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Franklin Templeton Shariah FundsSOCIÉTÉ D’INVESTISSEMENT À CAPITAL VARIABLE

UnauditedSemi-Annual ReportApril 30, 2019

R.C.S. B 169 965

FRANKLIN TEMPLETON SHARIAH FUNDSsociété d’investissement à capital variable

U N A U D I T E D S E M I - A N N U A L R E P O RTF O R T H E P E R I O D E N D E D A P R I L 3 0 , 2 0 1 9

This report shall not constitute an offer or a solicitation of an offer to buy shares of Franklin Templeton Shariah Funds (the “Company”).Subscriptions are to be made on the basis of the current prospectus and its addendum as the case may be, where available the relevant Key InvestorInformation Documents (“KIIDs”), a copy of the latest available audited annual report and, if published thereafter, the latest unaudited semi-annualreport.

ContentsGeneral Information 4Report of the Investment Managers 5Fund Performance 7Statement of Net Assets 8Statement of Operations and Changes in Net Assets 9Statistical Information 10Notes to the Financial Statements 11Schedule of Investments

Franklin Global Sukuk Fund 15Templeton Shariah Global Equity Fund 16

Additional Information 18Franklin Templeton Office Directory 20

FRANKLIN TEMPLETON SHARIAH FUNDS

www.franklintempleton.lu Unaudited Semi-Annual Report 3

société d’investissement à capital variable8A, rue Albert Borschette, L-1246 Luxembourg, Grand Duchy of Luxembourg

(Registered with the registre de commerce et des sociétés, Luxembourg, under number B 169 965)

General Information (as at April 30, 2019)BOARD OF DIRECTORS:ChairmanWilliam JacksonDirectorFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITED5 Morrison StreetEdinburgh EH3 8BH, ScotlandUnited Kingdom

DirectorsJames F. KinlochDirectorFRANKLIN TEMPLETON LUXEMBOURG S.A.8A, rue Albert Borschette, L-1246 LuxembourgGrand Duchy of Luxembourg

Hans-J. WisserIndependent DirectorKälberstücksweg 3761350 Bad HomburgGermany

Michel TulleGeneral Manager and Conducting OfficerFRANKLIN TEMPLETON FRANCE S.A.20 rue de la PaixF-75002 ParisFrance

MANAGEMENT COMPANY:FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l.8A, rue Albert Borschette, L-1246 LuxembourgGrand Duchy of Luxembourg

SHARIAH SUPERVISORY BOARD:AMANIE ADVISORS SDN BHDLevel 13A-2Menara Tokio Marine Life189, Jalan Tun Razak50400 Kuala LumpurMalaysia– Dr. Mohamed Ali Elgari– Dr. Muhammad Amin Ali Qattan– Dr. Mohd Daud Bakar– Dr. Osama Al Dereai

SHARIAH STOCK SCREENING PROVIDER:IDEALRATINGS INC425 Market Street, Suite 2200San Francisco, CA 94105United States of America

REGISTERED OFFICE:8A, rue Albert Borschette, L-1246 LuxembourgGrand Duchy of Luxembourg

PRINCIPAL DISTRIBUTOR:FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l.8A, rue Albert Borschette, L-1246 LuxembourgGrand Duchy of Luxembourg

INVESTMENT MANAGERS:FRANKLIN TEMPLETON INVESTMENTS (ME) LIMITEDGate Building EastWing, 2nd FloorDubai International Financial CentreP.O. Box 506613Dubai, United Arab EmiratesFranklin Templeton Investments (ME) Limited manages Franklin Global Sukuk Fund.

TEMPLETON ASSET MANAGEMENT LTD7 Temasek Boulevard# 38-03 Suntec Tower OneSingapore 038987Templeton Asset Management Ltd manages Templeton Shariah Global Equity Fund.

SUB-ADVISERS:FRANKLIN TEMPLETON GSC ASSET MANAGEMENT Sdn. Bhd.Suite 31-02, 31st Floor, Menara Keck Seng203 Jalan Bukit Bintang55100 Kuala LumpurMalaysiaFranklin Templeton GSC Asset Management Sdn. Bhd. has been appointed assub-adviser for the Franklin Global Sukuk Fund.

DEPOSITARY BANK:HSBC Bank plc, Luxembourg Branch16, boulevard d’Avranches L-1160 LuxembourgGrand Duchy of Luxembourg(Until February 28, 2019)

HSBC France, Luxembourg Branch16, boulevard d’Avranches L-1160 LuxembourgGrand Duchy of Luxembourg(From March 1st, 2019)

AUDITOR:PRICEWATERHOUSECOOPERS, Société coopérative2, rue Gerhard Mercator, L-2182, LuxembourgGrand Duchy of Luxembourg

LEGAL ADVISERS:ELVINGER, HOSS & PRUSSEN, société anonyme2, place Winston Churchill, L-1340 LuxembourgGrand Duchy of Luxembourg


4 Unaudited Semi-Annual Report www.franklintempleton.lu

Market Performance

Global equity markets overall ended the six months under review with a solid return in US dollars. Stocks suffered sharp volatilityand a widespread rout in the final months of 2018 before surging in January. Stock performance then became more mixed withinregions as global growth expectations moderated. Developed equity markets overall finished the period in line with a global index,while emerging markets collectively surged ahead of both groupings. Newsflow on the US-China trade dispute drove alternatingoptimism and pessimism throughout the review period. In the latter half of the period, the US Federal Reserve’s (Fed’s) shift to amore patient approach to interest-rate hikes supported equities, as did the accommodative policies of other major central banksand better-than-expected economic data from the United States, China and the eurozone. Meanwhile, the International MonetaryFund (IMF) cited the effect of higher tariffs on trade (along with a range of country- and sector-specific factors) as it downgradedits outlook for world economic growth in 2019. Turkey’s economy contracted in the fourth quarter of 2018 amidst a currencycrisis, and inflation continued to grow at an elevated rate, though it moderated somewhat during the review period. The IMFforecast the Turkish economy to contract in 2019 but return to growth in 2020.

Global Sukuk markets advanced over the six months under review, benefitting from tightening spreads following marketweakness in the first month of the review period. Investor sentiment was generally robust over the period, helped by the improvingtrajectory of sovereign and corporate fundamentals, particularly in the Gulf Cooperation Council region. Additionally, attractivevaluations generally provided support, while a technical backdrop of higher incremental demand also boosted the market. Afterfalling in the last two months of 2018, crude oil prices stepped higher over the rest of the review period, partly due to the impact ofproduction cuts by Organization of the Petroleum Exporting Countries. This helped to bolster government finances in manycountries across the Sukuk asset class.

Fund Performance

Franklin Global Sukuk FundThe Sukuk market advanced over the six-month review period primarily due to lower rates. Spread compression also contributed,though to a smaller degree as spreads widened towards the end of 2018, but then saw tightening in the first months of 2019. Thefund advanced by 6.6% on a gross basis and 5.8% on a net basis, compared with the custom Dow Jones Sukuk Index, whichreturned 5.7%, all in US-dollar terms.

On a relative basis, compared with its benchmark, the fund benefitted from security selection, which contributed 49 basis points(bps). Selection amongst sovereigns contributed most, followed by corporate industrials. Sovereigns were boosted by Sukuk issuedby Turkey, Pakistan, Malaysia, Oman and Indonesia. Industrials were helped by Ezdan, Virgin and Dana Gas. However, selectionamongst corporate financials weighed on returns, mainly due to Bank Asya, although Sukuk issued by Damac, a real estatebusiness, contributed.

