Beruflich Dokumente
Kultur Dokumente
Source for data and information provided by Franklin Templeton Investments, as of the date of this presentation, unless otherwise noted. Benchmark related data provided by FactSet, as of the date of this presentation, unless otherwise noted.
For professional investor use only. Not for distribution to retail investors.
Table of Contents
Executive Summary.............................................................................................................. 27
Fund Description....................................................................................................................6
Portfolio Characteristics........................................................................................................28
Fund Overview....................................................................................................................... 7
Geographic Allocation...........................................................................................................29
Currency Allocation...............................................................................................................30
Sector Allocation...................................................................................................................31
Historical Performance..........................................................................................................32
Summary of Advantages.......................................................................................................34
Glossary...............................................................................................................................35
A Different Perspective..........................................................................................................14
Important Disclosures...........................................................................................................36
Appendix............................................................................................................38
Management Profiles....................................................................................... 39
Investment Philosophy..........................................................................................................19
Investment Process.............................................................................................................. 20
Global ResearchMultiple Perspectives/Lenses................................................................... 21
Country Research Can Help to Identify Potential Alpha Sources............................................ 22
Portfolio ConstructionGlobal Position Sizing....................................................................... 23
Risk Management Integral to the Process............................................................................. 24
Portfolio Positioning.............................................................................................................. 25
For professional investor use only. Not for distribution to retail investors.
For professional investor use only. Not for distribution to retail investors.
2958S
Tab 1
Tab 2
A Different Perspective
Tab 3
An Unconstrained Worldview
A Truly Global Research Platform
A High-Conviction Process
Tab 4
Tab 5
Summary of Advantages
Tab 6
Appendix
Tab 7
For professional investor use only. Not for distribution to retail investors.
1947
U.S. Equity
Templeton
Emerging Markets
Group
1987
Emerging Markets Equity
Global Equity
Templeton Global
Equity Group
1940
Franklin Mutual
Series
1949
Franklin Templeton
Fixed Income
Group
Franklin Local
Asset Management
1970
1993
Global Equity
Global Equity
International Equity
International Equity
U.S. Equity
International Equity
Global Listed
Infrastructure
1994
Multi-Asset Strategy
Global Tactical Asset
Allocation
Custom / Advisory
Solutions - Alternative &
Traditional
Hedge Fund Portfolios
(Multi- & Single Strategy)
& Replication
Style
Growth, Value,
Core/Hybrid
Core Value
Core Value
Deep Value
Single Sector,
Multi-Sector
Multi-Sector, Single- or
Multi-Region
AUM
160.5 Billion
36.2 Billion
99.5 Billion
59.5 Billion
281.0 Billion
45.4 Billion
3.8 Billion
33.3 Billion
Source: Franklin Templeton Investments (FTI), as of 30 September 2014 unless otherwise noted, based on latest available data. Total combined Assets Under Management (Total AUM) combines the U.S. and non-U.S. AUM of the investment
management subsidiaries of the parent company, Franklin Resources, Inc. (FRI) [NYSE: BEN], a global investment organisation operating as FTI. Total and platform AUM includes discretionary and advisory accounts, including pooled investment
vehicles, separate accounts and other vehicles, as well as some accounts that may not be eligible for inclusion in composites as defined by the firms policies. Total and platform AUM may also include advisory accounts with or without trading authority.
In addition, assets for which certain FTI advisers provide limited asset allocation advisory services, and assets that are not allocated to FTI products are not included in the AUM figures shown.
Franklin Templeton Solutions (FT Solutions) invests in various investment platforms advised by a number of investment advisory entities within FTI. Platform AUM reported for FT Solutions therefore includes certain AUM separately reported under each
utilised investment platform. Total AUM also includes assets managed by certain FTI advisers that do not form part of the selected investment platforms shown. As a result, the combined platform AUMs may not equal Total AUM and may be calculated
and reported separately for regulatory or other purposes under each investment adviser.
Each local asset manager may be considered as an entity affiliated with or associated to FTI by virtue of being a direct or indirect wholly-owned subsidiary of FRI, an entity or joint venture in which FRI owns a partial interest, which may be a minority
interest, or a third party asset management company to which investment advisory services have been delegated by an FTI adviser.
As at 30 June 2014, Mutual Series, Franklin Templeton Local Asset Management and Franklin Templeton Real Asset Advisors were renamed Franklin Mutual Series, Franklin Local Asset Management and Franklin Real Asset
Advisors, respectively. Please refer to the Important Disclosures slide for additional information.
For professional investor use only. Not for distribution to retail investors.
2947S
Fund Description
Seeks to:
Maximise, consistent with prudent investment management, total investment return consisting
of a combination of interest income, capital appreciation and currency gains
All investments involve risks, including possible loss of principal. Currency rates may fluctuate significantly over short periods of time, and can reduce
returns. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in
significant volatility and cause the fund to participate in losses (as well as enable gains) on an amount that exceeds the funds initial investment. The fund
may not achieve the anticipated benefits, and may realise losses when a counterparty fails to perform as promised. Foreign securities involve special risks,
including currency fluctuations and economic and political uncertainties. Investments in emerging markets involve heightened risks related to the same
factors, in addition to those associated with these markets smaller size and lesser liquidity. Investments in lower-rated bonds include higher risk of default
and loss of principal. Changes in interest rates will affect the value of the funds portfolio and its share price and yield. Bond prices generally move in the
opposite direction of interest rates. As the prices of bonds in the fund adjust to a rise in interest rates, the funds share price may decline. The fund is nondiversified, which involves the risk of greater price fluctuation than a more diversified portfolio. Changes in the financial strength of a bond issuer or in
a bonds credit rating may affect its value. These and other risk considerations are discussed in the funds prospectus.
For professional investor use only. Not for distribution to retail investors.
2948S
Fund Overview
Investment Objectives1
Seek to maximise, consistent with prudent investment management, total investment return consisting of a combination of interest
income, capital appreciation and currency gains
Take advantage of an unconstrained worldview independent from its benchmarkthe Barclays Multiverse Index
Seek to maintain a portfolio risk profile commensurate with the volatility of the benchmark
Investment Focus
Invest in global debt securities and global currencies across all sectors and utilises active currency management
Limit below-investment grade securities exposure
May include allocations to both developed and emerging markets
Potential Sources of Value Added
1. There is no assurance that the strategy will achieve its investment objectives. As stated above, the strategy is managed in a benchmark unconstrained manner.
