Franklin Templeton Investment Funds Templeton Global Total Return Fund - A (Mdis) USD

Transcription

1 Templeton Global Macro Data as of February 28, 2018 Franklin Templeton Investment Funds - A (Mdis) USD

2 Table of Contents Summary...3 Historical Performance...4 Calendar Year Returns...5 Performance Risk Statistics... 6 Duration Contribution by Currency... 7 Portfolio Characteristics...8 Geographic Allocation...9 Currency Allocation...10 Sector Allocation...11 Quality Allocation...12 Maturity Allocation...13 Duration Breakdown Glossary...15 Important Disclosures

3 Summary - A (Mdis) USD Morningstar Category Global Bond Investment Style Fixed Income - Total Return Fund Inception Date August 29, 2003 Share Class Inception Date August 29, 2003 Benchmark Bloomberg Barclays Multiverse Index Base Currency for Fund USD Base Currency for Share Class USD Total Net Assets (USD) 19,988,305, Asset Allocation Fixed Income: 86.35% Cash & Cash Equivalents: 13.64% Equity: 0.02% Number of Holdings 218 Total Expense Ratio 1.42% Distribution Yield 7.65% Summary of Investment Objectives The Fund aims to maximize total investment return consisting of a combination of interest income, capital appreciation, and currency gains by investing principally in a portfolio of fixed and/or floating rate debt securities and debt obligations issued by government and government-related issuers or corporate entities worldwide. The Fund may invest in investment grade and non-investment grade debt securities. The Fund may also use various currency-related and other transactions involving derivative instruments. Portfolio Manager(s) Michael Hasenstab, PhD Sonal Desai, PhD Fund Identifiers ISIN Code Fund Ratings (February 28, 2018) United States United States LU SEDOL Code Bloomberg Code TGTRFAD LX Overall Morningstar Rating ««««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. Asset Allocation figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details. Past performance is not an indicator or a guarantee of future performance. 3

4 Historical Performance - A (Mdis) USD Annualized Performance (%) Inception Date 1 Yr 3 Yrs 5 Yrs 10 Yrs - A (Mdis) USD Net of Fees Bloomberg Barclays Multiverse Index Since Incept Cumulative Performance (%) Inception Date 1 Mth 3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs - A (Mdis) USD Net of Fees Bloomberg Barclays Multiverse Index Since Incept 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. 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. 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 or a guarantee of future performance. 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. 4

5 Calendar Year Returns - A (Mdis) USD 37% % % % % YTD A (Mdis) USD Net of Fees Bloomberg Barclays Multiverse Index 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. 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. 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 or a guarantee of future performance. 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. 5

6 Performance Risk Statistics - A (Mdis) USD Performance Risk Statistics 1 Yr 3 Yrs* 5 Yrs* 10 Yrs* Standard Deviation (%): - A (Mdis) USD Bloomberg Barclays Multiverse Index Tracking Error (%)^^ Information Ratio^^ Sharpe Ratio The base currency of a fund determines the risk-free rate index used in calculating certain risk statistics on this page. A fund that is based in USD uses the US T-Bill Index as the risk free rate return, a EUR-based fund uses the Euro 3-Month T-Bill Index, a GBP-based fund uses the UK Treasury Bills 3 Month Index, a JPY-based fund uses the Japan Financing Bill 3 Month Index, and an AUD-based fund uses the Australia T-Note 3 Month Index. ^^Measured against the Bloomberg Barclays Multiverse Index. *Annualized. Past performance is not an indicator or a guarantee of future performance. 6

