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A systematic withdrawal plan lets you sell fund shares according to a regular schedule of your choosing. Its a convenient way to withdraw a fixed amount of income from your mutual fund account(s) over time.

Systematic Withdrawal Plan (SWIP) basics:

It is important that you work closely with your financial advisor to determine not only the amount you would like withdrawn from your mutual fund account(s) on a scheduled basis, but also which mutual fund account(s) it should be drawn from, and the frequency of the SWIP. An advisor can also help you understand any sales charges or tax implications when selling shares. If you are not currently working with a financial advisor, click here to find a qualified financial advisor in your area.

You and your financial advisor will need to determine the following about your SWIP:

• Amount of the withdrawal

This can be a set dollar amount, a set share amount or a percentage of your total account value

Each withdrawal is processed automatically according to the details of your plan. Remember that market prices do fluctuate, so if youre withdrawing a fixed dollar amount, the shares sold per transaction may fluctuate according to market trends.

How to receive proceeds from each sale

Your choices for how to receive the money from each sale is dependent upon the number of funds you own.

If you own a single fund with us, you can receive the proceeds from your SWIP via check or direct deposit. Your check will usually arrive in 7 to 10 business days from the date it was issued. If you wish to receive your funds sooner, you can have the proceeds deposited directly into a checking or savings account linked to your mutual fund account in as little as three business days. You will not only receive your funds sooner with direct deposit, but it also reduces fund expenses and excess paper waste. Please see the Electronic Funds Transfer section for more information on how to add banking information to your account.

If you have multiple fund accounts with us, you may be able to direct the money from each sale into purchases of additional shares in your other fund account(s). This choice may be appropriate for someone taking required minimum distributions from retirement accounts but still wants the money to keep working as part of an overall investment strategy. Consult your financial advisor to determine if this is appropriate for you.

How to start your plan

You can establish a SWIP online if youve registered for online account access at franklintempleton.com. Just sign in and select Account Options under the My Home tab and click View. If you want to have the proceeds from your SWIP directed to a bank account but do not currently have a bank account linked to your fund account, you will need to complete the Account Options Form .

If youre not registered for online account access and/or need to add a bank account to your fund account, simply complete the applicable sections of the Account Options Form .

If you have questions or need assistance completing the form, please contact Shareholder Services at (800) 632-2301. Customer Service Representatives are available Monday through Friday, from 5:30 a.m. to 5:00 p.m. Pacific Time.

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