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TEMPLETON GLOBAL BALANCED FUND
Unaudited Quarterly Report30 June 2019
TEMPLETON GLOBAL BALANCED FUND
UNAUDITED QUARTERLY REPORT FOR THE FINANCIAL PERIOD ENDING 30 JUNE 2019
I. GENERAL INFORMATION ABOUT THE FUND
II. MANAGER’S REPORT
III. STATEMENT BY THE MANAGER AND UNAUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
TEMPLETON GLOBAL BALANCED FUND
1
I. GENERAL INFORMATION ABOUT THE FUND
Launch and Commencement DateThe Templeton Global Balanced Fund (the “Fund”) was launched on 5 May 2015 andcommenced operations on 20 May 2015.
Fund Name, Category, Type
Fund Name Templeton Global Balanced Fund
Fund Category Wholesale – Feeder Fund (Balanced)
Fund Type Growth & Income
Investment Objective, Policy and Strategy The Fund is structured as a feeder fund and it is available in two share classes, Class A (MYR) and Class A (USD). The Fund seeks to provide capital appreciation and income by investing in the Franklin Templeton Investment Funds – Templeton Global Balanced Fund (“Target Fund”), which aims to invest principally in equity securities and government debt securities issued by entities throughout the world, including emerging markets.
The Fund aims to invest a minimum of 95% of the NAV of the Fund in the Target Fund which is denominated in USD and domiciled in Luxembourg; the balance of the NAV of the Fund will be held in cash or invested in liquid assets to defray operating expenses and to provide liquidity.
As the primary investment of the Fund, i.e., the Target Fund, is denominated in USD, the Manager intends to employ hedging for the classes of Units denominated in RM to reduce the Fund’s exposure to foreign exchange fluctuations. The hedging tools that the Manager may utilise include but are not limited to foreign exchange forwards and total return swap.
As the Fund is a feeder fund, it will stay invested in the Target Fund in so far as its investment strategy is consistent with the objective of the Fund. In view of the aforesaid, the Fund will not undertake any temporary defensive position. Accordingly, the Fund’s performance will be directly correlated to the performance of the Target Fund subject to the currency hedging strategy mentioned above being successful.
The Target Fund seeks capital appreciation and current income, consistent with prudent investment management by investing principally in equity securities and government debt securities issued by entities throughout the world, including Emerging Markets. The Investment Manager of the Target Fund anticipates that the majority of the Target Fund’s portfolio is normally invested in equity or equity-linked securities, including debt or preferred stock convertible or exchangeable into equity securities, selected principally on the basis of their capital growth potential. The Target Fund seeks income by investing in fixed or floating-rate debt securities and debt obligations issued by government and government-related issuers or corporate entities worldwide. The Target Fund may also purchase debt obligations issued by supranational entities organised or supported by several national governments, such as the International Bank for Reconstruction and Development or the European Investment Bank. The Target Fund may purchase equities, fixed income securities and debt obligations. Notwithstanding the foregoing, at no time will the Investment Manager of the Target Fund invest more than 40% of the Target Fund’s net assets into fixed income securities. The Target Fund may make distribution from capital, net realised and net unrealised capital gains as well as income gross of expenses. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital.
The asset allocation of the Fund will be as follows:
Minimum 95% of the NAV to be invested in the Target Fund; and
Up to 5% of the NAV in cash and/or other liquid assets.
Fund Distribution Policy Distribution of income, if any, is subject to the availability of income and shall be in line with the dividend policy of the Target Fund.
TEMPLETON GLOBAL BALANCED FUND
2
II. MANAGER’S REPORT
MARKET REVIEW Indications that several key central banks may be prepared to lower interest rates if the economic outlook worsens boosted global equities during 2019’s second quarter. Although trade relations drove heightened market volatility throughout the period and contributed to a selloff in May, new signs that the United States and China could resolve their trade dispute helped stock markets in late June. Sovereign bond yields around the world notably declined in May and June, while risk assets initially saw amplified volatility and sharp price declines before rallying on increasingly dovish comments from the US Federal Reserve (Fed) and European Central Bank (ECB) in June.
