templeton global income fund
TRANSCRIPT
Franklin Templeton Investment Funds
Templeton Global Income Fund - A (acc) USD
Templeton Global Equity Group
Data as of 30 June 2019
For professional investor use only. Not for distribution to retail investors.
Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
Table of Contents
Investment Capabilities Overview............................................................................................4
Franklin Templeton—A Trusted, Long-Term Partner in Investment Management.......................5
Extensive Global Presence......................................................................................................6
Cornerstones..........................................................................................................................7
Why Templeton Global Income Fund?.....................................................................................8
Team Overview.......................................................................................................................9
A Unique Asset Allocation Process........................................................................................10
Historical Asset Allocation.....................................................................................................11
Templeton’s Investment Philosophy.......................................................................................12
Templeton Global Equity Group Organisational Structure.......................................................13
Bottom-Up Stock Pickers: Global Focus Seeks to Uncover Investment Opportunities
Across Regions
............ 14
Bottom-Up Stock Pickers: Global Focus Seeks to Uncover the Best Opportunities
Across Sectors and Geographies
................ 15
Templeton’s Valuation-Driven Investment Process.................................................................16
ESG Assessments—Case Studies........................................................................................19
Templeton Global Macro ESG Index Centers Around 13 Indicators........................................ 20
Investment Process.............................................................................................................. 21
Portfolio Construction............................................................................................................22
Investment Risk Management at Franklin Templeton.............................................................23
Summary..............................................................................................................................24
What are the Key Risks?......................................................................................................25
Historical Asset Allocation.....................................................................................................26
Geographic Allocation—Total................................................................................................27
Geographic Allocation—Equity..............................................................................................28
Geographic Allocation—Fixed Income................................................................................... 29
Sector Allocation—Equity......................................................................................................30
Sector Allocation—Fixed Income...........................................................................................31
Currency Exposure—Fixed Income........................................................................................32
Credit Quality Allocation—Fixed Income................................................................................33
Top Ten Holdings—Equity.....................................................................................................34
Portfolio Characteristics—Total............................................................................................. 35
Discrete Performance........................................................................................................... 36
Historical Performance..........................................................................................................37
Calendar Year Returns......................................................................................................... 38
Performance Risk Statistics.................................................................................................. 39
Total Portfolio Yields.............................................................................................................40
Historical Asset Allocation.....................................................................................................41
Appendix............................................................................................................42
Templeton Global Income Fund
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Table of Contents (continued)
For professional investor use only. Not for distribution to retail investors.
Franklin Templeton—ESG and Corporate Sustainability.........................................................43
Franklin Templeton—Environmental, Social and Governance (ESG) Investment
Integration
....................44
Management Profile..............................................................................................................45
Glossary...............................................................................................................................49
Important Disclosures...........................................................................................................51
Source: Franklin Templeton Investments (FTI), as of 30 June 2019, based on latest available data. Total combined Assets Under Management (Total AUM) combines 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 management organisation operating as FTI. Only selected business entities within FTI claim compliance with the GIPS standards as described in the table of contents if
applicable. Total and platform AUM includes discretionary and non-discretionary accounts, including pooled investment vehicles, separate accounts and other vehicles. 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 Multi-Asset Solutions may
invest in various investment platforms advised by a number of investment advisory entities within FTI. Platform AUM reported for FT Multi-Asset Solutions therefore may include 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.
For professional investor use only. Not for distribution to retail investors.
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Templeton Global Income Fund
Investment Capabilities Overview
FRANKLIN TEMPLETON
Total Combined Assets Under Management: US$715.2 Billion
2
Equity
5
Fixed Income
8
Multi-Asset Solutions
11
Alternatives
AUM
US$289.2 Billion US$269.8 Billion US$116.0 Billion US$42.2 Billion
CAPABILITIES
•
Value
•
Government
•
Multi-Asset Income
•
Commodities
•
Deep Value
•
Municipals
•
Diversified Outcome-Oriented
•
Infrastructure
•
Core Value
•
Corporate Credit
•
Risk Premia
•
Real Estate
•
Blend
•
Bank Loans
•
Smart Beta
•
Hedge Funds
•
GARP
•
Securitised
•
Balanced Allocation
•
Private Equity
•
Growth
•
Multi-Sector
•
Target Date/Risk
•
Private Debt
•
Convertibles
•
Currencies
•
Model Portfolios
•
Sector
•
Sukuk
•
Inflation Protection
•
Shariah
•
Managed Volatility
•
Smart Beta
INVESTMENT
•
Templeton Global Equity Group (1940)
•
Franklin Templeton Fixed Income Group (1970)
•
Franklin Templeton Multi-Asset Solutions (1948)
•
Franklin Real Asset Advisors (1984)
TEAMS
•
Franklin Equity Group (1947)
•
Templeton Global Macro (1986)
•
Franklin Systematic (2011)
•
Darby Overseas Investments (1994)
•
Franklin Mutual Series (1949)
•
Franklin LAM-Fixed Income (1993)
•
K2 Advisors (1994)
• Franklin Templeton Emerging Markets Equity (1987) •
Pelagos (2005)
•
Franklin LAM-Developed Markets Equity (1993)
•
Benefit Street Partners (2008)
•
Edinburgh Partners (2003)
Franklin Templeton—A Trusted, Long-Term Partner in Investment Management
Investment excellence• Diverse investment solutions across multiple asset classes• Time-tested investment disciplines plus exceptional research enables strong long-term performance
potential• Integrated, comprehensive and proven approach to investment risk management• Committed to environmental, social and governance (ESG) investment integration
Global perspective, local expertise• Pioneer in global investing, with track record of innovation • Unmatched breadth and depth of global presence• Deep experience and long-term commitment to the markets we enter
Strength and experience• Over 70 years of navigating well through all market cycles• Global business diversified by investment objective, geography and client type• Values-driven culture guides how we work
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Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
Franklin Templeton—A Trusted, Long-Term Partner in Investment Management
Extensive Global Presence
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10 Global Fixed Income, Global Macro and Global Equity offices and more than 160 investment professionals.
Nassau
Ft. Lauderdale
New York Edinburgh
Melbourne
Hong Kong
San Mateo Toronto London
Global Fixed Income OfficesTempleton Global Equity Research OfficesTempleton Global Macro Research Offices
Singapore
Templeton Global Income Fund
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As of 31 March 2019.
For professional investor use only. Not for distribution to retail investors.
Extensive Global Presence
Global Perspective
Our global research analysts conduct fundamental research in equity and fixed income around the globe. With analysts on the ground in our local asset management offices, our local contacts and access enable the team to develop unfettered views which underlie our investment decision-making process.
Long-Term Value
Global equity and fixed income analysts search the globe for the best values in both asset classes.
Investment Strategy
Fixed Income • Utilise fundamental, macro-driven research to identify potential sources of total return (current income and capital appreciation)
worldwide
• Identify economic imbalances that may lead to value opportunities in interest rates (duration), currencies, sovereign credit andcorporate/spread sectors
Equity • Markets are often short-sighted and affected by sentiment, which creates short-term distortions in share prices
• Comprehensive, rigorous bottom-up analysis with long-term focus allows us to look beyond short-term noise and identify the fundamental value of a stock
Cornerstones
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Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
Cornerstones
Why Templeton Global Income Fund?
Income and Capital Appreciation• Long-term, fundamental research
• Focus on sustainable global income and capital appreciation opportunities
Flexible and Opportunistic• Flexibility to allocate across regions, countries, asset classes and sectors
• Actively managed to precisely isolate desired exposures
Potential for Lower Overall Risk Through Diversification• Truly global approach to investing
• Focus on companies with low valuations, high free cash flow and sustainable dividends
• Identify economic imbalances leading to value in interest rates (duration), currencies, sovereign credit and corporate/spreadsectors
Global Expertise• Recognised pioneer in global investing
• Collaborative investment approach facilitates knowledge sharing
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Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
Why Templeton Global Income Fund?
Team Overview
TEMPLETON GLOBAL INCOME FUND
Asset Allocation Committee
Heather Arnold, CFANorman Boersma, CFA
Michael Hasenstab, Ph.D.
