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    Citywire south west april 2013 Citywire south west april 2013 Presentation Transcript

    • For Professional Investor Use Only. Not for Distribution to Retail Investors.Why it’s Time to Take a Different Approach toFixed Income InvestingStuart LingardFranklin Templeton Fixed Income GroupApril 2013
    • For Professional Investors Only. Not for Distribution to Retail Investors.Franklin Templeton Fixed Income GroupSource: Franklin Templeton Investments (FTI), as of 31 March 2013, unless otherwise noted. Assets Under Management (AUM) combines the US and non-US AUM of the investmentmanagement subsidiaries of the parent company, Franklin Resources, Inc. [NYSE: BEN], a global investment organisation operating as Franklin Templeton Investments. AUM includesdiscretionary and advisory accounts, including pooled investment vehicles, separate accounts and other vehicles, as well as some accounts that may not be eligible for inclusion incomposites as defined by the firm’s policies. AUM may also include advisory accounts with or without trading authority. In addition, the Firm may provide asset allocation advisory services,and if the assets are not allocated to FTI products, then the assets are not included in AUM. Numbers may not equal 100% due to rounding. Please note that the table above does notinclude all affiliates under FTI.Franklin Templeton Multi-Asset Strategies (FTMAS) AUM as of 31 March 2013. FTMAS invests in various Franklin Templeton and external investment platforms; AUM for FTMAS isreported under each utilised investment platform, as well as for FTMAS.Each local asset manager may be considered as an entity affiliated with or associated to Franklin Templeton Investments by virtue of being wholly-owned subsidiaries, or other entities orjoint ventures in which Franklin Resources, Inc., owns a partial interest, which may be a minority interest. Local asset management AUM includes AUM for Franklin Templeton Investments(ME) Limited and Balanced Equity Management Pty. Limited. Franklin Templeton Investments (ME) Limited and Balanced Equity Management Pty. Limited are both indirect wholly-ownedsubsidiaries of Franklin Resources, Inc.Please refer to the “Important Information” slide for additional information.FRANKLIN TEMPLETON INVESTMENTSTotal Combined Assets Under Management (AUM)1: £542.10 BillionEQUITY FIXED INCOME SPECIALISED STRATEGIESFranklinEquity GroupTempletonEmergingMarkets GroupTempletonGlobal EquityGroup Mutual SeriesFranklinTempletonFixed IncomeGroup3FranklinTempletonLocal AssetManagementFranklinTempletonReal AssetAdvisors K2 AdvisorsFranklinTempletonMulti-AssetStrategiesEstablished 1947 1987 1940 1949 1971 1993 1984 1994 1982Focus • US Equity• Global Equity• InternationalEquity• EmergingMarkets Equity• Global Equity• InternationalEquity• Global Equity• InternationalEquity• US Equity• DistressedDebt & MergerArbitrage• Global FixedIncome• Regional FixedIncome• EmergingMarket Debt• Global Equityand FixedIncome• Regional Equityand FixedIncome• Single-CountryEquity andFixed Income• Global PrivateReal Estate• Global RealEstateSecurities• Global PrivateReal Assets• Hedge Fund-of-Funds• Multi-StrategyDiversified• Long-Short• Global Macro• Commodity• AdvisoryServices• Multi-Asset• Fund-of-FundsStrategies• Global TacticalAssetAllocationStyle Growth, Value,Core/HybridCore Value Core Value Deep Value Single Sector,Multi-SectorMulti-Sector,Single- orMulti-RegionMulti-Sector,Multi-RegionMulti-Style,Multi-Region,HedgedMulti-StyleAUM£104.13 Billion £35.27 Billion £69.32 Billion £41.62 Billion US$334.7 Billion £32.00 Billion £3.02 Billion £6.18 Billion £2.11 BillionFIXED INCOMEFranklinTempletonFixed IncomeGroup31971• Global FixedIncome• Regional FixedIncome• EmergingMarket DebtSingle Sector,Multi-Sector£238.47 BillionWhy it’s Time to Take a Different Approach to Fixed Income Investing 1
    • For Professional Investors Only. Not for Distribution to Retail Investors.Global Fixed Income ExpertiseSão Paulo(6)San Mateo(99)New York(9)Seoul(7)London(12)Dubai(3)Franklin Templeton Fixed Income Group OfficesLocal Asset Management Offices1. Includes individuals that are not employees of Franklin Resources, Inc. (FRI) or wholly owned subsidiaries of FRI. However, these individuals are part of our joint venture orstrategic partnership relationships worldwide and are an integral component of our overall fixed income research efforts.2. Investment professionals include portfolio managers, analysts and traders.As of 31 December 2012.Shanghai1(2)Mumbai(5)Singapore(3)The Franklin Templeton FixedIncome Group consists of morethan 140 investmentprofessionals providingcomprehensive coverage ofpotential alpha opportunitiesacross sectors and aroundthe world.2Kuala Lumpur(2)Calgary(6)2Why it’s Time to Take a Different Approach to Fixed Income Investing
    • For Professional Investors Only. Not for Distribution to Retail Investors.1.This unit is comprised of investment professionals located in affiliates and joint venture partners within Franklin Templeton Investments. The Local Asset Management Group is not a part of, but doesshare research with, Franklin Templeton Fixed Income Group.2.Includes individuals that are not employees of Franklin Resources, Inc. (FRI) or wholly owned subsidiaries of FRI. However, these individuals are part of our joint venture or strategic partnershiprelationships worldwide and are an integral component of our overall fixed income research efforts.Investment professionals include portfolio managers, analysts and traders. CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.As of 31 March 2013.Franklin Templeton Fixed Income Group OrganisationalStructure3Why it’s Time to Take a Different Approach to Fixed Income Investing