7 Duration Contribution by Currency vs. Bloomberg Barclays Multiverse Index ASIA 1.18 ASIA EX-JAPAN 1.18 Indonesian Rupiah 0.55 Indian Rupee 0.40 South Korean Won 0.21 Philippine Peso 0.02 JAPANESE YEN 0.00 MIDEAST/AFRICA 0.13 Ghanaian Cedi 0.12 Egyptian Pound 0.01 EUROPE 0.00 Euro 0.00 NON-EURO 0.00 AMERICAS NON-U.S. DOLLAR 0.89 Brazilian Real 0.33 Colombian Peso 0.28 Argentine Peso 0.16 Mexican Peso 0.12 U.S. DOLLAR % -1% 1% 3% Regions Sub-Regions Currencies Portfolio (Yrs) Index (Yrs) Over/Under (Yrs) ASIA ASIA EX-JAPAN Indonesian Rupiah Indian Rupee South Korean Won Philippine Peso Australian Dollar Thailand Baht Other JAPANESE YEN MIDEAST/AFRICA Ghanaian Cedi Egyptian Pound Israeli Shekel EUROPE Euro NON-EURO Euro British Pound Swiss Franc Danish Krone Other AMERICAS NON-U.S. DOLLAR Brazilian Real Colombian Peso Argentine Peso Mexican Peso Canadian Dollar U.S. DOLLAR Duration shown is the option-adjusted duration. Duration is an indication of a fund s sensitivity to changes in interest rates. The option-adjusted duration formula takes into account embedded call options and redemption features that impact a bond s expected cash flows and thus, its interest rate sensitivity. All portfolio holdings are subject to change. Figures reflect certain derivatives held in the portfolio (or their underlying reference assets). Information is historical and may not reflect current or future portfolio characteristics. 7

8 Portfolio Characteristics vs. Bloomberg Barclays Multiverse Index Portfolio Average Credit Quality BBB A+ Average Duration Yrs 6.89 Yrs Average Weighted Maturity 3.14 Yrs 8.66 Yrs Yield to Maturity 9.33% 2.12% Yield to Worst 9.33% 2.10% Index Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Average Duration, Average Weighted Maturity, Yield to Maturity and Yield to Worst reflect certain derivatives held in the portfolio (or their underlying reference assets). Source: Franklin Templeton Investments. The average credit quality (ACQ) rating may change over time. The portfolio itself has not been rated by an independent rating agency. The letter rating, which may be based on bond ratings from different agencies (or internal ratings for unrated bonds, cash and equivalents), is provided to indicate the average credit rating of the portfolio's underlying investments and generally ranges from AAA (highest) to D (lowest). For unrated bonds, cash and equivalents, ratings may be assigned based on the ratings of the issuer, the ratings of the underlying holdings of a pooled investment vehicle, or other relevant factors. The ACQ is determined by assigning a sequential integer to all credit ratings AAA to D, taking a simple, asset-weighted average of investments by market value and rounding to the nearest rating. The risk of default increases as a bond's rating decreases, so the ACQ provided is not a statistical measurement of the portfolio s default risk because a simple, weighted average does not measure the increasing level of risk from lower-rated bonds. The ACQ may be lower if cash and equivalents are excluded from the calculation. The ACQ is provided for informational purposes only. Derivative positions are not reflected in the ACQ. 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. 8

9 Geographic Allocation vs. Bloomberg Barclays Multiverse Index AMERICAS NON-US AMERICAS Mexico Brazil Argentina Colombia Other USA ASIA ASIA EX-JAPAN India Indonesia South Korea Philippines Other JAPAN MIDDLE EAST / AFRICA Ghana Egypt Kenya Other EUROPE NON-EMU EUROPE Ukraine EMU EUROPE SUPRANATIONAL OTHER ST CASH AND CASH EQUIVALENTS % 9% 20% 31% 42% 53% Regions Sub-Regions Countries Portfolio % Index % Over/Under % AMERICAS NON-US AMERICAS Mexico Brazil Argentina Colombia Canada Other USA ASIA ASIA EX-JAPAN India Indonesia South Korea Philippines Australia China Malaysia Thailand Singapore Other JAPAN MIDDLE EAST / AFRICA Ghana Egypt Kenya Israel Other EUROPE NON-EMU EUROPE Ukraine United Kingdom Sweden Portfolio % Index % Over/Under % Switzerland Denmark Russia Poland Norway Turkey Other EMU EUROPE France Germany Italy Spain Netherlands Belgium Austria Ireland Finland Portugal Other SUPRANATIONAL OTHER ST CASH AND CASH EQUIVALENTS Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. 9

