UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02781
(Exact name of registrant as specified in charter)
300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923
(Address of principal executive offices) (Zip code)
Alison Baur
Franklin Templeton
One Franklin Parkway
San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant’s telephone number, including area code: (650) 312-2000
Date of fiscal year end: August 31
Date of reporting period:
| ITEM 1. | REPORT TO STOCKHOLDERS |
(a) The Report to Shareholders is filed herewith
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 | |
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Semi-Annual
Shareholder Report | | ||
 | ||
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
 |
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Templeton Foreign Fund | PAGE 1 | 104-STSR-0426 |
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|
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|
Semi-Annual
Shareholder Report | | ||
|
| ||
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Templeton Foreign Fund | PAGE 1 | 204-STSR-0426 |
|
|
| |
|
| ||
|
Semi-Annual
Shareholder Report | | ||
|
| ||
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Templeton Foreign Fund | PAGE 1 | 804-STSR-0426 |
|
|
| |
|
| ||
|
Semi-Annual
Shareholder Report | | ||
|
| ||
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Templeton Foreign Fund | PAGE 1 | 340-STSR-0426 |
|
|
| |
|
| ||
|
Semi-Annual
Shareholder Report | | ||
|
| ||
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Templeton Foreign Fund | PAGE 1 | 604-STSR-0426 |
|
|
| |
|
| ||
|
Semi-Annual
Shareholder Report | | ||
|
| ||
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Templeton World Fund | PAGE 1 | 102-STSR-0426 |
|
|
| |
|
| ||
|
Semi-Annual
Shareholder Report | | ||
|
| ||
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Templeton World Fund | PAGE 1 | 202-STSR-0426 |
|
|
| |
|
| ||
|
Semi-Annual
Shareholder Report | | ||
|
| ||
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Templeton World Fund | PAGE 1 | 802-STSR-0426 |
|
|
| |
|
| ||
|
Semi-Annual
Shareholder Report | | ||
|
| ||
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (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 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Templeton World Fund | PAGE 1 | 602-STSR-0426 |
(b) Not applicable
| ITEM 2. | CODE OF ETHICS. |
Not applicable
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
| (b) | Not applicable. |
| ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Templeton
Funds
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
February 28, 2026
Templeton
Foreign
Fund
Templeton
World
Fund
If
you
need
assistance
accessing
this
content,
please
reach
out
to
your
sales
representative
or
send
an
email
to
accessibility@franklintempleton.com
.
Table
of
Contents
franklintempleton.com
Financial
Statements
and
Other
Important
Information—Semiannual
1
Financial
Highlights
and
Schedules
of
Investments
2
Financial
Statements
17
Notes
to
Financial
Statements
21
Changes
In
and
Disagreements
with
Accountants
34
Results
of
Meeting(s)
of
Shareholders
34
Remuneration
Paid
to
Directors,
Officers
and
Others
34
Board
Approval
of
Management
and
Subadvisory
Agreements
34
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.15
$8.60
$7.78
$6.32
$7.77
$6.22
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.03
0.17
0.18
0.16
0.13
0.18
c
Net
realized
and
unrealized
gains
(losses)
1.54
0.56
0.83
1.38
(1.28)
1.46
Total
from
investment
operations
........
1.57
0.73
1.01
1.54
(1.15)
1.64
Less
distributions
from:
Net
investment
income
..............
(0.35)
(0.18)
(0.19)
(0.08)
(0.30)
(0.09)
Net
asset
value,
end
of
period
..........
$10.37
$9.15
$8.60
$7.78
$6.32
$7.77
Total
return
d
.......................
17.57%
8.91%
13.28%
24.57%
(15.25)%
26.57%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.13%
1.13%
1.13%
1.12%
1.16%
1.15%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.10%
1.10%
1.10%
1.10%
1.10%
1.07%
Net
investment
income
...............
0.73%
1.99%
2.26%
2.20%
1.80%
2.45%
c
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,725,801
$1,541,500
$1,606,239
$1,605,982
$1,418,293
$1,990,939
Portfolio
turnover
rate
................
21.21%
44.39%
f
42.01%
14.85%
29.07%
37.85%
f
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.23%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3
(
h
)
for
prior
year
information.
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.16
$8.59
$7.76
$6.29
$7.70
$6.17
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(—)
c
0.10
0.12
0.10
0.07
0.13
d
Net
realized
and
unrealized
gains
(losses)
1.54
0.58
0.83
1.39
(1.27)
1.43
Total
from
investment
operations
........
1.54
0.68
0.95
1.49
(1.20)
1.56
Less
distributions
from:
Net
investment
income
..............
(0.27)
(0.11)
(0.12)
(0.02)
(0.21)
(0.03)
Net
asset
value,
end
of
period
..........
$10.43
$9.16
$8.59
$7.76
$6.29
$7.70
Total
return
e
.......................
17.17%
8.13%
12.40%
23.65%
(15.95)%
25.55%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.88%
1.88%
1.87%
1.87%
1.91%
1.90%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.85%
1.85%
1.85%
1.85%
1.85%
1.82%
Net
investment
income
(loss)
..........
(0.01)%
1.17%
1.47%
1.41%
1.03%
1.81%
d
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$14,316
$13,876
$17,220
$21,611
$23,962
$39,083
Portfolio
turnover
rate
................
21.21%
44.39%
g
42.01%
14.85%
29.07%
37.85%
g
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Amount
rounds
to
less
than
$0.01
per
share.
d
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.58%.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3
(
h
)
for
prior
year
information.
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.91
$8.38
$7.58
$6.16
$7.58
$6.08
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.02
0.14
0.16
0.14
0.11
0.16
c
Net
realized
and
unrealized
gains
(losses)
1.50
0.55
0.82
1.35
(1.25)
1.42
Total
from
investment
operations
........
1.52
0.69
0.98
1.49
(1.14)
1.58
Less
distributions
from:
Net
investment
income
..............
(0.33)
(0.16)
(0.18)
(0.07)
(0.28)
(0.08)
Net
asset
value,
end
of
period
..........
$10.10
$8.91
$8.38
$7.58
$6.16
$7.58
Total
return
d
.......................
17.42%
8.63%
13.09%
24.27%
(15.54)%
26.29%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.38%
1.39%
1.38%
1.37%
1.41%
1.40%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.35%
1.35%
1.35%
1.35%
1.35%
1.32%
Net
investment
income
...............
0.48%
1.74%
2.03%
1.95%
1.57%
2.21%
c
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$119,263
$113,063
$121,214
$116,518
$103,984
$123,744
Portfolio
turnover
rate
................
21.21%
44.39%
f
42.01%
14.85%
29.07%
37.85%
f
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.98%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3
(
h
)
for
prior
year
information.
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.96
$8.43
$7.63
$6.20
$7.64
$6.12
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.20
0.21
0.18
0.15
0.21
c
Net
realized
and
unrealized
gains
(losses)
1.50
0.54
0.81
1.36
(1.26)
1.43
Total
from
investment
operations
........
1.55
0.74
1.02
1.54
(1.11)
1.64
Less
distributions
from:
Net
investment
income
..............