For professional investor use only. Not for distribution to retail investors.
Global financial markets continued to be more broadly influenced by the pickup in growth in the United States and by economic stabilization in
During the third quarter, the funds negative absolute performance was primarily attributable to currency positions followed by overall credit
exposures. Interest-rate strategies contributed to absolute return.
The funds relative performance benefited from currency positions, while overall credit exposures and interest-rate strategies had a neutral effect.
The information is not a complete analysis of every aspect of any market, country, industry, security or portfolio. Statements of fact are from sources considered to be reliable, but no representation or warranty is made as to their completeness or
accuracy. Because market and economic conditions are subject to rapid change, opinions provided are valid only as of the date indicated. The views expressed may not be relied upon as investment advice and are not share class specific. An
investment in the Fund entails risks, which are described in the Funds prospectus and where available, in the relevant Key Investor Information Document. Special risks may be associated with a Funds investment in certain types of securities, asset
classes, sectors, markets, currencies or countries and in the Funds possible use of derivatives. These risks are more fully described in the Funds prospectus and should be read closely before investing.
For professional investor use only. Not for distribution to retail investors.
24%
Inception
Date
OUTPERFORMED
Templeton Global Total Return Fund - I(acc)
EURNet of Fees
18%
3 Yrs
Since
5 Yrs Incept
6.15
4.96
Templeton Global Total Return Fund - I(acc) EUR outperformed the Barclays
Multiverse Index 63 out of the 63 monthly rolling 3-year periods shown above
12%
6%
0%
UNDERPERFORMED
0%
6%
12%
18%
24%
All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations.
Annualized rolling periods are plotted on a monthly or quarterly basis as indicated. The leading diagonal line links points of return for the index (lower axis). For every point of return along this line there is a corresponding return for the fund represented by
the blue square (left axis). Any point above the line represents outperformance relative to the index for that period. Any point below the line represents underperformance relative to the index for that period.
The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance does not guarantee future results. Current performance may differ from figures
shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, performance may also be affected by currency fluctuations. Please visit franklintempleton.lu for current
performance.
Performance data may represent blended share class performance, e.g., hybrid created from an A(dis) share class which was converted to A(acc).
The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details.
For professional investor use only. Not for distribution to retail investors.
2949S
1.00
U.S. Bonds
0.05
0.78
0.75
U.S. Stocks
0.74
World Stocks1
0.82
FX Carry
0.86
Hedge Funds
0.81
Commodities
0.63
0.75
0.50
0.25
U.S. Bonds
U.S. Stocks
Hedge Funds
0 = no correlation
Sep-14
Jun-14
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
Dec-12
Sep-12
Jun-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
0.00
1. Source: Morgan Stanley Capital International (MSCI). All MSCI data is provided as is. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with the MSCI data or the information described herein.
Copying or redistributing the MSCI data is strictly prohibited.
Sources: Barclays, Citigroup, JP Morgan, Standard & Poors, Deutsche Bank, Hedge Fund Research, Inc. STANDARD & POORS, S&P and S&P 500 are registered trademarks of Standard & Poors Financial Services LLC.
Standard & Poors does not sponsor, endorse, sell or promote any S&P index-based product. The above chart is for illustrative and discussion purposes only. U.S. Bonds are represented by the Barclays U.S. Aggregate Index; U.S. Stocks are
represented by the S&P 500 Index; Hedge Funds are represented by the HFRI Fund Weighted Composite Index; High Yield Bonds are represented by the Citigroup High Yield Market Local Currency Index; World Stocks are represented by the MSCI
World Index; Commodities are represented by the S&P GSCI Official Close Index; Emerging Markets Sovereign Debt are represented by the JP Morgan Emerging Markets Bond Index EMBI Global Composite; FX Carry are represented by the Deutsche
Bank G10 Currency Future Harvest Index. The information is historical over the indicated time period and may vary significantly over other past time periods.
Indexes are unmanaged, and one cannot invest directly in an index.
Past performance is not an indicator or a guarantee of future performance. Charts are for illustrative and discussion purposes only.
For professional investor use only. Not for distribution to retail investors.
10
2950S
The chart below illustrates the performance of Templeton Global Total Return Fund-A(Mdis) USD. The chart below is supplemental
information to be considered in addition to, and not in lieu of, the Templeton Global Total Return Fund-A(Mdis) USD historical
performance information.
Average Advance:
20.52%; 8.9 months
50%
40%
30%
20%
10%
0%
-10%
-20%
Dec-03 Aug-04 May-05 Jan-06
Average Decline:
-8.88%; 3.4 months
Oct-06
Jul-07
Jul-12
Apr-13
Dec-13 Sep-14
Performance for the Templeton Global Total Return Fund-A(Mdis) USD is historical and may not reflect current or future performance. The performance information above is net of management fees and other expenses, assumes reinvestment of any
dividends and is in the fund currency stated. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations. If they were included, the returns would have been lower. The performance
shown relates to the Class A(Mdis) shares and the performance of other share classes may vary depending on their respective commissions and fees. Results may differ over other historical time periods.
Past performance is not an indicator or a guarantee of future performance.?Charts are for illustrative and discussion purposes only.
For professional investor use only. Not for distribution to retail investors.
11
2951S
70%
60%
50%
40%
30%
20%
10%
U.S. Equity
Dec-14
Sep-14
Jun-14
Mar-14
Dec-13
Jun-13
Sep-13
Mar-13
Dec-12
Jun-12
Sep-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Jun-10
Sep-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Jun-08
Sep-08
Mar-08
Dec-07
Sep-07
Jun-07
Mar-07
Dec-06
Jun-06
Sep-06
Mar-06
Dec-05
Jun-05
Sep-05
Mar-05
Dec-04
Sep-04
Jun-04
Mar-04
Dec-03
0%
Source: Franklin Templeton Investments, Bloomberg, as of 31 December 2014. Indexes represent U.S. Equity (S&P 500 Index), and U.S. Government Bonds (Citigroup 10-Year U.S. Treasury Index). Indexes are unmanaged, and one cannot invest
directly in an index.
Past performance is not an indicator or a guarantee of future performance.?Charts are for illustrative and discussion purposes only.
For professional investor use only. Not for distribution to retail investors.