10 Currency Allocation vs. Bloomberg Barclays Multiverse Index AMERICAS U.S. DOLLAR NON-U.S. DOLLAR Mexican Peso Brazilian Real Argentine Peso Colombian Peso Peru Nuevo Sol MIDEAST/AFRICA Ghanaian Cedi Egyptian Pound ASIA ASIA EX-JAPAN Indian Rupee Indonesian Rupiah Philippine Peso South Korean Won Australian Dollar JAPANESE YEN EUROPE NON-EURO Euro % -1% 39% 79% 119% 159% Regions Sub-Regions Currencies Portfolio % Index % Over/Under % AMERICAS U.S. DOLLAR NON-U.S. DOLLAR Mexican Peso Brazilian Real Argentine Peso Colombian Peso Peru Nuevo Sol Canadian Dollar Chilean Peso MIDEAST/AFRICA Ghanaian Cedi Egyptian Pound Israeli Shekel South Africa Rand ASIA ASIA EX-JAPAN Indian Rupee Indonesian Rupiah Philippine Peso Thailand Baht Malaysian Ringgit Singapore Dollar New Zealand Dollar Hong Kong Dollar South Korean Won Australian Dollar JAPANESE YEN EUROPE NON-EURO British Pound Swiss Franc Swedish Krona Danish Krone Polish Zloty Portfolio % Index % Over/Under % Russian Ruble Norwegian Krone Czech Koruna Hungarian Forint Romania Leu Euro Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. 10

11 Sector Allocation vs. Bloomberg Barclays Multiverse Index Local Curr. Govt/Agency Bonds Investment Grade Non-Investment Grade Non-Local Currency Non-Investment Grade Corporate Bonds Investment Grade Non-Investment Grade Derivatives Convertibles Portfolio % Index % Over/Under % Local Curr. Govt/Agency Bonds Investment Grade Non-Investment Grade Non-Local Currency Non-Investment Grade Investment Grade Corporate Bonds Investment Grade Non-Investment Grade Derivatives Convertibles Municipal Securitized CMBS / ABS MBS N/A US Treasuries/Agencies Supranational Others Equity Cash & Cash Equivalents Supranational 0.13 Others 0.02 Equity 0.02 Cash & Cash Equivalents % 17% 34% 51% 68% 85% Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. 11

12 Quality Allocation vs. Bloomberg Barclays Multiverse Index AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- CC+ NR N/A Cash 0% 10% 20% 30% 40% Bloomberg Barclays Multiverse Index Portfolio % Index % Over/Under % AAA AA AA AA A A A BBB BBB BBB BB BB BB B B B CCC CCC CCC CC NR N/A Cash Investment Grade Non-Investment Grade N/A Cash 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. 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. The NR category consists of ratable securities that have not been rated by an NRSRO. The N/A category consists of nonratable securities (e.g., equities). Cash includes equivalents, which may be rated. Derivatives are excluded from this breakdown. 12

13 Maturity Allocation vs. Bloomberg Barclays Multiverse Index 0 to 1 Year 1 to 2 Years 2 to 3 Years 3 to 5 Years 5 to 7 Years 7 to 10 Years Portfolio % Index % Over/Under % 0 to 1 Year to 2 Years to 3 Years to 5 Years to 7 Years to 10 Years to 15 Years to 20 Years to 30 Years Years N/A to 15 Years 15 to 20 Years 20 to 30 Years 30+ Years N/A -1% 14% 29% 44% 59% Bloomberg Barclays Multiverse Index Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. 13

