Templeton Growth (Euro) Fund A (acc) EUR Franklin Templeton Investment Funds Fund Manager Report Value Equity Product Details Fund Assets 7,183,194,265.20 Fund Inception Date 09/08/2000 Number of Issuers 84 Bloomberg ISIN Base Currency Investment Style TEMGREU LX LU0114760746 EUR Value Benchmark MSCI All Country World Index Morningstar Category Global Large-Cap Value Equity Asset Allocation 1 % Equity 93.11 Cash & Cash Equivalents Fixed Income 0.00 Fund Description The Fund aims to achieve long-term capital appreciation by investing primarily in equity securities of companies worldwide, including emerging markets. Performance Data Performance Net of Management Fees as at 30/11/2018 (Dividends Reinvested) (%) 2,3 Since Inception 1 Mth 3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs (09/08/2000) A (acc) EUR 0.82-3.48-1.54-0.52 1.33 4.65 9.20 3.01 MSCI All Country 1.58-3.02 3.86 4.82 6.65 10.74 12.53 3.49 World Index Calendar Year Returns (%) 100% 50% 0% -50% 1.80 9.47 10.21 11.73 2.91 9.34 19.23 24.21 18.11 18.22 10.51 15.01-40.33-38.83 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008-3.62-3.75 13.35 21.08 25.22 31.19 A (acc) EUR Past performance is not an indicator or a guarantee of future performance. Portfolio Manager Insight Performance Review ONE-MONTH KEY PERFORMANCE DRIVERS Stocks Sectors Countries Vestas Wind Systems A/S Communication Services (Stock Selection) Denmark (Stock Selection) China Telecom Corp. Ltd. Helped Class H Industrials (Stock Selection) China (Overweight) Standard Chartered PLC Information Technology (Underweight) Israel Coty Inc. Class A Energy (Stock Selection, United States (Stock Overweight) Selection) CommScope Holding Co., Hurt Inc. Financials (Stock Selection) Italy (Stock Selection) Eni S.p.A. Consumer Staples (Stock Selection) Netherlands Shares of US-based cosmetics firm Coty slumped and impaired relative fund results after the firm announced another profit warning and the departure of both its chief executive officer and chairman. Conditions in the highly competitive cosmetics business remain difficult, and Coty is working to regain lost market share and improve operationally by consolidating production and distribution. Italian integrated energy firm Eni detracted as investors appeared to look beyond a doubling of third-quarter cash flow and focused instead on the possible future impact of sustained low oil prices. In our view, Eni remains a compelling long-term opportunity, with last year s production issues largely resolved and new projects performing better than expected. The stock price of Danish wind turbine manufacturer Vestas Wind Systems surged during the month after the firm maintained full-year guidance in the face of tougher competition, signalling to analysts that management expects a strong finish to the year. We were encouraged by the stabilization in pricing and continued strength in new orders, and continue to believe that Vestas is well-positioned to participate in the long-term growth of the wind turbine manufacturing industry.
Outlook & Strategy The old saying don t fight the Fed has rung true this cycle and will likely still apply going forward. As global central banks led by the US Federal Reserve (Fed) gradually change their tack from dovish to hawkish, we expect the financial market beneficiaries of yesterday s largesse to become the casualties of tomorrow s restraint. Likewise, what didn t work in the old environment (and value investing certainly qualifies) looks poised for better performance potential as policy conditions normalise. At Templeton, we are taking proactive measures to refine and improve our process in this challenging environment, including strengthening risk management, applying robust procedures for downside mitigation, and working closely with a dedicated trading team to improve tactical entry and exit. We are confident that these measures, along with the normalising macro backdrop, can position the fund for potential long-term investment success. Portfolio Characteristics 4,5 Portfolio Price to Earnings (12 Month Trailing) 13.15x 16.78x Price to Book 1.33x 2.21x Price to Cash Flow 5.66x 10.76x Market Capitalisation (Millions in EUR) 73,519 106,353 Dividend Yield 3.19% 2.57% Portfolio Diversification Geographic Weightings vs. 1 EUROPE NORTH AMERICA ASIA MID-EAST/AFRICA CASH & CASH EQUIVALENTS Templeton Growth (Euro) Fund 1.86 1.07 0.00 17.21 19.57 20.08 32.82 38.35 58.68 0% 25% 50% 75% Sector Weightings vs. 1 Financials Health Care Communication Services Energy Industrials Consumer Staples Information Technology Consumer Discretionary Materials Utilities Real Estate Cash & Cash Equivalents 0.00 Templeton Growth (Euro) Fund 4.58 5.37 3.34 4.81 2.49 3.13 1.04 3.09 6.29 6.49 8.86 10.04 8.37 8.33 10.40 10.28 12.35 13.35 15.00 17.45 17.74 20.29 0% 5% 10% 15% 20% 25% Top Ten Holdings 6 Top Holdings Sector % ORACLE CORP Software & Services 2.36 SES SA Media & Entertainment 2.27 ROYAL DUTCH SHELL PLC Energy 2.26 CITIGROUP INC Banks 2.08 WALGREENS BOOTS ALLIANCE INC Food & Staples Retailing 1.97 BP PLC Energy 1.93 SINGAPORE TELECOMMUNICATIONS LTD Telecommunication Services 1.92 SAMSUNG ELECTRONICS CO LTD Technology Hardware & Equipment 1.92 ALLERGAN PLC Pharmaceuticals, Biotechnology & Life Sciences 1.87 TEVA PHARMACEUTICAL INDUSTRIES LTD Pharmaceuticals, Biotechnology & Life Sciences 1.86 www.franklintempletongem.com 2