Yield-curve positioning added 33 bps primarily due to Nigerian and Malaysian rates, while US dollar-duration underweightpositioning detracted somewhat. Currency effects added 17 bps to returns, led by the Indonesian rupiah, followed by theMalaysian ringgit, though euro exposure detracted.

Templeton Shariah Global Equity FundFor the six months ended April 30, 2019, the fund underperformed its benchmark index, returning 1.2% in US-dollar terms, whilethe benchmark MSCI All Country World Islamic Index posted a 7.5% total return, also in US-dollar terms.

Security selection and an overweight allocation in the health care sector dampened relative results. Leading detractors within thesector included Japan-based pharmaceuticals manufacturers Otsuka Holdings and Astellas Pharma, along with China-basedpharmaceutical firm China Medical System Holdings. Perrigo and Allergan also detracted from relative performance. Ireland-headquartered generic drug-maker Perrigo came under pressure due to concerns about a US probe into cartel pricing in thegenerics industry, as well as a large tax assessment. Yet the investigation has been underway for more than two years, and drugpricing has almost always been a negative component of sales growth in the generics industry. Shares of US-based Allergan, whichmanufactures specialty pharmaceuticals, traded lower after the company announced it would not sell its women’s health businessand reported an anaemic outlook for the year. Longer term, we believe the company’s pipeline holds significant upside potential,but has not yet been a point of focus for the market.

In the consumer staples sector, shares of Walgreens Boots Alliance declined after the firm reported disappointing earnings andissued a negative outlook as cost pressures and falling prescription reimbursements took their toll. We believe Walgreens has asolid management team that has continued to successfully evolve the business in a changing health care landscape, despite obviouschallenges.

Ryohin Keikaku, a Japan-based manufacturer and retailer of the “MUJI” brand, impaired relative results in the consumerdiscretionary sector. Panasonic, a leading electronics manufacturer, also detracted from relative returns. We believe Panasonicsvaluation has failed to reflect earnings growth over our time horizon, chiefly in its automotive businesses, which includeautomotive infotainment, lithium ion batteries and sensors.

Turning to contributors, security selection in the utilities sector boosted relative performance. In our view, utilities have beenbroadly expensive considering the potential impacts of weaker economic growth and increasing regulatory interference on powerdemand and industry pricing. Oversupply concerns have persisted in developed markets.

Stock selection in the information technology sector supported relative results. Within the sector, Taiwan-based King YuanElectronics, Netherlands-based NXP Semiconductors and China-based HollySys Automation Technologies strengthened relativeperformance. We believe automation firm HollySys represents an attractively valued company with exposure to two major policythemes set forth by the Chinese government: industrial automation and railway expansion.

Other leading contributors at the fund level included Vestas Wind Systems, Wheaton Precious Metals and Brilliance ChinaAutomotive. The stock price of Danish wind turbine manufacturer Vestas Wind Systems surged during the period after the firmmaintained full-year guidance in the face of tougher competition. Shares of Canadian firm Wheaton Precious Metals rallied after aCanadian tax audit that had weighed on the company for years was settled in the firm’s favour. Shares of China-based car maker


Report of the Investment Managers


Fund Performance (continued)

Brilliance China Automotive, though up for the period under review, have been volatile. The shares traded lower after Germany-based BMW announced it would increase its stake in its joint venture with the Chinese auto manufacturer and investors reactednegatively to the news on concerns of lower profitability and control.

From a regional standpoint, stock selection in Asia, the United States and Europe hurt relative results. At the country level,Denmark, Taiwan and the Netherlands contributed to relative performance.

Outlook

Investors frustrated by the market’s seeming disregard of fundamental value could be forgiven for concluding that the rules offinance and economics have changed. Valuations seem to no longer matter; one-fifth of the global sovereign bond market hastraded at negative yields, and financial assets like equities have traded near all-time highs relative to real assets like commodities.

A market that pays no heed to fundamentals creates challenges for value investors, and a market that rewards indiscriminate,index-level exposure creates challenges for active stockpickers. The question for investors is who will ultimately win this tug ofwar between central planning and free market capitalism. If market-based principles ultimately prevail as they have in the past,fundamental value investors should be well-positioned to eventually benefit from the significant opportunities and irregularitiesevident in financial markets today.

Turning to the Sukuk market, we remain constructive on many of the drivers that produced the positive moves over the first fourmonths of 2019. We have, however, started to reduce risk and adopt a more cautious stance, as valuations appear less attractiveafter the strong start to the year.

We expect crude oil prices to be supported in the near term, but note that the technical backdrop is deteriorating, with shorts beingbuilt and inventories increasing. US-dollar strength in the first quarter of 2019 also seemed somewhat perplexing to us, given thestrength of “risk” assets generally, and we view the disconnect between rates and foreign currency markets with caution. We alsoremain mindful of other risks and issues that could unsettle Sukuk markets, including a reduction in the pace of fiscal reforms inkey markets, though still find the outlook for the remainder of the year to be a positive one. The typically slower activity fromRamadan through the summer may prove supportive for Sukuk markets, although if volatility or issuance reappear, they are likelyto provide us with fresh potential opportunities.

THE INVESTMENT MANAGERSMay 2019


Report of the Investment Managers (continued)

The information stated in this report represents historical data and is not an indication of future results.


ReferenceShareClass

LaunchDate

6Months

%

1Year%

3Years

%

5Years

%

SinceLaunch

%

Franklin Global Sukuk Fund A (acc) USD 10 Sep 12 5.8 4.6 5.3 8.8 17.0

Templeton Shariah Global Equity Fund A (acc) USD 10 Sep 12 1.2 (8.0) 17.4 0.2 25.6

The Fund Performance disclosed in this table is the performance of the reference share class in base currency of the Fund.

Information on other share classes is available on request. This report shall not constitute an offer or a solicitation of an offer to buy shares. Subscriptions areto be made on the basis of the current prospectus and its addendum as the case may be, where available the relevant Key Investor Information Documents(“KIIDs”), a copy of the latest available audited annual report and, if published thereafter, the latest unaudited semi-annual report. The price of shares andincome from them can go down as well as up and you may not get back the full amount that you invested. Past performance is no guarantee of futureperformance. Currency fluctuations may affect the value of investments.

The investment activities will be undertaken in accordance with the Shariah Guidelines. As a consequence, the performance of a fund may possibly be lowerthan other investment funds that do not seek to strictly adhere to the Islamic investment criteria. The requirement to “purify” cash holdings or dividendincome will likely result in payments being made to charities. The return to investors will be reduced by the amount of such payments.