Templeton Global Equity Group Franklin Templeton Fixed Income Teams
Day-to-Day Fund Management Team Heather Arnold, CFA, Portfolio Manager Michael Hasenstab, Ph.D., Portfolio Manager
33 investment professionals¹Average of 21 years investment experience
Average of 16 years tenure with firm
Templeton Global Macro: 20 investment professionals¹Additional Resources: over 150 investment professionals¹
Average of 17 years investment experienceAverage of 11 years tenure with firm
Focus Equity Component Fixed Income Component
As of 31 June 2019.1. Investment professionals include portfolio managers, analysts and traders.CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
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Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
Team Overview
Asset Allocation Process
FRANKLIN TEMPLETON FIXED INCOME
TEMPLETON GLOBAL EQUITY GROUP
ASSET ALLOCATION EQUITY% BONDS% CASH
STEP 1VALUATION
STEP 2MACRO-ECONOMIC
ANALYSIS
STEP 3RETURN ANALYSIS
STEP 4RISK ANALYSIS
STEP 5YIELD ANALYSIS
Absolute Valuations• Equity–P/E, P/BV, FCF yield, Leverage, ROE, CFROI, etc.• Fixed Income–credit spreads, interest rate valuations, currenciesRelative Valuations• 10–yr bond yields vs. equity yields, FCF yields• Junk bond yields vs. equity yields, FCF yields
What is impacting equity markets? Fixed income markets? E.g., interest rates, monetary policy, fiscal policy, inflation
What are the return expectations for equities? Fixed Income?
Risk team provides input; e.g., equity market volatility, country risk, interest rate risk
How do equity yields compare with fixed income yields?
This is a basic framework—it is not exhaustive
Science+
Art
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Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
A Unique Asset Allocation Process
Templeton Global Income FundAs of 30 June 2019—Market Value
The information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Market value figures reflect the trading value of the investments. Portfolio breakdown percentages may not total100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.Source: Franklin Templeton Investments.
Historical Asset Allocation
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20%
30%
40%
50%
60%
70%
80%
Equity Fixed Income + Cash & Cash Equivalents
Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
Historical Asset Allocation
We Utilise a Disciplined, Consistent ApproachBased on Three Timeless Principles of Investing
Value• Uncover bargains—seeking companies trading at large discounts to their
business value
• Business value—based on normalised earnings, cash flow or asset value potential
• Flexible approach in a disciplined framework
Patience• Rolling five-year time horizon focused on normalised business value
• Long-term focus takes advantage of short-term price volatility to reveal investment opportunities
• Patience allows time for value recognition and has historically resulted in low turnover
Bottom-up stock picking• Build portfolios with undervalued securities identified through research process
• Portfolio structure reflects where we are finding value across sectors and regions
• Portfolio management process seeks to buy pessimism and sell optimism
The Templeton Investment Philosophy
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“The best bargains are those stocks having the lowest prices in relation to possible earning power of future years.”
—Sir John TempletonOctober 1957
“The best bargains are those stocks having the lowest prices in relation to possible earning power of future years.”
—Sir John TempletonOctober 1957
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For professional investor use only. Not for distribution to retail investors.
Templeton’s Investment Philosophy
Investment team information is as of 1 July 2019.CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Templeton Global Equity Group Organisational Structure
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CHAIRMANDr. Sandy Nairn, CFA34 Years Industry ExperienceEDINBURGH, UNITED KINGDOM
CHIEF INVESTMENT OFFICERNorman Boersma, CFA33 Years Industry ExperienceNASSAU, BAHAMAS
DIRECTOR OF RESEARCH
Heather Arnold, CFA35 Years Industry ExperienceNASSAU, BAHAMAS
33 Portfolio Managers & Research Analysts
Average 16 Years with TempletonSpeak 13 Languages
Average 21 Years of Industry Experience
Stable Team/Historically Low Turnover
North America16 PM/Analysts
4 Analysts
Europe2 PM/Analysts
2 AnalystsAsia
3 PM/Analysts3 Analysts
Australia2 PM/Analysts
1 Analyst
DIRECTOR OF PORTFOLIO MANAGEMENT
Antonio T. Docal, CFA40 Years Industry ExperienceFORT LAUDERDALE, UNITED STATES
DIRECTOR OF BUSINESS DEVELOPMENT
C. Reed Hutchens, CFA31 Years Industry ExperienceFORT LAUDERDALE, UNITED STATES
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Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
Templeton Global Equity Group Organisational Structure
As of 30 June 2019.CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Bottom-Up Stock Pickers: Global Focus Seeks to Uncover Investment Opportunities Across Regions
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Heather Arnold, CFA Director of Research
REGIONAL RESEARCH TEAMS
Peter NoriResearch Coordinator
GLOBAL
Tian QiuResearch Coordinator
Paul de JosselinResearch Coordinator
Matthew NagleResearch Coordinator
EUROPE AMERICAS
Harlan Hodes Research Coordinator
SMALL CAP
ESG
Maarten BloemenResearch Coordinator
ASIA
Smal
l Cap
s (<
$2B)
Mid
Cap
s ($
2B -
$10B
)La
rge
Cap
s (>
$10B
)
Mar
ket C
apita
lisat
ion
0
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For professional investor use only. Not for distribution to retail investors.
Bottom-Up Stock Pickers: Global Focus Seeks to Uncover Investment Opportunities
Across Regions
As of 30 June 2019. Note: Sector team leaders in blue boldface.CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Bottom-Up Stock Pickers: Global Focus Seeks to Uncover the Best Opportunities Across Sectors and Geographies
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0
Matthew Nagle Americas BanksEuropean Banks
Warren Pustam Global InsuranceGlobal Diversified Financials
Maggie Wong Global Real Estate
Dylan Ball European Financials
Paul de Josselin Asian BanksHsung Khoo Asian Financials
Warren Pustam Americas Financials
David Tuttle Small Cap FinancialsMaggie Wong Small Cap Real Estate
Director of Research: Heather Arnold, CFAGLOBAL SECTOR TEAMS
Japan
India
Katherine Owen Global Consumer Discretionary
Alan Chua Global Autos & Components
Joanne Wong Global Consumer Staples
James Windsor European Consumers
Warren Pustam Americas Consumers
Harlan Hodes Small Cap Consumers
Ferdinand Cheuk Asian Autos
CONSUMERS
Tian Qiu Global Health CareCraig Cameron Global Health Care
Roman Aliev Asian Heath Care
Derek Taner Americas Health Care
HEALTH CARE
FINANCIALSTina Sadler Global Materials
Dylan Ball European Materials
Clara Lee Asian Materials
Tony Docal Americas Materials
David Tuttle Small Cap Materials
MATERIALSINDUSTRIALS
ENERGY COMMUNICATION SERVICES INFORMATION TECHNOLOGYPeter Nori Global Semiconductors
& Semiconductor Equipment
Peter Wilmshurst Global Software & ServicesGlobal Technology Hardware & Equipment
James Windsor European Information Technology
Ferdinand Cheuk Asian Information Technology
Derek Taner Americas Information Technology
Katie Ylijoki Small Cap Information Technology
ADDITIONAL RESOURCESResearchTechnology Group
Global Research Library
Junior Research Analysts
Investment Risk Management Group
ESG Resources
GlobalTrading Platform
Product ManagementGroup
Franklin Templeton Emerging Markets Equity & Templeton Global Macro
Chris Peel Global Energy
Hsung Khoo Asian Energy
Bhavesh Bombaywala Small Cap EnergyDavid Tuttle Small Cap Energy
Herbert Arnett Global Communication Services
Hsung Khoo Asian Communication Services
Heather Waddell Small Cap Communication Services
Peter Moeschter Global IndustrialsAlan Chua Global Machinery
James Windsor European Industrials
Tony Docal Americas IndustrialsDerek Taner Americas IndustrialsHeather Waddell Americas Industrials
Harlan Hodes Small Cap IndustrialsHeather Waddell Small Cap Industrials
Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
Bottom-Up Stock Pickers: Global Focus Seeks to Uncover the Best Opportunities
Across Sectors and Geographies
The above chart is for illustrative and discussion purposes only.1. Historical turnover is based on Templeton Global Equity Group’s overall experience, over a five-year period ended 30 June 2019, and is not intended to reflect the historical turnover of the fund. Please see the fund’s fiscal year-end turnover on the “Portfolio Summary” slide. The turnover is a byproduct of Templeton’s long-term approach to managing portfolios, but various factors, such as a portfolio’s specific investment parameters and market or economic conditions may cause actual portfolio turnover to vary. For more information regarding an individual strategy’s historical turnover ratio please contact your Franklin Templeton representative.