12
2952S
Templeton Global Total Return Fund - A(Mdis) USD has provided a relatively strong risk/return profile
compared to other asset classes over the long term
10-Year Period
As of 30 September 2014
14
12
10
Return %
Hedge Funds
U.S. Bonds
U.S. Stocks
World Stocks
REITs
U.S. TIPS
Global Bonds
Cash
Commodities
0
-2
0
10
15
20
25
Standard Deviation %
Source: 2013 Morningstar, as of 30 September 2014. Global Bonds are represented by the Barclays Multiverse Index; U.S. Bonds are represented by the Barclays U.S. Aggregate Bond Index; U.S. TIPS are represented by the Barclays U.S. Treasury
TIPS Index; Emerging Market Bonds are represented by the JP Morgan Emerging Markets Bond Index Global; High Yield Bonds are represented by the Credit Suisse High Yield Index; Commodities are represented by the DJ UBS Commodity Index;
REITs are represented by the FTSE NAREIT All REITs Index; World Stocks are represented by the MSCI World Index; U.S. Stocks are represented by the S&P 500 Index; Hedge Funds are represented by the DJ Credit Suisse Tremont Hedge Fund
Index; Cash is represented by the P&R 90-Day U.S. Treasury Index. Indexes are unmanaged, and one cannot invest directly in an index.
All Morgan Stanley Capital International (MSCI) data is provided as is. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with the MSCI data described herein. Copying or redistributing the MSCI
data is strictly prohibited.
STANDARD & POORS, S&P and S&P 500 are registered trademarks of Standard & Poors Financial Services LLC. Standard & Poors does not sponsor, endorse, sell or promote any S&P index-based product. Volatility as measured by
annualised standard deviation.
Past performance is not an indicator or a guarantee of future performance. Charts are for illustrative and discussion purposes only.
For professional investor use only. Not for distribution to retail investors.
13
2245M
A Different Perspective
An Unconstrained Worldview
One of the largest, most well-established global fixed income teams, drawing on/leveraging
other fixed income teams across the platform
A High-Conviction Process
Research seeks to identify economic imbalances and isolate only desired risk exposure
For professional investor use only. Not for distribution to retail investors.
14
2241M
Expanding Opportunity
Opportunity Set
Set
140
140
120
120
100
100
80
80
US$70.4 tn
60
60
40
40
US$12.7 tn
US$17.6 tn
20
0
'89
'91
'92
Developing
'93
'94
'95
Developed ex-G3
'96
'97
G3
'99
'00
'01
'02
'03
'04
'06
'07
'08
'09
'10
'11
'12
20
As of June 2014
0
'14
Number of Countries
*Note: Excludes international organisations and offshore financial centres. Total is equal to US$100.8 trillion, as of March 2014.
Source: Bank for International Settlements, Securities Statistics and Syndicated Loans, June 2014.
Charts are for illustrative and discussion purposes only.
For professional investor use only. Not for distribution to retail investors.
15
0540M
On-the-Ground Research
One of the Worlds Largest Global Fixed Income and Equity Platforms
Edinburgh
Calgary
Warsaw
Toronto
London
San Mateo
Fort Lauderdale
Moscow
Bucharest
Seoul
Vienna
New York
Istanbul
Dubai
Hong Kong
Shanghai1
Bangkok
Nassau
Mumbai
Mexico City
Kuala Lumpur
Singapore
170 Global Fixed Income Professionals:
Global Fixed Income Offices
Rio de Janeiro
Buenos Aires
So Paulo
Cape Town
Melbourne
1. Includes individuals that are not employees of Franklin Resources, Inc. (FRI) or wholly owned subsidiaries of FRI. However, these individuals are part of our joint venture or strategic partnership relationships worldwide and are an integral component
of our overall fixed income research efforts.
2. This unit is comprised of investment professionals located in affiliates of and joint venture partners with Franklin Templeton Investments. The Local Asset Management Group is not part of, but does share research with, Franklin Templeton Fixed
Income Group.
3. Includes the Templeton Global Equity Group and the Templeton Emerging Markets Equity Group.
As of 30 September 2014.
For professional investor use only. Not for distribution to retail investors.
16
0539M
WEEKLY
WEEKLY
Global
Bond Group
(SAN MATEO, SINGAPORE)
Franklin Templeton
Fixed Income Group
AVERAGE EXPERIENCE: 16 YEARS*
MONTHLY
17 Investment Professionals
Templeton Emerging
Markets Equity
Research Team
AVERAGE EXPERIENCE: 14 YEARS*
Corporate Credit
Mortgage
Bank Loans
Municipals
Quantitative
Global
Bond Group
1. This unit is comprised of investment professionals located in affiliates of and joint venture partners with Franklin Templeton Investments. The Local Asset Management Group is not a part of, but does share research with, Franklin Templeton Fixed
Income Group.
Investment professionals include portfolio managers, analysts and traders. *Represents number of years of industry experience.
As of 30 September 2014.
For professional investor use only. Not for distribution to retail investors.
17
1808M
Executive Vice President, Portfolio Manager, Chief Investment Officer, Global Bonds
1 9 YE A R S *
Christine Zhu
Portfolio Manager
20 YEARS*
11 YEARS*
9 YEARS*
22 YEARS*
14 YEARS*
Vivek Ahuja
Laura Burakreis
Charlie Liu
Research Analyst
Research Associate
12 YEARS*
18 YEARS*
27 YEARS*
13 YEARS*
3 YEARS*
Hye Mi Ahn
Paolo Barbone
Michael Messmer
Matthew Henry
Andrew Mesic
Research Associate
Research Associate
Senior Trader
Trader
Trader
1 YEAR*
1 YEAR*
13 YEARS*
7 YEARS*
8 YEARS*
Elsa Goldberg
Christopher Kennedy
Richard Herbert
Product Manager
18 YEARS*
25 YEARS*
9 YEARS*
14 YEARS*
3 YEARS*
Dennis Lui
Pawel Chodorowski
Risk Analyst
9 YEARS*
11 YEARS*
6 YEARS*
Christopher Myers
Assistant Trader
10 YEARS*
AD D I T I O N AL R E S O U R C E S
Management
As of 30 September 2014.
CFA and Chartered Financial Analyst are trademarks owned by CFA Institute.
For professional investor use only. Not for distribution to retail investors.
18
1810M
Investment
Investment Philosophy
Philosophy
An unconstrained approach to global fixed income investing can lead to long-term value
potential
Integrating global macroeconomic analysis with in-depth country research can help identify
long-term economic imbalances
Actively allocating risk across three potential independent sources of alpha can deliver
diversification benefits and the potential for more consistent returns in diverse markets
For professional investor use only. Not for distribution to retail investors.