Data source: Performance – Franklin Templeton


Fund PerformancePercentage Change to April 30, 2019


TOTAL FranklinGlobal Sukuk

Fund

TempletonShariah

Global EquityFund

(USD) (USD) (USD)

ASSETSInvestment in securities at market value (note 2(b)) 239,338,417 159,608,387 79,730,030Cash 11,318,169 8,055,932 3,262,237Amounts receivable on sale of investments 334,527 194,364 140,163Amounts receivable on subscriptions 710,971 434,066 276,905Profit payments on Sukuk and dividends receivable, net 1,877,654 1,699,343 178,311Other receivables 105,423 44,144 61,279TOTAL ASSETS 253,685,161 170,036,236 83,648,925

LIABILITIESAmounts payable on purchases of investments 44,518 - 44,518Amounts payable on redemptions 218,967 41,042 177,925Investment management fees payable (note 4) 171,724 104,980 66,744Unrealised loss on Shariah compliant forward foreign exchange contracts (note 2(f), 15) 983 983 -Payable to charity 2,494 - 2,494Taxes and expenses payable 337,262 174,400 162,862TOTAL LIABILITIES 775,948 321,405 454,543

TOTAL NET ASSETS 252,909,213 169,714,831 83,194,382

THREE YEAR ASSET SUMMARYOctober 31, 2018 225,319,834 141,168,336 84,151,498October 31, 2017 220,250,572 128,882,926 86,301,235October 31, 2016 181,359,989 105,133,970 72,672,057


Statement of Net Assetsat April 30, 2019

The accompanying notes form an integral part of these financial statements


TOTAL FranklinGlobal Sukuk

Fund

TempletonShariah

Global EquityFund

(USD) (USD) (USD)

NET ASSETS AT THE BEGINNING OF THE PERIOD 225,319,834 141,168,336 84,151,498

INCOMEDividends (net of withholding taxes) (note 2(c)) 861,227 - 861,227Profit payments on Sukuk (net of withholding taxes) (note 2(c)) 3,571,424 3,571,424 -Bank interest* 39 39 -TOTAL INCOME 4,432,690 3,571,463 861,227

EXPENSESInvestment management fees (note 4) 1,014,071 617,732 396,339Administration and transfer agency fees 250,274 159,603 90,671Depositary fees 86,482 48,152 38,330Directors fees 8,326 5,011 3,315Audit fees 22,727 11,914 10,813Printing and publishing expenses 53,955 34,550 19,405Shariah Compliance Fees 73,342 34,709 38,633Subscription tax (note 6) 49,841 31,084 18,757Class A (dis) and Class A (acc) shares’ maintenance charges (note 3) 193,334 118,874 74,460Class AS (acc) shares’ maintenance charges (note 3) 84,657 - 84,657Class N (acc) shares’ maintenance charges (note 3) 31 31 -Other Charges (note 7) 149,100 95,049 54,051TOTAL EXPENSES 1,986,140 1,156,709 829,431Expenses reimbursement (note 8) (391,523) (269,098) (122,425)NET EXPENSES 1,594,617 887,611 707,006

NET PROFIT/(LOSS) FROM INVESTMENTS 2,838,073 2,683,852 154,221Net realised profit/(loss) on sale of investments (1,140,538) (654,951) (485,587)Net realised profit/(loss) on Shariah compliant forward foreign exchange contracts (5,150) (5,150) -Net realised profit/(loss) on foreign exchange transactions 74,591 87,071 (12,480)NET REALISED PROFIT/(LOSS) FOR THE PERIOD 1,766,976 2,110,822 (343,846)Change in net unrealised appreciation/(depreciation) on:Investments 7,791,600 6,355,382 1,436,218Shariah compliant forward foreign exchange contracts 1,843 1,843 -Foreign exchange transactions (287) 371 (658)Capital gains tax (1,371) (1,371) -NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF OPERATIONS 9,558,761 8,467,047 1,091,714

DONATIONS TO CHARITYPurification of non–Shariah compliant dividends (note 10) (6,997) - (6,997)Purification of net realised profit on non-Shariah compliant profit (note 10) (18,109) - (18,109)NET DECREASE IN NET ASSETSAS A RESULT OF DONATIONS TO CHARITY (25,106) - (25,106)

MOVEMENT OF CAPITALIssue of shares 47,534,220 41,135,113 6,399,107Redemption of shares (24,695,081) (16,752,683) (7,942,398)Equalisation (note 17) 240,783 245,750 (4,967)

23,079,922 24,628,180 (1,548,258)Dividends paid/accumulated (note 11) (5,024,198) (4,548,732) (475,466)NET INCREASE/(DECREASE) IN NET ASSETSAS A RESULT OF MOVEMENT IN CAPITAL 18,055,724 20,079,448 (2,023,724)

NET ASSETS AT THE END OF THE PERIOD 252,909,213 169,714,831 83,194,382

Portfolio Turnover Ratio (note 14) 36.18% 57.41%

* As per Shariah principles, the amount of bank interest was purified, this took place after the semi annual year end of April 30, 2019.


Statement of Operations and Changes in Net AssetsFor the Period ended April 30, 2019



TotalExpense Ratio

April 30,2019

(see note 9)

SharesOutstanding

April 30,2019

Net Asset Value per Share

April 30,2019

October 31,2018

October 31,2017

Franklin Global Sukuk Fund - USDA (acc) EUR 1.50% 86,141.190 12.64 11.83 11.89A (acc) USD 1.50% 3,962,065.281 11.70 11.06 11.43A (Mdis) SGD 1.50% 2,007,475.799 9.67 9.54 10.14A (Mdis) USD 1.50% 2,280,134.941 9.18 8.89 9.60I (acc) USD 0.93% 1,648,375.262 12.05 11.35 11.69N (acc) EUR 2.45% 389.772 11.89 11.19 11.37W (Acc) USD* 0.90% 500.000 10.40 - -W (Qdis) EUR-H1 0.90% 13,593.020 8.98 8.80 9.70W (Qdis) USD 0.90% 4,923,942.938 9.32 9.00 9.66X (Qdis) USD 0.37% 2,181,330.001 9.63 9.27 9.89

Templeton Shariah Global Equity Fund - USDA (acc) SGD 1.90% 261,695.059 12.96 13.05 13.39A (acc) USD 1.90% 2,229,975.242 12.56 12.41 12.95AS (acc) SGD 1.75% 5,158,523.766 11.30 11.37 11.66I (acc) USD 1.05% 737,156.793 13.30 13.09 13.55X (Ydis) USD 0.35% 500.000 10.47 10.48 10.95

* This share class was launched on January 23, 2019


Statistical Information


Franklin Templeton Shariah Funds (“FTSF” or the “Company”) is a collective investment undertaking pursuant to Part I of the amendedLuxembourg law of December 17, 2010 on undertakings for collective investment and qualifies as a société d’investissement à capital variable. TheCompany was incorporated in Luxembourg on July 3, 2012, for an undetermined period. At the date of this report, it offers shares in 2 sub-fundsof the Company (the “Funds”). The Board of Directors of the Company may authorise the creation of additional Funds in future with differentinvestment objectives.

The Company aims to provide Investors with a choice of Funds which invest in a wide range of Shariah-compliant transferable securities and otherShariah-compliant eligible assets on a worldwide basis and which feature a diverse array of investment objectives including capital growth andincome. The overall objective of the Company is to seek to minimise investment risk exposure through diversification and to provide Investors withthe benefit of a portfolio managed by entities of Franklin Templeton according to its successful time-tested investment selection methods.

Fund closure: the liquidation of Templeton Shariah Asian Growth Fund which closed on December 12, 2017 is completed and cash account wasclosed on May 1, 2019.

Note 2 — Significant accounting policies

(a) GeneralThe financial statements are prepared in accordance with the regulations of the Grand Duchy of Luxembourg relating to investment funds.

