

Inc.

Franklin

Templeton,

Inc.

the

holding

company

for

various

subsidiaries.

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

Foreign

Fund

Templeton

World

Fund

Amount

Advisor

Class

Year

ended

August

31,

2026

sold

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

6,369,757

$61,143,608

1,405,990

$26,361,561

issued

reinvestment

distributions

..........

1,790,065

16,432,798

619,677

10,986,883

redeemed

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

(30,589,782)

(293,233,590)

(1,779,346)

(33,244,507)

Net

increase

(decrease)

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

(22,429,960)

$(215,657,184)

246,321

$4,103,937

Year

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

(Not

3h)

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

(14,642,321)

(116,113,608)

—

redeemed

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

(18,843,371)

(154,087,273)

(1,383,044)

(24,035,110)

Net

increase

(decrease)

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

(18,852,554)

$(152,786,832)

(68,555)

$(1,309,258)

May

include

portion

Class

that

were

automatically

converted

Class

Subsidiary

Affiliation

Templeton

Global

Advisors

Limited

(Global

Advisors)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

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

Beneficial

Interest

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

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,

2026,

each

Fund's

gross

effective

investment

management

fee

rate

based

average

daily

net

assets

was

follows:

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:

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%

0.695%

Templeton

Foreign

Fund

Templeton

World

Fund

Class

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

0.25%

Class

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

1.00%

Class

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

0.50%

—%

Transactions

with

Affiliates

(continued)

Management

Fees

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

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

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,

2026,

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

such

fund.

Management

fees

paid

the

Funds

are

generally

waived

assets

invested

affiliated

management

investment

companies,

noted

the

Statements

Operations,

amount

not

exceed

the

management

and

administrative

fees,

applicable, paid

directly

indirectly

each

affiliate.

For

securities

lending

cash

collateral

invested

affiliated

management

investment

companies,

however,

the

applicable

waiver

subject

contractual

cap

and

may

not

fully

offset

the

fees

attributable

those

investments.

During

the

year

ended

August

31,

2026,

investments

affiliated

management

investment

companies

were

follows:

Templeton

Foreign

Fund

Templeton

World

Fund

Sales

charges

retained

net

commissions

paid

unaffiliated

brokers/dealers

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

$37,293

$25,778

CDSC

retained

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

$3,407

$704

Templeton

Foreign

Fund

Templeton

World

Fund

Transfer

agent

fees

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

$888,567

$649,711

Transactions

with

Affiliates

(continued)

Sales

Charges/Underwriting

Agreements

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

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,

2026.

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,

2026.

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.

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

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.629%

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

$—

$397,414,874

$(372,398,434)

$—

$25,016,440

25,016,440

$865,040

Total

Affiliated

Securities

...

$—

$397,414,874

$(372,398,434)

$—

$25,016,440

$865,040

Templeton

World

Fund

Non-Controlled

Affiliates

Income

from

securities

loaned

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.629%

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

$—

$169,859,595

$(169,507,946)

$—

$351,649

351,649

$125,176

Total

Affiliated

Securities

...

$—

$169,859,595

$(169,507,946)

$—

$351,649

$125,176

Transactions

with

Affiliates

(continued)

Investments

Affiliated

Management

Investment

Companies

(continued)

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Income

Taxes

For

tax

purposes,

capital

losses

may

carried

over

offset

future

capital

gains.

During

the

year

ended

August

31,

2026,

the

utilized

capital

loss

carryforwards

were

follows:

The

tax

character

distributions

paid

during

the

years

ended

August

31,

2026

and

2025,

was

follows:

August

31,

2026,

the

cost

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains for

income

tax

purposes

were

follows:

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

and

net

operating

losses.

The

Funds

utilized

tax

accounting

practice

treat

portion

the

proceeds

from

capital

redeemed

distribution

from

net

investment

income

and

realized

capital

gains.