REVIEW OF THE TARGET FUND PERFORMANCE DURING THE PERIOD
QUARTERLY KEY PERFORMANCE DRIVERS
Equity Fixed Income
Helped
France (Stock Selection, Overweight) Duration Exposure in Brazil
India (Stock Selection) Mexican Peso
Utilities (Stock Selection) Duration Exposure in India
Hurt
United States (Stock Selection,
Underweight)
-
China (Stock Selection, Overweight) -
Communication Services (Stock
Selection, Overweight)
-
Within the communication services sector, shares of Chinese internet search firm Baidu came under pressure amidst a cyclical slowdown in China’s economy. We have growing concerns that excess advertising capacity and increasing competition can result in deteriorating cost/benefit dynamics in the digital advertising space going forward. Furthermore, Baidu’s core search offering is not proving to be as scalable as traditional search platforms. While the firm’s core search business has remained cheaply valued and Baidu has enjoyed strong growth in active daily users and a high cash position, the capital required to maintain leadership and innovation is significant, and we continue to monitor this investment closely. From the utilities sector, shares of French water- and waste-treatment firm Veolia Environnement advanced after the company reported better-than-expected earnings and received a favourable tax ruling from a US court. We remain positive on the stock; the effect of restructuring initiatives should become increasingly evident as tailwinds like greater environmental legislation and corporate commitments (as well as a potential rise in inflation) eventually bolster revenues. Over the quarter, the US dollar broadly weakened against a majority of global currencies, with some notable exceptions. Currency positions in Latin America (the Mexican peso and Brazilian real) contributed to the fixed income portfolio’s absolute performance. We continued to hold currency positions in a number of countries that we believe have strong growth fundamentals and compelling interest-rate differentials. Select duration exposures in Latin America (Brazil) and Asia ex Japan (India) contributed to the fixed income portfolio’s absolute results. We held select duration exposures in specific countries that we believe have attractive risk/return profiles, relatively higher yields, resiliencies to external shocks and favourable macro conditions for yields to remain relatively stable or shift lower.
TEMPLETON GLOBAL BALANCED FUND
3
MANAGER’S REPORT (CONTINUED)
There were no significant detractors from the fixed income portfolio’s absolute performance during the second quarter.
OUTLOOK & STRATEGY
Despite continued challenges, we believe we are taking the necessary steps to potentially improve investment outcomes in a difficult environment. These steps include upgrading the quality of the equity portfolio to own more defensive, dividend-paying holdings in a late-cycle, low interest-rate environment, as well as allocating resources to pursue the best long-term investment opportunities in overlooked market segments.
Under Templeton Global Equity Group Chairman Dr. Sandy Nairn, we’ve enhanced our research database, developed a new system to quantify economic exposures at the portfolio level, made targeted changes to research coverage and investment personnel, and begun to manage more focused portfolios with fewer stocks to ensure that only the highest conviction names are represented.
From a global fixed income perspective, we expect ongoing labour market strength and continued expansion of the US economy. US growth is likely to moderate from its 2018 pace, but remain at or above potential in 2019, in our view. We do not see economic conditions that indicate an imminent recession, or that justify rate cuts from the Fed. Resilient US consumer spending should continue to fuel US growth and support global growth, as the economy moves deeper into the late-cycle phase of expansion.
In emerging markets, we continue to see a subset of countries with domestically strong economies that have demonstrated their resiliencies to global shocks, including potential trade disruptions. We are focused on specific countries that are less externally vulnerable and more domestically driven, and that have orthodox fiscal and monetary policies. We see additional scope for strengthening valuations in specific countries.
Asset Breakdown as at end June 2019*
Equity 65.54%
Cash & Cash Equivalents 17.53%
Fixed Income 16.94%
Sector Allocation (Equity) as at end June 2019*
Financials 21.41%
Communication Services 15.89%
Health Care 15.37%
Energy 10.82%
Industrials 10.25%
Information Technology 8.52%
Materials 6.01%
Utilities 3.15%
Consumer Staples 3.10%
Others 5.47%
Sector Allocation (Fixed Income) as at end June 2019*
Local Curr. Govt/Agency Bonds: Investment Grade 71.67%
Local Curr. Govt/Agency Bonds: Non-Investment Grade 25.32%
Supranational 3.20%
US Treasuries/Agencies 0.00%
Derivatives -0.18%
* The data relates to the Target Fund
TEMPLETON GLOBAL BALANCED FUND
4
MANAGER’S REPORT (CONTINUED)
CUMULATIVE RETURNS AS OF 30 JUNE 2019
Currency 3 Months 1 Year 3 Years Since
Commencement (20 May 2015)
Templeton Global Balanced Fund – Class A
MYR 0.97% -1.09% 17.11% -3.11%
Templeton Global Balanced Fund – Class A
USD 0.98% -0.77% 17.15% -4.36%
Franklin Templeton Investment Funds – Templeton Global Balanced Fund (the “Target Fund”)
USD 1.42% 0.95% 24.40% 9.27%
65% MSCI ACWI1 + 35%JP Morgan Global Government Bond Index2**(the Fund’s benchmark)
USD 3.74% 6.31% 26.87% 25.86%
Past performance is not necessarily indicative of future performance and unit prices and investment returns may go down, as well as up.
**1. Source: All MSCI data is provided “as is.” The Fund described herein is not sponsored orendorsed 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. 2. Copyright JPMorgan Chase & Co. All rights reserved.