Supplemental Performance Statistics Supplemental Risk Statistics 7 3 Yrs 5 Yrs 10 Yrs Since Inception Standard Deviation (%) Templeton Growth (Euro) Fund 9.93 11.26 12.05 13.13 8.57 10.12 11.18 13.80 Tracking Error (%) 4.05 3.71 3.84 4.88 Information Ratio 8-1.32-1.63-0.87-0.07 Beta 1.03 1.01 1.00 0.88 Sharpe Ratio Templeton Growth (Euro) Fund 0.20 0.45 0.77 0.12 0.86 1.11 1.12 0.14 Investment Team Portfolio Manager Years with Firm Years Experience Norman Boersma, CFA, Chief Investment Officer 26 32 Tucker Scott, CFA, EVP, Portfolio Manager, Research Analyst 22 26 Heather Arnold, CFA, EVP, Director of Research, Portfolio Manager, 13 34 Research Analyst Templeton Global Equity Team Number of Members Average Years Experience Portfolio Managers/Analysts 27 24 Research Analysts 11 12 What Are the Key Risks? 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. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments. The Fund invests mainly in equity and equity-related securities of companies around the world. Such securities have historically been subject to significant price movements that may occur suddenly due to market or company-specific factors. As a result, the performance of the Fund can fluctuate considerably over time. Other significant risks include: currency risk, emerging markets risk, liquidity risk, Shanghai-Hong Kong Stock Connect risk. For full details of all of the risks applicable to this Fund, please refer to the Risk Considerations section of the Fund in the current prospectus of Franklin Templeton Investment Funds. 7. Beta, Information Ratio and Tracking Error information are measured against the. www.franklintempletongem.com 3
Important Legal Information 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 any of the Luxembourg-domiciled SICAV Franklin Templeton Investment Funds (the Fund ). Given the rapidly changing market environment, Franklin Templeton Investments disclaims responsibility for updating this material. Subscriptions to shares of the Fund can only be made on the basis of the current prospectus of the Fund, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. An investment in the Fund entails risks which are described in the Fund s prospectus. If the fund invests in a specific sector or geographical area, the returns may be more volatile than a more diversified fund. A copy of the latest prospectus, the annual report and semi-annual report, if published thereafter can be found on our website: www.franklintempletongem.com or can be obtained, free of charge, from the address below. Issued by Franklin Templeton Investments (ME) Limited, authorized and regulated by the Dubai Financial Services Authority. Dubai office: Franklin Templeton Investments, The Gate, East Wing, Level 2, Dubai International Financial Centre, P.O. Box 506613, Dubai, U.A.E., Tel.: +9714-4284100 Fax:+9714-4284140. Past performance is not an indicator or a guarantee of future performance. 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. Investment in the Fund entails risks which are described in the Fund s prospectus and, where available, in the relevant Key Investor Information Document. Special risks may be associated with a Fund s investment in certain types of securities, asset classes, sectors, markets, currencies or countries and in the Fund s possible use of derivatives. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a fund s holdings at any one time. 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. Where a Fund invests in emerging markets, this investment can be more risky than an investment in developed markets. No shares of the Fund may be directly or indirectly offered or sold to 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. The information provided is not a complete analysis of every material fact regarding any country, market, industry, security or fund. Because market and economic conditions are subject to change, comments, opinions and analyses are rendered as of the date of this material and may change without notice. A portfolio manager s assessment of a particular security, investment or strategy is not intended as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy; it is intended only to provide insight into the fund s portfolio selection process. Holdings are subject to change. In addition, it should not be assumed that any securities mentioned were or will prove to be profitable. Stocks mentioned in this report are not a solicitation to purchase those stocks, and are examples of some stocks which performed well. Not all stocks in the portfolio performed as well. For the most current information on the fund, please contact your Franklin Templeton marketing representative. Performance figures are not based on audited financial statements and assume reinvestment of interest and dividends. When comparing