Templeton’s Valuation-Driven Investment Process
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Identify Potential Bargains
In-Depth Fundamental Analysis
Research Team Evaluation
Bottom-Up Portfolio Construction
Portfolio Monitoringand Risk Management
Detailed industry analysis
Regional influences
Quantitative and qualitative assessment
Identify material ESG issues
Five-year financial forecasts
Management/supplier/competitive evaluation
Risk/Reward modelling
Recommendation of Bargain List candidates
Presentation of investment thesis
Investment debate and critique
ESG debate and critique
Research approval
Investment parameters
Industry and sector framework
Build and diversify portfolio
Long-term approach: 20% historical turnover1
Ongoing valuation analysis
Ongoing ESG monitoring
Disciplined sell methodology
Ongoing peer review and risk analytics
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TEMPLETON’S BOTTOM-UP STOCK SELECTION PROCESS
Templeton Global Income Fund
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Templeton’s Valuation-Driven Investment Process
Templeton’s research platform is designed to track securities through their valuation lifecycle. The above chart is intended solely to illustrate the ideal interplay between the Bargain List, Core List and Source of Funds List over an anticipated holding period but there is no guarantee any Templeton stock will follow this lifecycle. The chart is hypothetical and is not intended to represent an actual Templeton portfolio, or any stock purchased or sold by Templeton.
Lifecycle of a Templeton Stock
SOURCE OF FUNDS LISTFully valued stocks recommended for sale
CORE LISTAttractively priced stocks with potential
for significant price upside
BARGAIN LISTStocks priced at a significant discount to our estimation of their future business value
VALU
ATI
ON
TIME
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Templeton Global Income Fund
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For professional investor use only. Not for distribution to retail investors.
The above chart is for illustrative and discussion purposes only.The turnover is a byproduct of Templeton’s long-term approach to managing portfolios, but various factors, such as a portfolio’s specific investment parameters and market or economic conditions may cause actual portfolio turnoverto vary. For more information regarding an individual strategy’s or fund’s historical turnover ratio please contact your Franklin Templeton representative.Portfolio managers purchase securities from the approved Templeton database of 300–500 securities which was derived from the investable universe of approximately 10,000 equity securities. 1. Although the typical Templeton Global or Non-U.S. equity portfolio holds approximately 80 securities, individual portfolios may vary, depending on various factors, such as portfolio size or investment strategy.
Bottom-Up Portfolio Construction
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Portfolio Manager Stock Selection Decisions & Oversight
Analysts’highest-conviction holdings per sector
Historically low turnover, which may result in lower transaction costs
TEMPLETON GLOBAL OR
NON-U.S. PORTFOLIOApproximately 80 Securities1
SELL DISCIPLINE
300–500Securities
on Proprietary Database
Approved Database
Sector Analyst Portfolios
Portfolio-SpecificFeatures
Mandate parameters
Geographic/sector constraints
Portfoliocash flow
Source of Funds List
Core List
Bargain List
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For professional investor use only. Not for distribution to retail investors.
This is not a complete analysis of every material fact regarding an industry, security or investment and should not be viewed as an investment recommendation. It is, however, intended to provide insight into the fund’s portfolio selection process. The actions taken with respect to this investment, and its performance, may not be representative of other advice or investments. Factual statements are taken from sources considered reliable, but have not been independently verified for completeness or accuracy by the fund’s manager or its affiliates. These opinions may not be relied upon as investment advice or an offer for a particular security or as an indication of trading intent for any Franklin Templeton fund. In addition, it should not be assumed that any securities transactions discussed were or will prove to be profitable. Logo used for illustrative purposes to identify respective company and should not be construed as an endorsement of or affiliation with Franklin Templeton Investments.
ESG Assessments—Case Studies
Environmental Social Governance/SocialEon Landis + Gyr Samsung Electronics
• E.ON SE is a multi-utility based in Germany. E.ON has transitioned to become more focused on regulatory distribution networks and retail supply in Europe. Acquiring Innogy increases that focus, and we expect the company to benefit from the need for investment in the grid to support the growth in renewable energy sources. The utility retail business increasingly includes small generation installations and electrical upgrades, energy audits, heating and cooling systems, charging stations, metering and energy storage.
• With significantly lower emissions than peers, it should be well positioned for more stringent emissions regulations in Europe. Internally, the company also aims to reduce its own carbon footprint a further 30% vs a 2016 baseline.
• Power generation assets fueled by coal and gas have been sold, and its nuclear power operations are being decommissioned and phased out by 2022. E.ON announced plans to obtain 24% of its generating capacity from renewable energy sources by 2030, helping to achieve its target to reduce the CO2 intensity of its power sales by 50% when compared with 2016 levels.
• Landis + Gyr, based in Switzerland, is a leading provider of smart meters, which we expect may offer many years of growth driven by upgrades to power grids with the ability to help lower carbon emissions and integrate renewables. As a newly listed company, we had multiple meetings with the company to discuss the adoption of leading sustainability practices.
• We discussed material risks including the potential for data breaches and tampering. L&G’s smart meters enable two-way data communication between households and utilities. They need to avoid a breach which leads to stolen consumer financial data or meters getting ‘hacked’ and tampered with. Longer term, as more monitored devices such as electric vehicles and battery storage are connected via a household’s smart meter, the pressure to avoid tampering will increase and require further investment in IT.
• L&G already commits 70% of its R&D to software, with data security as a priority. However we have quantified a need for even more spending by assuming an increase of about 10%, or close to $10 million extra per year.
• Samsung Electronics has corporate governance risks common with large Korean companies due to its chaebol structure of complex cross holdings. This is magnified by the absence of an independent chairman and a founder family member on the board, who was imprisoned over corruption charges in 2017-18.
• We have held numerous corporate governance discussions with Samsung. The cross holdings should be slowly unwound as government tolerance for this structure is at an end while the jail time served by Vice Chairman JY Lee, while not welcome, did not appear to impact operations. At the 2018 Annual General Meeting, the company announced governance reforms such as the separation of CEO/Chair roles.
• We also discussed labour conditions at Chinese suppliers, isolated accidents at Samsung plants and a more widespread issue regarding illnesses by workers at Samsung facilities with the most severe involving a settlement regarding approximately 150 cases of leukemia. Samsung agreed to settle all related compensation claims, set aside W100 billion in August 2015 and signed a final settlement in January 2016.
• Samsung Electronics has made efforts to proactively address allegations of labour violations within the supply chain with increased supplier auditing and termination of relationships where child labour was found. Over time, we expect the valuation discount resulting from these issues to narrow.
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Consistent with our fundamental bottom-up analysis, our economic based approach to ESG focuses on assessing how environmental, social and governance risks and opportunities may impact the returns companies earn on their business.
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For professional investor use only. Not for distribution to retail investors.
ESG Assessments—Case Studies
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TGM—ESGI Centres Around 13 Indicators
Summary of index components
Environment20%
Social
40%
Governance 40%
Unsustainable Practices
Extreme Weather Risk
Resource Scarcity
EffectivenessPolicy MixCorruptionInstitutional StrengthBusiness Climate
Social Cohesion and StabilityInfrastructureHuman CapitalLabour
Demographics
13 indicators that we believe would have the most economic and valuation impact
Templeton Global Income Fund
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Templeton Global Macro ESG Index Centers Around 13 Indicators
Multiple Research Lenses Can Lead to High-Conviction Opportunities
Investment Process
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Three Potential Sources of Alpha
Global Research Lenses
Risk Modelling• VaR Analysis• Correlation
Analysis• Scenario/Stress
Testing
Trading• Trade Structuring• Market Flows• Local Execution/
Settlement• Liquidity Analysis
PORTFOLIO
Portfolio Construction and Implementation
Identification of High-
ConvictionOpportunities
Management Team• Potential Return
vs. Expected Risk• Global Allocations
Review/Performance AttributionReview
Yield Curve
Currency Ideas
Credit Ideas
• Growth Drivers
• Monetary Policy
• Fiscal Policy
• Inflation Dynamic
• Debt Sustainability
• Balance of Payment
• Political Situation
Macroeconomic Analysis
Macro-Models Analysis
Local Asset Management Perspectives¹
Country Visits
ES
G
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1. This unit is comprised of investment professionals located in affiliates of and joint venture partners with Franklin Templeton Investments. Reference to Local Asset Management is in relation to fixed income teams (excluding equity).
