printmgr file - Templeton

To the Unitholders and Trustees of:
Templeton Funds
Templeton Asian Growth Fund
Templeton Canadian Balanced Fund
Templeton Canadian Stock Fund
Templeton EAFE Developed Market Fund
Templeton Emerging Markets Fund
Templeton Frontier Markets Fund
Franklin Funds
Franklin Flex Cap Growth Fund
Franklin High Income Fund
Franklin Strategic Income Fund
Bissett Funds
Bissett All Canadian Focus Fund
Bissett Bond Fund
Bissett Canadian Balanced Fund
Bissett Canadian Dividend Fund
Bissett Canadian Equity Fund
Bissett Canadian High Dividend Fund
Bissett Canadian Short Term Bond Fund
INDEPENDENT AUDITOR’S REPORT
Templeton Global Bond Fund
Templeton Global Balanced Fund
(formerly, Templeton Global Income Fund)
Templeton Global Smaller Companies Fund
Templeton International Stock Fund
Franklin U.S. Core Equity Fund
Franklin U.S. Rising Dividends Fund
Franklin World Growth Fund
Bissett Corporate Bond Fund
Bissett Dividend Income Fund
Bissett Focus Balanced Fund
Bissett Microcap Fund
Bissett Small Cap Fund
Bissett Strategic Income Fund
Bissett U.S. Focus Fund
Mutual Series Funds
Mutual Beacon Fund Mutual Global Discovery Fund
(formerly, Mutual Discovery Fund)
Franklin Templeton Funds
Franklin Templeton Canadian Core Equity Fund
Franklin Templeton Canadian Large Cap Fund
Franklin Templeton Global Blend Fund
(collectively referred to as the “Funds”)
Franklin Templeton Money Market Fund
Franklin Templeton Treasury Bill Fund
Franklin Templeton U.S. Money Market Fund
We have audited the accompanying financial statements of each of the Funds, which comprise the statement of investment portfolio as at
December 31, 2012, the statements of net assets as at December 31, 2012 and December 31, 2011 (as applicable) and the statements of
operations and changes in net assets for the periods then ended, as indicated in Note 1 to the Financial Statements, and the related notes,
which comprise a summary of significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements of each of the Funds in accordance with
Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial statements of each of the Funds based on our audits. We conducted our audits in
accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
Franklin Templeton Investments Funds 255