19
2573M
Investment
Process
Three Sources
of Potential Alpha Over Time
Three Potential
Sources of Alpha
Yield Curve
Ideas
Risk Modelling
VaR Analysis
Correlation Analysis
Scenario/Stress
Testing
Currency
Ideas
Management Team
Potential Return vs.
Expected Risk
Global Allocations
Macro
Models/Analysis
In-Depth
Country Analysis
Local Asset
Management
Perspective
Credit Ideas
FIPC
Recommendations
Identification
of High-Conviction
Opportunities
PORTFOLIO
Trading
Trade Structuring
Market Flows
Local Execution/
Settlement
Liquidity Analysis
Review/
Performance Attribution
1. This unit is comprised of investment professionals located in affiliates of and joint venture partners with Franklin Templeton Investments. The Local Asset Management Group is not a part of, but does share research with, Franklin Templeton Fixed
Income Group.
2. Fixed Income Policy Committee.
The above chart is for illustration and discussion purposes only.
For professional investor use only. Not for distribution to retail investors.
20
0537M
COUNTRY ANALYSIS
MACRO MODELLING
LOCAL PERSPECTIVE1
Local/regional perspectives
Fundamentals
Monetary and fiscal policy
Macroeconomic disequilibria
Capacity for change and
policy implementation
Country visits
Meetings with policy-makers
Trading
Short-term technicals and flows
Australia
Brazil
Canada
China2
India
Korea
Malaysia
Mexico
United Arab Emirates
1. This unit is comprised of investment professionals located in affiliates of and joint venture partners with Franklin Templeton Investments. The Local Asset Management Group is not a part of, but does share research with, Franklin Templeton Fixed
Income Group.
2. Includes individuals that are not employees of Franklin Resources, Inc. (FRI) or wholly owned subsidiaries of FRI. However, these individuals are part of our joint venture or strategic partnership relationships worldwide and are an integral component
of our overall fixed income research efforts.
For professional investor use only. Not for distribution to retail investors.
21
2583M
MEXICO
CREDIT
SOUTH KOREA
CURRENCY
AUSTRALIA
These hypothetical examples are for illustrative purposes only to demonstrate our investment process. They are not intended to reflect any past, current or future holdings of the portfolio and should not be considered as
investment advice or an investment recommendation.
For professional investor use only. Not for distribution to retail investors.
22
2953S
Max
(10%+)
Up to about 5 positions
Core (5%+)
Around 5 to 10 positions
Standard (15%)
Majority of positions
Note: Duration, currency and sovereign credit views are counted separately in position sizing.
The portfolio composition, characteristics and the number of exposures held by the fund will vary due to a variety of factors, such as, but not limited to, market conditions, asset size, interest rates, currency fluctuations, economic instability and
political developments.
For professional investor use only. Not for distribution to retail investors.
23
1854M
Recognised
Risks should be recognised and
understood at the security,
portfolio and operational level
Rational
Risk decisions should be an
intended and rational part of each
portfolios strategy
As of 30 September 2014.
For professional investor use only. Not for distribution to retail investors.
Rewarded
Every risk should be a potential
opportunity for a commensurate
long-term reward
24
2679M
Portfolio Positioning
As of 30 September 2014
Current Positioning
Continued to position for value in currencies across many developed- and emerging-market economies that we
believe have robust growth fundamentals
Focused on countries that have stayed ahead of the curve regarding fiscal, monetary and financial policy
CURRENCIES
Continued to position defensively with regard to duration while actively seeking opportunities that can potentially offer
positive real yields without taking undue interest-rate risk
Maintained exposures to a select number of countries that we believe have favourable conditions for yields to remain
even or shift lower
YIELD CURVE
Continued to selectively invest in credit opportunities across emerging markets, with a particular focus on credit
exposures in economies with strong growth indicators
CREDIT
The foregoing information reflects our analysis, opinions and portfolio information as of 30 September 2014. The views expressed are those of the individual portfolio managers only and may vary from the views expressed by portfolio managers
representing other investment platforms or strategies within Franklin Templeton Investments. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic
conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or portfolio. Statements of fact are from
sources considered to be reliable, but no representation or warranty is made as to their completeness or accuracy. Because market and economic conditions are subject to rapid change, opinions provided are valid only as of the date indicated.
References to particular securities are only for the limited purpose of illustrating general market or economic conditions, and are not recommendations to buy or sell a security or an indication of any actual portfolios holdings.
For professional investor use only. Not for distribution to retail investors.
25
2954S
Investing in Ireland when others feared the worst was a contrarian strategy that required us to have a steady hand.
CONTRARIAN STRATEGY
16
Entry
Opportunity
IRELAND
Third Quarter 2011
14
Country Analysis
In the second half of 2011, markets around the world began to panic in response to
fears of an Armageddon scenario in Europe.
We believed Irish government bonds were being sold indiscriminately and felt Ireland
did not face the crisis level of risk implied by its borrowing costs at the time.
12
10
8
6
Based on our fundamental research approach and contrarian views, look to take
advantage of indiscriminate selling of Irish government bonds.
4
2
0
Dec-09
Portfolio Decision
Position in Irish Government Debt
Apr-10
Aug-10
Dec-10
Apr-11
Aug-11
Dec-11
Apr-12
Aug-12
Dec-12
Note: this chart shows the yield to maturity of the J.P. Morgan Government Bond Index (GBI) Broad Ireland sub-index starting 31 December 2009. Templeton Global Total Return - A(Mdis) Fund entered the initial position of Irish government bonds
during July 2011. As of 30 September 2014, Templeton Global Total Return Fund had 5.89% of its total net assets invested in Irish sovereign debt. Holdings are subject to change. This information is for general information only as it is based
solely on Templeton Global Total Return Fund. The information is historical and may vary depending on a variety of factors such as portfolio size, market conditions and currency fluctuations just to name a few.
Source: J.P. Morgan Chase & Co., as of 10 January 2013. Franklin Templeton Investments, as of 30 September 2014.
Indexes are unmanaged, and one cannot invest directly in an index.
The chart above is intended solely to show the yield to maturity of the J.P. Morgan Government Bond Index (GBI) Broad Ireland sub-index and general market conditions and does not represent the performance of any holdings of
Templeton Global Total Return Fund.
Templeton Global Total Return Fund is a sub-fund of the Luxembourg-domiciled SICAV, Franklin Templeton Investment Funds.
