UK Equity – Value Beyond the Blue Chips                                                                                   ...
FRANKLIN TEMPLETON INVESTMENTS                                                  1What is Blue Chip?• High quality business...
FRANKLIN TEMPLETON INVESTMENTS                                                                                 2Franklin T...
FRANKLIN TEMPLETON INVESTMENTS                                                                                 3          ...
FRANKLIN TEMPLETON INVESTMENTS                                                  4What is the FTSE 250?• 12% of the FTSE Al...
FRANKLIN TEMPLETON INVESTMENTS                                                                        5FTSE 100 and FTSE 2...
FRANKLIN TEMPLETON INVESTMENTSMid-Cap Out-Performance Over the Last Decade                                          300   ...
FRANKLIN TEMPLETON INVESTMENTS                                                        7Which of These Mid-Caps Have Blue C...
FRANKLIN TEMPLETON INVESTMENTS                                                  8Why Mid-Caps are The New Blue Chips      ...
AppendixFor Professional Investor Use Only. Not for Distribution to Retail Investors.
FRANKLIN TEMPLETON INVESTMENTS                                                                                            ...
FRANKLIN TEMPLETON INVESTMENTS                                                                                            ...
FRANKLIN TEMPLETON INVESTMENTS                                                                                            ...
FRANKLIN TEMPLETON INVESTMENTS                                                                                            ...
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Franklin citywire nma conference presentation v3

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Franklin citywire nma conference presentation v3