    • For Professional Investors Only. Not for Distribution to Retail Investors.4Global Expertise• Recognised pioneer in global investing• Well-established global research platform• Experienced and diverse team of investment professionalsLong-Term, Fundamental Macro-Research Driven• Long-term value approach to fixed income investing• Global and local experts provide extensive country analysis through multiple perspectives & lensesOpportunistic and Flexible Approach• Benchmark unconstrained• Active management through independent sources of alpha• Isolate expected returns from desired risk exposuresConsistent Returns Earned Over Time• Strong performance in a wide variety of market environments• Strong absolute, relative and risk-adjusted long-term returnsTeam PhilosophyWhy it’s Time to Take a Different Approach to Fixed Income Investing
    • For Professional Investors Only. Not for Distribution to Retail Investors.Why it’s Time to Take a Different Approach to Fixed Income InvestingExpanding Opportunity Set02040608010012002040608010012089 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12NumberofCountriesAvailableforInvestmentDebtOutstanding(trillionsofUSdollars)Developing Developed ex-G3 G3 Number of CountriesUS$74.1 tnUS$12.3 tnUS$11.1 tn*Note: Excludes international organisations and offshore financial centers. Total is equal to US$99.9 trillion, as of March 2012.Source: Bank for International Settlements, Securities Statistics and Syndicated Loans, September 2012.Charts are for illustrative and discussion purposes only.Total Debt Outstanding of Governments and Corporations1US$97.5 trillion*, as of March 20125
    • For Professional Investors Only. Not for Distribution to Retail Investors.Why it’s Time to Take a Different Approach to Fixed Income InvestingTectonic Changes in ChinaChinese Migrant Workers Monthly SalarySource: Lu Feng, “Employment expansion and wage growth (2001-2010)”, China Macroeconomic Research Center, Peking University, Beijing, 12 June 2011. Barclays Capital.As of December 2010.Charts are for illustrative and discussion purposes only.Polynomial Trend with four degrees5010015020025030035080 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10RealMonthlyWages(1978Prices=100)6
    • For Professional Investors Only. Not for Distribution to Retail Investors.Why it’s Time to Take a Different Approach to Fixed Income InvestingCentral Bank Balance SheetsSources: Federal Reserve, European Central Bank, Bank of England, and Bank of Japan, as of 31/12/2012. Swiss National Bank, as of 30/11/2012.As a percent of 2008 GDP, as of 31/12/2012.Charts are for illustrative and discussion purposes only.Capital Channel: Extraordinary Monetary Policy0%20%40%60%80%100%0%10%20%30%40%50%06 07 08 09 10 11 12CentralBankAssets/GDPECBBOJBOEFedSNB (rhs)7
    • For Professional Investors Only. Not for Distribution to Retail Investors.Why it’s Time to Take a Different Approach to Fixed Income InvestingCrisis and ResponseNational Costs of Asset Price Bubbles and Federal Reserve BalanceSheet Size (as a percent of GDP)Savings & Loan Crisis bubble size is estimated by the FDIC as the total cost to private industry and taxpayers. Stockmarket Bubble and Housing Bubble size are estimated by theFinancial Crisis Inquiry Commission as the total losses in household net worth. Size of Federal Reserve Balance Sheet during historical bubbles shown at year-end. Data as of January2013 for Today. Sources: FDIC, History of the Eighties: Lessons for the Future, Final Report of the National Commission on the Causes of the Financial and Economic Crisis in theUnited States, Bureau of Economic Analysis, and the Federal Reserve, as of 31/01/12.Charts are for illustrative and discussion purposes only.0%10%20%30%0%50%100%150%S&L Crisis(1989)StockmarketBubble(2000)HousingBubble(2008)Today(2013)BalanceSheet(percentofGDP)BubbleCosts(percentofGDP)National BubbleCostsFederal ReserveBalance Sheet Size8
    • For Professional Investors Only. Not for Distribution to Retail Investors.Why it’s Time to Take a Different Approach to Fixed Income InvestingThe End of Risk-Free AssetsReal and Nominal 10-Year US Treasury YieldSource: United States Department of Labor, Bureau of Labor Statistics, Bloomberg, as of 31/12/12.Real 10-year Treasury yield is deflated by y/y CPI.Charts are for illustrative and discussion purposes only.-4%-2%0%2%4%6%8%10%12%14%16%82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12YieldsNominal Rate Real Rate9
    • For Professional Investors Only. Not for Distribution to Retail Investors.14Source: © 2012 Bloomberg L.P. All rights reserved as of 29/03/13.10YearGiltYields(%)Gilt Yields at Historical LowsWhy it’s Time to Take a Different Approach to Fixed Income Investing 1002468101214
    • For professional investors only. Not for distribution to retail investors.11Why it’s Time to Take a Different Approach to Fixed Income InvestingThere is no assurance that any projection, estimate or forecast will be realised. Source: Copyright © 2013, International Monetary Fund, World Economic Outlook, October 2012. All RightsReserved. Shaded area represents International Monetary Fund staff estimates. As a percent of GDP, historical data as of October 2012, IMF Projections through 2017.Charts are for illustrative and discussion purposes only.The Lower Debt Levels of Emerging Markets Will Become More Pronounced:Changing Fundamentals: Low Government Debt0%20%40%60%80%100%120%81 85 89 93 97 01 05 09 13 17GovernmentDebt/GDPAdvanced EconomiesEmerging and DevelopingEconomies
    • For Professional Investors Only. Not for Distribution to Retail Investors.Why it’s Time to Take a Different Approach to Fixed Income InvestingFundamentals Favour Emerging MarketsFiscal Balance and GDP GrowthThere is no assurance that any projection, estimate or forecast will be realised.Source: Copyright © 2013, International Monetary Fund, World Economic Outlook as of October 2012. All Rights Reserved.Charts are for illustrative and discussion purposes only.-12-10-8-6-4-202-6 -4 -2 0 2 4 6 8Central & EasternEuropeGDP growth (2012e)FiscalBalanceasa%ofGDPAdvanced EconomiesEmerging EconomiesAdvanced EconomiesEmerging EconomiesJapanUK USEuro Area Latin America Emerging AsiaSpainKoreaMexicoChinaIndonesiaPortugalGreece12