(0.38)
(0.21)
(0.22)
(0.11)
(0.33)
(0.12)
Net
asset
value,
end
of
period
..........
$10.13
$8.96
$8.43
$7.63
$6.20
$7.64
Total
return
d
.......................
17.77%
9.31%
13.69%
25.02%
(14.98)%
27.02%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.78%
0.78%
0.78%
0.77%
0.81%
0.79%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.74%
0.74%
0.74%
0.74%
0.73%
0.69%
Net
investment
income
...............
1.08%
2.37%
2.72%
2.57%
2.13%
2.86%
c
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$320,484
$368,372
$387,773
$341,058
$290,974
$531,344
Portfolio
turnover
rate
................
21.21%
44.39%
f
42.01%
14.85%
29.07%
37.85%
f
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.63%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3
(
h
)
for
prior
year
information.
Templeton
Funds
Financial
Highlights
Templeton
Foreign
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.97
$8.44
$7.64
$6.21
$7.64
$6.12
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.18
0.20
0.17
0.15
0.20
c
Net
realized
and
unrealized
gains
(losses)
1.50
0.55
0.81
1.36
(1.26)
1.43
Total
from
investment
operations
........
1.55
0.73
1.01
1.53
(1.11)
1.63
Less
distributions
from:
Net
investment
income
..............
(0.37)
(0.20)
(0.21)
(0.10)
(0.32)
(0.11)
Net
asset
value,
end
of
period
..........
$10.15
$8.97
$8.44
$7.64
$6.21
$7.64
Total
return
d
.......................
17.73%
9.14%
13.55%
24.84%
(14.99)%
26.88%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.88%
0.88%
0.88%
0.87%
0.92%
0.90%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.85%
0.85%
0.85%
0.85%
0.85%
0.82%
Net
investment
income
...............
0.97%
2.19%
2.54%
2.43%
2.06%
2.80%
c
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$466,861
$546,122
$672,907
$680,297
$602,921
$620,885
Portfolio
turnover
rate
................
21.21%
44.39%
f
42.01%
14.85%
29.07%
37.85%
f
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.09
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.57%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3
(
h
)
for
prior
year
information.
Templeton
Funds
Schedule
of
Investments
(unaudited),
February
28,
2026
Templeton
Foreign
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Industry
Shares
a
Value
a
Common
Stocks
94.8%
China
5.2%
a
Alibaba
Group
Holding
Ltd.
.........
Broadline
Retail
2,914,483
$
52,742,645
Prosus
NV
.....................
Broadline
Retail
1,043,823
53,652,961
a
Tencent
Holdings
Ltd.
.............
Interactive
Media
&
Services
491,046
32,307,799
138,703,405
Denmark
1.1%
Novo
Nordisk
A/S
,
B
..............
Pharmaceuticals
753,519
28,500,760
France
7.9%
Carrefour
SA
....................
Consumer
Staples
Distribution
&
Retail
5,940,126
112,656,483
Dassault
Aviation
SA
..............
Aerospace
&
Defense
149,220
59,932,582
Kering
SA
......................
Textiles,
Apparel
&
Luxury
Goods
111,215
37,294,704
209,883,769
Hong
Kong
3.8%
AIA
Group
Ltd.
..................
Insurance
2,701,248
29,798,909
Prudential
plc
...................
Insurance
4,631,593
70,939,763
100,738,672
India
3.1%
HDFC
Bank
Ltd.
.................
Banks
8,478,372
82,876,101
Japan
6.0%
Sumitomo
Mitsui
Financial
Group,
Inc.
.
Banks
2,165,300
81,708,865
Toyota
Motor
Corp.
...............
Automobiles
3,145,480
76,209,839
157,918,704
Netherlands
8.3%
Akzo
Nobel
NV
..................
Chemicals
449,582
31,582,626
b
Euronext
NV
,
144A
,
Reg
S
.........
Capital
Markets
334,845
55,322,044
Heineken
NV
...................
Beverages
669,017
61,963,581
ING
Groep
NV
..................
Banks
2,413,401
69,633,700
218,501,951
Poland
1.0%
c,d
InPost
SA
......................
Air
Freight
&
Logistics
1,490,340
26,751,458
Portugal
1.2%
Galp
Energia
SGPS
SA
,
B
.........
Oil,
Gas
&
Consumable
Fuels
1,461,536
31,713,733
Singapore
2.3%
STMicroelectronics
NV
............
Semiconductors
&
Semiconductor
Equipment
1,859,258
62,034,300
South
Korea
3.9%
Samsung
Electronics
Co.
Ltd.
.......
Technology
Hardware,
Storage
&
Peripherals
681,917
102,063,427
Sweden
1.6%
Securitas
AB
,
B
..................
Commercial
Services
&
Supplies
2,365,697
42,099,058
Switzerland
6.9%
Adecco
Group
AG
................
Professional
Services
1,669,931
46,947,740
d
Barry
Callebaut
AG
...............
Food
Products
29,131
54,753,720
UBS
Group
AG
..................
Capital
Markets
1,960,559
81,460,924
183,162,384
Taiwan
5.3%
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
......................
Semiconductors
&
Semiconductor
Equipment
2,257,544
140,866,668
Templeton
Funds
Schedule
of
Investments
(unaudited)
Templeton
Foreign
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
United
Kingdom
21.2%
AstraZeneca
plc
.................
Pharmaceuticals
461,879
$
97,194,411
Barratt
Redrow
plc
...............
Household
Durables
9,587,007
46,936,599
JD
Sports
Fashion
plc
.............
Specialty
Retail
53,315,515
58,733,742
Persimmon
plc
..................
Household
Durables
2,747,119
55,717,661
SSE
plc
.......................
Electric
Utilities
3,012,804
108,898,975
Standard
Chartered
plc
............
Banks
3,024,053
74,595,538
Unilever
plc
.....................
Personal
Care
Products
1,140,170
83,782,047
c
Verisure
plc
.....................
Commercial
Services
&
Supplies
3,058,411
34,132,515
559,991,488
United
States
16.0%
BP
plc
.........................
Oil,
Gas
&
Consumable
Fuels
13,427,667
87,030,205
CNH
Industrial
NV
................
Machinery
7,227,681
88,900,476
ManpowerGroup,
Inc.
.............
Professional
Services
980,892
27,435,549
Sanofi
SA
......................
Pharmaceuticals
728,335
71,232,155
Shell
plc
.......................
Oil,
Gas
&
Consumable
Fuels
1,483,686
62,141,035
Smurfit
Westrock
plc
..............
Containers
&
Packaging
1,854,487
87,179,434
423,918,854
Total
Common
Stocks
(Cost
$
1,800,232,304
)
....................................
2,509,724,732
Short
Term
Investments
8.4%
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
Time
Deposits
6.5%
Canada
3.3%
Bank
of
Montreal
,
3.62
%
,
3/02/26
....
37,000,000
37,000,000
National
Bank
of
Canada
,
3.58
%
,
3/02/26
......................
49,200,000
49,200,000
86,200,000
France
3.2%
Credit
Agricole
Corporate
and
Investment
Bank
SA
,
3.57
%
,
3/02/26
85,000,000
85,000,000
Total
Time
Deposits
(Cost
$
171,200,000
)
.......................................