Past performance is not an indicator or a guarantee of future performance. Charts are for illustrative and discussion purposes only.
For professional investor use only. Not for distribution to retail investors.
26
Executive Summary
Global Bond
United States
Investment Manager
United States
29 August 2003
1 September 2006
Fund Identifiers
Primary Benchmark
ISIN Code
LU0260871040
USD
SEDOL Code
B19VR87
EUR
Bloomberg Code
TGTIAEU LX
35,523,038,650.93
Asset Allocation
Number of Holdings
556
0.86%
Average Duration
1.22 Yrs
3.31 Yrs
Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar
nor its content providers are responsible for any damages or losses arising from any use of this information.
Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Percentage may not equal 100% due to rounding.
Past performance does not guarantee future results.
For professional investor use only. Not for distribution to retail investors.
27
Portfolio Characteristics
Index
1.22 Yrs
6.32 Yrs
Yield to Maturity
4.99%
1.93%
Yield to W orst
4.94%
1.91%
Current Yield
5.51%
3.11%
Average Duration
17.27
12.85
14.63
12.70
10.90
8.16
10%
4.50
0%
0.84
0.26
AAA AA-
A+
2.81
2.97 3.77
1.86 1.40
BB
BB-
B+
1.38
2.77
N/A
Investment
Grade
Non-Investment
Grade
64.08%
35.92%
NR
Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
Yield figures quoted should not be used as an indication of the income that has or will be received. Yield figures are based on the portfolio's underlying holdings and do not represent a payout of the portfolio.
Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations ('NRSRO'), such as Standard & Poor's, Moody's and Fitch. The ratings are an indication of an issuer's creditworthiness and typically range from AAA or
Aaa (highest) to D (lowest). When ratings from all three agencies are available, the middle rating is used; when two are available, the lowest rating is used; and when only one is available, that rating is used. Foreign government bonds without a specific
rating are assigned the country rating provided by an NRSRO, if available. If listed, the NR category consists of rateable securities that have not been rated by an NRSRO; the N/A category consists of nonrateable securities (e.g., equities). Cash and
equivalents (defined as bonds with stated maturities, or that can be redeemed at intervals, of seven days or less) as well as derivatives are excluded from this breakdown. As a result, the chart does not reflect the fund's total net assets.
Weightings as percent of total. Percentage may not equal 100% due to rounding.
For professional investor use only. Not for distribution to retail investors.
28
Geographic Allocation
EUROPE/AFRICA
NON-EMU EUROPE/AFRICA
Hungary
Poland
Republic of Serbia
Ukraine
Ghana
Sweden
Russia
United Kingdom
Kenya
South Africa
United Arab Emirates
Croatia
Switzerland
Denmark
Norway
EMU
Ireland
Portugal
Slovenia
Luxembourg
Netherlands
Italy
Germany
France
Spain
Austria
Belgium
Euro Community
AMERICAS
NON-USA AMER.
Mexico
Uruguay
Brazil
Canada
Ecuador
Bermuda
Peru
Chile
USA
United States
ASIA
ASIA, NON-JAPAN
South Korea
Malaysia
India
Philippines
Sri Lanka
Indonesia
Singapore
Australia
Kazakhstan
JAPAN
SUPRANATIONAL
OTHER
ST CASH AND CASH EQUIVALENTS
-1%
2.50
0.75
0.27
0.27
0.17
0.16
0.10
0.10
0.00
0.00
-0.08
1.24
1.23
1.18
0.91
0.45
0.14
0.09
0.08
0.13
9.91
5.69
3.75
1.76
0.66
0.12
0.04
0.03
25.12
7.32
4.35
3.70
2.63
2.41
2.25
1.18
0.45
0.25
0.25
0.14
0.13
0.07
0.00
0.00
6.55
6.55
11.33
5.37
7%
30.39
23.84
9.65
7.79
4.55
35.03
22.04
21.96
7.85
15%
23%
31%
39%
EUROPE/AFRICA
NON-EMU EUROPE/AFRICA
Hungary
Poland
Republic of Serbia
Ukraine
Ghana
Sweden
Russia
United Kingdom
Kenya
South Africa
United Arab Emirates
Croatia
Switzerland
Denmark
Norway
EMU
Ireland
Portugal
Slovenia
Luxembourg
Netherlands
Italy
Germany
France
Spain
Austria
Belgium
Euro Community
AMERICAS
NON-USA AMER.
Mexico
Uruguay
Brazil
Canada
Ecuador
Bermuda
Peru
Chile
USA
United States
ASIA
ASIA, NON-JAPAN
South Korea
Malaysia
India
Philippines
Sri Lanka
Indonesia
Singapore
Australia
Kazakhstan
JAPAN
SUPRANATIONAL
OTHER
ST CASH AND CASH EQUIVALENTS
-31%
-0.78
13.64
7.17
3.98
3.69
2.60
2.41
1.32
0.76
-5.82
0.24
-0.03
-0.02
0.09
-0.81
-0.41
-0.40
-14.41
5.30
2.17
0.68
0.12
-1.67
-4.22
-5.46
-6.01
-2.75
-0.81
-1.10
-0.08
-12.03
8.88
7.77
2.81
-1.62
0.65
0.11
-0.05
-0.07
-30.10
-30.10
2.48
1.13
1.02
1.17
0.61
0.25
-1.45
0.05
-14.52
-2.08
-21%
-11%
-1%
10.04
5.15
4.55
18.07
17.00
7.85
9%
Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Percentage may not equal 100% due to
rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
For professional investor use only. Not for distribution to retail investors.
19%
29
Currency Allocation
AMERICAS
US DOLLAR
NON-USA AMER.
Mexican Peso
Uruguayan Peso
Brazilian Real
Canadian Dollar
Chilean Peso
Peru Nuevo Sol
Colombian Peso
ASIA
ASIA, NON-JAPAN
South Korean Won
Malaysian Ringgit
Singapore Dollar
Indian Rupee
Philippine Peso
Sri Lanka Rupee
Indonesian Rupiah
Australian Dollar
Hong Kong Dollar
New Zealand Dollar
Thailand Baht
JAPANESE YEN
EUROPE/AFRICA
PERIPHERY EUROPE/E. EUROPE
Polish Zloty
Hungarian Forint
Swedish Krona
Serbian Dinar
Ukraine Hryvna
Swiss Franc
Czech Koruna
Danish Krone
Israeli Shekel
Norwegian Krone
Romania Leu
Russian Ruble
Turkish Lira
British Pound
AFRICA
Ghanaian Cedi
Nigerian Naira
South Africa Rand
EURO
-32%
12.07
8.13
4.18
1.23
1.13
0.04
0.00
19.17
5.35
3.31
2.58
1.18
0.91
0.00
0.00
0.00
0.00
-22.40
-10.43
-7%
41.57
14.69
13.55
7.75
5.35
3.29
2.33
0.07
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.01
1.99
1.99
0.00
0.00
-31.20
18%
91.26
64.48
26.78
18.78
43%
68%
93%
AMERICAS
US DOLLAR
NON-USA AMER.