    • For Professional Investors Only. Not for Distribution to Retail Investors.Why it’s Time to Take a Different Approach to Fixed Income InvestingStructural TransformationIndonesian Long-Term Government Bond ReturnsNote: this chart shows the contributors to the cumulative total return of the J.P. Morgan Government Bond Index (GBI) Emerging Market Indonesia 7-10 year maturity sub-index starting 31/08/04.Source: J.P. Morgan Chase & Co., as of 31/12/12.Indices are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results.Charts are for illustrative and discussion purposes only.Investing Early Could Pay Off: A Case Study in Indonesia13SBYelectedSBYreelected-50%0%50%100%150%200%250%04 05 06 07 08 09 10 11 12CumulativeTotalReturnsCoupon ReturnPrice ReturnCurrency ReturnTotal Return
    • For Professional Investors Only. Not for Distribution to Retail Investors.Source: Bloomberg, as of 28/02/13.Charts are for illustrative and discussion purposes only. 14Government Bond Yields (2-year yields, as of 28/02/13)Relatively High Yields Available Internationally8.4%5.5%4.3% 4.3%3.4% 3.0% 2.7% 2.7%1.0% 0.2% 0.2% 0.0% 0.0%9.5%5.2% 5.4% 5.1%4.0%3.5%3.0%3.3%1.9%2.0%0%2%4%6%8%10%BrazilChileIndonesiaMexicoPolandMalaysiaSouthKoreaAustraliaSwedenUKU.S.JapanGermany10-Year YieldsMajor Developed14Why it’s Time to Take a Different Approach to Fixed Income Investing
    • For Professional Investors Only. Not for Distribution to Retail Investors.14The chart below illustrates the performance of Templeton Global Total Return Fund – Class A(Mdis) (at NAV) USD. An“advance” is any period of a month or longer when cumulative daily returns exceed twice the standard deviation of rollingmonthly returns of the entire sample period. A “decline” is any period of a month or longer when cumulative daily returns fallmore than twice the standard deviation of rolling monthly returns.Cumulative Daily Returns for Each PeriodAs of 31 December 2012Prolonged Advances vs. Moderate DeclinesSource: Franklin Templeton Investments. All performance data shown is in the Fund currency stated, includes reinvested dividends and are net of management fees. Sales charges andother commissions, taxes and other relevant costs paid by the investor are not included in the calculations. The performance shown relates to the Class A (Mdis) USD shares and theperformance of other share classes may vary depending on their respective commissions and fees. Past performance does not guarantee future results.15Why it’s Time to Take a Different Approach to Fixed Income Investing
    • For Professional Investors Only. Not for Distribution to Retail Investors.Strong, Long-Term Risk/Return Track RecordSource: © 2013 Morningstar, as of 31 December 2012. Global Government Bonds are represented by the JP Morgan Global Government Bond Index; US Bonds are represented by theBarclays U.S. Aggregate Bond Index; US TIPS represented by the Barclays US Treasury TIPS Index; Emerging Market Bonds are represented by the JP Morgan Emerging Markets BondIndex Global; High Yield Bonds are represented by the Citigroup High Yield Index; REITs are represented by the FTSE NAREIT All REITs Index; US Stocks are represented by the S&P 500Index; World Stocks are represented by the MSCI World Index; Cash represented by the P&R 90-Day U.S. Treasury Index. Indexes are unmanaged, and one cannot invest directly in anindex.All Morgan Stanley Capital International (MSCI) data is provided “as is.” In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with theMSCI data described herein. Copying or redistributing the MSCI data is strictly prohibited. The indices are unmanaged and therefore do not include the deduction of fees. An individual cannotinvest directly in an index.STANDARD & POOR’S®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC. Standard & Poor’s does not sponsor, endorse, sell or promote anyS&P index-based product.Volatility as measured by annualised standard deviation.Past performance does not guarantee future results.5-Year Period, as of 31 December 2012Templeton Global TotalReturn Fund A(Mdis)Global Government BondsUS BondsUS TIPSEmerging Market Bonds High Yield BondsREITsUS StocksWorld StocksCash-3%-1%1%3%5%7%9%11%13%0% 5% 10% 15% 20% 25% 30% 35%ReturnRisk16Why it’s Time to Take a Different Approach to Fixed Income Investing
    • For Professional Investors Only. Not for Distribution to Retail Investors.17An Unconstrained Worldview• Actively manages independent sources of alpha without reference to traditional benchmarksA Truly Global Research Platform• One of the largest, most well-established global fixed income teamsA High-Conviction Process• Research seeks to identify economic imbalances and precisely isolate only desired risk exposuresDelivering the Potential for:• Attractive returns, high yields and strong diversificationOptions Built for UK Investors to Access this Expertise• Templeton Global Total Return Bond Fund• Templeton Strategic Bond FundFranklin Templeton Global Fixed Income CapabilitiesWhy it’s Time to Take a Different Approach to Fixed Income Investing
    • For Professional Investors Only. Not for Distribution to Retail Investors.Templeton Global TotalReturn Bond FundFranklin Templeton Funds
    • For professional investors only. Not for distribution to retail investors.19Why it’s Time to Take a Different Approach to Fixed Income InvestingTempleton Global Total Return Bond FundFund DetailsFund Managers Michael Hasenstab, John Beck, Sonal DesaiAsset Category Fixed IncomeIMA Sector IMA Global BondBenchmark Barclays Multiverse IndexLaunch Date 02/06/2008Share Class Launch Date 31/05/2012Number of Positions 428Portfolio Size £148.9 millionDistribution Yield 3.85%19Source: Franklin Templeton Investments, as of 31/03/13. Past performance does not guarantee future results. The Distribution Yield reflects the amounts that may be expected to bedistributed over the next 12 months as a percentage of the mid-market unit price of the fund as at the date shown. It does not include any preliminary charge and investors may be subjectto tax on distributions.