The above chart is for illustrative and discussion purposes only.
For professional investor use only. Not for distribution to retail investors.
Investment Process
*The fund may use other derivatives to generate similar exposures, such as futures.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.
Portfolio Construction—Position Sizing
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Portfolio Positioning Position Sizing
• The portfolio invests across developed and emerging countries in areas where we see potential value
• There are typically a few overarching macro views that are expressed using a variety of instruments
• Individual views are expressed using currency, interest rate, or credit positions
• Position size is based on our view of attractiveness, valuation, conviction level and risk, as well as size and liquidity of the market
• Long country exposures typically range from approximately 4–8%, expressed using some combination of currency, rates and credit; extremely high conviction positions may constitute around 20%
Implementation Barbell Approach
• Views are implemented primarily via local currency bonds, currency forwards, interest rate swaps, hard currency bonds, or a combination thereof
• The makeup of a position depends on the exposure, valuation, liquidity, and correlation to the remainder of the portfolio
• The various investment positions in the portfolio seek to balance downside risk, expected return and liquidity
RatesCredit
Hard Currency
Bonds
Local Currency
Bonds
FX Forwards*
Interest Rate
Swaps*
Currency
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Portfolio Construction
As stewards of our clients’ capital, we are constantly searching for greater transparency into the drivers of investment risk in our strategies and assuring alignment with investment team convictions and client expectations.
Investment risk management at Franklin Templeton:
As of 30 June 2019.
Investment Risk Management at Franklin Templeton
• Begins with the portfolio
management team’s research
process and the assessment of
market and active risk
• Is supported by integrated risk
analytics for the portfolio
management team’s use
• Is strengthened by the independent
Investment Risk Management
Group that reports directly to
the CEO
• Serves multiple stakeholders
including investors, portfolio
managers, fund boards and
regulators
• Is powered by actionable insights
from 20+ risk consultants with an
average of 18+ years experience and
90+ risk analysts located around
the globe
• Combines a mosaic of analytics,
oversight protocols and
collaborative consultation with
portfolio managers
Integrated Independent Insightful
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For professional investor use only. Not for distribution to retail investors.
Investment Risk Management at Franklin Templeton
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Fund Identifiers
ISIN Code LU0211326755
SEDOL Code B064Q18
Bloomberg Code TGINAAC LX
Templeton Global Income Fund - A (acc) USD
As of 30 June 2019
Summary
Portfolio Manager(s)
Heather Arnold, CFA Bahamas
Michael Hasenstab, PhD United States
Norman Boersma, CFA Bahamas
Fund Ratings (30 June 2019)
Overall Morningstar Rating™
««
Summary of Investment Objective
The Fund aims to maximise current income while maintaining prospects for capital
appreciation by investing in a diversified portfolio of debt and equity securities
worldwide. It seeks income by investing in a portfolio of fixed and floating rate debt
securities and debt obligations issued by government and government-related issuers
or corporate entities worldwide, including in emerging markets, as well as stocks the
portfolio manager believes offer attractive dividend yields.
Morningstar Category™ USD Moderate Allocation
Investment Style Balanced
Fund Inception Date 27 May 2005
Share Class Inception Date 27 May 2005
Benchmark Blended 50% MSCI All Country World
Index + 50% Bloomberg Barclays
Multiverse Index
Base Currency for Fund USD
Base Currency for Share Class USD
Total Net Assets (USD) 695,724,885.80
Asset Allocation (Market Value) Equity: 67.98%
Fixed Income: 20.95%
Cash & Cash Equivalents: 11.07%
Number of Issuers 85
Total Expense Ratio 1.69%
Holdings of the same issuer have been combined.
© Morningstar, Inc. 2019. 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.
Market value figures reflect the trading value of the investments. Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.
Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
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.
For professional investor use only. Not for distribution to retail investors.
Templeton Global Income Fund
25
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 debt and equity securities issued by any government or corporate entity worldwide, including emerging markets. Such securities have
historically been subject to price movements, generally due to interest rates or movements in the bond and equity markets. As a result, the performance of the Fund can
fluctuate considerably over time.
The Fund may distribute income gross of expenses. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital.
Other significant risks include: credit risk, derivatives risk, emerging markets risk, liquidity 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.
What are the Key Risks?
For professional investor use only. Not for distribution to retail investors.
Templeton Global Income Fund
26
Historical Asset Allocation
Market value figures reflect the trading value of the investments. Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.
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.
11/17 12/17 01/18 02/18 03/18 04/18 05/18 06/18 07/18 08/18 09/18 10/18 11/18 12/18 01/19 02/19 03/19 04/19 05/19 06/19
0%
20%
40%
60%
80%
100%
Equity Fixed Income, Cash & Cash Equivalents
Templeton Global Income Fund
As of 30 June 2019 — Market Value
27
Templeton Global Income Fund
Geographic Allocation—Total
Templeton Global Income Fund
vs. Blended 50% MSCI All Country World Index + 50% Bloomberg Barclays Multiverse Index
As of 30 June 2019 — Market Value
Cash & Cash Equivalents
Other
Australia / New Zealand
Mid-East / Africa
Latin America / Caribbean
North America
Asia
Europe
0% 10% 20% 30% 40% 50% 60%
Templeton Global Income Fund
Blended 50% MSCI All Country World Index +
50% Bloomberg Barclays Multiverse Index
Market value figures reflect the trading value of the investments. Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.
Weightings as percent of total. 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.
Portfolio % Index % Over/Under %
Europe 33.00 24.73 8.28
United Kingdom 10.35 4.98 5.38
Germany 6.44 3.76 2.68
France 5.82 4.52 1.30
Netherlands 3.88 1.33 2.55
Italy 2.89 2.10 0.79
Switzerland 1.71 1.78 -0.07
Other 1.91 6.24 -4.34
Asia 27.31 19.03 8.28
Japan 7.61 11.41 -3.80
India 5.05 0.58 4.47
China 3.56 2.84 0.72
South Korea 3.55 1.38 2.17
Indonesia 2.85 0.37 2.48
Hong Kong 2.32 0.65 1.67
Other 2.38 1.80 0.58
North America 14.87 50.43 -35.56
United States 14.28 47.27 -32.99
Canada 0.59 3.14 -2.56
Other 0.00 0.01 -0.01
Latin America / Caribbean 10.75 1.78 8.97
Brazil 5.37 0.77 4.61
Mexico 3.20 0.47 2.73
Other 2.18 0.52 1.66
Mid-East / Africa 2.99 1.13 1.86
Other 2.99 1.10 1.88
Australia / New Zealand 0.00 1.89 -1.89
Australia 0.00 1.78 -1.78
New Zealand 0.00 0.11 -0.11
Other 0.00 1.01 -1.01
Supranational 0.00 1.01 -1.01
Cash & Cash Equivalents 11.07 0.00 11.07
Templeton Global Income Fund
MSCI All Country World Index
Latin America / Caribbean
Australia / New Zealand
Mid-East / Africa
North America
Asia
Europe
0% 12% 24% 36% 48% 60%
28
Templeton Global Income Fund
Weightings as percent of equity. Percentage may not total 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.