171,200,000
Shares
e
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
1.9%
Money
Market
Funds
1.9%
f,g
Franklin
Institutional
U.S.
Government
Money
Market
Fund
,
3.583
%
......
50,254,961
50,254,961
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
50,254,961
)
................................................................
50,254,961
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$
221,454,961
)
...............................
221,454,961
a
a
a
Total
Investments
(Cost
$
2,021,687,265
)
103.2
%
................................
$2,731,179,693
Other
Assets,
less
Liabilities
(
3.2
)
%
...........................................
(84,454,990)
Net
Assets
100.0%
...........................................................
$2,646,724,703
a
a
a
Templeton
Funds
Schedule
of
Investments
(unaudited)
Templeton
Foreign
Fund
(continued)
franklintempleton.com
The
accompanying
notes
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an
integral
part
of
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financial
statements.
Semiannual
Report
9
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
Variable
interest
entity
(VIE).
See
Note
6
regarding
investments
made
through
a
VIE
structure.
At
February
28,
2026,
the
aggregate
value
of
these
securities
was
$85,050,444,
representing
3.2%
of
net
assets.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2026,
the
value
of
this
security
was
$55,322,044,
representing
2.1%
of
net
assets.
c
Non-income
producing.
d
A
portion
or
all
of
the
security
is
on
loan
at
February
28,
2026.
See
Note
1(c).
e
See
Note
1(c)
regarding
securities
on
loan.
f
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
g
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Templeton
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Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.87
$17.62
$13.91
$11.85
$15.52
$12.71
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.02)
0.05
0.01
0.04
(—)
c
0.20
d
Net
realized
and
unrealized
gains
(losses)
1.61
2.31
3.79
2.21
(3.44)
2.61
Total
from
investment
operations
........
1.59
2.36
3.80
2.25
(3.44)
2.81
Less
distributions
from:
Net
investment
income
..............
—
(—)
c
(0.09)
(0.05)
(0.23)
—
Net
realized
gains
.................
(2.37)
(1.11)
—
(0.14)
—
—
Total
distributions
...................
(2.37)
(1.11)
(0.09)
(0.19)
(0.23)
—
Net
asset
value,
end
of
period
..........
$18.09
$18.87
$17.62
$13.91
$11.85
$15.52
Total
return
e
.......................
8.72%
14.23%
27.48%
19.23%
(22.39)%
22.11%
Ratios
to
average
net
assets
f
Expenses
.........................
1.03%
g
1.05%
1.03%
g
1.04%
g
1.04%
1.03%
g
Net
investment
income
(loss)
..........
(0.23)%
0.26%
0.09%
0.32%
(—)%
h
1.42%
d
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$2,729,415
$2,667,444
$2,592,377
$2,289,332
$2,138,297
$3,060,714
Portfolio
turnover
rate
................
43.36%
100.16%
52.04%
47.28%
81.20%
41.83%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Amount
rounds
to
less
than
$0.01
per
share.
d
Net
investment
income
per
share
includes
approximately
$0.13
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.48%.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
h
Rounds
to
less
than
0.01%.
Templeton
Funds
Financial
Highlights
Templeton
World
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$17.70
$16.71
$13.21
$11.30
$14.76
$12.18
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.09)
(0.08)
(0.10)
(0.06)
(0.10)
0.10
c
Net
realized
and
unrealized
gains
(losses)
1.51
2.18
3.60
2.11
(3.29)
2.48
Total
from
investment
operations
........
1.42
2.10
3.50
2.05
(3.39)
2.58
Less
distributions
from:
Net
investment
income
..............
—
—
—
—
(0.07)
—
Net
realized
gains
.................
(2.37)
(1.11)
—
(0.14)
—
—
Total
distributions
...................
(2.37)
(1.11)
—
(0.14)
(0.07)
—
Net
asset
value,
end
of
period
..........
$16.75
$17.70
$16.71
$13.21
$11.30
$14.76
Total
return
d
.......................
8.32%
13.39%
26.50%
18.33%
(23.01)%
21.18%
Ratios
to
average
net
assets
e
Expenses
.........................
1.78%
f
1.80%
1.79%
f
1.79%
f
1.81%
1.80%
f
Net
investment
income
(loss)
..........
(0.98)%
(0.50)%
(0.67)%
(0.48)%
(0.77)%
0.70%
c
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$5,392
$5,360
$6,187
$6,476
$7,348
$12,585
Portfolio
turnover
rate
................
43.36%
100.16%
52.04%
47.28%
81.20%
41.83%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.13
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
(0.24)%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Templeton
Funds
Financial
Highlights
Templeton
World
Fund
(continued)
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Semiannual
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The
accompanying
notes
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part
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financial
statements.
12
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.90
$17.64
$13.92
$11.86
$15.53
$12.69
Income
from
investment
operations
a
:
Net
investment
income
b
.............
—
c
0.10
0.06
0.08
0.04
0.24
d
Net
realized
and
unrealized
gains
(losses)
1.61
2.32
3.79
2.19
(3.43)
2.60
Total
from
investment
operations
........
1.61
2.42
3.85
2.27
(3.39)
2.84
Less
distributions
from:
Net
investment
income
..............
—
(0.05)
(0.13)
(0.07)
(0.28)
—
Net
realized
gains
.................
(2.37)
(1.11)
—
(0.14)
—
—
Total
distributions
...................
(2.37)
(1.16)
(0.13)
(0.21)
(0.28)
—
Net
asset
value,
end
of
period
..........
$18.14
$18.90
$17.64
$13.92
$11.86
$15.53
Total
return
e
.......................
8.82%
14.61%
27.85%
19.50%
(22.14)%
22.38%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.78%
0.78%
0.78%
0.77%
0.78%
0.78%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.76%
0.76%
0.75%
0.75%
0.76%
0.76%
Net
investment
income
...............
0.05%
0.55%
0.41%
0.61%
0.29%
1.68%
d
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$27,819
$25,997
$26,493
$38,834
$34,238
$42,010
Portfolio
turnover
rate
................
43.36%
100.16%
52.04%
47.28%
81.20%
41.83%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Amount
rounds
to
less
than
$0.01
per
share.
d
Net
investment
income
per
share
includes
approximately
$0.13
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.74%.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
Templeton
Funds
Financial
Highlights
Templeton
World
Fund
(continued)
franklintempleton.com
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accompanying
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an
integral
part
of
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financial
statements.
Semiannual
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13
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.91
$17.65
$13.93
$11.86
$15.54
$12.70
Income
from
investment
operations
a
:
Net
investment
income
b
.............
—
c
0.09
0.05
0.07
0.03
0.24
d
Net
realized
and
unrealized
gains
(losses)
1.61
2.33
3.80
2.21
(3.44)
2.60
Total
from
investment
operations
........
1.61
2.42
3.85
2.28
(3.41)
2.84
Less
distributions
from:
Net
investment
income
..............
—
(0.05)
(0.13)
(0.07)
(0.27)
—
Net
realized
gains
.................
(2.37)
(1.11)
—
(0.14)
—
—
Total
distributions
...................
(2.37)
(1.16)
(0.13)
(0.21)
(0.27)
—
Net
asset
value,
end
of
period
..........