the performance of Franklin Templeton Investment Funds (the Fund ) with a benchmark index, it is important to note that the securities in which the Fund invests may be substantially different than those represented by the benchmark index. Furthermore, an investment in Franklin Templeton Investment Funds represents an investment in a managed investment company in which certain charges and expenses, including management fees, are applicable. These charges and expenses are not applicable to indices. Lastly, please note that indices are unmanaged and are not available for direct investment. Certain data and other information shown have been supplied by outside sources. While we consider that information to be reliable, we give no assurance that such data and information is accurate or complete. References to indexes are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. The indices include a greater number of securities than those held in the Fund. An index is unmanaged and one cannot invest directly in an index. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund. Past performance is not an indicator or a guarantee of future performance. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute. MSCI makes no warranties and shall have no liability with respect to any MSCI data reproduced herein. No further redistribution or use is permitted. This report is not prepared or endorsed by MSCI. Important data provider notices and terms available at: www.franklintempletondatasources.com 1. Information is historical and may not reflect current or future portfolio characteristics. Percentage may not equal 100% due to rounding. All holdings are subject to change. 2. Source for all information is Franklin Templeton Investments. Benchmark related data provided by FactSet. Past performance is not an indicator or a guarantee of future performance. Periods greater than one year are shown as average annual total returns. Fund performance data include reinvested dividends, and is net of management fees. Sales charges, other commissions, taxes and other relevant costs to be paid by the investor are not included. The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details. 3. When performance for either the portfolio or its benchmark has been converted, different foreign exchange closing rates may be used between the portfolio and its benchmark. 4. The portfolio characteristics listed are based on the fund s underlying holdings, and do not necessarily reflect the fund s characteristics. Due to data limitations all equity holdings are assumed to be the primary equity issue (usually the ordinary or common shares) of each security s issuing company. This methodology may cause small differences between the portfolio s reported characteristics and the portfolio s actual characteristics. In practice, Franklin Templeton s portfolio managers invest in the class or type of security which they believe is most appropriate at the time of purchase. The market capitalisation figures for both the portfolio and the benchmark are at the security level, not aggregated up to the main issuer. Source: Factset. Price ratio calculations for weighted average use harmonic means. Any exceptions to this are noted. Information is historical and may not reflect current or future portfolio characteristics. All holdings are subject to change. 5. The dividend yield quoted here is the yield on securities within the portfolio and should not be used as an indication of the income received from this portfolio. 6. Holdings of the same issuers have been combined. Top ten holdings information is historical and may not reflect current or future portfolio characteristics. All holdings are subject to change. Franklin Templeton Investments The Gate, East Wing, Level 2 Dubai International Financial Centre P.O. Box 506613 Dubai, U.A.E. Tel.: +9714-4284100 Fax.: +9714-4284140 www.franklintempletongem.com 2018 Franklin Templeton Investments. All rights reserved.
The information provided is not a recommendation to purchase, sell, or hold any particular security. The securities identified do not represent the fund s entire holdings and in the aggregate may represent only a small percentage of such holdings. There is no assurance that securities purchased will remain in the fund, or that securities sold will not be repurchased. The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included. 8. Information Ratio is a way to evaluate a manager s ability to outperform a benchmark in relation to the risk that manager is assuming, with risk defined as deviation from the benchmark. This measure is calculated by dividing the portfolio s excess return (portfolio return less the benchmark return) by the tracking error (derived by taking the standard deviation of the monthly differences between the portfolio return and the benchmark return over time). Franklin Templeton Investments The Gate, East Wing, Level 2 Dubai International Financial Centre P.O. Box 506613 Dubai, U.A.E. Tel.: +9714-4284100 Fax.: +9714-4284140 www.franklintempletongem.com 2018 Franklin Templeton Investments. All rights reserved.