Investment

Transactions

Purchases

and

sales

investments

(excluding

short

term

securities)

for

the

year

ended

August

31,

2026,

were

follows:

Templeton

Foreign

Fund

Capital

loss

utilized

carryforwards

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

$124,369,053

Templeton

Foreign

Fund

Templeton

World

Fund

2026

2025

2026

2025

Distributions

paid

from:

Ordinary

income

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

$94,522,898

$57,299,449

$4,615,900

$42,362,374

Long

term

capital

gain

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

—

336,342,340

124,632,931

$94,522,898

$57,299,449

$340,958,240

$166,995,305

Templeton

Foreign

Fund

Templeton

World

Fund

Cost

investments

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

$1,844,255,487

$2,226,137,038

Unrealized

appreciation

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

$712,215,811

$780,588,517

Unrealized

depreciation

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

(90,745,856)

(76,018,318)

Net

unrealized

appreciation

(depreciation)

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

$621,469,955

$704,570,199

Distributable

earnings:

Undistributed

ordinary

income

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

$64,834,906

$99,397,430

Undistributed

long

term

capital

gains

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

68,388,193

190,399,876

Total

distributable

earnings

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

$133,223,099

$289,797,306

Templeton

Foreign

Fund

Templeton

World

Fund

Purchases

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

$1,164,064,371

$3,027,132,605

Sales

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

$1,645,609,239

$3,347,848,466

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

August

31,

2026,

connection

with

securities

lending

transactions,

certain

all

Funds

loaned

investments

and

received

cash

collateral

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.

Ongoing

threatened

military

conflicts

throughout

the

world

may

cause

significant

market

disruptions

and

volatility.

The

hostilities

and

sanctions

resulting

from

those

conflicts

may

also

have

significant

impact

certain

investments

the

Funds

well

the

Funds'

performance

and

liquidity.

Certain

investments

Chinese

companies

are

made

through

special

structure

known

VIE.

VIE

structure,

foreign

investors,

such

Templeton

Foreign

Fund

and

Templeton

World

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 Funds'

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

29,

2027.

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,

2026,

the

Funds

did

not

use

the

Global

Credit

Facility.

Templeton

Foreign

Fund

Templeton

World

Fund

Securities

lending

transactions

Equity

investments

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

$25,016,440

$351,649

The

agreements

can

terminated

any

time.

The

gross

amount

recognized

liability

for

such

transactions

included

payable

upon

return

securities

loaned

the

Statements

Assets

and

Liabilities.

Investment

Transactions

(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,

2026,

valuing

the

Funds' assets

carried

fair

value,

follows:

Level

Total

Templeton

Foreign

Fund

Assets:

Investments

Securities:

Common

Stocks

China

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

50,540,422

102,659,453

—

153,199,875

Denmark

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

—

40,410,287

—

40,410,287

France

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

—

170,300,629

—

170,300,629

Germany

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

—

87,206,671

—

87,206,671

Hong

Kong

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

—

56,499,455

—

56,499,455

Japan

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

—

207,793,386

—

207,793,386

Netherlands

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

—

234,302,136

—

234,302,136

Singapore

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

—

72,165,282

—

72,165,282

South

Korea

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

27,254,448

106,407,349

—

133,661,797

Switzerland

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

—

73,499,339

—

73,499,339

Taiwan

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

—

156,398,117

—

156,398,117

United

Kingdom

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

48,670,764

533,238,338

—

581,909,102

United

States

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

240,932,797

187,530,129

—

428,462,926

Short

Term

Investments

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

25,016,440

44,900,000

—

69,916,440

Total

Investments

Securities

...........

$392,414,871

$2,073,310,571

$—

$2,465,725,442

Templeton

World

Fund

Assets:

Investments

Securities:

Common

Stocks

China

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

55,417,141

26,847,579

—

82,264,720

France

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

—

167,083,870

—

167,083,870

Germany

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

—

125,148,957

—

125,148,957

Hong

Kong

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

—

94,536,824

—

94,536,824

Japan

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

—

83,695,818

—

83,695,818

Netherlands

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

—

116,572,975

—

116,572,975

South

Korea

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

—

142,393,411

—

142,393,411

Taiwan

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

71,541,362

69,715,013

—

141,256,375

United

Kingdom

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

—

257,988,603

—

257,988,603

United

States

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

1,596,714,035

—

1,596,714,035

Short

Term

Investments

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

351,649

122,700,000

—

123,051,649

Total

Investments

Securities

...........