    • For professional investors only. Not for distribution to retail investors.20Why it’s Time to Take a Different Approach to Fixed Income InvestingCumulative Performance (%)InceptionDate 1 Mth 3 Mths 6 Mths YTD 1 Yr 3 YrsSinceInceptTempleton Global Total Return Bond Fund - W(inc)-H3 (in GBP) 31.5.2012 0.30 1.92 6.20 1.92 11.83 26.37 40.68Barclays Multiverse Index (in USD) -0.23 -1.96 -2.24 -1.96 1.68 14.97 14.45Annualised Performance (%)InceptionDate 1 Yr 3 YrsSinceInceptTempleton Global Total Return Bond Fund - W(inc)-H3 (in GBP) 31.5.2012 11.83 8.11 10.24Barclays Multiverse Index (in USD) 1.68 4.76 3.93Templeton Global Total Return Bond Fund – W(inc) –H3As of 31 March 2013Historical PerformanceAll 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 notincluded in the calculations. The W (Inc) GBP-H3 share class launched on 31/05/2012. Performance data prior to that date is for the A (Inc) GBP-H3 share class launched on 29/09/2009which has higher annual charges.The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance does not guaranteefuture results. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreigncurrency, performance may also be affected by currency fluctuations. Please visit franklintempleton.co.uk for current performance.Performance data may represent blended share class performance, e.g. hybrid created from an A(dis) share class which was converted to A(acc). The Fund offers other share classessubject to different fees and expenses, which will affect their performance. Please see the prospectus for details.
    • For professional investors only. Not for distribution to retail investors.21Why it’s Time to Take a Different Approach to Fixed Income InvestingYTD 2013 2012 2011 2010-33915211.92-1.9618.194.84-1.545.5513.735.84Templeton Global Total Return Bond Fund - W(inc)-H3—Net of Fees (in GBP)Barclays Multiverse Index (in USD)The W (Inc) GBP-H3 share class launched on 31/05/2012. Performance data prior to that date is for the A (Inc) GBP-H3 share class launched on 29/09/2009 which has higher annualcharges. 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 investorare not included in the calculations.The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance does not guaranteefuture results. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreigncurrency, performance may also be affected by currency fluctuations. Please visit franklintempleton.co.uk for current performance. Performance data may represent blended share classperformance, e.g. hybrid created from an A(dis) share class which was converted to A(acc).Templeton Global Total Return Bond Fund – W(inc) –H3Calendar Year Returns (%)As of 31 March 2013
    • For professional investors only. Not for distribution to retail investors.22Why it’s Time to Take a Different Approach to Fixed Income InvestingQuality AllocationAAA AA+ AA- A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- N/A0%10%20%7.320.0315.53 14.730.0714.592.3812.197.741.605.193.378.263.972.020.88 0.13 0.02Past performance does not guarantee future results. Where a fund invests in emerging markets, this investment can be more risky than an investment in developed markets.Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.Source: Franklin Templeton Investments. The average credit quality (ACQ) rating may change over time. The portfolio itself has not been rated by an independent rating agency. The letter rating, which may be basedon 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). The ACQ is determined by assigning asequential 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 forinformational purposes only. Derivative positions and unrated securities are not reflected in the ACQ.Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations (NRSRO), such as Standard & Poors, Moodys and Fitch. The ratings are an indication of an issuerscreditworthiness 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 whenonly one is available, that rating is used. Foreign government bonds without a specific rating are assigned the country rating provided by an NRSRO, if available. If listed, the NR category consists of rateable securitiesthat have not been rated by an NRSRO; the N/A category consists of nonrateable securities (e.g., equities). Cash and equivalents (defined as bonds with stated maturities, or that can be redeemed at intervals, of sevendays or less) as well as derivatives are excluded from this breakdown. As a result, the chart does not reflect the funds total net assets.Weightings as percent of total. Percentage may not equal 100% due to rounding.Templeton Global Total Return Bond FundPortfolio CharacteristicsPortfolioAverage Credit Quality BBBAverage Duration 2.26 YrsAverage Weighted Maturity 2.76 YrsAs of 31 March 2013