  1. 1. UK Equity – Value Beyond the Blue Chips Paul Spencer Manager, Franklin UK Mid Cap FundFor Professional Investor Use Only. Not for Distribution to Retail Investors.
  2. 2. FRANKLIN TEMPLETON INVESTMENTS 1What is Blue Chip?• High quality business• Offering stability in good times and bad• Delivering reliable growthFor Professional Investor Use Only. Not for Distribution to Retail Investors.
  3. 3. FRANKLIN TEMPLETON INVESTMENTS 2Franklin Templeton Has Got News For YouWhat is the connection? Roman Abramovich Gulf of Mexico Oil Spill Joseph Kabila Fred GoodwinFor Professional Investor Use Only. Not for Distribution to Retail Investors. For Professional Investor Use Only. Not for Distribution to Retail Investors.
  4. 4. FRANKLIN TEMPLETON INVESTMENTS 3 Roman Abramovich Gulf of Mexico Oil Spill EVRAZ BP They are linked to ‘blue chip’ investments Joseph Kabila Fred Goodwin Royal Bank of ENRC ScotlandFor Professional Investor Use Only. Not for Distribution to Retail Investors. For Professional Investor Use Only. Not for Distribution to Retail Investors.
  5. 5. FRANKLIN TEMPLETON INVESTMENTS 4What is the FTSE 250?• 12% of the FTSE All Share Index• 203 companies excluding investment trusts• Market capitalisation of £195bn, debt of £32bn & ebita of £26bn• Operating profits 47% UK and 53% overseasFor Professional Investor Use Only. Not for Distribution to Retail Investors.
  6. 6. FRANKLIN TEMPLETON INVESTMENTS 5FTSE 100 and FTSE 250 Compared Sub Sector FTSE 100 FTSE 250 (%) (%) Oil & Gas Producers 20.5 3.3 Mining 12.0 4.0 Banks 11.0 0 Pharmaceuticals 8.6 1.5 Telecommunications 6.3 0 Total 58.4% 8.8% Support Services 2.4 12.0 Travel & Leisure 1.7 9.4 Financial Services 0.9 9.0 Media 2.6 5.0 Software and Computer Services 0.3 4.8 Total 7.9% 40.2%Source: Franklin Templeton Investments as at 30/11/11.For Professional Investor Use Only. Not for Distribution to Retail Investors.
  7. 7. FRANKLIN TEMPLETON INVESTMENTSMid-Cap Out-Performance Over the Last Decade 300 250 Performance in GBP (rebased to 100) 200 150 100 50 0 30/11/2001 30/11/2002 30/11/2003 30/11/2004 30/11/2005 30/11/2006 30/11/2007 30/11/2008 30/11/2009 30/11/2010 30/11/2011 FTSE 250 ex IT FTSE 100 Source: Morningstar Direct®. © 2011 Morningstar UK. All rights reserved as at 30/11/11, total return in GBP over 10 years.For Professional Investor Use Only. Not for Distribution to Retail Investors. For Professional Investor Use Only. Not for Distribution to Retail Investors.
  8. 8. FRANKLIN TEMPLETON INVESTMENTS 7Which of These Mid-Caps Have Blue Chip Credentials? Stock Industry Babcock Outsourcing Croda Personal care Dignity Funeral services Genus Animal breeding biotechnology Greggs Bakery retailer Hiscox Insurance Rotork Actuators and valves Spirax Sarco Steam management systems Telecity Data centres Ultra Electronics Defence equipmentFor Professional Investor Use Only. Not for Distribution to Retail Investors.
  9. 9. FRANKLIN TEMPLETON INVESTMENTS 8Why Mid-Caps are The New Blue Chips • High quality businesses • Stable performance • Reliable growth • Strong balance sheets • Highly regarded managementLeading to strong long-term performancefrom a carefully selected portfolio of UK mid-capsFor Professional Investor Use Only. Not for Distribution to Retail Investors.
  10. 10. AppendixFor Professional Investor Use Only. Not for Distribution to Retail Investors.
  11. 11. FRANKLIN TEMPLETON INVESTMENTS 10Franklin UK Mid Cap FundFund Details Fund Details Management Paul Spencer Asset Category UK Equity Investment Style Flexible IMA sector UK All Companies Benchmark FTSE 250 Ex Investment Trusts Index Launch Date 17/10/2011 Number of Positions 38 Portfolio Size £498 million Lipper Leader Lipper Leader Lipper LeaderThe Franklin UK Mid Cap Fund launched on 17 October 2011 to receive the assets of the Rensburg UK Mid Cap Growth Trust, a unit trust. Source: Franklin Templeton Investments,as at 30/11/11. Morningstar Rating™ as at 30/11/11, in the UK Mid-Cap Equity Morningstar Category™.For Professional Investor Use Only. Not for Distribution to Retail Investors.
  12. 12. FRANKLIN TEMPLETON INVESTMENTS 11Fund PerformanceAs at 30 November 2011 1 Year 3 Years 5 Years 10 Years Franklin UK Mid Cap Fund 4.2% 94.5% 41.0% 197.3% FTSE 250 Ex Investment Trusts Index 0.3% 88.8% 11.9% 141.7% IMA UK All Companies Sector -1.9% 47.4% 0.4% 47.1% Quartile 1 1 1 1Source: Franklin Templeton Investments and Morningstar as at 30/11/11. © 2011 Morningstar, Inc. All rights reserved. Performance details provided are in GBP, include thereinvested dividends net of basic rate UK tax and are net of management fees. The Franklin UK Mid Cap Fund launched on 17/10/11 to receive the assets of Rensburg UK MidCap Growth Trust, a unit trust. Fund performance data is based on the mid price of the Rensburg UK Mid Cap Growth Trust from its launch on 12/07/1999 to 30/09/2011 and thenet asset value of the Franklin UK Mid Cap Fund A(inc) shares thereafter. Past performance is no guarantee of future performance.For Professional Investor Use Only. Not for Distribution to Retail Investors.
  13. 13. FRANKLIN TEMPLETON INVESTMENTS 12Fund Manager Biography Paul Spencer Vice President, Fund Manager Franklin Templeton Fund Management Limited Location: Leeds, UK Mr Spencer is Lead Manager of the Franklin UK Mid Cap Fund and Joint Manager of the Franklin UK Managers’ Focus Fund. A member of the Franklin UK Equity Team, he specialises in UK mid-cap equity analysis and investment. Paul joined Franklin Templeton Investments when it acquired Rensburg Fund Management in January 2011. Paul started his investment career in 1987, when he joined BWD Rensburg. Within the next eight years, Paul progressed through the ranks becoming Head of Research. In 1991, he assumed responsibility for the BWD UK Smaller Companies Trust leaving in 1995 to join Granville Davies Limited as a Director and Small and Mid Cap analyst. In 1999, Paul joined TD Waterhouse where he was Head of Research, specialising in small and mid- cap investment analysis. He returned to Rensburg in 2006 to manage the Rensburg UK Mid Cap Growth Trust, now called the Franklin UK Mid Cap Fund. During his tenure as Fund Manager of this Fund, he has received a number of awards for investment excellence including the Moneywise Best UK All Companies Fund in 2008, 2009, 2010, an award from Money Observer for the Best UK Small/Mid Cap Fund 2009 and Best UK All Companies Fund over three years from Lipper in 2009. Paul holds a BA (Hons) Economics from Nottingham University. He is a Fellow of the Securities Institute (FSI).For Professional Investor Use Only. Not for Distribution to Retail Investors.
  14. 14. FRANKLIN TEMPLETON INVESTMENTS 13Important InformationFor professional investor use only, this document is not aimed at, nor intended for use by retail investors.Copyright © 2012 Franklin Templeton Investments. All rights reserved.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 in the Franklin UK MidCap Fund. Nothing in this document should be construed as investment advice. Opinions expressed are the authors at publication date and they are subject to change without priornotice.Performance details provided are in GBP, include the reinvested dividends net of basic rate UK tax and are net of management fees. The Franklin UK Mid Cap Fund launched on17/10/11 to receive the assets of Rensburg UK Mid Cap Growth Trust, a unit trust. Fund performance data is based on the mid price of the Rensburg UK Mid Cap Growth Trust fromits launch on 12/07/1999 to 30/09/2011 and the net asset value of the Franklin UK Mid Cap Fund A(inc) shares thereafter. Sales charges and other commissions, other taxes andrelevant costs to be paid by an investor are not included in the calculations. Past performance is no guarantee of future performance.© 2011 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; an (3) is not warranted to beaccurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.The price of the shares in the fund and the income received from it can go down as well as up, and investors may not get back the full amount invested. Currency fluctuation mayaffect the value of overseas investment. Investment in these funds entails risks which are described in their Prospectus and Simplified Prospectus.Subscriptions to shares in the funds can only be made on the basis of the current full or simplified prospectus of the funds, accompanied by the latest available audited annual reportand the latest semi-annual report if published thereafter, which can be requested from the address below.An investment in the funds entail risks which are described in the funds’ full and simplified prospectus.No shares of the Fund may be directly or indirectly offered or sold to nationals or residents of the United States of America. Shares of the Fund 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.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 isunmanaged 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 anyFranklin Templeton Group fund.For a free copy of the latest prospectus, the annual report and semi-annual report, if published thereafter or for more information about any Franklin Templeton Investments’ fund,UK investors should contact: Franklin Templeton Investments, Telephone: 0800 305 306, Email: enquiries@franklintempleton.co.uk or write to us at the address below.Issued by Franklin Templeton Investment Management Limited (FTIML). Registered office: The Adelphi, 1-11 John Adam Street, London WC2N 6HT. FTIML is authorised andregulated in the UK by the Financial Services Authority.For Professional Investor Use Only. Not for Distribution to Retail Investors.

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