$1,724,024,187

$1,206,683,050

$—

$2,930,707,237

Templeton

Funds

Notes

Financial

Statements

franklintempleton.com

Annual

Report

Operating

Segments

Each

Fund

operates

single

operating

segment,

which

investment

portfolio.

The

chief

investment

officer of

the Funds'

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

provide

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

September

2026,

the

FASB

issued

Accounting

Standards

Update

(ASU)

No.

2026-03,

Fair

Value

Measurement

(Topic

820)—Investment

Companies

with

Equity

Securities

Subject

Contractual

Sale

Restrictions.

The

amendments

the

ASU

require

contractual

sale

restrictions

considered

measuring

the

fair

value

equity

securities

and

require

disclosure

the

amount

the

discount

attributable

the

contractual

sale

restriction.

The

ASU

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2027,

with

early

adoption

permitted.

Management

currently

evaluating

the

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

other

than

those

already

disclosed

the

financial

statements.

Abbreviations

For

detailed

categories,

see

the

accompanying

Schedule

Investments.

Includes

foreign

securities

valued

$2,028,410,571,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Includes

foreign

securities

valued

$1,083,983,050,

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

Foreign

Fund

and

Templeton

World

Fund

Opinions

the

Financial

Statements

have

audited

the

accompanying

statements

assets

and

liabilities,

including

the

schedules

investments,

Templeton

Foreign

Fund

and

Templeton

World

Fund

(constituting

Templeton

Funds,

hereafter

collectively

referred

the

"Funds")

August

31,

2026,

the

statements

operations

for

the

year

ended

August

31,

2026,

the

statements

changes

net

assets

for

each

the

two

years

the

period

ended

August

31,

2026,

including

the

notes,

and

the

financial

highlights

for

each

the

five

years

the

period

ended

August

31,

2026

(collectively

referred

the

“financial

statements”).

our

opinion,

the

financial

statements

present

fairly,

all

material

respects,

the

financial

position

each

the

Funds

August

31,

2026,

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,

2026

and

each

the

financial

highlights

for

each

the

five

years

the

period

ended

August

31,

2026

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,

2026

correspondence

with

the

custodian,

transfer

agent

and

brokers.

believe

that

our

audits

provide

reasonable

basis

for

our

opinions.

/s/

PricewaterhouseCoopers

LLP

San

Francisco,

California

October

19,

2026

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

hereby

report

the

following

amounts,

subsequently

determined

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

August

31,

2026:

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,

2026:

Pursuant

to:

Templeton

Foreign

Fund

Templeton

World

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$415,045

$336,342,340

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$703,112

$7,808,624

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$63,024,060

$26,047,608

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$2,573,757

$15,983,980

Section

163(j)

Interest

Dividends

Earned

§163(j)

$2,122,316

$1,733,145

Templeton

Foreign

Fund

Templeton

World

Fund

Foreign

Taxes

Paid

$5,595,807

—

Foreign

Source

Income

Earned

$52,255,026

—

Templeton

Funds

franklintempleton.com

Annual

Report

TEMPLETON

FUNDS

(unaudited)

Templeton

Foreign

Fund

Templeton

World

Fund

(each

Fund)

in-person

meeting

held

May

18-19,

2026

(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

the

investment

management

agreement

between

Templeton

Global

Advisors

Limited

(Manager)

and

the

Trust,

behalf

each

Fund

(each

Management

Agreement)

for

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

consider

the

renewal

each

Management

Agreement.

considering

the

continuance

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

the

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

Manager

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

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

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

Funds’

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

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

the

services

provided

the

Manager;

(ii)

the

investment

performance

each

Fund;

(iii)

the

costs

the

services

provided

and

profits

realized

the

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

the

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

the

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

the

Manager

and

its

affiliates;

and

management

fees

charged

the

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

FT’s

regular

updates

the

Board

strategic

initiatives,

ongoing

attention

the

service

level

quality

third-party

service

providers,

ongoing

efforts

modernize

its

mutual

fund

lineup,

mutual

fund

ETF

conversions,

integration

private

market

investments

into

existing

mutual

funds,

creation

additional

blockchain-compatible

money

market

funds,

and

sharpening

its

active,

income-oriented

offerings,

along

with

the

impact

team

integrations

and

staff

reductions.