    • For professional investors only. Not for distribution to retail investors.23Why it’s Time to Take a Different Approach to Fixed Income InvestingUSASupranationalST Cash and CashEquivalentsNon-USA Amer.Non-EMU Europe/AfricaJapanEMUAsia, Non-Japan0% 10% 20% 30% 40%Templeton Global Total Return Bond FundBarclays Multiverse IndexPortfolio % Index % Over/UnderAsia, Non-Japan 24.99 4.36 20.63Australia 0.14 1.68 -1.53China 0.00 0.16 -0.16Hong Kong 0.00 0.15 -0.15India 0.10 0.07 0.03Indonesia 1.37 0.10 1.27Malaysia 6.52 0.25 6.26Mongolia 0.00 0.01 -0.01New Zealand 0.00 0.16 -0.16Philippines 1.01 0.07 0.93Singapore 2.21 0.22 1.99South Korea 12.59 1.15 11.44Sri Lanka 0.87 0.01 0.86Taiwan 0.00 0.01 -0.01Thailand 0.00 0.30 -0.30Vietnam 0.17 0.00 0.17EMU 6.62 23.36 -16.74Austria 0.00 0.82 -0.82Belgium 0.00 0.97 -0.97Finland 0.00 0.35 -0.35France 0.08 5.98 -5.90Germany 0.15 5.80 -5.64Greece 0.00 0.01 -0.01Ireland 5.47 0.38 5.09Italy 0.15 3.97 -3.82Luxembourg 0.20 0.15 0.05Netherlands 0.30 2.00 -1.71Portugal 0.00 0.08 -0.08Slovak Republic 0.00 0.08 -0.08Slovenia 0.00 0.04 -0.04Portfolio % Index % Over/UnderSpain 0.28 2.72 -2.44Japan 0.07 17.08 -17.02Japan 0.07 17.08 -17.02Non-EMUEurope/Africa26.08 10.96 15.12Bahrain 0.00 0.01 -0.01Bulgaria 0.00 0.01 -0.01Croatia 0.15 0.03 0.12Czech Repub. 0.00 0.16 -0.16Denmark 0.00 0.47 -0.47Egypt 0.00 0.01 -0.01Ghana 2.23 0.00 2.23Hungary 4.91 0.06 4.85Iceland 1.20 0.01 1.20Israel 0.00 0.16 -0.16Ivory Coast 0.00 0.01 -0.01Kazakhstan 0.60 0.03 0.57Kuwait 0.00 0.01 -0.01Latvia 0.31 0.01 0.30Lebanon 0.00 0.04 -0.04Lithuania 0.28 0.03 0.25Morocco 0.00 0.01 -0.01Norway 0.00 0.40 -0.40Poland 5.42 0.40 5.02Qatar 0.00 0.11 -0.11Republic of Serbia 2.16 0.01 2.15Romania 0.85 0.04 0.82Russia 1.46 0.38 1.08Saudi Arabia 0.00 0.02 -0.02Templeton Global Total Return Bond Fund vs. Barclays Multiverse IndexGeographical AllocationWeightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings aresubject to change.As of 31 March 2013
    • For professional investors only. Not for distribution to retail investors.24Why it’s Time to Take a Different Approach to Fixed Income InvestingUSASupranationalST Cash and CashEquivalentsNon-USA Amer.Non-EMU Europe/AfricaJapanEMUAsia, Non-Japan0% 10% 20% 30% 40%Templeton Global Total Return Bond FundBarclays Multiverse IndexPortfolio % Index % Over/UnderSouth Africa 0.76 0.28 0.48Sweden 1.50 1.06 0.44Switzerland 0.00 0.77 -0.77Turkey 0.00 0.16 -0.16U. Arab Emir. 0.29 0.17 0.13Ukraine 3.16 0.05 3.11United Kingdom 0.78 6.05 -5.27Non-USA Amer. 15.89 5.03 10.87Argentina 0.19 0.04 0.15Bermuda 0.09 0.01 0.08Brazil 1.04 0.42 0.62Canada 2.57 3.49 -0.92Chile 0.00 0.07 -0.07Colombia 0.00 0.07 -0.07DominicanRepublic0.00 0.01 -0.01El Salvador 0.00 0.01 -0.01Jamaica 0.10 0.01 0.09Mexico 6.49 0.64 5.84Panama 0.00 0.02 -0.02Peru 0.00 0.04 -0.04Trinidad andTobago0.06 0.01 0.05Uruguay 5.19 0.01 5.18Venezuela 0.17 0.14 0.03ST Cash and CashEquivalents18.94 0.00 18.94ST Cash and CashEquivalents18.94 0.00 18.94Portfolio % Index % Over/UnderSupranational 0.00 1.98 -1.98Supranational 0.00 1.98 -1.98USA 7.41 37.23 -29.83United States 7.41 37.23 -29.83Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings aresubject to change.Templeton Global Total Return Bond Fund vs. Barclays Multiverse IndexGeographical Allocation (continued)As of 31 March 2013
    • For professional investors only. Not for distribution to retail investors.25Why it’s Time to Take a Different Approach to Fixed Income Investing10Portfolio % Index % Over/UnderCash & Cash Equivalents 18.94 0.00 18.94Corporate Bonds 12.39 19.59 -7.20Investment Grade 0.56 15.90 -15.34Non-Investment Grade 11.84 3.69 8.15Intl Govt/Agency Bonds 58.74 43.47 15.27Investment Grade 49.90 43.47 6.43Non-Investment Grade 8.84 0.00 8.84Municipal 0.08 0.29 -0.21Others 0.13 0.00 0.13Equity 0.03 0.00 0.03Others 0.10 0.00 0.10Securitised 0.00 15.24 -15.24CMBS / ABS 0.00 0.73 -0.73MBS 0.00 11.03 -11.03N/A 0.00 3.47 -3.47Sovereign Bonds 9.73 3.90 5.83Investment Grade 3.57 3.27 0.30Non-Investment Grade 6.16 0.63 5.53Supranational 0.00 1.98 -1.98US Treasuries/Agencies 0.00 15.53 -15.53Templeton Global Total Return Bond FundBarclays Multiverse IndexUS Treasuries/AgenciesSupranationalSovereign Bonds: Non-Investment GradeSovereign Bonds: Investment GradeSecuritised: N/ASecuritised: MBSSecuritised: CMBS / ABSOthers: OthersOthers: EquityMunicipalIntl Govt/Agency Bonds: Non-Investment GradeIntl Govt/Agency Bonds: Investment GradeCorporate Bonds: Non-Investment GradeCorporate Bonds: Investment GradeCash & Cash Equivalents0% 15% 30% 45% 60%Templeton Global Total Return Bond Fund vs. Barclays Multiverse IndexSector AllocationWeightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings aresubject to change.As of 31 March 2013
    • For professional investors only. Not for distribution to retail investors.26Why it’s Time to Take a Different Approach to Fixed Income InvestingTempleton Global Total Return Bond FundBarclays Multiverse IndexTempleton Global Total Return Bond Fund vs. Barclays MultiverseIndex11Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings aresubject to change.US DollarUkraine HryvnaSwiss FrancSwedish KronaSerbian DinarPolish ZlotyNorwegian KroneIsraeli ShekelHungarian ForintDanish KroneCzech KorunaBritish PoundUruguayan PesoMexican PesoChilean PesoCanadian DollarBrazilian RealJapanese YenEUROThailand BahtSri Lanka RupeeSouth Korean WonSingapore DollarPhilippine PesoNew Zealand DollarMalaysian RinggitIndonesian RupiahIndian RupeeHong Kong DollarAustralian DollarSouth Africa RandGhanaian Cedi-25% -8% 9% 26% 43% 60%As of 31 March 2013Portfolio % Index % Over/UnderAFRICA 2.28 0.25 2.03Ghanaian Cedi 2.28 0.00 2.28South Africa Rand 0.00 0.25 -0.25ASIA, NON-JAPAN 39.44 3.16 36.28Australian Dollar 2.57 1.40 1.17Hong Kong Dollar 0.00 0.02 -0.02Indian Rupee 2.15 0.00 2.15Indonesian Rupiah 1.37 0.00 1.37Malaysian Ringgit 9.21 0.20 9.01New ZealandDollar0.00 0.15 -0.15Philippine Peso 2.64 0.00 2.64Singapore Dollar 7.36 0.16 7.19South Korean Won 13.27 0.96 12.31Sri Lanka Rupee 0.87 0.00 0.87Thailand Baht 0.00 0.27 -0.27EURO -24.22 24.58 -48.80EURO -24.22 24.58 -48.80JAPANESE YEN -14.80 16.96 -31.76Japanese Yen -14.80 16.96 -31.76NON-USA AMER. 19.73 3.10 16.63Brazilian Real 1.04 0.00 1.04Canadian Dollar 2.22 2.75 -0.53Chilean Peso 3.76 0.02 3.74Mexican Peso 7.38 0.33 7.05Uruguayan Peso 5.33 0.00 5.33Portfolio % Index % Over/UnderPERIPHERYEUROPE/E. EUROPE41.16 8.05 33.12British Pound 17.20 5.64 11.56Czech Koruna 0.00 0.10 -0.10Danish Krone 0.00 0.34 -0.34Hungarian Forint 3.41 0.00 3.41Israeli Shekel 0.00 0.11 -0.11Norwegian Krone 1.25 0.16 1.09Polish Zloty 9.26 0.26 9.00Serbian Dinar 1.05 0.00 1.05Swedish Krona 8.44 0.62 7.82Swiss Franc 0.00 0.82 -0.82Ukraine Hryvna 0.55 0.00 0.55US DOLLAR 36.40 43.90 -7.50US Dollar 36.40 43.90 -7.50Currency Allocation
