Templeton Asian Equity Product Profile Product Details Strategy Assets $4,835,954,296.20 Inception Date 31/12/2001 Base Currency USD Investment Style Overview Templeton s interest and research in emerging markets is a logical extension of our long-term value approach to investing dating back nearly 70 years. Our acknowledged emerging markets expertise has allowed us to develop a comprehensive understanding of interrelations between the world s emerging markets in our search to identify the best buying opportunities. Our emerging markets capabilities are built on the firm s bottom-up, value-oriented, long-term approach to investing. Performance Data Average Annual Total Returns (USD %) 1 Since Inception 3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs (31/12/2001) Templeton Asian -0.50-0.50 17.54 5.32 3.67 5.79 14.61 - GROSS Templeton Asian -0.73-0.73 16.46 4.41 2.78 4.33 12.65 - NET MSCI All Country 0.69 0.69 26.15 9.53 8.50 5.81 11.10 Asia ex-japan Index 40% 20% 0% -20% 26.15 17.54 16.46 14.61 9.53 12.65 5.32 8.50 11.10 4.41 3.67 2.78 5.79 4.33 5.81 0.69 0.69-0.50-0.73-0.50-0.73 3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs Since Inception Templeton Asian - GROSS Templeton Asian - NET Calendar Year Returns (USD %) 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 Templeton Asian 32.12 20.60-24.62 8.42-5.02 19.01-13.01 32.89 107.70-59.20 - GROSS Templeton Asian - NET 30.91 19.63-25.25 7.52-5.85 17.93-14.96 3 103.30-60.19 MSCI All Country Asia ex-japan Index 42.08 5.76-8.90 5.11 3.33 22.70-17.07 19.93 72.53-52.23 1. Periods of more than one year are annualised. Past performance is not an indicator or a guarantee of future performance.
Templeton Asian Portfolio Characteristics 2,3 Portfolio Price to Earnings (12 Month Trailing) 15.14x 14.44x Price to Book 1.73x 1.72x Price to Cash Flow 7.70x 9.59x Market Capitalisation (Millions in USD) 85,230 98,589 Number of Issuers 4 64 - Dividend Yield 2.26% 2.23% 4. Based on a representative portfolio in the composite. Securities will vary among individual accounts in the composite. Portfolio Diversification Geographic Weightings vs. 5 China 31.88 34.78 Thailand 14.97 2.80 Indonesia 2.38 14.59 South Korea 14.14 17.52 Pakistan 6.22 0.09 Hong Kong 5.84 11.17 Taiwan 5.06 13.58 India 3.63 9.41 Singapore 1.53 4.20 Vietnam 0.09 Russia 0.06 Laos 0.06 Cash & Cash Equivalents 1.93 0% 25% 50% Sector Weightings vs. 5 Information Technology 24.92 32.04 Financials 16.26 23.53 Energy 15.88 4.37 Industrials 13.41 6.66 Consumer Discretionary 10.07 8.96 Materials 7.39 4.55 Real Estate 4.23 5.80 Consumer Staples 3.68 4.56 Health Care 1.37 2.79 Telecommunication Services 0.85 3.86 Utilities 2.87 Cash & Cash Equivalents 1.93 0% 5% 10% 15% 20% 25% 30% 35% 40% Templeton Asian Templeton Asian Top Ten Holdings 6 Top Holdings Sector Country % ALIBABA GROUP HOLDING LTD Software & Services China 7.60 BANK DANAMON INDONESIA TBK Banks Indonesia 6.27 PT SAMSUNG ELECTRONICS CO LTD Technology Hardware & Equipment South Korea 5.65 BRILLIANCE CHINA AUTOMOTIVE Automobiles & Components China 5.24 HOLDINGS LTD ALUMINUM CORP OF CHINA LTD Materials China 5.24 OIL & GAS DEVELOPMENT CO LTD Energy Pakistan 4.41 LAND AND HOUSES PCL Real Estate Thailand 3.76 DAIRY FARM INTERNATIONAL Food & Staples Retailing Hong Kong 3.68 HOLDINGS LTD TAIWAN SEMICONDUCTOR Semiconductors & Semiconductor Taiwan 3.12 MANUFACTURING CO LTD Equipment PTT EXPLORATION & PRODUCTION PCL Energy Thailand 2.92 2
Supplemental Performance Statistics (USD) 7,8 3 Yrs 5 Yrs 10 Yrs Since Inception Templeton Asian Supplemental Performance Statistics Standard Deviation (%) Templeton Asian 15.91 14.36 22.66 21.69 15.71 13.81 21.34 20.21 Tracking Error (%) 7.37 7.14 7.16 7.52 Information Ratio 9-0.57-0.68-0.47 Beta 0.90 0.91 1.01 1.01 Sharpe Ratio Templeton Asian 0.30 0.23 0.24 0.62 0.57 0.59 0.26 0.49 Investment Philosophy Templeton s time-tested investment philosophy is built on a disciplined, yet flexible, long-term approach to value-oriented emerging markets investing which allows us to look beyond short-term news, noise, and emotion. Our goal is to identify those companies that appear to be trading at a discount to what our estimation indicates as their projected future intrinsic value, which, over time, may produce strong share price return. Patience On a short-term basis, stocks may overreact to news and noise. On a long-term basis, we believe markets are efficient and patience may reward those who have identified undervalued stocks. Bottom-Up Stock Selection We identify value through rigorous fundamental analysis, proprietary screens, and a worldwide network of experienced research resources. Research is done on a company-by-company basis in different countries and industries to determine what we consider its economic worth to be based on projected future earnings, cash flow, asset value potential, and material environmental, social and governance (ESG) factors. Investment Process STEP 1 Identify stocks for potential purchase STEP 2 Analyse securities STEP 3 Evaluate securities with research team STEP 4 Construct portfolio STEP 5 Manage and maintain portfolio Investment Team Years with Firm Years Experience Sukumar Rajah 23 27 Eric Mok, CFA, Senior Vice President 19 19 Templeton Global Equity Team Number of Members Average Years Experience Portfolio Managers/Analysts 32 22 Research Analysts 11 11 Additional Resources Investment Risk Management Group Global Trading Platform Global Portfolio Compliance 7. Risk statistics are calculated using gross of fees composite performance. 8. Beta, Information Ratio and Tracking Error information are measured against the. 3