Templeton Global Income Fund
vs. MSCI All Country World Index
As of 30 June 2019 — Market Value
Geographic Allocation—Equity
Portfolio % Index % Over/Under %
Europe 48.55 19.60 28.95
United Kingdom 15.23
5.01
10.22
Germany 9.48
2.64
6.84
France 8.56
3.41
5.15
Netherlands 5.70
1.08
4.63
Italy 4.26
0.69
3.56
Switzerland 2.52
2.77
-0.25
Luxembourg 1.86
0.00
1.86
Denmark 0.94
0.51
0.43
Others 0.00 3.50 -3.50
Asia 27.55 17.17 10.38
Japan 11.19
7.07
4.12
China 5.24
3.72
1.52
South Korea 4.36
1.46
2.90
Hong Kong 3.42
1.19
2.23
Singapore 2.25
0.40
1.85
Thailand 1.09
0.35
0.74
Taiwan 0.00
1.28
-1.28
India 0.00
1.06
-1.06
Others 0.00 0.63 -0.63
North America 22.83 58.33 -35.50
United States 21.97
55.28
-33.31
Canada 0.86
3.05
-2.19
Mid-East / Africa 1.07 1.26 -0.19
Israel 1.07
0.17
0.89
Others 0.00 1.08 -1.08
Australia / New Zealand 0.00 2.20 -2.20
Australia 0.00
2.12
-2.12
New Zealand 0.00
0.07
-0.07
Latin America / Caribbean 0.00 1.45 -1.45
Others 0.00 1.45 -1.45
Market value figures reflect the trading value of the investments. Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.
Weightings as percent of fixed income. 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.
Cash & Cash Equivalents
Other
Supranational
Non-EMU Europe
EMU Europe
Middle East / Africa
Japan
Asia ex-Japan
USA
Non-US Americas
-30% 0% 30% 60%
Templeton Global Income Fund
Bloomberg Barclays Multiverse Index
Templeton Global Income Fund
29
Geographic Allocation—Fixed Income
Templeton Global Income Fund
vs. Bloomberg Barclays Multiverse Index
As of 30 June 2019 — Market Value
Portfolio %
Index % Over/Under %
AMERICAS 53.76 44.64 9.12
NON-US AMERICAS 56.49 5.37 51.12
Brazil 22.47 0.63 21.84
Mexico 21.91 0.64 21.27
Argentina 9.24 0.14 9.11
Colombia 2.85 0.21 2.64
Canada 0.00 3.24 -3.24
Chile 0.00 0.17 -0.17
Other 0.02 0.33 -0.32
USA -2.73 39.27 -42.00
ASIA 37.40 22.48 14.92
ASIA EX-JAPAN 37.40 6.73 30.66
India 21.11 0.10 21.01
Indonesia 11.92 0.49 11.43
South Korea 3.94 1.30 2.64
Philippines 0.42 0.18 0.24
China 0.00 1.96 -1.96
Australia 0.00 1.44 -1.44
Thailand 0.00 0.34 -0.34
Malaysia 0.00 0.32 -0.32
Singapore 0.00 0.25 -0.25
Other 0.00 0.36 -0.36
JAPAN 0.00 15.75 -15.75
MIDDLE EAST /
AFRICA
9.47 0.99 8.48
Ghana 6.68 0.02 6.66
Kenya 2.79 0.01 2.78
Israel 0.00 0.19 -0.19
United Arab Emirates 0.00 0.16 -0.16
Other 0.00 0.60 -0.60
EUROPE 0.00 29.86 -29.86
EMU EUROPE 0.00 21.44 -21.44
France 0.00 5.64 -5.64
Germany 0.00 4.88 -4.88
Portfolio %
Index % Over/Under %
Italy 0.00 3.51 -3.51
Spain 0.00 2.57 -2.57
Netherlands 0.00 1.58 -1.58
Belgium 0.00 1.06 -1.06
Austria 0.00 0.68 -0.68
Finland 0.00 0.39 -0.39
Ireland 0.00 0.37 -0.37
Portugal 0.00 0.35 -0.35
Other 0.00 0.41 -0.41
NON-EMU EUROPE 0.00 8.41 -8.41
United Kingdom 0.00 4.95 -4.95
Switzerland 0.00 0.79 -0.79
Sweden 0.00 0.71 -0.71
Denmark 0.00 0.35 -0.35
Russia 0.00 0.35 -0.35
Norway 0.00 0.33 -0.33
Poland 0.00 0.31 -0.31
Turkey 0.00 0.16 -0.16
Other 0.00 0.45 -0.45
SUPRANATIONAL 0.00 2.03 -2.03
OTHER 0.08 0.00 0.08
CASH & CASH
EQUIVALENTS
-0.71 0.00 -0.71
Templeton Global Income Fund
30
Weightings as percent of equity. Percentage may not total 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.
Real Estate
Materials
Consumer Discretionary
Utilities
Information Technology
Industrials
Consumer Staples
Energy
Health Care
Communication Services
Financials
0% 6% 12% 18% 24% 30%
Sector Allocation—Equity
Templeton Global Income Fund
MSCI All Country World Index
Templeton Global Income Fund
As of 30 June 2019 — Market Value
vs. MSCI All Country World Index
Portfolio % Index % Over/Under %
Financials 20.35 16.89 3.45
Banks
18.02 8.99 9.03
Diversified Financials
1.21 3.94 -2.73
Insurance
1.12 3.96 -2.85
Communication Services 17.16 8.72 8.45
Telecommunication Services
12.20 2.92 9.28
Media & Entertainment
4.96 5.80 -0.84
Health Care 15.72 11.41 4.31
Pharmaceuticals, Biotechnology & Life Sciences
15.72 7.23 8.49
Health Care Equipment & Services
0.00 4.18 -4.18
Energy 13.82 5.93 7.89
Consumer Staples 8.91 8.28 0.63
Food, Beverage & Tobacco
6.14 4.70 1.44
Food & Staples Retailing
2.78 1.53 1.25
Household & Personal Products
0.00 2.06 -2.06
Industrials 7.66 10.51 -2.85
Capital Goods
4.47 7.13 -2.67
Transportation
3.19 2.17 1.02
Commercial & Professional Services
0.00 1.21 -1.21
Information Technology 5.71 16.02 -10.31
Technology Hardware & Equipment
3.00 4.82 -1.81
Software & Services
1.71 8.17 -6.46
Semiconductors & Semiconductor Equipment
0.99 3.03 -2.03
Utilities 4.69 3.25 1.43
Consumer Discretionary 3.68 10.83 -7.14
Consumer Durables & Apparel
2.15 2.00 0.14
Retailing
1.53 5.14 -3.61
Automobiles & Components
0.00 1.90 -1.90
Consumer Services
0.00 1.78 -1.78
Materials 1.22 4.94 -3.73
Real Estate 1.08 3.21 -2.13
31
Supranational
Derivatives
US Treasuries/Agencies
Securitised: N/A
Securitised: MBS
Securitised: CMBS / ABS
Corporate Bonds: Non-Investment Grade
Corporate Bonds: Investment Grade
Non-Local Curr. Sovereign Bonds: Investment Grade
Non-Local Curr. Sovereign Bonds: Non-Investment Grade
Local Curr. Govt/Agency Bonds: Non-Investment Grade
Local Curr. Govt/Agency Bonds: Investment Grade
-5% 9% 23% 37% 51% 65%
Templeton Global Income Fund
vs. Bloomberg Barclays Multiverse Index
As of 30 June 2019 — Market Value
Sector Allocation—Fixed Income
Portfolio % Index % Over/Under %
Local Curr. Govt/Agency Bonds 99.88 42.36 57.52
Investment Grade 62.16 41.91 20.25
Non-Investment Grade 37.72 0.45 37.27
Non-Local Curr. Sovereign Bonds 3.47 4.25 -0.78
Non-Investment Grade 3.47 0.92 2.55
Investment Grade 0.00 3.33 -3.33
Corporate Bonds 0.00 21.43 -21.43
Investment Grade 0.00 18.20 -18.20
Non-Investment Grade 0.00 3.23 -3.23
Securitised 0.00 14.08 -14.08
CMBS / ABS 0.00 0.95 -0.95
MBS 0.00 10.58 -10.58
N/A 0.00 2.55 -2.55
US Treasuries/Agencies 0.00 15.85 -15.85
Derivatives -3.36 0.00 -3.36
Supranational 0.00 2.02 -2.02
Templeton Global Income Fund
Templeton Global Income Fund
Bloomberg Barclays Multiverse Index
Market value figures reflect the trading value of the investments. Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.