    • For Professional Investors Only. Not for Distribution to Retail Investors.Templeton Strategic BondFundFranklin Templeton Funds
    • For professional investors only. Not for distribution to retail investors.28Why it’s Time to Take a Different Approach to Fixed Income InvestingTempleton Strategic Bond FundFund DetailsFund Managers David Zahn, John BeckAsset Category Fixed IncomeIMA Sector IMA £ Strategic BondBenchmark BofA Merrill Lynch Sterling Broad Market IndexLaunch Date 02/06/2008Share Class Launch Date 31/05/2012Number of Positions 89Portfolio Size £6.77 millionDistribution Yield 5.34%28Source: Franklin Templeton Investments, as of 31/03/13. Past performance does not guarantee future results. The Distribution Yield reflects the amounts that may be expected to bedistributed over the next 12 months as a percentage of the mid-market unit price of the fund as at the date shown. It does not include any preliminary charge and investors may be subjectto tax on distributions.
    • For professional investors only. Not for distribution to retail investors.29Why it’s Time to Take a Different Approach to Fixed Income InvestingWith the aim of generating attractive and consistent yields the fund looks to:• Invest in a broader investment universe than traditional strategic bond funds, allowing the team totap into high yielding securities.• Use its permitted allocation (20%) to hard currencies beyond GBP and local currencies in order tomaximise yields and returns.Source: Franklin Templeton Investments.40%30%30%Typical Templeton Strategic Bond Fund AssetAllocation by RegionUKEMGlobal5%60%15%20%Typical Templeton Strategic Bond Fund AssetAllocation by SectorCashCorporate BondsGovt & GovtRelated BondsSovereign BondsA closer look at sector allocationSovereign Bonds – primarily emerging market sovereign bonds.Corporate Bonds – a diversified mix of investment grade and high yield names. UK names will feature heavily.Government & Government Related Bonds – typically bonds of euro periphery countries e.g. Italy and Poland.Investment Universe
    • For professional investors only. Not for distribution to retail investors.30Why it’s Time to Take a Different Approach to Fixed Income InvestingMany of the top funds in thesector are yielding less thanthe Templeton Strategic BondFund (5.34%) but appear tobe taking roughly the sameamount of risk.Region %UK 31.44Developed Europe (ex UK) 26.53North America 8.63Cash and Equivalents 3.75Non-Classified 0.00South & Central America 12.96Australia & New Zealand 0.00Middle East & Africa 1.66Emerging Europe 13.56Developed Asia 0.00Emerging Asia 1.42Source: Financial Express as at 28/02/13. Does not include fund of funds.Region %UK 70.34Developed Europe (ex UK) 14.78North America 6.03Cash and Equivalents 4.38Non-Classified 2.00South & Central America 0.38Australia & New Zealand 0.34Middle East & Africa 0.22Developed Asia 1.54Emerging Asia 0.00The Templeton Strategic Bond Fund - More Strategicthan its Competitors?TempletonStrategic Bond FundRegionalBreakdownDeveloped MarketsEmerging MarketsCashAverage RegionalBreakdown of Top10 Funds in IMAs £ Strategic BondSectorDeveloped MarketsEmerging MarketsCashNon Classified
    • For professional investors only. Not for distribution to retail investors.31Why it’s Time to Take a Different Approach to Fixed Income InvestingCumulative Performance (%)InceptionDate 1 Mth 3 Mths 6 Mths YTD 1 Yr 3 YrsSinceInceptTempleton Strategic Bond Fund - W(inc)—Net of Fees 31.5.2012 1.06 1.89 5.37 1.89 13.00 23.06 37.50BofA Merrill Lynch Sterling Broad Market Index 1.74 0.91 1.40 0.91 7.50 28.12 45.27Annualised Performance (%)InceptionDate 1 Yr 3 YrsSinceInceptTempleton Strategic Bond Fund - W(inc)—Net of Fees 31.5.2012 13.00 7.16 6.82BofA Merrill Lynch Sterling Broad Market Index 7.50 8.61 8.04Templeton Strategic Bond Fund – W(inc)As of 31 March 2013Historical PerformanceAll 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 notincluded in the calculations. The W (Inc) GBP-H3 share class launched on 31/05/2012. Performance data prior to that date is for the A (Inc) GBP-H3 share class launched on 29/09/2009which has higher annual charges.The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance does not guaranteefuture results. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreigncurrency, performance may also be affected by currency fluctuations. Please visit franklintempleton.co.uk for current performance.Performance data may represent blended share class performance, e.g. hybrid created from an A(dis) share class which was converted to A(acc). The Fund offers other share classessubject to different fees and expenses, which will affect their performance. Please see the prospectus for details.