14 Duration Breakdown vs. Bloomberg Barclays Multiverse Index 0 to 1 Year 1 to 2 Years 2 to 3 Years 3 to 5 Years 5 to 7 Years 7 to 10 Years Portfolio % Index % Over/Under % 0 to 1 Year to 2 Years to 3 Years to 5 Years to 7 Years to 10 Years to 15 Years to 20 Years to 30 Years Years N/A Offset Derivatives to 15 Years 15 to 20 Years 20 to 30 Years 30+ Years N/A Offset Derivatives -13% 1% 15% 29% 43% Bloomberg Barclays Multiverse Index Duration shown is the option-adjusted duration. Duration is an indication of a fund s sensitivity to changes in interest rates. The option-adjusted duration formula takes into account embedded call options and redemption features that impact a bond s expected cash flows and thus, its interest rate sensitivity. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. 14

15 Glossary Average Credit Quality: The credit rating of a bond is an assessment of the creditworthiness of individuals and corporations. It is based upon the history of borrowing and repayment, as well as the availability of assets and extent of liabilities. The average credit quality of a fund reflects the holdings of the underlying issues, based on the size of each holding. Usually we quote the average credit quality as per Standard & Poor's or Moody's credit rating agencies. Average Duration: 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. Average Weighted Maturity: An estimate of the number of years to maturity, taking the possibility of early payments into account, for the underlying holdings. Information Ratio: In investing terminology, the ratio of expected return to risk. Usually, this statistical technique is used to measure a manager's performance against a benchmark. This measure explicitly relates the degree by which an investment has beaten the benchmark to the consistency by which the investment has beaten the benchmark. Sharpe Ratio: To calculate a Sharpe ratio, an asset's excess returns (its return in excess of the return generated by risk-free assets such as Treasury bills) are divided by the asset's standard deviation. Standard Deviation: A measure of the degree to which a fund's return varies from the average of its previous returns. The larger the standard deviation, the greater the likelihood (and risk) that a fund's performance will fluctuate from the average return. Tracking Error: Measure of the deviation of the return of a fund compared to the return of a benchmark over a fixed period of time. Expressed as a percentage. The more passively the investment fund is managed, the smaller the tracking error. 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. 15

16 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 (FTIF). Nothing in this document should be construed as investment advice. Opinions expressed are the author s at publication date and they are subject to change without prior notice. Given the rapidly changing market environment, Franklin Templeton Investments disclaim responsibility for updating this material. Subscriptions to shares of FTIF 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 FTIF 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 or 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 FTIF entails risks which are described in FTIF s prospectus and where available, in the relevant Key Investor Information Document. No shares of FTIF may be directly or indirectly offered or sold to residents of the United States of America. Shares of FTIF 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 fund s holding at any one time. Please consult your financial advisor before deciding to invest. A copy of the latest prospectus and where available, the relevant Key Investor Information Document, the annual report and semi-annual report, if published thereafter can be found, on our website or can be obtained, free of charge, from Franklin Templeton International Services, S.à r.l. - Supervised by the Commission de Surveillance du Secteur Financier - 8A, rue Albert Borschette, L-1246 Luxembourg - Tel: Fax: In the U.S., this publication is made available to you for informational purposes only by Templeton/Franklin Investment Services, Inc. 100 Fountain Parkway, St. Petersburg, Florida Tel: (800) (USA Toll-Free), (877) (Canada Toll-Free), and Fax: (727) Investments are not FDIC insured; may lose value; and are not bank guaranteed. Distribution outside the U.S. may be made by Templeton Global Advisors Limited or other sub-distributors, intermediaries, dealers or professional investors that have been engaged by Templeton Global Advisors Limited to distribute shares of the Fund in certain jurisdictions. This is not an offer to sell or a solicitation of an offer to purchase securities in any jurisdiction where it would be illegal to do so Franklin Templeton Investments. All rights reserved. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. 16

17 Important Disclosures (continued) Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. 17