(b) Investment in securitiesSecurities which are listed on a stock exchange or traded on any other organised market are valued at the last available price on such exchange ormarket which is normally the principal market for each security, and those securities dealt in on an over-the-counter market are valued in a manneras near as possible to that for quoted securities.

Securities not listed on any stock exchange nor traded on any organised market are valued at the last available price, or if such price is notrepresentative of their fair value, they are valued prudently and in good faith on the basis of their reasonably foreseeable sales prices.

The Company has procedures to determine the fair value of individual securities and other assets for which market prices are not readily availableor which may not be reliably priced. In such circumstances, the price of such investment shall be adjusted in accordance with the proceduresadopted, as determined by or under the direction of the Board of Directors.

During the accounting period under review, gains and losses on investment securities sold were computed on the average cost basis for all Funds.During the accounting period under review, discounts and premiums were amortised to income over the period to maturity, or date sold, if earlier.

(c) IncomeDividends are credited to income on their ex-dividend date. Profit payments (including profit payments on Sukuk) are accrued on a daily basis.

(d) Formation expensesFormation expenses associated with the launch of the new Funds are expensed as incurred and are disclosed in �Other charges� in the Statement ofOperations and Changes in Net Assets.

(e) Foreign exchange transactionsTransactions expressed in currencies other than each Fund’s currency are translated into each Fund’s currency at the exchange rates applicable onthe transaction dates.

Assets and liabilities designated in currencies other than each Fund’s currency are translated into each Fund’s currency at the appropriate exchangerates ruling at the period-end. Gains and losses on foreign exchange transactions are recognised in the “Statement of Operations and Changes inNet Assets” in determining the results for the accounting period.

The reference currency of the Company as reflected in the financial statements is U.S. dollar. The principal exchange rates applied as at April 30,2019 are as follows:

Exchange Rate U.S. dollarEuro 0.8915Singapore dollar 1.3600

(f) Shariah compliant forward foreign exchange contractsShariah compliant forward foreign exchange contracts are valued at the foreign exchange currency rate applicable at the “Statement of Net Assets”date for the remaining period, until maturity. Gains or losses resulting from Shariah compliant forward exchange contracts are recognised in the“Statement of Operations and Changes in Net Assets”.

(g) Swing pricingA Fund may suffer dilution of the net asset value per share due to investors buying or selling shares in a Fund at a price that does not reflect dealingand other costs that arise when security trades are undertaken by the Investment Manager to accommodate cash inflows or outflows.

In order to counter this impact, a swing pricing mechanism may be adopted to protect the interests of Shareholders of the Fund. If on any valuationdate, the aggregate net capital activity of a Fund exceeds a pre-determined threshold, as determined and reviewed for each Fund on a periodic basis,the net asset value per share will be adjusted upwards or downwards to reflect net capital inflows or net capital outflows respectively.

The net capital inflows and net capital outflows will be determined based on the latest available information at the time of calculation of the netasset value per share. The swing pricing mechanism may be applied across all Funds. The extent of the price adjustment is set to reflect dealing andother costs. Such adjustment may vary from Fund to Fund and will not exceed 2%of the original net asset value per share.

In the case of a swing pricing event on the last day of the annual/semi-annual period, the net assets as disclosed in the “Statement of Net Assets”,exclude the swing pricing adjustment, however, the net asset value per share as at year/semi-annual period end, as disclosed in the StatisticalInformation, would include the swing pricing adjustment.

There was no swing pricing adjustment affecting the Funds’ net asset value per share on the last day of the period.


Notes to the Financial Statementsat April 30, 2019

Note 1 — The Company


Class A shares: are offered at the applicable net asset value, plus an entry charge of up to 5.75% of the total amount invested varying per asset class.In addition, a maintenance charge of up to 0.50% per annum of the applicable average net asset value is deducted and paid to the PrincipalDistributor. This charge is accrued daily and is deducted and paid monthly to the Principal Distributor. A contingent deferred sales charge of up to1%, retained by the Principal Distributor, applies to certain redemptions on qualified investments of USD 1 million or more within 18 months afterrepurchase.

Class AS shares: are offered in Singapore to CPF Investors as more fully described in the current prospectus of the Company. Class AS shares areoffered at the applicable net asset value, plus an entry charge of up to 3% of the total amount invested until September 30, 2018. With effect fromOctober 1, 2018, the entry charge is up to 1.50% and 0% from October 1, 2019. In addition, a maintenance charge of up to 0.40% per annum ofthe applicable average net asset value is deducted and paid to the Principal Distributor. This charge is accrued daily and is deducted and paidmonthly to the Principal Distributor.

Class I shares: are offered to institutional investors as more fully described in the current prospectus of the Company. Purchases of Class I sharesare not subject to an entry charge, nor a contingent deferred sales charge or any maintenance or servicing charges.

Class N shares: are subject to an entry charge of up to 3% of the total amount invested. In addition, a maintenance charge of up to 1.25% perannum of the applicable average net asset value is accrued daily and is deducted and paid monthly to the Principal Distributor. Class N shares maybe offered in certain limited circumstances as more fully described in the current prospectus of the Company.

Class W shares: are not subject to an entry charge, contingent deferred sales charge nor any maintenance or servicing charge. Class W shares maybe offered in certain limited circumstances as more fully described in the current prospectus of the Company.

Class X shares: are not subject to an entry charge and no management fees will be payable by an investor on the acquisition of Class X shares(instead a fee is paid to the Investment Manager or affiliates under an agreement between the Investment Manager and the investor). Class X sharesare offered to institutional investors in certain limited circumstances as more fully described in the current prospectus of the Company.

Distributing shares: may have different frequencies. (Mdis) share classes distribute monthly, (Qdis) share classes distribute quarterly and (Ydis)share classes distribute annually.

Accumulating shares (acc): do not distribute any dividends but the income attributable is reflected in the increased value of the shares. All otherterms and conditions are the same as those which apply to distributing share classes.

Hedged share classes: in order to reduce exchange rate fluctuations and return fluctuations, the Company offers H1 classes. The base currencyexposure of the hedged share class is hedged into a specified alternative currency.

Note 4 — Investment management feesThe Management Company receives from the Company a monthly investment management fee equivalent to a certain percentage per annum (asdetailed below) of each Fund’s average daily net assets during the accounting period. The following percentages apply in respect of the differentFunds as at April 30, 2019.

The Investment Managers, as noted on page 4, will be remunerated by the Management Company out of the investment management fee receivedfrom the Company.

Class A, AS, N Class I Class WFranklin Global Sukuk Fund 1.00% 0.70% 0.70%Templeton Shariah Global Equity Fund 1.00% 0.70% N/A

No management fee is payable by an investor on the acquisition of Class X shares, instead a fee is paid to the Investment Manager or affiliates undera separate agreement.

Note 5 — Connected party transactionsCertain Directors of the Company are or may also be Officers and/or Directors of the Registrar and Transfer, Corporate, Domiciliary andAdministrative Agent, Franklin Templeton International Services S.à r.l. All transactions with connected parties were entered into in the ordinarycourse of business and under normal commercial terms.

The investment management fees that are accrued by the Company in respect of the Management Company are detailed in note 4 to the financialstatements.

There are no connected brokers in Franklin Templeton, and no transactions were entered into with connected brokers during the period endedApril 30, 2019.