$18.15
$18.91
$17.65
$13.93
$11.86
$15.54
Total
return
e
.......................
8.82%
14.55%
27.81%
19.52%
(22.22)%
22.36%
Ratios
to
average
net
assets
f
Expenses
.........................
0.78%
g
0.80%
0.79%
g
0.79%
g
0.81%
0.80%
g
Net
investment
income
...............
0.03%
0.51%
0.33%
0.57%
0.24%
1.64%
d
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$100,387
$98,938
$93,548
$99,935
$86,424
$115,823
Portfolio
turnover
rate
................
43.36%
100.16%
52.04%
47.28%
81.20%
41.83%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Amount
rounds
to
less
than
$0.01
per
share.
d
Net
investment
income
per
share
includes
approximately
$0.13
per
share
related
to
an
adjustment
for
EU
reclaims
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.70%.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Templeton
Funds
Schedule
of
Investments
(unaudited),
February
28,
2026
Templeton
World
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Industry
Shares
a
Value
a
Common
Stocks
99.0%
China
2.4%
a
BYD
Co.
Ltd.
,
H
.................
Automobiles
3,645,330
$
43,944,840
b
Tencent
Holdings
Ltd.
.............
Interactive
Media
&
Services
363,559
23,919,940
67,864,780
France
9.3%
Airbus
SE
......................
Aerospace
&
Defense
259,637
56,380,936
LVMH
Moet
Hennessy
Louis
Vuitton
SE
Textiles,
Apparel
&
Luxury
Goods
70,552
45,084,188
Safran
SA
......................
Aerospace
&
Defense
282,132
113,625,492
Vinci
SA
.......................
Construction
&
Engineering
309,124
51,310,301
266,400,917
Germany
5.3%
Infineon
Technologies
AG
..........
Semiconductors
&
Semiconductor
Equipment
529,940
28,561,024
Siemens
Energy
AG
..............
Electrical
Equipment
630,260
122,067,354
150,628,378
Hong
Kong
1.2%
a
AIA
Group
Ltd.
..................
Insurance
3,154,057
34,794,087
India
1.6%
HDFC
Bank
Ltd.
.................
Banks
4,728,370
46,219,825
Japan
1.1%
Mizuho
Financial
Group,
Inc.
........
Banks
715,869
31,937,788
Netherlands
3.5%
ASML
Holding
NV
................
Semiconductors
&
Semiconductor
Equipment
20,445
29,735,371
ING
Groep
NV
..................
Banks
2,446,797
70,597,273
100,332,644
Singapore
1.3%
c
Sea
Ltd.
,
ADR
...................
Broadline
Retail
345,586
37,478,802
South
Korea
2.6%
Samsung
Electronics
Co.
Ltd.
.......
Technology
Hardware,
Storage
&
Peripherals
500,429
74,899,876
Taiwan
6.8%
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
......................
Semiconductors
&
Semiconductor
Equipment
1,575,195
98,289,322
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
,
ADR
..................
Semiconductors
&
Semiconductor
Equipment
186,546
69,876,401
Wiwynn
Corp.
...................
Technology
Hardware,
Storage
&
Peripherals
215,206
27,045,214
195,210,937
United
Kingdom
11.6%
AstraZeneca
plc
.................
Pharmaceuticals
305,520
64,291,376
Rolls-Royce
Holdings
plc
..........
Aerospace
&
Defense
6,119,587
110,042,902
SSE
plc
.......................
Electric
Utilities
2,383,853
86,165,296
Unilever
plc
.....................
Personal
Care
Products
976,350
71,744,215
332,243,789
United
States
52.3%
Alcon
AG
......................
Health
Care
Equipment
&
Supplies
337,695
29,274,221
Alphabet,
Inc.
,
A
.................
Interactive
Media
&
Services
370,209
115,416,358
c
Amazon.com,
Inc.
................
Broadline
Retail
538,478
113,080,380
Apple,
Inc.
.....................
Technology
Hardware,
Storage
&
Peripherals
248,463
65,638,955
Broadcom,
Inc.
..................
Semiconductors
&
Semiconductor
Equipment
307,435
98,240,854
Charles
Schwab
Corp.
(The)
........
Capital
Markets
304,909
29,027,337
CRH
plc
.......................
Construction
Materials
622,955
74,742,141
Templeton
Funds
Schedule
of
Investments
(unaudited)
Templeton
World
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
United
States
(continued)
Eli
Lilly
&
Co.
...................
Pharmaceuticals
64,393
$
67,740,792
Ferguson
Enterprises,
Inc.
.........
Trading
Companies
&
Distributors
163,383
42,603,751
HCA
Healthcare,
Inc.
..............
Health
Care
Providers
&
Services
99,610
52,763,417
c
Illumina,
Inc.
....................
Life
Sciences
Tools
&
Services
301,570
40,549,102
Linde
plc
.......................
Chemicals
57,390
29,158,711
Meta
Platforms,
Inc.
,
A
............
Interactive
Media
&
Services
132,909
86,148,956
Microsoft
Corp.
..................
Software
360,526
141,592,981
c
MongoDB,
Inc.
,
A
................
IT
Services
77,395
25,421,936
c
Netflix,
Inc.
.....................
Entertainment
682,160
65,651,078
NVIDIA
Corp.
...................
Semiconductors
&
Semiconductor
Equipment
971,460
172,132,997
Schneider
Electric
SE
.............
Electrical
Equipment
201,935
65,994,343
Smurfit
Westrock
plc
..............
Containers
&
Packaging
1,122,850
52,785,179
Thermo
Fisher
Scientific,
Inc.
.......
Life
Sciences
Tools
&
Services
90,296
47,054,149
Visa,
Inc.
,
A
.....................
Financial
Services
129,510
41,461,331
Wells
Fargo
&
Co.
................
Banks
501,522
40,848,967
1,497,327,936
Total
Common
Stocks
(Cost
$
2,070,019,208
)
....................................
2,835,339,759
Short
Term
Investments
0.3%
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
Time
Deposits
0.3%
Canada
0.3%
National
Bank
of
Canada
,
3.58
%
,
3/02/26
......................
7,800,000
7,800,000
Total
Time
Deposits
(Cost
$
7,800,000
)
.........................................
7,800,000
Shares
d
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
,
3.583
%
......
116,500
116,500
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
116,500
)
...................................................................
116,500
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$
7,916,500
)
.................................
7,916,500
a
a
a
Total
Investments
(Cost
$
2,077,935,708
)
99.3
%
..................................
$2,843,256,259
Other
Assets,
less
Liabilities
0.7
%
.............................................
19,757,470
Net
Assets
100.0%
...........................................................
$2,863,013,729
a
a
a
Templeton
Funds
Schedule
of
Investments
(unaudited)
Templeton
World
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
See
Abbreviations
on
page
33.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
A
portion
or
all
of
the
security
is
on
loan
at
February
28,
2026.
See
Note
1(c).
b
Variable
interest
entity
(VIE).
See
Note
6
regarding
investments
made
through
a
VIE
structure.