    • For professional investors only. Not for distribution to retail investors.32Why it’s Time to Take a Different Approach to Fixed Income InvestingYTD 2013 2012 2011 2010 2009051015201.890.9117.266.090.7413.476.157.9415.703.74Templeton Strategic Bond Fund - W(inc)—Net of FeesBofA Merrill Lynch Sterling Broad Market IndexThe W (Inc) GBP-H3 share class launched on 31/05/2012. Performance data prior to that date is for the A (Inc) GBP-H3 share class launched on 29/09/2009 which has higher annual charges.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 notincluded in the calculations.The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance does not guarantee futureresults. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency,performance may also be affected by currency fluctuations. Please visit franklintempleton.co.uk for current performance.Performance data may represent blended share class performance, e.g. hybrid created from an A(dis) share class which was converted to A(acc).Calendar Year Returns (%)Templeton Strategic Bond Fund – W(inc)As of 31 March 2013
    • For professional investors only. Not for distribution to retail investors.33Why it’s Time to Take a Different Approach to Fixed Income InvestingQuality AllocationAA- A+ A A- BBB+ BBB BBB- BB+ BB- B+ B B- CCC CC NR0%15%30%5.343.51 4.4413.869.8620.8913.334.62 4.83 6.34 6.023.820.64 0.97 1.53Past performance does not guarantee future results. Where a fund invests in emerging markets, this investment can be more risky than an investment in developed markets.Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.Source: Franklin Templeton Investments. The Average Credit Quality (ACQ) rating may change over time. The portfolio itself has not been rated by an independent rating agency. The letter rating, which may be based onbond 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). The ACQ is determined by assigning asequential 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, sothe 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 forinformational purposes only. Derivative positions and unrated securities are not reflected in the ACQ.Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations (NRSRO), such as Standard & Poors, Moodys and Fitch. The ratings are an indication of an issuers creditworthinessand typically range from AAA or Aaa (highest) to D (lowest). When ratings from all three agencies are available, the middle rating is used; when two are available, the lowest rating is used; and when only one is available,that rating is used. Foreign government bonds without a specific rating are assigned the country rating provided by an NRSRO, if available. If listed, the NR category consists of rateable securities that have not been ratedby an NRSRO; the N/A category consists of nonrateable securities (e.g., equities). Cash and equivalents (defined as bonds with stated maturities, or that can be redeemed at intervals, of seven days or less) as well asderivatives are excluded from this breakdown. As a result, the chart does not reflect the funds total net assets. Weightings as percent of total. Percentage may not equal 100% due to rounding.PortfolioAverage Credit Quality BBB-Average Duration 5.83 YrsAverage Weighted Maturity 7.43 YrsTempleton Strategic Bond FundPortfolio CharacteristicsAs of 31 March 2013
    • For professional investors only. Not for distribution to retail investors.34Why it’s Time to Take a Different Approach to Fixed Income InvestingSupranationalST Cash and CashEquivalentsNorth AmericaN/AMid-EastLatin America/CaribbeanEurope NonEMUEMUAustralia/New ZealandAsiaAfrica-45% 0% 45% 90%Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolioholdings are subject to change.Templeton Strategic Bond FundBofA Merrill Lynch Sterling Broad MarketIndexPortfolio % Index % Over/UnderAfrica 2.37 0.00 2.37South Africa 2.37 0.00 2.37Asia 1.43 0.28 1.15Hong Kong 0.00 0.03 -0.03Indonesia 1.43 0.00 1.43Japan 0.00 0.20 -0.20Singapore 0.00 0.05 -0.05Australia/NewZealand0.00 0.83 -0.83Australia 0.00 0.76 -0.76New Zealand 0.00 0.07 -0.07EMU 22.17 7.52 14.65Austria 0.00 0.03 -0.03Belgium 0.00 0.16 -0.16Finland 0.00 0.08 -0.08France 7.61 2.01 5.60Germany 0.73 3.02 -2.29Ireland 0.00 0.10 -0.10Italy 7.22 0.70 6.52Luxembourg 1.96 0.00 1.96Netherlands 3.37 1.10 2.27Spain 1.28 0.33 0.96Europe NonEMU 49.97 84.12 -34.15Croatia 2.49 0.00 2.49Denmark 0.00 0.20 -0.20Hungary 1.53 0.00 1.53Lithuania 1.25 0.00 1.25Norway 0.00 0.22 -0.22Poland 2.05 0.00 2.05Russia 4.92 0.05 4.87Portfolio % Index % Over/UnderSweden 3.00 0.42 2.58Switzerland 1.37 0.35 1.02Turkey 1.19 0.00 1.19United Kingdom 32.19 82.89 -50.70LatinAmerica/Caribbean13.63 0.29 13.34Brazil 6.95 0.08 6.87Cayman Islands 0.00 0.02 -0.02Chile 1.08 0.00 1.08Colombia 1.26 0.00 1.26El Salvador 1.15 0.00 1.15Mexico 1.88 0.20 1.68Peru 1.31 0.00 1.31Mid-East 0.00 0.04 -0.04U. Arab Emir. 0.00 0.04 -0.04N/A -1.31 0.00 -1.31N/A -1.31 0.00 -1.31North America 11.25 3.92 7.33Bermuda 0.00 0.02 -0.02Canada 0.00 0.15 -0.15United States 11.25 3.75 7.50ST Cash and CashEquivalents0.48 0.00 0.48ST Cash and CashEquivalents0.48 0.00 0.48Supranational 0.00 2.99 -2.99Supranational 0.00 2.99 -2.99Templeton Strategic Bond Fund vs. BofA Merrill Lynch Sterling BroadMarket IndexAs of 31 March 2013Geographical Allocation
    • For professional investors only. Not for distribution to retail investors.35Why it’s Time to Take a Different Approach to Fixed Income InvestingPortfolio % Index % Over/UnderCash & Cash Equivalents -0.83 0.00 -0.83Corporate Bonds 70.43 20.39 50.04Investment Grade 46.39 20.39 26.00Non-Investment Grade 24.04 0.00 24.04Intl Govt/Agency Bonds 13.36 68.02 -54.66Investment Grade 13.36 68.02 -54.66Securitised 0.00 5.53 -5.53N/A 0.00 5.53 -5.53Sovereign Bonds 17.04 3.06 13.98Investment Grade 12.07 3.06 9.01Non-Investment Grade 4.97 0.00 4.97Supranational 0.00 2.99 -2.99Templeton Strategic Bond FundBofA Merrill Lynch Sterling Broad Market IndexSupranationalSovereign Bonds: Non-Investment GradeSovereign Bonds: Investment GradeSecuritised: N/AIntl Govt/Agency Bonds: Investment GradeCorporate Bonds: Non-Investment GradeCorporate Bonds: Investment GradeCash & Cash Equivalents-1% 19% 39% 59% 79%Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolioholdings are subject to change.The negative cash position reflects a temporary position that is a result of a delay in securities settlement transactions.Templeton Strategic Bond Fund vs. BofA Merrill Lynch Sterling BroadMarket IndexAs of 31 March 2013Sector Allocation