Weightings as percent of fixed income. 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.
Templeton Global Income Fund
32
Currency Exposure—Fixed Income
Templeton Global Income Fund
vs. Bloomberg Barclays Multiverse Index
As of 30 June 2019 — Notional Exposure
Euro
Romania Leu
Hungarian Forint
Czech Koruna
Norwegian Krone
Russian Ruble
Polish Zloty
Danish Krone
Swedish Krona
Swiss Franc
British Pound
Israeli Shekel
Ghanaian Cedi
Australian Dollar
Hong Kong Dollar
New Zealand Dollar
Singapore Dollar
Malaysian Ringgit
Thailand Baht
Chinese Yuan
South Korean Won
Philippine Peso
Indian Rupee
Indonesian Rupiah
Japanese Yen
Chilean Peso
Peru Nuevo Sol
Canadian Dollar
Colombian Peso
Argentine Peso
Mexican Peso
Brazilian Real
U.S. Dollar
-57% -19% 19% 57% 95% 133%
Notional exposure figures are intended to estimate the portfolio’s exposure, including any hedged or increased exposure through certain derivatives held in the portfolio (or their underlying reference assets). Portfolio breakdown percentages may not total
100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.
Weightings as percent of fixed income. 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.
Templeton Global Income Fund
Bloomberg Barclays Multiverse Index
Portfolio % Index % Over/Under %
AMERICAS 132.71 49.61 83.10
U.S. DOLLAR 81.54 46.25 35.28
NON-US DOLLAR 51.17 3.36 47.82
Brazilian Real 22.47 0.37 22.10
Mexican Peso 17.28 0.25 17.03
Argentine Peso 8.58 0.00 8.58
Colombian Peso 2.85 0.12 2.73
Canadian Dollar 0.00 2.49 -2.49
Peru Nuevo Sol 0.00 0.07 -0.07
Chilean Peso 0.00 0.06 -0.06
ASIA 17.27 20.10 -2.83
JAPANESE YEN 23.22 15.33 7.89
ASIA EX-JAPAN -5.95 4.77 -10.71
Indonesian Rupiah 11.92 0.29 11.63
Indian Rupee 0.50 0.00 0.50
Philippine Peso 0.42 0.11 0.31
South Korean Won 0.23 1.13 -0.90
Chinese Yuan 0.00 1.16 -1.16
Thailand Baht 0.00 0.31 -0.31
Malaysian Ringgit 0.00 0.28 -0.28
Singapore Dollar 0.00 0.19 -0.19
New Zealand Dollar 0.00 0.10 -0.10
Hong Kong Dollar 0.00 0.02 -0.02
Australian Dollar -19.02 1.18 -20.20
MIDEAST/AFRICA 6.68 0.11 6.57
Ghanaian Cedi 6.68 0.00 6.68
Israeli Shekel 0.00 0.11 -0.11
EUROPE -56.66 30.18 -86.84
NON-EURO 0.00 6.31 -6.31
British Pound 0.00 4.47 -4.47
Swiss Franc 0.00 0.54 -0.54
Swedish Krona 0.00 0.40 -0.40
Danish Krone 0.00 0.22 -0.22
Polish Zloty 0.00 0.20 -0.20
Russian Ruble 0.00 0.15 -0.15
Portfolio % Index % Over/Under %
Norwegian Krone 0.00 0.10 -0.10
Czech Koruna 0.00 0.09 -0.09
Hungarian Forint 0.00 0.07 -0.07
Romania Leu 0.00 0.05 -0.05
EURO -56.66 23.88 -80.53
N/A
NR
CC+
CCC-
CCC
CCC+
B-
B
B+
BB-
BB
BB+
BBB-
BBB
BBB+
A-
A
A+
AA-
AA
AA+
AAA
-4% 7% 18% 29% 40%
Templeton Global Income Fund
Bloomberg Barclays Multiverse Index
Templeton Global Income Fund
33
Templeton Global Income Fund
vs. Bloomberg Barclays Multiverse Index
As of 30 June 2019 — Market Value
Credit Quality Allocation—Fixed Income
Portfolio % Index % Over/Under %
AAA 0.00 37.52 -37.52
AA+ 0.00 2.28 -2.28
AA 3.94 9.19 -5.25
AA- 0.00 3.38 -3.38
A+ 0.00 18.95 -18.95
A 0.00 3.18 -3.18
A- 21.91 5.86 16.06
BBB+ 0.00 4.33 -4.33
BBB 15.19 7.51 7.68
BBB- 21.11 3.15 17.97
BB+ 0.00 0.69 -0.69
BB 0.00 0.52 -0.52
BB- 22.47 1.13 21.34
B+ 2.79 0.64 2.15
B 15.92 0.75 15.17
B- 0.02 0.50 -0.49
CCC+ 0.00 0.19 -0.19
CCC 0.00 0.13 -0.13
CCC- 0.00 0.02 -0.02
CC+ 0.00 0.02 -0.02
NR 0.00 0.06 -0.06
N/A -3.36 0.01 -3.37
Investment Grade
62.16 95.34 -33.18
Non-Investment Grade
41.20 4.65 36.55
N/A
-3.36
0.01 -3.37
Market value figures reflect the trading value of the investments. Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.
Weightings as percent of fixed income. 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 Recognised Statistical Rating Organisations (‘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 rateable securities that have not been rated by an NRSRO. The N/A category consists of nonrateable securities (e.g., equities). Cash and
equivalents are excluded from this breakdown.
For professional investor use only. Not for distribution to retail investors.
Templeton Global Income Fund
34
The Ten Largest Holdings represent the ten largest holdings of the fund as of the date indicated. These securities do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that
investment in the securities listed was or will be profitable. All portfolio holdings are subject to change.
Holdings of the same issuer have been combined.
The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the top 10 holdings list.
For professional investor use only. Not for distribution to retail investors.
Name of Issuer Country Industry % of Total
ING GROEP NV Netherlands Banks 2.40
BP PLC United Kingdom Energy 2.29
ROYAL DUTCH SHELL PLC United Kingdom Energy 2.27
ENI SPA Italy Energy 2.22
SANOFI France Pharmaceuticals, Biotechnology & Life Sciences 2.08
BNP PARIBAS SA France Banks 2.06
ALLERGAN PLC United States Pharmaceuticals, Biotechnology & Life Sciences 2.00
STANDARD CHARTERED PLC United Kingdom Banks 1.91
VEOLIA ENVIRONNEMENT SA France Utilities 1.68
DEUTSCHE TELEKOM AG Germany Telecommunication Services 1.63
Total 20.53
Top Ten Holdings—Equity
Templeton Global Income Fund
As of 30 June 2019
35
Portfolio Characteristics—Total
Templeton Global Income Fund
vs. MSCI All Country World Index & Bloomberg Barclays Multiverse Index
As of 30 June 2019
Templeton Global Income Fund
Total Characteristics Portfolio
Blended Yield
4.39%
Equity Characteristics Portfolio Benchmark
Price to Earnings (12-mo Trailing) 13.12x 17.54x
Price to Cash Flow 4.97x 11.23x
Price to Book 1.18x 2.29x
Dividend Yield 3.87% 2.49%
Market Capitalisation (Millions USD) 83,582 130,537
Market Capitalisation Breakdown in USD Portfolio %
<2.0 Billion 1.19
2.0-5.0 Billion 3.21
5.0-10.0 Billion 4.81
10.0-25.0 Billion 18.45
25.0-50.0 Billion 22.19
>50.0 Billion 48.29
N/A 1.86
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 figures reflect certain derivatives held in the portfolio (or their underlying reference assets).
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, is provided to indicate the average
credit rating of the portfolio’s underlying bonds and generally ranges from AAA (highest) to D (lowest). For unrated bonds ratings may be assigned based on the ratings of the issuer 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 debt holdings 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 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.
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 dividend yield quoted here is the yield on securities within the Fund’s portfolio and should not be used as an indication of the income
received from this portfolio. The market capitalisation figures for both the portfolio and the benchmark are the security level, not aggregated up to the main issuer.