At
February
28,
2026,
the
value
of
this
security
was
$23,919,940,
represent-
ing
0.8%
of
net
assets.
c
Non-income
producing.
d
See
Note
1(c)
regarding
securities
on
loan.
e
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
f
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Templeton
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
February
28,
2026
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
Templeton
Foreign
Fund
Templeton
World
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
..................................................
$1,971,432,304
$2,077,819,208
Cost
-
Non-controlled
affiliates
(Note
3
f
)
.......................................
50,254,961
116,500
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$
72,736,893
and
$
10,393,321
,
respectively)
............................................................
$2,680,924,732
$2,843,139,759
Value
-
Non-controlled
affiliates
(Note
3
f
)
.......................................
50,254,961
116,500
Cash
...................................................................
71,866
407,586
Receivables:
Investment
securities
sold
..................................................
—
51,136,165
Capital
shares
sold
.......................................................
739,303
1,042,269
Dividends
and
interest
....................................................
10,440,308
6,184,853
European
Union
tax
reclaims
(Note
1
d
)
........................................
—
753,025
Total
assets
.........................................................
2,742,431,170
2,902,780,157
Liabilities:
Payables:
Investment
securities
purchased
.............................................
5,164,330
27,477,691
Capital
shares
redeemed
..................................................
32,301,610
2,331,568
Management
fees
........................................................
1,359,837
1,528,007
Distribution
fees
.........................................................
384,936
528,076
Transfer
agent
fees
.......................................................
971,807
400,332
Trustees'
fees
and
expenses
................................................
13,868
5,709
Payable
upon
return
of
securities
loaned
(Note
1
c
)
.................................
50,254,961
116,500
Deferred
taxes
on
unrealized
appreciation
.......................................
4,943,775
6,040,422
Accrued
expenses
and
other
liabilities
..........................................
311,343
1,338,123
Total
liabilities
........................................................
95,706,467
39,766,428
Net
assets,
at
value
................................................
$2,646,724,703
$2,863,013,729
Net
assets
consist
of:
Paid-in
capital
............................................................
$1,939,995,835
$1,991,636,521
Total
distributable
earnings
(losses)
............................................
706,728,868
871,377,208
Net
assets,
at
value
................................................
$2,646,724,703
$2,863,013,729
Templeton
Funds
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2026
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
Templeton
Foreign
Fund
Templeton
World
Fund
Class
A:
Net
assets,
at
value
......................................................
$1,725,800,877
$2,729,415,367
Shares
outstanding
.......................................................
166,437,094
150,888,939
Net
asset
value
per
share
a
,b
.................................................
$10.37
$18.09
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94
.50
%
)
b
...............
$10.97
$19.14
Class
C:
Net
assets,
at
value
......................................................
$14,315,600
$5,392,402
Shares
outstanding
.......................................................
1,372,524
321,973
Net
asset
value
and
maximum
offering
price
per
share
a
,b
...........................
$10.43
$16.75
Class
R:
Net
assets,
at
value
......................................................
$119,263,402
$—
Shares
outstanding
.......................................................
11,809,034
—
Net
asset
value
and
maximum
offering
price
per
share
b
............................
$10.10
$—
Class
R6:
Net
assets,
at
value
......................................................
$320,483,973
$27,819,345
Shares
outstanding
.......................................................
31,627,494
1,533,410
Net
asset
value
and
maximum
offering
price
per
share
b
............................
$10.13
$18.14
Advisor
Class:
Net
assets,
at
value
......................................................
$466,860,851
$100,386,615
Shares
outstanding
.......................................................
45,987,642
5,530,484
Net
asset
value
and
maximum
offering
price
per
share
b
............................
$10.15
$18.15
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Templeton
Funds
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
February
28,
2026
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
Templeton
Foreign
Fund
Templeton
World
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$1,013,426
and
$1,239,317,
respectively)
Unaffiliated
issuers
.......................................................
$21,274,243
$10,496,738
Interest:
Unaffiliated
issuers
.......................................................
1,954,412
984,042
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
....................................
(269,949)
(50,359)
Non-controlled
affiliates
(Note
3
f
)
............................................
358,696
56,530
Other
income
(Note
1d)
.....................................................
—
19,836
Total
investment
income
..................................................
23,317,402
11,506,787
Expenses:
Management
fees
(Note
3
a
)
..................................................
8,883,569
9,900,707
Distribution
fees:
(Note
3c
)
Class
A
...............................................................
1,989,338
3,395,437
Class
C
...............................................................
69,630
27,310
Class
R
...............................................................
283,440
—
Transfer
agent
fees:
(Note
3e
)
Class
A
...............................................................
1,152,334
803,745
Class
C
...............................................................
10,075
1,616
Class
R
...............................................................
82,051
—
Class
R6
..............................................................
86,527
7,643
Advisor
Class
...........................................................
343,002
29,286
Custodian
fees
...........................................................
80,972
46,475
Reports
to
shareholders
fees
.................................................
97,500
60,163
Registration
and
filing
fees
...................................................
41,261
58,756
Professional
fees
..........................................................
58,131
57,721
Trustees'
fees
and
expenses
.................................................
155,245
163,232
Other
...................................................................
51,494
46,798
Total
expenses
........................................................
13,384,569
14,598,889
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
.............................
(395,831)
(6,107)
Net
expenses
........................................................
12,988,738
14,592,782
Net
investment
income
(loss)
...........................................
10,328,664
(3,085,995)
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
.....................................................
132,347,355
165,896,766
Foreign
currency
transactions
...............................................
269,164
(6,901)
Net
realized
gain
(loss)
.................................................
132,616,519
165,889,865
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
.....................................................
277,297,445
75,290,283
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
.............
(54,912)
36,543
Change
in
deferred
taxes
on
unrealized
appreciation
..............................
1,111,718
621,884
Net
change
in
unrealized
appreciation
(depreciation)
...........................
278,354,251
75,948,710
Net
realized
and
unrealized
gain
(loss)
...........................................
410,970,770
241,838,575
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.........................
$421,299,434
$238,752,580
Templeton
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
Templeton
Foreign
Fund
Templeton
World
Fund
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
.......
$10,328,664
$52,719,497
$(3,085,995)
$7,289,113
Net
realized
gain
(loss)
............
132,616,519
129,871,782
165,889,865
397,555,118
Net
change
in
unrealized
appreciation
(depreciation)
.................
278,354,251
21,201,442
75,948,710
(46,449,257)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
421,299,434
203,792,721
238,752,580
358,394,974
Distributions
to
shareholders:
Class
A
........................
(57,268,704)
(32,084,926)
(325,153,474)
(158,900,136)
Class
C
........................
(377,446)
(199,047)
(698,632)
(382,723)
Class
R
........................
(3,886,174)
(2,255,243)
—
—
Class
R6
.......................
(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
to
shareholders
.....
(94,522,897)
(57,299,449)
(340,958,240)
(166,995,305)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(20,899,257)
(154,386,205)
159,568,215
(107,578,857)
Class
C
........................
(1,404,443)
(4,109,409)
294,613
(1,117,407)
Class
R
........................
(8,444,414)
(15,048,062)
—
—
Class
R6
.......................
(93,335,946)
(42,582,011)
2,792,594
(2,258,995)
Advisor
Class
...................