The Company accrued fees in respect of Franklin Templeton International Services S.à r.l. as the Management Company and as the PrincipalDistributor of the Funds.

Note 6 — TaxationThe Company is not liable in the Grand Duchy of Luxembourg to any tax on its profits or income.

The Company, however, is liable in the Grand Duchy of Luxembourg to a tax of 0.05% per annum of its NAV, such tax being payable quarterlyon the basis of the value of the net assets of the Company at the end of the relevant calendar quarter. This tax is not applicable for the portion ofthe assets of a Fund invested in other undertakings for collective investment which have been already subject to such tax.

Class I Shares and Class X Shares may qualify for the reduced tax rate of 0.01% if all the investors of these Share Classes are respectivelyInstitutional Investors. No stamp duty or other tax is payable in the Grand Duchy of Luxembourg on the issue of the Shares in the Company. Undercurrent laws and practice, no capital gains tax is payable in the Grand Duchy of Luxembourg on the realised or unrealised capital appreciation ofthe assets of the Company.

The Company is registered for Value Added Tax in the Grand Duchy of Luxembourg and subject to account for Value Added Tax in accordancewith applicable laws. Investment income received or capital gains realised by the Company may be subject to tax in the countries of origin at varyingrates. The Company may benefit in certain circumstances from double taxation treaties which the Grand Duchy of Luxembourg has concluded withother countries.


Notes to the Financial Statementsat April 30, 2019 (continued)

Note 3 — Share classes


The breakdown of the other charges is as follows:

Total FranklinGlobal Sukuk

Fund

TempletonShariah

Global EquityFund

(USD) (USD) (USD)Legal fees 49,783 31,777 18,006Miscellaneous expenses 28,371 18,118 10,253Paying agent 28,908 18,452 10,456Registration and filing fees 22,975 14,665 8,310Tax fees 19,063 12,037 7,026

149,100 95,049 54,051

Note 8 — Expenses reimbursementOn a daily basis, for share classes where the expenses are capped, the level of expenses is calculated and compared to the cap and where the levelof expenses is higher than the cap, this difference is booked as a decrease of expense (the “waiver fees”). On a monthly basis the waiver fees arededucted from the fees received by Franklin Templeton International Services S.à r.l.

The amount of waiver fees is disclosed as “Expenses reimbursement” in the “Statement of Operations and Changes in Net Assets”.

Note 9 — Total expense ratioThe Total Expense Ratio (“TER”), expressed as a percentage, represents how the total expenses of the Funds relate to the average net assets of theFunds for the period ended April 30, 2019. The total expenses comprise the investment management fees, the administration and transfer agencyfees, the depositary fees and other expenses as summarised in the “Statement of Operations and Changes in Net Assets”. For share classes launchedduring the year, the TER is annualised.

Note 10 — Purification of non-Shariah compliant incomeThe Shariah Supervisory Board from time to time issues guidelines to quantify the annual amount of income of a Fund that should be donated tocharity, being derived from eligible securities for investment pursuant to the investment objective, policy and restrictions set out in the prospectus,but that are engaged in an activity or activities of a marginal nature which are not Shariah-compliant and which are not screened out by the Shariahrestrictions. Such amount is calculated on each relevant transaction, based on the purification ratios, expressed as a percentage of each targetcompany’s dividend payments. The resulting amount is donated to a charity. Any such amounts are deducted only upon their actual determinationand no anticipated accrual thereof is made.

For the period ended April 30, 2019, this amount was donated to the United Kingdom Committee for the United Nations Children’s Fund(UNICEF).

Note 11 — Dividends distributedFor the period ended April 30, 2019, the following amounts per share were paid out to distribution class shareholders.

Accumulated dividends have not been paid out and are reflected as an increase in the “Issue of shares” account in the “Statement of Operationsand Changes in Net Assets”.

Nov-2018Annual

Nov-2018 Dec-2018 Jan-2019 Feb-2019 Mar-2019 Apr-2019

Franklin Global Sukuk FundA (Mdis) SGD 0.039 0.039 0.039 0.038 0.038 0.038A (Mdis) USD 0.036 0.037 0.036 0.037 0.036 0.036W (Qdis) EUR-H1 0.110 0.106W (Qdis) USD 0.107 0.111X (Qdis) USD 0.110 0.114

Templeton Shariah Global Equity FundX (Ydis) USD 0.212

Note 12 — Transaction costsTransaction costs are costs incurred to acquire financial assets or liabilities. They include fees and commissions paid to agents, brokers and dealers.During the period ended April 30, 2019 the Company incurred the following transaction costs:

Fund Currency AmountFranklin Global Sukuk Fund USD -*

Templeton Shariah Global Equity Fund USD 26,417*For Sukuk, transaction costs are not separately identifiable from the purchase price of the security and therefore cannot be disclosed separately.

Note 13 — Soft commissionConsistent with obtaining best execution, brokerage commissions on portfolio transactions for the Company may be directed by the InvestmentManagers to broker-dealers in recognition of research services furnished by them as well as for services rendered in the execution of orders by suchbroker-dealers.

The receipt of investment research and information and related services permits the Investment Managers to supplement their own research andanalysis and makes available to them the views and information of individuals and research staffs of other firms.



Note 7 — Other charges analysis


Such services do not include travel, accommodation, entertainment, general administrative goods or services, general office equipment or premises,membership fees, employee salaries or direct money payment, which are paid for directly by the Investment Managers.

Note 14 — Portfolio Turnover RatioThe portfolio turnover ratio, expressed as a percentage, is equal to the total of purchases and sales of securities netted against the total ofsubscriptions and redemptions, over average net assets of the Fund for a year. It is effectively a measure of how frequently a Fund buys or sellssecurities.

Note 15 — Shariah compliant forward foreign exchange contractsAs at April 30, 2019, the Company had entered the following outstanding contracts:

Franklin Global Sukuk Fund

Purchases Sales MaturityDate

Unrealisedprofit/(loss)

USD

Shariah compliant forward foreign exchange contracts used for share class hedging:EUR 120,935 USD 136,817 15-May-19 (983)

The above contracts were opened with the following counterparties:

JPMorgan (601)Standard Chartered (382)

(983)

Note 16 — Statement of changes in the investment portfolioA list, specifying for each Fund total purchases and sales transacted during the period under review, may be obtained, upon request, at the registeredoffice of the Company.

Note 17 — EqualisationThe Funds use an accounting practice known as equalisation, by which a portion of the proceeds from issue and costs of redemption of shares,equivalent on a per share basis to the amount of undistributed investment income on the date of the transaction, is credited or charged toundistributed income which is disclosed as equalisation in the “Statement of Operations and Changes in Net Assets”. As a result, undistributedinvestment income per share is unaffected by sales or redemptions of shares.

Note 18 — Audited annual reports and unaudited semi-annual reportsThe audited annual reports and unaudited semi-annual reports are available on the following Franklin Templeton website,www.franklintempleton.lu, or may be obtained, free of charge, on request at the registered office of the Company. They are only distributed toregistered Shareholders in those countries where local regulation so requires.