Source: FactSet. Price Ratio calculations for the weighted average use harmonic means. Any exceptions to this are noted. Market capitalisation statistics are indicated in the base currency for the portfolio presented.
A blended measure used for balanced funds, the internal or blended yield is the market-weighted average of the current yield of the fund's fixed income component and the dividend yield of the fund's equity component. This measure is gross of
fees.
Past performance is not an indicator or a guarantee of future performance.
For professional investor use only. Not for distribution to retail investors.
Fixed Income Characteristics Portfolio Benchmark
Average Credit Quality
BBB- AA-
Average Duration -3.15 Yrs 6.92 Yrs
Average Weighted Maturity 3.06 Yrs 8.63 Yrs
Yield to Maturity 11.00% 1.71%
Yield to Worst 11.00% 1.69%
Templeton Global Income Fund
36
Discrete Performance
Discrete Annual Performance (%)
Inception
Date
06/18
06/19
06/17
06/18
06/16
06/17
06/15
06/16
06/14
06/15
Templeton Global Income Fund - A (acc) USD—Net of Fees 27.5.2005 -3.13 0.95 17.36 -10.77 -3.10
Blended 50% MSCI All Country World Index + 50% Bloomberg Barclays
Multiverse Index
6.39 6.31 8.60 2.83 -2.95
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.
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.
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 www.franklinresources.com/countries for current performance.
For professional investor use only. Not for distribution to retail investors.
Templeton Global Income Fund - A (acc) USD
As of 30 June 2019
Annualised Total Returns (%)
Inception
Date 1 Yr 3 Yrs 5 Yrs 10 Yrs
Since
Incept
Templeton Global Income Fund - A (acc) USD—Net of Fees 27.5.2005 -3.13 4.70 -0.15 5.34 4.85
Blended 50% MSCI All Country World Index + 50% Bloomberg Barclays
Multiverse Index
6.39 7.10 4.15 7.06 5.69
Templeton Global Income Fund
Historical Performance
Templeton Global Income Fund - A (acc) USD
As of 30 June 2019
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.
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.
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 www.franklinresources.com/countries for current performance.
For professional investor use only. Not for distribution to retail investors.
37
Cumulative Performance (%)
Inception
Date 1 Mth 3 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs
Since
Incept
Templeton Global Income Fund - A (acc) USD—Net of Fees 27.5.2005 4.95 0.00 5.07 -3.13 14.78 -0.76 68.27 95.03
Blended 50% MSCI All Country World Index + 50% Bloomberg Barclays
Multiverse Index
4.42 3.60 11.17 6.39 22.82 22.57 97.74 118.04
Templeton Global Income Fund
38
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.
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.
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 www.franklinresources.com/countries for current performance.
For professional investor use only. Not for distribution to retail investors.
Calendar Year Returns
Templeton Global Income Fund - A (acc) USD
As of 30 June 2019
YTD 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
-12%
-2%
8%
18%
28%
5.07
11.17
-10.12 -5.06
11.62
15.89
4.81
5.80
-4.80 -2.36 -1.22
2.63
16.23
10.00
16.36
10.86
-6.66 -0.56
10.48
9.87
27.83
21.49
Blended 50% MSCI All Country World Index + 50% Bloomberg Barclays Multiverse IndexTempleton Global Income Fund - A (acc) USD—Net of Fees
Templeton Global Income Fund
39
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.
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.
^^Measured against the Blended 50% MSCI All Country World Index + 50% Bloomberg Barclays Multiverse Index.
*Annualised.
Past performance is not an indicator or a guarantee of future performance.
For professional investor use only. Not for distribution to retail investors.
As of 30 June 2019
Performance Risk Statistics
1 Yr 3 Yrs* 5 Yrs* 10 Yrs*
Standard Deviation (%):
Templeton Global Income Fund - A (acc) USD 13.38 9.27 9.84 11.25
Blended 50% MSCI All Country World Index + 50%
Bloomberg Barclays Multiverse Index
8.86 6.50 6.83 8.03
Tracking Error (%)^^ 6.73 5.78 5.54 5.14
Information Ratio^^ -1.41 -0.41 -0.78 -0.33
Beta^^ 1.35 1.13 1.21 1.28
Sharpe Ratio -0.40 0.36 -0.10 0.43
Templeton Global Income Fund - A (acc) USD
Performance Risk Statistics
5.04
3.864.33
4.033.32 3.35
4.13 3.97 4.20 4.39
3.22 3.04 3.24 3.02 2.84 2.79 2.81 2.64 2.49 2.57
7.21 7.05
6.06
7.72
6.55 6.35
7.46 7.31
10.33
8.38
4.29
3.323.77
3.33
2.49 2.64
3.41 3.352.92
3.87
0%
2%
4%
6%
8%
10%
12%
31/12/09 31/12/10 31/12/11 31/12/12 31/12/13 31/12/14 31/12/15 31/12/16 31/12/17 30/06/2019
Templeton Global Income Blended Yield Blended Benchmark Yield Current Yield of Fixed Income Portion of Templeton Global Income Fund Dividend Yield of Equity Portion of Templeton Global Income Fund
Templeton Global Income Fund A (Qdis) USD vs. Blended Benchmark (50% MSCI ACWI/50% Bloomberg Barclays Multiverse Index)As of 30 June 2019
Source: Franklin Templeton Investments/FactSet.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. The current yield of a bond fund is the market-weighted average of the current yields of all the bonds in the portfolio. This measure is gross of fees and excludes yield on cash. The dividend yield of a mutual fund is the market-weighted average of the dividend yields of all the stocks in the portfolio. This measure is gross of fees. A blended measure used for balanced funds, the internal or blended yield is the market-weighted average of the current yield of the fund’s fixed income component and the dividend yield of the fund’s equity component. This measure is gross of fees.The information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Blended Yield and Current Yield of Fixed Income Portion figures reflect certain derivatives held in the portfolio (or their underlying reference assets).Past performance is not an indicator or a guarantee of future performance.
Total Portfolio Yields
3694
Templeton Global Income Fund
40
For professional investor use only. Not for distribution to retail investors.
Total Portfolio Yields
Templeton Global Income FundAs of 30 June 2019—Market Value
The information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Market value figures reflect the trading value of the investments. Portfolio breakdown percentages may not total100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.Source: Franklin Templeton Investments.
Historical Asset Allocation
2960
20%
30%
40%
50%
60%
70%
80%
Equity Fixed Income + Cash & Cash Equivalents
Templeton Global Income Fund
41
For professional investor use only. Not for distribution to retail investors.
Historical Asset Allocation
42
Appendix
Templeton Global Income Fund
For professional investor use only. Not for distribution to retail investors.
Guides How We Work• Our primary objective is to deliver exceptional investment management through an active fundamental
approach…while always acting in the best interests of our clients and shareholders • As a fiduciary, we recognise that ESG considerations are a driver of long-term investment performance and
thus affect our business and the companies we invest in• Our approach to ESG is one of the many strengths of our organisation
ESG considerations at the corporate level that impact our business:
Environmental ImpactEnergy usage
Greenhouse gases
Waste/recycling
Water consumption
Social FactorsDiversity and inclusion
Talent management(attracting, retaining top talent)
Charitable giving
Customer privacy and data security
Employee volunteering
GovernanceAnti-money laundering
Code of ethics/conduct
Compliance
Executive compensation
Enterprise risk management
ESG investment integration
5888
Templeton Global Income Fund
43
For professional investor use only. Not for distribution to retail investors.
Franklin Templeton—ESG and Corporate Sustainability
ESG considerations are a driver of long-term investment performance • We embed ESG best practices and analytics in our investment processes, enhancing our traditional financial analysis to open new
investment opportunities, help mitigate risk and seek to enhance long-term returns
Our dedicated specialist ESG team collaborates with the investment teams to:
Franklin Templeton—Environmental, Social and Governance (ESG) Investment Integration
Independent Risk ManagementIntegrate ESG analytics into fund reviews and risk reports
Dedicated ESG TeamTrack trends and share
industry best practices with investment teams Portfolio Construction &
Management
Investment Portfolios
Investment Research & Analysis
ESG considerations embedded in security evaluation processes
Educate and engage to understand the impact and scope of ESG considerations and consult on
emerging ESG issues
Evaluate ESG-related research practices and identify opportunities
to refine and deepen insights
Enhance analysis by incorporating independent, unbiased ESG
research and analytics
6312
Templeton Global Income Fund
44
For professional investor use only. Not for distribution to retail investors.