(138,901,259)
(152,786,832)
4,824,186
(1,309,258)
Total
capital
share
transactions
.......
(262,985,319)
(368,912,519)
167,479,608
(112,264,517)
Net
increase
(decrease)
in
net
assets
.....................
63,791,218
(222,419,247)
65,273,948
79,135,152
Net
assets:
Beginning
of
period
................
2,582,933,485
2,805,352,732
2,797,739,781
2,718,604,629
End
of
period
.....................
$2,646,724,703
$2,582,933,485
$2,863,013,729
$2,797,739,781
Templeton
Funds
21
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
1.
Organization
and
Significant
Accounting
Policies
Templeton
Funds (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of two separate
funds
(Funds).
The
Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
classes
of
shares
offered
within
each
of
the
Funds
are
indicated
below.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
Class
A,
Class
C,
Class
R,
Class
R6
&
Advisor
Class
Templeton
Foreign
Fund
Class
A,
Class
C,
Class
R6
&
Advisor
Class
Templeton
World
Fund
The
following
summarizes
the Funds'
significant
accounting
policies
.
a.
Financial
Instrument
Valuation
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier. Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
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
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
Investments
in time
deposits are
valued
at
cost,
which
approximates
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Funds'
business
day.
Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
22
franklintempleton.com
Semiannual
Report
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
February
28,
2026,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
within
the
fair
value
hierarchy
(referred
to
as
“market
level
fair
value”).
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds'
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds'
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds.
Additionally,
at
February
28,
2026,
Templeton
Foreign
Fund
and
Templeton
World
Fund
held
$27,141,712
and
$11,540,986,
respectively,
in
U.S.
Government
and
Agency
securities
as
collateral.
These
securities
are
held
as
collateral
in
segregated
accounts
with
the
Funds'
custodian.
The
Fund
cannot
repledge
or
resell
these
securities
held
as
collateral.
As
such,
the
non-cash
collateral
is
excluded
from
the
Statements
of
Assets
and
Liabilities. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statements of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
23
franklintempleton.com
Semiannual
Report
by
a
third
party
borrower.
Securities
on
loan
outstanding
at
period
end,
if
any,
are
listed
in
the
Funds'
Schedules
of
Investments.
d.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which the
Funds invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
In
some
cases,
the
Funds
may
be
entitled
to
reclaim
all
or
a
portion
of
such
taxes,
and
such
reclaim
amounts,
if
any,
are
reflected
as
a
dividend
receivable
in
the
Statements
of
Assets
and
Liabilities
and
dividend
income
in
the
Statements
of
Operations.
In
many
cases,
however,
the
Funds
may
not
receive
such
amounts
for
an
extended
period
of
time,
depending
on
the
country
of
investment.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union, certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements
of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their
income
tax
returns.
In
the
event
that
EU
reclaims
received
by
the Funds
during a
fiscal
year
exceed
foreign
withholding
taxes
paid
by
the
Funds,
and
the
Funds previously
passed
through to
its
shareholders
foreign
taxes
incurred
by
the
Funds
to
be
used
as
a
credit
or
deduction
on
a
shareholder’s
income
tax
return,
the Funds
will enter
into
a
closing
agreement
with
the
Internal
Revenue
Service
(IRS)
in
order
to
pay
the
associated
tax
liability
on
behalf
of
the Funds'
shareholders.
The
Funds
previously
determined
to
enter
into
a
closing
agreement
with
the
IRS
and
recorded
any
adjustments
to
estimated
payments
as
other
income,
as
reflected
in
the
Statements
of
Operations.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
February
28,
2026, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
The
Funds'
federal
and
state
income
and
federal
excise
tax
returns
for
the
prior
three
fiscal
years
are
subject
to
examination
by
the
Internal
Revenue
Service
and
state
departments
of
revenue.
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis. Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds. Distributions
to
shareholders
are recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Securities
Lending
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
24
franklintempleton.com
Semiannual
Report
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the Trust against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Funds, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
February
28,
2026,
there
were
an
unlimited
number
of
shares
authorized
(without
par value).
Transactions
in
the
Funds'
shares
were
as
follows:
Templeton
Foreign
Fund
Templeton
World
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
February
28,
2026
Shares
sold
a
...................................
5,218,639
$51,014,735
3,456,770
$65,365,470
Shares
issued
in
reinvestment
of
distributions
..........
5,775,629
54,175,399
17,284,774
305,594,806
Shares
redeemed
...............................
(13,083,036)
(126,089,391)
(11,181,841)
(211,392,061)
Net
increase
(decrease)
..........................
(2,088,768)
$(20,899,257)
9,559,703
$159,568,215
Year
ended
August
31,
2025
Shares
sold
a
...................................
8,146,651
$68,114,745
5,103,637
$89,005,165
Shares
issued
in
reinvestment
of
distributions
..........
3,989,681
30,321,574
8,899,573
149,067,843
Shares
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
C
1.
Organization
and
Significant
Accounting
Policies
(continued)
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
25
franklintempleton.com
Semiannual
Report
Templeton
Foreign
Fund
Templeton
World
Fund
Shares
Amount
Shares
Amount
Class
C
Shares:
Six
Months
ended
February
28,
2026
Shares
sold
...................................
141,943
$1,376,645
19,882
$354,349
Shares
issued
in
reinvestment
of
distributions
..........
39,398
372,315
42,623
698,589
Shares
redeemed
a
..............................
(323,606)
(3,153,403)
(43,339)
(758,325)
Net
increase
(decrease)
..........................
(142,265)
$(1,404,443)
19,166
$294,613
Year
ended
August
31,
2025
Shares
sold
...................................
174,802
$1,466,613
37,667
$624,154
Shares
issued
in
reinvestment
of
distributions
..........
25,725
196,796
23,995
378,875
Shares
redeemed
a
..............................
(689,398)
(5,772,818)
(129,129)
(2,120,436)
Net
increase
(decrease)
..........................
(488,871)
$(4,109,409)
(67,467)
$(1,117,407)
Class
R
Class
R
Shares:
Six
Months
ended
February
28,
2026
Shares
sold
...................................
300,728
$2,856,247
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
425,136
3,885,743
—
—
Shares
redeemed
...............................
(1,610,657)
(15,186,404)
—
—
Net
increase
(decrease)
..........................
(884,793)
$(8,444,414)
—
$—
Year
ended
August
31,
2025
Shares
sold
...................................
1,050,534
$8,499,430
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
304,180
2,253,972
—
—
Shares
redeemed
...............................
(3,128,651)
(25,801,464)
—
—
Net
increase
(decrease)
..........................
(1,773,937)
$(15,048,062)
—
$—
Class
R6
Class
R6
Shares:
Six
Months
ended
February
28,
2026
Shares
sold
...................................
2,294,327
$21,766,897
162,419
$3,113,793
Shares
issued
in
reinvestment
of
distributions
..........
1,392,869
12,758,679
176,187
3,122,038
Shares
redeemed
...............................
(13,174,431)
(127,861,522)
(180,840)
(3,443,237)
Net
increase
(decrease)
..........................
(9,487,235)
$(93,335,946)
157,766
$2,792,594
Year
ended
August
31,
2025
Shares
sold
...................................