Mexican Peso
Uruguayan Peso
Brazilian Real
Canadian Dollar
Chilean Peso
Peru Nuevo Sol
Colombian Peso
ASIA
ASIA, NON-JAPAN
South Korean Won
Malaysian Ringgit
Singapore Dollar
Indian Rupee
Philippine Peso
Sri Lanka Rupee
Indonesian Rupiah
Australian Dollar
Hong Kong Dollar
New Zealand Dollar
Thailand Baht
JAPANESE YEN
EUROPE/AFRICA
PERIPHERY EUROPE/E. EUROPE
Polish Zloty
Hungarian Forint
Swedish Krona
Serbian Dinar
Ukraine Hryvna
Swiss Franc
Czech Koruna
Danish Krone
Israeli Shekel
Norwegian Krone
Romania Leu
Russian Ruble
Turkish Lira
British Pound
AFRICA
Ghanaian Cedi
Nigerian Naira
South Africa Rand
EURO
-58%
11.68
8.13
3.67
-1.40
1.12
0.00
-0.14
1.40
20.73
23.07
13.59
13.37
43.80
38.16
5.19
3.31
2.45
1.18
0.73
-1.28
-0.02
-0.13
-0.24
-36.76
-45.19
10.28
7.53
5.27
2.80
2.33
0.07
-0.74
-0.10
-0.29
-0.13
-0.13
-0.05
-0.09
-0.19
-6.02
1.71
1.99
-0.05
-0.23
-57.18
-37%
-16%
Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
For professional investor use only. Not for distribution to retail investors.
5%
26%
47%
30
Sector Allocation
65.84
Investment Grade
Non-Investment Grade
Corporate Bonds
11.69
Corporate Bonds
10.98
Non-Investment Grade
Sovereign Bonds
Investment Grade
10.41
-8.81
6.83
Investment Grade
0.71
-15.63
Sovereign Bonds
10.87
Non-Investment Grade
11.64
Non-Investment Grade
10.88
Non-Investment Grade
Investment Grade
22.05
Investment Grade
54.96
6.74
Non-Investment Grade
10.05
9.60
Investment Grade
0.82
-2.86
Convertibles
0.03
Convertibles
0.03
Municipal
0.00
Municipal
-0.28
Securitised
0.00
Securitised
-14.59
CMBS / ABS
0.00
CMBS / ABS
MBS
0.00
MBS
-10.84
N/A
0.00
N/A
-3.04
US Treasuries/Agencies
0.00
US Treasuries/Agencies
Derivatives
-1.00
Derivatives
-1.00
Supranational
0.13
Supranational
-2.08
Others
0.04
Others
0.03
Equity
0.02
Equity
0.02
Others
0.02
Others
0.01
-14.51
12.41
12%
-0.70
26%
40%
54%
68%
-16%
12.41
-8%
0%
Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
For professional investor use only. Not for distribution to retail investors.
7%
15%
23%
31
Historical Performance
Inception
Date
3 Mths
YTD
1 Yr
3 Yrs
5 Yrs
7 Yrs
Since
Incept
1.9.2006
5.08
13.40
13.23
39.97
82.68
129.92
137.93
2.30
11.97
10.05
12.86
34.74
52.82
49.03
Inception
Date
1 Yr
3 Yrs
5 Yrs
7 Yrs
Since
Incept
1.9.2006
13.23
11.86
12.81
12.63
11.08
10.05
4.11
6.15
6.25
4.96
All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations.
The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance does not guarantee future results. Current performance may differ from figures
shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, performance may also be affected by currency fluctuations. Please visit franklintempleton.lu for current
performance.
Performance data may represent blended share class performance, e.g., hybrid created from an A(dis) share class which was converted to A(acc).
The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details.
For professional investor use only. Not for distribution to retail investors.
32
32%
24.16
22%
18.11
13.40
12%
13.20
11.97
3.23
2%
-8%
9.13
9.08
-0.10
YTD 2014
4.67
2.79
2.01
0.20
-6.42
2013
2012
2011
2010
2009
2008
-1.49
2007
All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations.
The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance does not guarantee future results. Current performance may differ from figures
shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, performance may also be affected by currency fluctuations. Please visit franklintempleton.lu for current
performance.
Performance data may represent blended share class performance, e.g., hybrid created from an A(dis) share class which was converted to A(acc).
For professional investor use only. Not for distribution to retail investors.
33
1828M
Summary
Summary of
of Advantages
Advantages
An Unconstrained Worldview
A Truly Global Research Platform
A High-Conviction Process
For professional investor use only. Not for distribution to retail investors.
34
Glossary
Average Duration: Also known as 'effective' or 'Macaulay' duration it is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in
interest rates. Duration is expressed as a number of years. It's an indication of an issue's coupon relative to its maturity. Rising interest rates mean falling bond prices; declining interest
rates mean rising bond prices. The bigger the duration number, the greater the interest-rate risk; (or reward for bond prices). The weighted average duration of a fund reflects the
effective duration of the underlying issues, based on the size of each holding. This value differs with 'Modified Duration' which is modified for the market (dirty) price of an issue.
Current Yield: In general, yield is the annual rate of return for any investment and is expressed as a percentage. With bonds, yield is the effective rate of interest paid on a bond,
calculated by the coupon rate divided by the bond's market price. Bonds are typically issued with fixed coupon payments (regular cash payments of a fixed amount). Bonds are typically
valued in terms of the their yield - what dollar amount as coupon payments is received as compared to the bond's current market price. For a bond fund the current yield may be the
disclosed yield paid out to investors.
Yield to Maturity: Yield to Maturity ('YTM') also known as the 'Gross Redemption Yield' or 'Redemption Yield'. The rate of return anticipated on a bond if it is held until the maturity date.
YTM is considered a long-term bond yield expressed as an annual rate. The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to
maturity. It is also assumed that all coupons are reinvested at the same rate.