Note 19 — AbbreviationsCountries

ARE United Arab EmiratesBEL BelgiumBHR BahrainCAN CanadaCHE SwitzerlandCHN ChinaDEU GermanyDNK Denmark

FRA FranceGBR United KingdomHKG Hong KongIDN IndonesiaIRL IrelandITA ItalyJPN JapanKOR South Korea

KWT KuwaitMYS MalaysiaNGA NigeriaNLD NetherlandsNOR NorwayOMN OmanPAK PakistanQAT Qatar

SAU Saudi ArabiaSGP SingaporeSP SupranationalTUR TurkeyUSA United States

Currencies

CAD Canadian DollarCHF Swiss FrancDKK Danish KroneEUR Euro

GBP British Pound SterlingHKD Hong Kong DollarIDR Indonesian RupiahJPY Japanese Yen

KRW South Korean WonMYR Malaysian RinggitNGN Nigerian NairaNOK Norwegian Krone

SGD Singapore DollarUSD US Dollar



Note 13 — Soft commission (continued)


Number ofshares or

face value DescriptionCountry

codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATED MARKETSUKUKCorporate Sukuk

4,965,000 Equate Sukuk SPC Ltd., senior note, Reg S, 3.944%, 02/21/24 KWT USD 5,034,138 2.974,990,000 Nile Delta Sukuk Ltd., secured note, Reg S, 4.00%, 10/31/20 ARE USD 4,765,450 2.814,000,000 Saudi Electricity Global Sukuk Co. 3, senior bond, Reg S, 5.50%, 04/08/44 SAU USD 4,350,400 2.564,200,000 MAF Sukuk Ltd., Reg S, 4.50%, 11/03/25 ARE USD 4,295,592 2.534,015,000 Aldar Sukuk Ltd., senior note, Reg S, 4.75%, 09/29/25 ARE USD 4,168,353 2.463,440,000 Saudi Electricity Global Sukuk Co. 2, senior bond, Reg S, 5.06%, 04/08/43 SAU USD 3,560,703 2.103,900,000 Ezdan Sukuk Co. Ltd., senior note, Reg S, 4.375%, 05/18/21 QAT USD 3,493,269 2.063,200,000 DP World Crescent Ltd., senior note, Reg S, 4.848%, 09/26/28 ARE USD 3,358,336 1.983,310,000 QIIB Senior Sukuk Ltd., senior note, Reg S, 4.264%, 03/05/24 QAT USD 3,357,624 1.983,370,000 QIB Sukuk Ltd., senior note, Reg S, 3.251%, 05/23/22 QAT USD 3,318,018 1.953,220,000 Axiata SPV2 Bhd., Reg S, 4.357%, 03/24/26 MYS USD 3,294,801 1.943,025,000 Tabreed Sukuk SPC Ltd., senior note, Reg S, 5.50%, 10/31/25 ARE USD 3,267,000 1.923,220,000 QIB Sukuk Ltd., Reg S, 3.982%, 03/26/24 QAT USD 3,232,622 1.903,000,000 Virgin Mobile Middle East & Africa Sukuk Ltd., cvt., secured note, 12.00%,

03/31/23 ARE USD 3,037,500 1.792,725,000 Unity 1 Sukuk Ltd., senior note, Reg S, 3.86%, 11/30/21 ARE USD 2,745,887 1.622,620,000 Alpha Star Holding V Ltd., senior note, Reg S, 6.625%, 04/18/23 ARE USD 2,478,952 1.462,400,000 Noor Sukuk Co. Ltd., senior note, Reg S, 4.471%, 04/24/23 ARE USD 2,460,000 1.452,325,000 Mumtalakat Sukuk Holding Co., senior note, Reg S, 5.625%, 02/27/24 BHR USD 2,340,984 1.381,925,000 Mazoon Assets Co. SAOC, senior note, Reg S, 5.20%, 11/08/27 OMN USD 1,761,375 1.041,750,000 DIB Sukuk Co. Ltd., senior note, Reg S, 3.664%, 02/14/22 ARE USD 1,753,544 1.031,650,000 Saudi Electricity Co., senior bond, Reg S, 4.723%, 09/27/28 SAU USD 1,752,094 1.031,725,000 SIB Sukuk Co. III Ltd., senior note, Reg S, 4.231%, 04/18/23 ARE USD 1,749,167 1.031,600,000 Senaat Sukuk Ltd., senior note, Reg S, 4.76%, 12/05/25 ARE USD 1,692,000 1.001,600,000 KSA Sukuk Ltd., senior bond, Reg S, 4.303%, 01/19/29 SAU USD 1,673,304 0.991,400,000 Boubyan Tier 1 Capital SPC Ltd., sub. bond, Reg S, 6.75% to 05/16/21, FRN

thereafter, Perpetual KWT USD 1,449,042 0.851,325,000 Alpha Star Holding III Ltd., senior note, Reg S, 6.25%, 04/20/22 ARE USD 1,267,376 0.751,290,000 Dar Al-Arkan Sukuk Co. Ltd., senior note, Reg S, 6.875%, 03/21/23 SAU USD 1,235,556 0.731,380,000 Ezdan Sukuk Co. Ltd., senior note, Reg S, 4.875%, 04/05/22 QAT USD 1,219,575 0.721,025,000 DIFC Sukuk Ltd., senior note, Reg S, 4.325%, 11/12/24 ARE USD 1,041,707 0.618,820,000 Asya Sukuk Co. Ltd., Reg S, 7.50%, 03/28/23 * TUR USD 970,200 0.57

80,124,569 47.21

Government and Municipal Sukuk9,245,000 Perusahaan Penerbit SBSN Indonesia III, senior note, Reg S, 4.40%, 03/01/28 IDN USD 9,554,846 5.636,565,000 KSA Sukuk Ltd., senior bond, Reg S, 3.628%, 04/20/27 SAU USD 6,620,638 3.905,825,000 Perusahaan Penerbit SBSN Indonesia III, Reg S, 4.55%, 03/29/26 IDN USD 6,089,280 3.594,975,000 Malaysia Sukuk Global Bhd., Reg S, 4.08%, 04/27/46 MYS USD 5,288,002 3.124,950,000 Hong Kong Sukuk 2017 Ltd., senior note, Reg S, 3.132%, 02/28/27 HKG USD 4,960,667 2.924,240,000 IDB Trust Services Ltd., Reg S, 0.554%, 11/07/23 SP EUR 4,829,379 2.854,400,000 Perusahaan Penerbit SBSN Indonesia III, senior note, Reg S, 4.325%, 05/28/25 IDN USD 4,554,748 2.68

1,400,000,000 FGN Roads Sukuk Co. 1 PLC, senior note, 16.47%, 09/26/24 NGA NGN 4,205,821 2.483,585,000 Oman Sovereign Sukuk SAOC, senior note, Reg S, 5.932%, 10/31/25 OMN USD 3,647,720 2.153,475,000 Perusahaan Penerbit SBSN Indonesia III, Reg S, 4.15%, 03/29/27 IDN USD 3,540,156 2.09

13,000,000 Government of Malaysia, senior bond, 4.582%, 08/30/33 MYS MYR 3,262,278 1.9241,000,000,000 Perusahaan Penerbit SBSN Indonesia, senior note, 6.50%, 05/15/21 IDN IDR 2,843,818 1.68