8,400,845
$68,212,528
231,637
$4,057,103
Shares
issued
in
reinvestment
of
distributions
..........
1,137,609
8,452,433
95,503
1,598,721
Shares
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
2.
Shares
of
Beneficial
Interest
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
26
franklintempleton.com
Semiannual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the Trust are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
Templeton
Foreign
Fund pays
an
investment
management fee,
calculated
daily
and
paid
monthly,
to Global
Advisors based
on the
average
daily
net
assets
of
the
Fund
as
follows:
Templeton
Foreign
Fund
Templeton
World
Fund
Shares
Amount
Shares
Amount
Advisor
Class
Shares:
Six
Months
ended
February
28,
2026
Shares
sold
...................................
4,016,429
$37,804,539
565,594
$10,666,561
Shares
issued
in
reinvestment
of
distributions
..........
1,790,065
16,432,798
619,617
10,985,813
Shares
redeemed
...............................
(20,697,972)
(193,138,596)
(887,720)
(16,828,188)
Net
increase
(decrease)
..........................
(14,891,478)
$(138,901,259)
297,491
$4,824,186
Year
ended
August
31,
2025
Shares
sold
...................................
13,045,343
$105,600,853
977,752
$17,085,499
Shares
issued
in
reinvestment
of
distributions
..........
1,587,795
11,813,196
336,737
5,640,353
Shares
redeemed
in-kind
(Not
e
3h)
..................
(14,642,321)
(116,113,608)
—
—
Shares
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)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Templeton
Global
Advisors
Limited
(Global
Advisors)
Investment
manager
Templeton
Asset
Management
Ltd
(Asset
Management)
Subadvisor
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.705%
Up
to
and
including
$1
billion
0.690%
Over
$1
billion,
up
to
and
including
$5
billion
0.675%
Over
$5
billion,
up
to
and
including
$10
billion
0.655%
Over
$10
billion,
up
to
and
including
$15
billion
0.635%
Over
$15
billion,
up
to
and
including
$20
billion
0.615%
Over
$20
billion,
up
to
and
including
$25
billion
0.605%
Over
$25
billion,
up
to
and
including
$30
billion
0.595%
Over
$30
billion,
up
to
and
including
$35
billion
0.585%
In
excess
of
$35
billion
2.
Shares
of
Beneficial
Interest
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
27
franklintempleton.com
Semiannual
Report
Templeton
World
Fund pays
an
investment
management fee,
calculated
daily
and
paid
monthly,
to Global
Advisors based
on the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
February
28,
2026,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
Under
a
subadvisory
agreement,
Asset
Management,
an
affiliate
of
Global
Advisors,
provides
subadvisory
services
to
Templeton
World
Fund.
The
subadvisory
fee
is
paid
by Global
Advisors based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
b.
Administrative
Fees
Under
an
agreement
with
Global
Advisors,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Global Advisors
based
on
the
Funds'
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds'
Class
A
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds'
Class
C
and
R compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Annualized
Fee
Rate
Net
Assets
0.705%
Up
to
and
including
$1
billion
0.690%
Over
$1
billion,
up
to
and
including
$5
billion
0.675%
Over
$5
billion,
up
to
and
including
$10
billion
0.655%
Over
$10
billion,
up
to
and
including
$15
billion
0.635%
Over
$15
billion,
up
to
and
including
$20
billion
0.615%
In
excess
of
$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
A
.................................................................
0.25%
0.25%
Class
C
.................................................................
1.00%
1.00%
Class
R
.................................................................
0.50%
—%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
28
franklintempleton.com
Semiannual
Report
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. The
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Funds
based
upon
relative
assets
and
relative
transactions. In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6, reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
February
28,
2026,
the Funds
paid
transfer
agent
fees
as
noted
in
the
Statements of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees,
if
applicable, paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
February
28,
2026,
investments
in
affiliated
management
investment
companies
were
as
follows:
Templeton
Foreign
Fund
Templeton
World
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
.............
$20,317
$14,030
CDSC
retained
.............................................................
$1,631
$(22)
Templeton
Foreign
Fund
Templeton
World
Fund
Transfer
agent
fees
..........................................................
$410,448
$325,820
3.
Transactions
with
Affiliates
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
29
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
Global
Advisors has contractually
agreed
in
advance
to
waive
or
limit
its fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by Templeton
Foreign
Fund
so
that
the
operating expenses
(excluding
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
do
not
exceed
0.85%,
and
for
R6
do
not
exceed
0.74%,
based
on
the
average
net
assets
of
each
class
until
December
31,
2026.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
Transfer
agent
fees
on
Class
R6
shares
of
the
Funds have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
December
31,
2026.
h.
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
of
Templeton
Foreign
Fund.
As
a
result,
on
November
22,
2024,
the
Fund
delivered
portfolio
securities
and
cash
that
were
transferred
in-kind
to
the
529
Portfolios,
which
included
$1,397,640
of
net
realized
gains.
As
such
gains
are
not
taxable
to
the
Fund
and
are
not
distributed
to
remaining
shareholders,
they
are
reclassified
from
accumulated
net
realized
gains
to
paid-in
capital.
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Templeton
Foreign
Fund
Non-Controlled
Affiliates
Income
from
securities
loaned
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.583%
............
$—
$257,513,737
$(207,258,776)
$—
$—
$50,254,961
50,254,961
$358,696
Total
Affiliated
Securities
...
$—
$257,513,737
$(207,258,776)
$—
$—
$50,254,961
$358,696
Templeton
World
Fund
Non-Controlled
Affiliates
Income
from
securities
loaned
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.583%
............
$—
$117,793,433
$(117,676,933)
$—
$—
$116,500
116,500
$56,530
Total
Affiliated
Securities
...
$—
$117,793,433
$(117,676,933)
$—
$—
$116,500
$56,530
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
30
franklintempleton.com
Semiannual
Report
4.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
August
31,
2025,
the
capital
loss
carryforwards
were
as
follows:
At
February
28,
2026,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation) for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales,
passive
foreign
investment
company
shares,
foreign
capital
gains
tax,
corporate
actions
and
in-kind
transactions.
5.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
February
28,
2026,
were
as
follows:
At
February
28,
2026,
in
connection
with
securities
lending
transactions,
certain
or
all
Funds
loaned
investments
and
received
cash
collateral
as
follows:
Templeton
Foreign
Fund
Templeton
World
Fund
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Long
term
...............................................................
$
124,369,053
$
—
Templeton
Foreign
Fund
Templeton
World
Fund
a
a
a
Cost
of
investments
.........................................................
$2,033,001,444
$2,088,250,962
Unrealized
appreciation
.......................................................
$791,279,599
$798,139,360
Unrealized
depreciation
.......................................................
(93,101,350)
(43,134,063)
Net
unrealized
appreciation
(depreciation)
.........................................
$698,178,249
$755,005,297
Templeton
Foreign
Fund
Templeton
World
Fund
Purchases
................................................................
$524,469,170
$1,226,000,107
Sales
....................................................................
$870,588,276
$1,393,202,767
Templeton
Foreign
Fund
Templeton
World
Fund
Securities
lending
transactions
a
:
Equity
investments
b
..........................................................