Templeton Asian Important Legal Information Templeton claims compliance with the Global Investment Performance Standards (GIPS ). Templeton (or the firm ) as defined encompasses the wholly-owned investment management subsidiaries of Templeton Worldwide, Inc. with global, international, single country or regional, and emerging market equity investment objectives, serving both retail and institutional clients. The firm definition for Templeton does not include the foreign-domiciled investment advisory subsidiaries of Templeton Worldwide, Inc. that primarily offer only locally registered investment mandates or funds and the wrap-fee and non-wrap-fee accounts managed by Templeton Separately Managed Accounts (formerly Templeton Portfolio Advisers). Each investment advisory subsidiary within Templeton employs the same bottom-up, valueoriented investment style whether managing global equity, non-u.s. equity, single country or regional equity, or emerging market equity mandates. Portfolio managers pursuing similar investment mandates share research, have equivalent access to Templeton s bargain and source of funds lists, and are subject to the same peer review process. Templeton believes that the performance shown is representative of its management style and relevant for consideration in selecting any individual investment advisory subsidiary comprising Templeton. Some of the individual investment management subsidiaries which comprise Templeton, however, may have limited or no accounts included in the composite. Effective 1 December 2017, the equity accounts previously defined as Franklin Europe are included in Templeton s firm definition. Templeton Asian consists of all discretionary portfolios managed by Templeton with investment objectives that seek capital appreciation by investing primarily in equity securities of the Asia Region excluding Australia, New Zealand and Japan. The Asia Region includes but is not limited to the following countries: Hong Kong, India, Indonesia, Korea, Malaysia, People s Republic of China, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan and Thailand. No account(s) in the composite use leverage or derivatives other than the use of forward foreign currency contracts in conjunction with the normal settlement of security trades in currencies other than the base currency of each account. As a result, leverage or derivatives do not have a material affect on returns. Total returns are presented in U.S. dollars both gross and net of investment advisory fees, are inclusive of commissions and transaction costs, and assume reinvestment of any dividends, interest income, capital gains, or other earnings. Periods greater than one year are shown as average annual total returns. Performance data is shown rounded to the nearest hundredth. Past performance is not an indicator or a guarantee of future performance. is a free float-adjusted market capitalisation weighted equity index comprised of securities in MSCI s developed and emerging market Asia indexes, excluding Japan. The benchmark is used for comparative purposes only and is provided to represent the investment environment existing during the time periods shown. Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. To receive a complete list and description of Templeton composites (including any single account mutual fund composite) and/or a presentation that adheres to the GIPS standards for any composite, contact your Franklin Templeton institutional representative listed below. 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. 2. Source: FactSet. Price ratio calculations for weighted average use harmonic means. Any exceptions to this are noted. 3. 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. 5. 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. 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. 9. 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). This document is intended to be of general interest only, and does not constitute legal or tax advice nor is it an offer of any investment fund or service. Nothing in this document should be construed as investment advice. Investments entail risks, the value of investments can go down as well as up and investors should be aware that they might not get back the full value invested. Franklin Templeton Investments shall not be liable to any user of this document or to any other person or entity for the inaccuracy of information contained in this document or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission. 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. Issuance of this document may be restricted in certain jurisdictions. This document does not constitute the issuance of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such issuance or offer is not authorised or to any person to whom it is unlawful to issue such a document or make such an offer or solicitation. Australia: Issued by Franklin Templeton Investments Australia Limited (ABN 87 006 972 247) (Australian Financial Services License Holder No. 225328) to persons who are wholesale investors within the meaning of the Corporations Act 2001 (Cwlth) and/or to whom this document may otherwise lawfully be communicated to give preliminary information about the investment propositions described herein. This document is a confidential communication to, and solely for the use of, and may only be acted on by, such persons. The document is not addressed to any other persons and may not be used by them for any purpose whatsoever. It expresses no views as to the suitability of the services or other matters described herein to the individual circumstances, objectives, financial situation or needs of any recipient. It is not directed at private individuals and in no way does it constitute investment advice. Hong Kong: Franklin Templeton Investments (Asia) Limited issues this document for the benefit of the category of persons described below. It is not addressed to any other persons and may not be used by them for any purposes whatsoever. This document has been prepared for circulation to persons reasonably believed to be within one of the professional investor exemptions contained in the Securities and Futures Ordinance or to whom this document may otherwise lawfully be communicated to give preliminary information about the 2018 Franklin Templeton Investments. All rights reserved.
Templeton Asian investment propositions described herein. Malaysia: Issued by Franklin Templeton Asset Management (Malaysia) Sdn. Bhd. & Franklin Templeton GSC Asset Management Sdn. Bhd. Singapore: Issued by Templeton Asset Management Ltd. Registration No. (UEN) 199205211E. 2018 Franklin Templeton Investments. All rights reserved.