Franklin Templeton—Environmental, Social and Governance (ESG) Investment
Integration
HEATHER ARNOLD, CFADirector of ResearchPortfolio Manager, Research AnalystTempleton Global Equity GroupTempleton Global Advisors LimitedNassau, Bahamas
Heather Arnold is the director of research for the Templeton Global Equity Group, as well as a portfolio manager and research analyst. Ms. Arnold is the lead portfolio manager for the Templeton Global Fund as well as the lead portfolio manager on a number of Global and International institutional separate accounts.She is also the lead equity portfolio manager of TGIT Templeton Global Balanced Fund, FTIF Templeton Global Income Fund and Templeton Global BalancedFund in Canada.
Ms. Arnold has 34 years industry experience, 14 of which have been at Templeton.
Ms. Arnold holds an M.B.A. from York University (Canada) and a B.A. in economics and art history from Queen's University (Canada), and is a Chartered Financial Analyst (CFA) charterholder.
Templeton Global Income Fund
For professional investor use only. Not for distribution to retail investors.
45
Management Profile
WARREN PUSTAM, CFA, CPAVice PresidentResearch AnalystTempleton Global Equity GroupTempleton Global Advisors LimitedNassau, Bahamas
Warren W. Pustam is a research analyst for the Templeton Global Equity Group with global research responsibilities for diversified financials, capital markets and Latin American banks. Mr. Pustam also has country research coverage of Argentina, Brazil, Chile, Mexico, Colombia and Peru. He is a member of the Global Financials Sector Team and the Small Cap Team.
Prior to joining Franklin Templeton in 2013, Mr. Pustam was a research analyst at EverKey Global Partners with responsibilities for Companies in Europe. Priorto EverKey, Mr. Pustam was an associate portfolio manager with Pictet Bank & Trust and analyst at KPMG Corporate Finance. He entered the financial services industry in 2003.
Mr. Pustam holds a B.B.A. (Hons) in accounting from the University of the Bahamas. He is a Chartered Financial Analyst (CFA) charterholder and a Certified Public Accountant (CPA).
Templeton Global Income Fund
Management Profile
For professional investor use only. Not for distribution to retail investors.
46
MICHAEL HASENSTAB, PH.D.Executive Vice President, Portfolio ManagerChief Investment OfficerTempleton Global MacroFranklin Advisers, Inc.San Mateo, California, United States
Michael Hasenstab, Ph.D., is executive vice president and chief investment officer for Templeton Global Macro, which conducts in-depth global macroeconomic analysis covering thematic topics, regional and country analysis, and interest rate, currency and sovereign credit market outlooks. Templeton Global Macro offers global, unconstrained investment strategies through a variety of investment vehicles ranging from retail mutual funds to unregistered, privately offered hedge funds. Dr. Hasenstab is a portfolio manager for a number of funds, including Templeton Global Bond Fund and Templeton Global Total Return Fund.
Dr. Hasenstab is economic advisor to the CEO of Franklin Resources, Inc., providing his perspective and insight through the lens of Templeton Global Macro. In addition, he is a member of Franklin Resources' executive committee, a small group of the company's top leaders responsible for shaping the firm's overall strategy.
Dr. Hasenstab has received numerous industry awards and accolades throughout his investment career. Over the last decade, the funds that he and his team manage have collectively received more than 400 awards from various rating agencies globally, including Lipper and Morningstar. In addition, various publications have recognized Dr. Hasenstab's investment expertise including, most recently, his being named one of Forbes' Money Masters of 2015. Investment Week named him Global Bond Manager of the Year in 2008, 2010 and 2011 and recognized him as one of the most influential fund managers in 2010. Morningstar awarded him Fixed Income Manager of the Year in Canada in 2013 and Fund Manager of the Year in the U.S. in 2010. In 2011 and 2012, he was highlighted as one of the most influential young people in business in Fortune's 40 under 40.
Dr. Hasenstab initially joined Franklin Templeton Investments in July 1995. After a leave of absence to obtain his doctor of philosophy (Ph.D.) degree, he rejoined the company in April 2001. He has worked and traveled extensively abroad, with a special focus on Asia.
Dr. Hasenstab holds a Ph.D. in economics from the Asia Pacific School of Economics and Management at Australian National University, a master's 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.
Templeton Global Income Fund
Management Profile
For professional investor use only. Not for distribution to retail investors.
47
NORMAN J. BOERSMA, CFAChief Investment Officer, Templeton Global Equity GroupPresident, Templeton Global Advisors LimitedNassau, Bahamas
Norman J. Boersma is the chief investment officer of Templeton Global Equity Group (TGEG) and president of Templeton Global Advisors. He is also lead portfolio manager for the Templeton Growth Fund, Templeton Growth (Euro) Fund and Templeton World Fund and related strategies.
Previously, he served as TGEG's director of research, director of portfolio management, and again, as director of research. After working in the Toronto office for much of his career, Mr. Boersma transitioned to Nassau, Bahamas, in 2011 to take on the role of lead portfolio manager on the group's flagship fund, Templeton Growth Fund. He entered the financial services industry in 1986.
Prior to joining Franklin Templeton in 1991, Mr. Boersma was an investment officer with the Ontario Hydro Pension Fund.
Mr. Boersma holds a B.A. in economics and political science from York University and an M.B.A. from the University of Toronto. He is a Chartered Financial Analyst (CFA) charterholder and a past treasurer and director of the Toronto Society of Financial Analysts.
Templeton Global Income Fund
Management Profile
For professional investor use only. Not for distribution to retail investors.
48
Glossary
Templeton Global Income Fund
49
For professional investor use only. Not for distribution to retail investors.
Average Credit Quality: The average credit quality reflects the holdings of the underlying issues, based on the size of each holding and ratings assigned to each based on rating
agency assessments of its creditworthiness.
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. The weighted average duration of a fund reflects the effective duration of the underlying issues, based on the size of each holding.
Average Weighted Maturity: An estimate of the number of years to maturity, taking the possibility of early payments into account, for the underlying holdings.
Beta: A measure of the magnitude of a portfolio's past share-price fluctuations in relation to the ups and downs of the overall market (or appropriate market index). The market (or index)
is assigned a beta of 1.00, so a portfolio with a beta of 1.20 would have seen its share price rise or fall by 12% when the overall market rose or fell by 10%.
Dividend Yield: The annual dividend received on an equity security as a percentage of the price. For a portfolio, the value represents a weighted average of the stocks it holds. It should
not be used as an indication of the income received from this portfolio.
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.
Market Capitalisation: A determination of a company's value, calculated by multiplying the total number of company stock shares outstanding by the price per share.
Price to Book: The price per share of a stock divided by its book value (i.e., net worth) per share. For a portfolio, the value represents a weighted average of the stocks it holds.
Price to Cash Flow: Supplements price/earnings ratio as a measure of relative value for a stock. For a portfolio, the value represents a weighted average of the stocks it holds.
Price to Earnings (12-mo Trailing): The share price of a stock, divided by its per-share earnings over the past year. For a portfolio, the value represents a weighted average of the
stocks it holds.
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.
Glossary (continued)
Templeton Global Income Fund
50
For professional investor use only. Not for distribution to retail 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.
Important Disclosures
Templeton Global Income Fund
For professional investor use only. Not for distribution to retail investors.
51
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.
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.
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. 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.
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 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.
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.
Opinions expressed are the author’s at publication date and they are subject to change without prior notice. 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.
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.
References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. 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.
© 2019 Franklin Templeton Investments. All rights reserved.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
Important Disclosures (continued)
Templeton Global Income Fund
For professional investor use only. Not for distribution to retail investors.
52
All MSCI data is provided “as is.” The Fund described herein is not sponsored or endorsed by MSCI. 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 Fund described herein. Copying or redistributing the MSCI data is strictly prohibited.