The

Board

also

reviewed

and

considered

the

benefits

provided

Fund

shareholders

investing

fund

that

part

the

family

funds.

The

Board

noted

the

financial

position

the

Manager’s

parent,

Franklin

Templeton,

Inc.

(FTI),

FTI’s

continued

growth

its

global,

multi-asset

franchise,

and

its

commitment

the

mutual

fund

business.

The

Board

further

noted

FTI’s

continued

reassessment

fund

offerings

response

acquisitions

and

the

market

environment,

FTI’s

focus

technology-driven

transformation,

expansion

its

private

market

investment

capabilities

and

global

alternatives

platform,

and

leveraging

artificial

intelligence

(AI),

blockchain

and

digital

wealth

platforms.

Following

consideration

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

services

provided

the

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,

2025.

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.

This

year,

addition

providing

Class

performance

(and

expense)

data,

Broadridge

included

Advisor

Class

performance

data

for

each

Fund

align

with

the

performance

reporting

provided

Board

meetings

throughout

the

year.

Going

forward,

Broadridge

will

provide

the

Board

solely

with

the

Funds’

Advisor

Class

performance

information.

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

one-,

three-,

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

blend-oriented

approach

with

increased

growth

and

quality

characteristics

versus

the

Performance

Universe’s

value-orientation

negatively

impacted

the

Fund’s

relative

returns

value

outperformed

growth

over

the

one-year

period.

Management

also

explained

that

stock

selection

detracted

from

performance

both

the

one-

and

three-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,

risk

management

and

sell

discipline.

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

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

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.

Management

attributed

this

the

fact

that

the

Fund

has

quality

bias

than

its

value-oriented

peers.

that

end,

management

explained

that

the

Fund’s

underweight

relative

value-oriented

peers

the

financial

sector

pressured

returns

given

the

recent

outperformance

the

sector.

Management

further

explained

that

the

Fund’s

overweight

relative

peers

the

challenging

health

care

sector

also

negatively

impacted

relative

performance.

addition,

management

noted

that

the

Fund

was

overweight

Europe

and

underweight

the

U.S.

and

emerging

markets

relative

peers.

Management

represented

that

April

2022,

the

Fund

transitioned

concentrated

portfolio

focused

quality

industry

leaders.

With

respect

the

Fund’s

one-year

underperformance,

management

noted

that

this

was

largely

linked

stock

selection

the

health

care

sector,

which

currently

under

review.

The

Board

noted

that

the

Fund’s

annualized

total

return

was

positive

for

all

periods

with

one-

and

three-year

returns

21.33%

and

23.77%,

respectively,

and

three-year

returns

ranking

the

first

quintile

the

Fund’s

Performance

Universe.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

continued

for

additional

one-year

period,

while

management’s

efforts

continue

closely

monitored.

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

two

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

Funds

franklintempleton.com

Annual

Report

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

and

that

the

Fund’s

actual

total

expense

ratio

was

the

first

quintile

(least

expensive)

its

Expense

Group.

The

Board

concluded

that

the

Management

Rate

charged

the

Fund

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

the

Manager

and

its

affiliates

connection

with

the

operation

each

Fund.

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

the

Manager

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,

2025,

being

the

most

recent

fiscal

year-end

for

FTI.

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

the

Manager

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

the

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

the

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

the

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

the

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

the

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

Manager’s

view

that

any

analyses

potential

economies

scale

managing

particular

fund

are

inherently

limited

light

the

joint

and

common

costs

and

investments

the

Manager’s

incur

across

the

family

funds

whole.

The

Board

concluded

that

the

extent

economies

scale

may

realized

the

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 28, 2026

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

Date:	October 28, 2026

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

Date:	October 28, 2026