Yield to Worst: The yield to maturity if the worst possible bond repayment takes place. If market yields are higher than the coupon, the yield to worst would assume no prepayment. If
market yields are below the coupon, the yield to worst would assume prepayment. In other words, yield to worst assumes that market yields are unchanged. Normally this value is not
aggregated since it varies but if a weighted average value is used for a Fund then the figure will reflect the values of the underlying issues, based on the size of each holding.
For professional investor use only. Not for distribution to retail investors.
35
Important Disclosures
This document is intended to be of general interest only and does not constitute legal or tax advice nor is it an offer for shares or invitation to apply for shares of the Luxembourg-domiciled SICAV Franklin
Templeton Investment Funds (the Fund). Nothing in this document should be construed as investment advice. Given the rapidly changing market environment, Franklin Templeton Investments disclaims
responsibility for updating this material.
Opinions expressed are the authors at publication date and they are subject to change without prior notice.
Subscriptions to shares of the Fund can only be made on the basis of the current prospectus and, where available, the relevant Key Investor Information Document, accompanied by the latest available
audited annual report and the latest semi-annual report if published thereafter.
The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator nor a guarantee
of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by
currency fluctuations.
An investment in the Fund entails risks which are described in the Funds prospectus and, where available, in the relevant Key Investor Information Document.
In emerging markets, the risks can be greater than in developed markets. Investments in derivative instruments entail specific risks that may increase the risk profile of the fund and are more fully described
in the Funds prospectus and, where available, in the relevant Key Investor Information Document.
No shares of the Fund may be directly or indirectly offered or sold to nationals or residents of the United States of America.
Shares of the Fund are not available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any
plans to invest.
Any research and analysis contained in this document has been procured by Franklin Templeton Investments for its own purposes and is provided to you only incidentally.
References to particular industries, sectors or companies are for general information and are not necessarily indicative of a funds holding at any one time.
Please consult your financial advisor before deciding to invest. A copy of the latest prospectus, the relevant Key Investor Information Document, the annual report and semi-annual report, if published
thereafter can be found on our website www.franklintempleton.lu or can be obtained, free of charge, from Franklin Templeton International Services, S. r.l. - Supervised by the Commission de Surveillance
du Secteur Financier 8A, rue Albert Borschette, L-1246 Luxembourg - Tel: +352-46 66 67-1 - Fax: +352-46 66 76.
For professional investor use only. Not for distribution to retail investors.
36
For professional investor use only. Not for distribution to retail investors.
37
Appendix
38
Management Profiles
39
1834M
Dr. Hasenstab is a member of the Fixed Income Policy Committee and is a portfolio manager for a number of Franklin
Templeton fixed income and hybrid funds and strategies.
Dr. Hasenstab holds a Ph.D. in economics from the Asia Pacific School of Economics and Management at Australian National
University, a masters degree in economics of development from the Australian National University and a B.A. in international
relations/political economy from Carleton College in the United States.
CHRISTINE ZHU
Quantitative Research Analyst,
Portfolio Manager
Franklin Templeton Fixed Income Group
Franklin Advisers, Inc.
San Mateo, California, United States
For professional investor use only. Not for distribution to retail investors.
Dr. Desai is responsible for shaping the research agenda of the global bond group, and providing macroeconomic analysis to the
fixed income team. Dr. Desai acts as a key resource for the firms Fixed Income Policy Committee, which provides policy views
on sectors, markets and currencies.
Dr. Desai holds a Ph.D. in economics from Northwestern University and earned a B.A. with honours from Delhi University in
New Delhi.
Ms. Zhu is a quantitative research analyst and portfolio manager in the global bond group of the Franklin Templeton Fixed
Income Group. She focuses on portfolio construction, derivatives/quantitative strategies in global market, performance attribution
and risk management. Ms. Zhu joined Franklin Templeton in 2007.
Ms. Zhu received an M.B.A. with investment focus from the University of California, Berkeley, and earned her M.S. in computer
science and engineering from the University of Notre Dame. She is fluent in Mandarin.
Dr. Ho joined Franklin Templeton Investments in 2005. Currently, he is a senior global macro & research analyst for the Franklin
Templeton Investments global bond group. In this position, he specialises in global macroeconomic analysis and global
exchange rate modelling.
Dr. Ho earned both B.A. and Ph.D. in economics from the University of California, Berkeley. His prior research analysed
international monetary arrangements. He is also fluent in Mandarin and Cantonese.
40
1834M
Dr. Shin joined Franklin Templeton in 2005 as a research analyst and moved to senior global macro & research analyst for
Franklin Templeton Investments global bond group. In this position, he analyses global macroeconomic trends and up-to-date
developments in emerging market economies. Dr. Shin is an expert of Asian economies, with a focus on Southeast Asia. He
also specialises in monetary and global macroeconomic analysis with a focus on world real-interest-rate modelling.
Dr. Shin holds a Ph.D. in economics from the University of California, Davis and a B.A. in business administration from Seoul
National University in South Korea. Dr. Shins prior research analysed optimal choice of monetary policy regimes. He is also
fluent in Korean.
Dr. Tan is a senior global macro & research analyst in the global bond group. In this position, he specialises in global
macroeconomic modelling. In addition, he has a regional research focus on Asia and Scandinavia. He joined Franklin Templeton
Investments in January 2008 as a research analyst.
Dr. Tan holds a Ph.D. in economics from the Australian National University and a B.Sc. (First Class Honors) in economics from
the London School of Economics. He is also fluent in Mandarin and Cantonese.
Dr. Valderrama joined Franklin Templeton Investments in 2009 as research analyst and moved to senior global macro
& research analyst in the global bond group. In this position, Dr. Valderrama specialises in global macroeconomics. In addition,
he has a regional focus on the United States, Canada, Latin America, Australia, New Zealand and the United Kingdom.
Dr. Valderrama holds a Ph.D. and an M.A. in economics from Duke University and a B.A. in economics from Cornell University.
He is also fluent in Spanish.
VIVEK AHUJA
Mr. Ahuja joined Franklin Templeton Investments in 2006 and has over 17 years of investment and research experience in fixed
income markets. Prior to joining Franklin Templeton, Mr. Ahuja has worked in various financial institutions in India in the areas of
fixed income investments and macro research.
For professional investor use only. Not for distribution to retail investors.
Mr. Ahuja earned his bachelor of commerce and masters degree in finance from Mumbai University.