2,500,000 Perusahaan Penerbit SBSN Indonesia III, Reg S, 4.35%, 09/10/24 IDN USD 2,591,975 1.532,325,000 SoQ Sukuk A QSC, Reg S, 3.241%, 01/18/23 QAT USD 2,349,808 1.381,800,000 Sharjah Sukuk Programme Ltd., senior note, Reg S, 4.226%, 03/14/28 ARE USD 1,837,089 1.081,640,000 KSA Sukuk Ltd., senior note, Reg S, 2.894%, 04/20/22 SAU USD 1,638,458 0.971,550,000 Malaysia Sovereign Sukuk Bhd., Reg S, 3.043%, 04/22/25 MYS USD 1,548,590 0.911,300,000 RAK Capital, Reg S, 3.094%, 03/31/25 ARE USD 1,264,094 0.74

70,627,367 41.62

Securities Maturing Within One Year4,905,000 Second Pakistan International Sukuk Co. Ltd., senior note, Reg S, 6.75%,

12/03/19 PAK USD 4,967,588 2.932,275,000 Dar Al-Arkan Sukuk Co. Ltd., senior note, Reg S, 6.50%, 05/28/19 SAU USD 2,281,074 1.341,595,000 AFC Sukuk Co., senior note, Reg S, FRN, 4.854%, 01/24/20 † SP USD 1,607,789 0.95

8,856,451 5.22

TOTAL SUKUK 159,608,387 94.05

TOTAL TRANSFERABLE SECURITIES DEALT IN ON ANOTHER REGULATEDMARKET 159,608,387 94.05

TOTAL INVESTMENTS 159,608,387 94.05

* This Sukuk is currently in default† Floating Rates are indicated as at April 30, 2019


— Franklin Global Sukuk Fund —

Schedule of Investments as of April 30, 2019(Currency — USD)



Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGSHARESAir Freight & Logistics

507,500 Kerry Logistics Network Ltd. CHN HKD 904,338 1.09

Auto Components7,398 Cie Generale des Etablissements Michelin SCA FRA EUR 955,553 1.15

Automobiles696,000 Brilliance China Automotive Holdings Ltd. CHN HKD 765,610 0.92

Beverages19,400 Suntory Beverage & Food Ltd. JPN JPY 853,513 1.03

Biotechnology8,490 BioMarin Pharmaceutical Inc. USA USD 726,150 0.87

Building Products32,123 Compagnie de Saint-Gobain FRA EUR 1,313,019 1.5848,400 Bunka Shutter Co. Ltd. JPN JPY 355,477 0.43

1,668,496 2.01

Chemicals4,800 Lotte Chemical Corp. KOR KRW 1,106,769 1.333,090 LG Chem Ltd. KOR KRW 957,938 1.15

19,773 Yara International ASA NOR NOK 891,731 1.076,700 LyondellBasell Industries NV, A USA USD 591,141 0.715,776 Akzo Nobel NV NLD EUR 490,456 0.59

4,038,035 4.85

Construction Materials39,016 CRH PLC IRL EUR 1,309,864 1.5718,400 Taiheiyo Cement Corp. JPN JPY 589,791 0.71

1,899,655 2.28

Containers & Packaging1,025,000 Greatview Aseptic Packaging Co. Ltd. CHN HKD 623,204 0.75

Diversified Telecommunication Services2,598,000 China Telecom Corp. Ltd., H CHN HKD 1,344,475 1.62

540,900 Singapore Telecommunications Ltd. SGP SGD 1,260,821 1.51337,858 Telefonica Deutschland Holding AG DEU EUR 1,097,513 1.32

3,702,809 4.45

Electric Utilities15,661 Korea Electric Power Corp. KOR KRW 380,608 0.46

Electrical Equipment13,646 Vestas Wind Systems AS DNK DKK 1,234,134 1.48

313,000 Johnson Electric Holdings Ltd. HKG HKD 735,687 0.89

1,969,821 2.37

Electronic Equipment, Instruments & Components15,100 Murata Manufacturing Co. Ltd. JPN JPY 808,045 0.97

9,098 Landis+Gyr Group AG CHE CHF 634,931 0.7620,200 Knowles Corp. USA USD 381,376 0.46

1,824,352 2.19

Energy Equipment & Services81,659 Tenaris SA ITA EUR 1,133,970 1.36

1,814 The Drilling Co. of 1972 AS DNK DKK 139,257 0.17

1,273,227 1.53

Food & Staples Retailing35,000 Matsumotokiyoshi Holdings Co. Ltd. JPN JPY 1,148,597 1.3817,900 Walgreens Boots Alliance Inc. USA USD 958,903 1.15

2,107,500 2.53

Food Products38,700 Ajinomoto Co. Inc. JPN JPY 622,848 0.75

422,000 First Resources Ltd. SGP SGD 567,859 0.689,900 Ezaki Glico Co. Ltd. JPN JPY 520,889 0.63

1,711,596 2.06

Health Care Equipment & Supplies12,253 Draegerwerk AG & Co. KGAA DEU EUR 572,445 0.69

2,979 Alcon Inc. CHE CHF 171,582 0.21

744,027 0.90

Health Care Providers & Services10,217 Fresenius Medical Care AG & Co. KGaA DEU EUR 859,072 1.03

Household Durables104,700 Panasonic Corp. JPN JPY 959,809 1.15


— Templeton Shariah Global Equity Fund —

Schedule of Investments as of April 30, 2019(Currency — USD)



Number ofshares or


codeTradingcurrency

Marketvalue

% ofnet

assets

Industrial Conglomerates156,000 CK Hutchison Holdings Ltd. HKG HKD 1,638,474 1.97

11,179 Siemens AG DEU EUR 1,338,464 1.61

2,976,938 3.58

Marine932 A.P. Moeller-Maersk AS, B DNK DKK 1,214,216 1.46

Metals & Mining54,000 Sumitomo Metal Mining Co. Ltd. JPN JPY 1,686,788 2.0346,572 Wheaton Precious Metals Corp. CAN CAD 1,007,657 1.21

2,694,445 3.24

Multiline Retail3,200 Ryohin Keikaku Co. Ltd. JPN JPY 607,389 0.73

Multi-Utilities142,818 E.ON SE DEU EUR 1,532,784 1.84

Oil, Gas & Consumable Fuels59,660 Exxon Mobil Corp. USA USD 4,789,505 5.76

110,877 Royal Dutch Shell PLC, A GBR GBP 3,542,434 4.26462,482 BP PLC GBR GBP 3,371,327 4.05119,514 Eni SpA ITA EUR 2,040,108 2.45

36,339 Total SA FRA EUR 2,019,526 2.43139,700 Husky Energy Inc. CAN CAD 1,516,528 1.82671,000 CNOOC Ltd. CHN HKD 1,212,792 1.46910,000 Kunlun Energy Co. Ltd. CHN HKD 960,416 1.15

19,452,636 23.38

Pharmaceuticals15,740 Allergan PLC USA USD 2,313,780 2.78

7,369 Roche Holding AG CHE CHF 1,942,789 2.3421,614 Sanofi FRA EUR 1,878,700 2.2649,104 Takeda Pharmaceutical Co. Ltd. JPN JPY 1,812,935 2.1834,370 Pfizer Inc. USA USD 1,395,766 1.6812,867 Merck KGaA DEU EUR 1,369,395 1.6580,000 Astellas Pharma Inc. JPN JPY 1,083,906 1.3012,682 Novartis AG CHE CHF 1,035,796 1.2424,200 Otsuka Holdings Co. Ltd. JPN JPY 862,400 1.0427,700 Tsumura & Co. JPN JPY 849,342 1.0210,448 UCB SA BEL EUR 828,805 1.00