    • For professional investors only. Not for distribution to retail investors.36Why it’s Time to Take a Different Approach to Fixed Income InvestingTempleton Strategic Bond FundBofA Merrill Lynch Sterling Broad Market IndexWeightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings aresubject to change.Portfolio % Index % Over/UnderEUROPE 94.42 100.00 -5.58British Pound 90.92 100.00 -9.08EURO 0.41 0.00 0.41Polish Zloty 3.09 0.00 3.09LATIN AMERICA/CARIBBEAN 5.86 0.00 5.86Brazilian Real 5.86 0.00 5.86NORTH AMERICA -0.27 0.00 -0.27US Dollar -0.27 0.00 -0.27US DollarBrazilian RealPolish ZlotyEUROBritish Pound-1% 19% 39% 59% 79% 99%Templeton Strategic Bond Fund vs. BofA Merrill Lynch Sterling BroadMarket IndexAs of 31 March 2013Currency Allocation
    • For professional investors only. Not for distribution to retail investors.37Why it’s Time to Take a Different Approach to Fixed Income InvestingSource: Franklin Templeton Investments, unless stated otherwise. Fund specific information - performance details provided are in the Fund currency, include reinvested dividends andare net of management fees. Sales charges and other commissions, taxes and other relevant costs to be paid by an investor are not included in the calculations. Past performance isnot an indicator nor a guarantee of future performance.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 unmanagedand 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 Templetonfund.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 UK-domiciled OEIC,Franklin Templeton Funds or the Luxembourg domiciled SICAV, Franklin Templeton Investment Funds (“the Funds”).Nothing in this document should be construed as investment advice. Opinions expressed within the promotion are subject to change without prior notice.Subscriptions to shares of the Funds can only be made on the basis of the current prospectus, the relevant Key Investor Information Document, accompanied by the latest availableaudited annual report and the latest semi-annual report if published thereafter, which can be found on our website or requested from the address below.An investment in the Funds entails risks which are described in the Fund’s prospectus and the relevant Key Investor Information Document. The value of shares in the Funds and incomereceived from it can go down as well as up, and investors may not get back the full amount invested. Currency fluctuations may affect the value of overseas investment. In emergingmarkets, 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 fullydescribed in the Fund’s prospectus.No shares of the Funds may be directly or indirectly offered or sold to nationals or residents of the United States of America. Shares of the Funds are not available for distribution in alljurisdictions and prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any plans to invest.For a free copy of latest prospectus, the relevant Key Investor Information Document, the annual report and semi-annual report, if published thereafter or for more information about anyFranklin Templeton Investments’ fund, please contact: Franklin Templeton Investments, Telephone: 0800 305 306, Email: enquiries@franklintempleton.co.uk or write to us at the addressbelow.Issued by Franklin Templeton Investment Management Limited (FTIML). Registered office: The Adelphi, 1-11 John Adam Street, London WC2N 6HT. FTIML is authorised and regulatedby the Financial Conduct Authority.© 2013 Franklin Templeton Investments. All rights reserved.MEETING THE INCOME CHALLENGEImportant Information
    • For professional investors only. Not for distribution to retail investors.38Why it’s Time to Take a Different Approach to Fixed Income InvestingImportant Information (continued)Additional Information for Investment Platform Overview Slide:FTI AUM includes AUM for Rensburg Fund Management Limited, a wholly-owned subsidiary of Franklin Resources, Inc. Franklin Equity Group (formerlyFranklin Global Advisers), a unit of Franklin, combines the expertise of the Franklin Advisers, Inc., and Fiduciary Global Advisors equity teams (with origindating back to 1947 and 1931, respectively). Franklin Templeton Fixed Income Group, a unit of Franklin, combines the expertise of the Franklin Advisers,Inc., and Fiduciary Trust Company International fixed income teams (originating in 1970 and 1973, respectively). Franklin Templeton Real Asset Advisorsoriginated in 1984 as the global real estate team of Fiduciary Trust Company International. FTMAS is a global investment management group dedicated tomulti-strategy solutions and is comprised of individuals from various registered entities within Franklin Resources, Inc. Certain individuals based in Canadathat advise FTMAS mandates are part of the Fiduciary Trust Company of Canada, a wholly-owned subsidiary of Franklin Resources, Inc., that originated in1982. FTMAS was formed in 2007 to combine the research and oversight of all multi-strategy investment solutions offered by Franklin Resources, Inc.
    • For professional investors only. Not for distribution to retail investors.39Why it’s Time to Take a Different Approach to Fixed Income InvestingSTUART LINGARDVice PresidentSr. Product ManagerFranklin Templeton Global Investors Limited (UK)London, United KingdomStuart Lingard, Vice President, Senior Product Manager, is based in London and is a product representative for the Franklin Templeton FixedIncome Group across Europe. Mr. Lingard has 13 years of investment experience.Prior to joining Franklin Templeton Investments, Mr. Lingard worked at Invesco, where he managed a portfolio of high profile global fixedincome client accounts and was responsible for developing the fixed income product range globally.Mr. Lingard holds a Bachelor of Science (B.Sc. Hons) degree from the University of Surrey.Management Profile