41
1834M
MICHAEL MESSMER
Senior Trader
Global Bonds
Franklin Templeton Fixed Income Group
Prior to joining Franklin Templeton, Ms. Burakreis worked in various parts of the World Bank in Washington, D.C. At the World
Bank, she assisted governments in the Middle East and North Africa design and implement financial sector reforms. Ms.
Burakreis also negotiated the terms of debt issued by the International Bank of Reconstruction and Development in emerging
and developed markets.
Ms. Burakreis holds a M.B.A. in finance from the University of Chicago, Graduate School of Business (1987) and an M.A. from
the University of Chicago, Center for Middle Eastern Studies (1990). She earned her B.A. in economics from The College at the
University of Chicago (1984).
Dr. Korpos joined Franklin Templeton Investments in 2011 as a research analyst in the global bond group. He is an international
fixed income research analyst with a regional focus on Central and Eastern European countries.
Dr. Korpos received a Ph.D. in economics from Tilburg University in the Netherlands, where he investigated monetary regimes in
open economies. He holds a B.A. in finance and banking from Babes-Bolyai University in Romania, and an M.A. in economics
from the Central European University in Hungary.
Mr. Messmer is the lead trader for Franklin Templeton Investments global bond group. Mr. Messmer is responsible for trading
investment grade and sub-investment grade global government treasuries, currencies and sovereign bonds. Mr. Messmer also
provides relative value, yield curve and technical analysis. He joined Franklin Templeton in 2001 and participated in the Futures
Associates Program.
Mr. Messmer earned his B.S. in economics with an emphasis in finance from Southern Methodist University.
MATTHEW HENRY
Mr. Henry is a trader for the Franklin Templeton global bond group. Mr. Henry trades investment grade and sub-investment
grade global bonds and currencies. Mr. Henry joined Franklin Templeton in 2006 and participated in the Futures Associate
Program.
Trader
Global Bonds
Franklin Templeton Fixed Income Group
Mr. Henry holds B.S. in management science and engineering from Stanford University.
For professional investor use only. Not for distribution to retail investors.
42
1834M
Mr. Mesic is a trader for the Franklin Templeton global bond group, supporting foreign exchange and investment grade global
bond traders. Mr. Mesic joined Franklin Templeton in 2007 and participated in the Futures Associate Program.
Mr. Mesic holds a B.A. in economics and international relations from the University of California, San Diego.
The Global Bond Group also includes 3 experienced research associates and 1 assistant trader.
For professional investor use only. Not for distribution to retail investors.
43
44
1782M
Name
Title
Years
Experience
John Beck
27
Portfolio Manager
20
Michael Materasso
Portfolio Manager
42
Warren Keyser
Portfolio Manager
29
19
29
14
Fatma Charlwood
11
Philip Spires
Senior Trader
19
CFA and Chartered Financial Analyst are trademarks owned by CFA Institute.
As of 30 September 2014.
For professional investor use only. Not for distribution to retail investors.
45
1785M
Name
Title
Years
Experience
31
David Diao1,2
20
11
Denis Ferrari1
18
Marco Freire1
Hanifah Hashim1
20
10
Ivy Choo1
16
20
Vagner Alves1
Chris Siniakov
20
Leandro Teixeira
Trader, Brazil
19
Mohieddine Kronfol1,2
18
Joshua Rout
Sharif Eid
36
Franck Nowak
12
Santosh Kamath1
21
Sachin Desai1
14
14
Pallab Roy1
13
Sumit Gupta
10
24
27
20
Name
Title
20
19
CFA1
18
Ki Ram Moon,
CFA1
Brian Calder
Trader, Canada
15
Sevrika Fisher
Trader, Canada
Kangho Kim
Local Asset Management is comprised of investment professionals located in affiliates of and joint venture partners with Franklin Templeton Investments. The Local Asset Management Group is not a part of, but does share research with, Franklin
Templeton Fixed Income Group.
1. Local Asset Management professional.
2. Individual is not an employee of Franklin Resources, Inc. (FRI). However, this individual is part of our joint venture acquisitions worldwide and is an integral component of our overall fixed income research efforts.
CFA and Chartered Financial Analyst are trademarks owned by CFA Institute.
As of 30 September 2014.
For professional investor use only. Not for distribution to retail investors.
46
0312M
Years
with Firm
27
26
Michael J. Materasso
42
26
Sheila Amoroso
Municipals
28
28
28
23
John W. Beck
27
24
20
19
15
Bank Loans
18
18
Warren A. Keyser
29
28
IG Credit
26
11
William F. Ledward
Emerging Markets
29
17
18
18
Municipals
27
21
23
23
Quantitative
26
18
20
26
19
Name
Responsibility
Average Years
Education
47
48
2010
2011
2012
2013
Currencies2
Credit
The information is historical and may not reflect current or future portfolio characteristics.
1. Performance attribution may change depending on factors such as market and economic conditions.
2. Currencies can be overstated because they can be used to hedge out certain market risks, such as interest rate risk, due to the negative correlation between the exchange rate and the factor that the team is attempting to hedge.
A particular factor might also affect positions that are attributed to one or both of the other categories. Therefore, decomposing the attribution into these three categories, without regard to hedging, could lead currencies to be overstated.
Past performance is not an indicator or a guarantee of future performance. Charts are for illustrative and discussion purposes only.
For professional investor use only. Not for distribution to retail investors.
49
50
2956M
Potential Alpha Sources Can Vary from Country to Country with the Economic Cycle
Strong Growth Environment
Yield Curve
Yield Curve
Currencies
Currencies
Credit Quality
Credit Quality
Hypothetical
Exposure
EXTEND Duration
HEDGED Currency
Hypothetical
REDUCE Credit
Exposure
REDUCE
Duration
UNHEDGED Currency
EXTEND
Credit
This is a hypothetical example intended solely to illustrate our investment process. It is for illustrative purposes only and is not intended to reflect any actual positioning of the portfolio and does not constitute investment advice.
For professional investor use only. Not for distribution to retail investors.
51
2957S
The information is historical, may not reflect current or future portfolio characteristics.
For professional investor use only. Not for distribution to retail investors.
Sep-14
Jun-14
Mar-14
Dec-13
Sep-13
0
Jun-13
0
Mar-13
Dec-12
Sep-12
Jun-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
Mar-09
Dec-08
Sep-08
10
Jun-08
10
Mar-08
11
Dec-07
11
Sep-07
52