4,980 Eli Lilly & Co. USA USD 582,859 0.70586,000 China Medical System Holdings Ltd. CHN HKD 519,123 0.62

16,475,596 19.81

Semiconductors & Semiconductor Equipment12,300 NXP Semiconductors NV NLD USD 1,299,126 1.56

Software5,457 SAP SE DEU EUR 701,358 0.84

Specialty Retail200,850 Kingfisher PLC GBR GBP 691,727 0.83

Technology Hardware, Storage & Peripherals69,943 Samsung Electronics Co. Ltd. KOR KRW 2,753,945 3.31

Wireless Telecommunication Services143,000 China Mobile Ltd. CHN HKD 1,362,495 1.64

TOTAL SHARES 79,730,030 95.84

TOTAL TRANSFERABLE SECURITIES ADMITTED TOAN OFFICIAL STOCK EXCHANGE LISTING 79,730,030 95.84

TOTAL INVESTMENTS 79,730,030 95.84


— Templeton Shariah Global Equity Fund —

Schedule of Investments as of April 30, 2019 (continued)(Currency — USD)



Calculation Method of the Risk Exposure

The Commitment Approach* is used for measuring the Global Exposure** for:

Franklin Global Sukuk Fund

Templeton Shariah Global Equity Fund

*Commitment Approach is an approach for measuring risk or “global exposure” that factors in the market risk of the investments held in aUCITS sub-fund, including risk associated with any financial derivatives instruments held by converting the financial derivatives into equivalentpositions in the underlying assets of those derivatives (sometimes referred to as “notional exposure”), after netting and hedging arrangementswhere the market value of underlying security positions may be offset by other commitments related to the same underlying positions.

** Global Exposure refers to a measure of the risk exposure for a UCITS sub-fund that factors in the market risk exposure of underlyinginvestments, as well as the incremental market risk exposure and implied leverage associated with financial derivative instruments held in theportfolio.


Additional Information


UCITS Remuneration DisclosureFranklin Templeton International Services S.à r.l. (“FTIS”), as UCITS licensed management company (the “ManagementCompany”) has a remuneration policy (the “Policy”) in place which applies to all UCITS funds (each a “UCITS” and together the“UCITS”) under its management. The Policy has been designed to discourage excessive risk taking, integrating in its performancemanagement systems risk criteria specific to the business units it covers. The policy has a governance structure aimed at preventinginternal conflicts of interest.

There are defined procedures in place for the creation, update, review and approval of the Policy as well as for communication andimplementation of the Policy. Senior Management, Human Resources, Compliance and other functions are all involved in thisprocess and the Policy is approved by Senior Management and the Board of managers of the Management Company.

Fixed remuneration is defined as base salary plus other benefits which may include pension contributions, life assurance premiumsor private medical insurance premiums. Levels of fixed remuneration are set with reference to job complexity, level ofresponsibility, performance and market benchmarking data. These levels are reviewed on a regular basis.

Variable remuneration is defined as annual bonuses, long term awards in the form of performance share grants or sales bonuspayments. Levels of variable remuneration are set with reference to overall corporate and business unit performance as well asindividual performance.

The full Policy is available at the registered office of the Management Company. Quantitative information relevant to the FranklinTempleton Shariah Funds is outlined below.

Total amount of fixed remuneration paid by FTIS and its delegates during the year ended September 30, 2018*,** €21,133

Total amount of variable remuneration paid by FTIS and its delegates during the year ended September 30, 2018 € 6,071

Number of staff of FTIS and in its delegates as at September 30, 2018 165

Total amount of compensation paid by FTIS and its delegates to Senior managers during the year ended September 30, 2018*,** € 7,880

Total amount paid by FTIS and its delegates to other members of staff who have a material impact on the profile of AIF during year endedSeptember 30, 2018*,** € -

*The total amount of compensation paid by FTIS has been allocated to FTSF based on its pro rata share of the average month endtotal net assets of the funds under management of FTIS for the year ended September 30, 2018.

** The total amount of compensation paid by the FTIS delegates has been allocated to FTSF based on its pro rata share of theaverage month end total net assets of the funds under management of the FTIS delegates for the year ended September 30, 2018.


Additional Information (continued)


Further information regarding Franklin Templeton Shariah Funds is available from the following Franklin Templeton offices:

EUROPEFRANCEFRANKLIN TEMPLETON FRANCE S.A.20, rue de la PaixF-75002 Paris, FranceTel: +33 (0)1 40 73 86 00 Fax: +33 (0)1 40 73 86 10www.franklintempleton.fr

LUXEMBOURGFRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l.8A, rue Albert Borschette, L-1246 LuxembourgB.P. 169, L-2011 LuxembourgGrand Duchy of LuxembourgTel: +352 46 66 67 1 Fax: +352 46 66 76www.franklintempleton.lu

SPAINFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDSucursal en EspañaJosé Ortega y Gasset, 29-6º28006 Madrid, SpainTel: +34 91 426 3600 Fax: +34 91 577 1857www.franklintempleton.com.es

SWITZERLANDFRANKLIN TEMPLETON SWITZERLAND LTDStockerstrasse 38CH-8002 Zurich, SwitzerlandTel: +41 (0)44 217 81 81 Fax: +41 (0)44 217 81 82www.franklintempleton.ch

UNITED KINGDOMLONDONFRANKLIN TEMPLETON INVESTMENT MANAGEMENT LIMITEDCannon Place78 Cannon StreetLondon EC4N 6HL United KingdomTel: +44 (0) 20 7073 8500 Fax: +44 (0) 20 7073 8700UK Freefone: 0800 305 306www.franklintempleton.co.uk

ASIASINGAPORETEMPLETON ASSET MANAGEMENT LTD7 Temasek Boulevard#38-03 Suntec Tower OneSingapore 038987Tel: +65 6241 2662 Fax: +65 6332 2295www.franklintempleton.com.sg

MIDDLE EAST AND AFRICASOUTH AFRICAFranklin Templeton Investments SA (PTY) LtdKildare HouseThe Oval, 1 Oakdale RoadNewlands, Cape Town, 7700South AfricaTel: +27 11 341 2300 Fax: +27 11 484 2301www.franklintempleton.co.za

UNITED ARAB EMIRATESFRANKLIN TEMPLETON INVESTMENTS (ME) LIMITEDGate Building EastWing, 2nd FloorDubai International Financial CentreP.O. Box 506613Dubai, United Arab EmiratesTel: +971 (4) 428 4100 Fax: +971 (4) 428 4140www.franklintempletongem.com


Franklin Templeton Office Directory

Please note that the websites mentioned above are directed at residents within the country stated on these websites. (Please refer to the website disclaimers).


http://www.franklintempleton.fr

http://www.franklintempleton.lu

http://www.franklintempleton.com.es

http://www.franklintempleton.ch

http://www.franklintempleton.co.uk

http://www.franklintempleton.com.sg

http://www.franklintempleton.co.za

Franklin Templeton International Services S.à r.l.8A, rue Albert BorschetteL-1246 LuxembourgGrand Duchy of LuxembourgTel: +352 46 66 67 1Fax: +352 46 66 76