$50,254,961
$116,500
a
The
agreements
can
be
terminated
at
any
time.
b
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
31
franklintempleton.com
Semiannual
Report
6.
Concentration
of
Risk
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
Certain
investments
in
Chinese
companies
are
made
through
a
special
structure
known
as
a
VIE.
In
a
VIE
structure,
foreign
investors,
such
as
Templeton
Foreign
Fund
and
Templeton
World
Fund,
will
only
own
stock
in
a
shell
company
rather
than
directly
in
the
VIE,
which
must
be
owned
by
Chinese
nationals
(and/or
Chinese
companies)
to
obtain
the
licenses
and/or
assets
required
to
operate
in
a
restricted
or
prohibited
sector
in
China.
The
value
of
the
shell
company
is
derived
from
its
ability
to
consolidate
the
VIE
into
its
financials
pursuant
to
contractual
arrangements
that
allow
the
shell
company
to
exert
a
degree
of
control
over,
and
obtain
economic
benefits
arising
from,
the
VIE
without
formal
legal
ownership.
While
VIEs
are
a
longstanding
industry
practice
and
are
well
known
by
Chinese
officials
and
regulators,
the
structure
historically
has
not
been
formally
recognized
under
Chinese
law
and
it
is
uncertain
whether
Chinese
officials
or
regulators
will
withdraw
their
implicit
acceptance
of
the
structure.
It
is
also
uncertain
whether
the
contractual
arrangements,
which
may
be
subject
to
conflicts
of
interest
between
the
legal
owners
of
the
VIE
and
foreign
investors,
would
be
enforced
by
Chinese
courts
or
arbitration
bodies.
Prohibitions
of
these
structures
by
the
Chinese
government,
or
the
inability
to
enforce
such
contracts,
from
which
the
shell
company
derives
its
value,
would
likely
cause
the
VIE-structured
holding(s)
to
suffer
significant,
detrimental,
and
possibly
permanent
losses,
and
in
turn,
adversely
affect
the Funds'
returns
and
net
asset
value.
7.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.995
billion
(Global
Credit
Facility)
which
matures
on
January
29,
2027.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
may,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
February
28,
2026,
the
Funds
did
not
use
the
Global
Credit
Facility.
8.
Fair
Value
Measurements
The Funds
follow
a
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
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
32
franklintempleton.com
Semiannual
Report
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
February
28,
2026,
in
valuing
the
Funds'
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Templeton
Foreign
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
:
China
...............................
$
—
$
138,703,405
$
—
$
138,703,405
Denmark
.............................
—
28,500,760
—
28,500,760
France
...............................
—
209,883,769
—
209,883,769
Hong
Kong
...........................
—
100,738,672
—
100,738,672
India
................................
—
82,876,101
—
82,876,101
Japan
...............................
—
157,918,704
—
157,918,704
Netherlands
...........................
—
218,501,951
—
218,501,951
Poland
...............................
—
26,751,458
—
26,751,458
Portugal
..............................
—
31,713,733
—
31,713,733
Singapore
............................
—
62,034,300
—
62,034,300
South
Korea
..........................
—
102,063,427
—
102,063,427
Sweden
..............................
—
42,099,058
—
42,099,058
Switzerland
...........................
—
183,162,384
—
183,162,384
Taiwan
...............................
—
140,866,668
—
140,866,668
United
Kingdom
........................
34,132,515
525,858,973
—
559,991,488
United
States
..........................
203,515,459
220,403,395
—
423,918,854
Short
Term
Investments
...................
50,254,961
171,200,000
—
221,454,961
Total
Investments
in
Securities
...........
$287,902,935
$2,443,276,758
b
$—
$2,731,179,693
Templeton
World
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
:
China
...............................
—
67,864,780
—
67,864,780
France
...............................
—
266,400,917
—
266,400,917
Germany
.............................
—
150,628,378
—
150,628,378
Hong
Kong
...........................
—
34,794,087
—
34,794,087
India
................................
—
46,219,825
—
46,219,825
Japan
...............................
—
31,937,788
—
31,937,788
Netherlands
...........................
—
100,332,644
—
100,332,644
Singapore
............................
37,478,802
—
—
37,478,802
South
Korea
..........................
—
74,899,876
—
74,899,876
Taiwan
...............................
69,876,401
125,334,536
—
195,210,937
United
Kingdom
........................
—
332,243,789
—
332,243,789
United
States
..........................
1,402,059,372
95,268,564
—
1,497,327,936
Short
Term
Investments
...................
116,500
7,800,000
—
7,916,500
Total
Investments
in
Securities
...........
$1,509,531,075
$1,333,725,184
c
$—
$2,843,256,259
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
foreign
securities
valued
at
$2,272,076,758,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$1,325,925,184,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
8.
Fair
Value
Measurements
(continued)
Templeton
Funds
Notes
to
Financial
Statements
(unaudited)
33
franklintempleton.com
Semiannual
Report
9.
Operating
Segments
Each
Fund
operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
The
chief
investment
officer
of
the
Funds'
investment
manager
serves
as
the
Chief
Operating
Decision
Maker
(“CODM”)
and is
responsible
for
evaluating each
Fund's
operating
results
and
allocating
resources
in
accordance
with each
Fund’s
investment
strategy.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the
financial
statements.
For
information
regarding
segment
assets,
segment
profit
or
loss,
and
significant
expenses,
refer
to
the
Statements
of
Assets
and
Liabilities
and
the
Statements
of
Operations,
along
with
the
related
notes
to
the
financial
statements.
The
Schedules
of
Investments
provides
details
of
the
Funds'
investments
that
generate
returns
such
as
interest,
dividends,
and
realized
and
unrealized
gains
or
losses.
Performance
metrics,
including
portfolio
turnover
and
expense
ratios,
are
disclosed
in
the
Financial
Highlights.
10.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
Templeton
Funds
34
franklintempleton.com
Semiannual
Report
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Remuneration
to
officers
is
paid
by
the
Funds’
investment
manager
according
to
the
terms
of
the
agreement.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
Not
applicable.
TLF-SFSOI
04/26
©
2026
Franklin
Templeton.
All
rights
reserved.
| ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.
| ITEM 12. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 13. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 14. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
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.
| ITEM 16. | CONTROLS AND PROCEDURES. |
| (a) | The Registrant’s chief executive officer and chief financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected or are likely to materially affect the Registrant’s internal control over financial reporting. |
| ITEM 17. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 18. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| ITEM 19. | EXHIBITS. |
(a) (1) Not applicable
Exhibit 99.CODE ETH
(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.CERT
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and 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.
Templeton Funds
| By: | /s/ Christopher Kings | |
| Christopher Kings | ||
| Chief Executive Officer - Finance and Administration | ||
| Date: | April 30, 2026 |
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.
| By: | /s/ Christopher Kings | |
| Christopher Kings | ||
| Chief Executive Officer - Finance and Administration | ||
| Date: | April 30, 2026 | |
| By: | /s/ Jeffrey White | |
| Jeffrey White | ||
| Chief Financial Officer, Chief Accounting Officer and Treasurer | ||
| Date: | April 30, 2026 |