TEMPLETON GLOBAL BALANCED FUND
III. STATEMENT BY THE MANAGER AND UNAUDITED FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
CONTENTS PAGE(S)
UNAUDITED STATEMENT OF FINANCIAL POSITION 1
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME 2
UNAUDITED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE
TO UNIT HOLDERS 3
UNAUDITED STATEMENT OF CASH FLOWS 4
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS 5 - 9
STATEMENT BY THE MANAGER 10
TEMPLETON GLOBAL BALANCED FUND
UNAUDITED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
30 Jun 2019 30 Sep 2018
Note RM RM
CURRENT ASSETS
Financial assets at fair value through
profit or loss 1 22,604,838 28,298,156
Derivative financial instruments 2 65,684 1,340
Cash and cash equivalents 3 357,863 442,043
TOTAL ASSETS 23,028,385 28,741,539
CURRENT LIABILITIES
Derivative financial instruments 2 - 28,259
Accrued management fee 4 27,896 36,458
Accrued trustee fee 5 1,480 1,480
Other payables and accruals 14,121 24,318
TOTAL LIABILITIES (EXCLUDING NET
ASSETS ATTRIBUTABLE TO UNIT
HOLDERS) 43,497 90,515
NET ASSETS ATTRIBUTABLE TO UNIT
HOLDERS 22,984,888 28,651,024
REPRESENTED BY:
NET ASSETS ATTRIBUTABLE TO UNIT
HOLDERS
– RM CLASS 6(a) 18,088,474 23,046,679
– USD CLASS 6(b) 4,896,414 5,604,345
22,984,888 28,651,024
NUMBER OF UNITS IN CIRCULATION
– RM CLASS 6(a) 37,711,705.39 46,863,550.85
– USD CLASS 6(b) 2,504,319.65 2,799,156.13
NET ASSET VALUE PER UNIT
– RM CLASS RM 0.4797 RM 0.4918
– USD CLASS USD 0.4734 USD 0.4840
The accompanying notes form an integral part of these financial statements.
1
TEMPLETON GLOBAL BALANCED FUND
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
1 Oct 2018 1 Oct 2017
to to
30 Jun 2019 30 Jun 2018
Note RM RM
INVESTMENT LOSS
Interest income 261 1,743
Net loss from financial assets at fair value
through profit or loss 1 (452,743) (904,801)
Net (loss)/gain from derivative financial
instruments 2 (54,626) 215,780
Net foreign currency exchange gain/(loss) 5,306 (5,502)
(501,802) (692,780)
EXPENSES
Management fee 4 278,028 302,258
Trustee fee 5 13,464 14,183
Audit fee 6,520 6,523
Professional fee 4,308 4,351
Custodian fee 585 10,778
Printing fee 378 6,698
303,283 344,791
NET LOSS BEFORE TAXATION (805,085) (1,037,571)
Taxation - -
DECREASE IN NET ASSETS
ATTRIBUTABLE TO UNIT HOLDERS (805,085) (1,037,571)
Decrease in net asset attributable to
unit holders comprises the following:
Realised amount (742,853) (102,674)
Unrealised amount (62,232) (934,897)
(805,085) (1,037,571)
The accompanying notes form an integral part of these financial statements.
2
TEMPLETON GLOBAL BALANCED FUND
UNAUDITED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS
FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
1 Oct 2018 1 Oct 2017
to to
30 Jun 2019 30 Jun 2018
RM RM
NET ASSETS ATTRIBUTABLE TO UNIT
HOLDERS AT THE BEGINNING OF THE
FINANCIAL PERIOD 28,651,024 14,224,334
Movement due to units created and cancelled during
the financial period:
Creation of units 763,629 24,117,201
Cancellation of units (5,624,680) (3,365,990)
(4,861,051) 20,751,211
Decrease in net assets attributable to unit
holders during the financial period (805,085) (1,037,571)
NET ASSETS ATTRIBUTABLE TO UNIT
HOLDERS AT THE END OF THE FINANCIAL
PERIOD 22,984,888 33,937,974
The accompanying notes form an integral part of these financial statements.
3
TEMPLETON GLOBAL BALANCED FUND
UNAUDITED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
1 Oct 2018 1 Oct 2017
to to
30 Jun 2019 30 Jun 2018
Note RM RM
CASH FLOWS FROM OPERATING
ACTIVITIES
Proceeds from sales of financial assets at
fair value through profit or loss 6,548,234 3,854,941
Payments for purchase of financial assets at
fair value through profit or loss (1,299,607) (25,581,422)
Settlement of derivative financial instruments (147,229) 291,424
Interest income received 261 1,743
Management fee paid (286,590) (275,900)
Trustee fee paid (13,464) (14,271)
Audit fees paid (8,752) (8,634)
Professional fee paid (5,565) (6,063)
Custodian fee paid (585) (10,778)
Printing fee paid (7,086) (5,153)
Expense reimbursement received - 26,272
Net cash generated from/(used in) operating
activities 4,779,617 (21,727,841)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from creation of units 763,629 25,504,737
Payments for cancellation of units (5,624,680) (3,362,253)
Net cash (used in)/generated from financing
activities (4,861,051) 22,142,484
NET (DECREASE)/INCREASE IN CASH AND
CASH EQUIVALENTS (81,434) 414,643
CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE FINANCIAL PERIOD 442,043 106,537
EFFECTS OF UNREALISED FOREIGN
EXCHANGE (2,746) 5,282
CASH AND CASH EQUIVALENTS AT
END OF THE FINANCIAL PERIOD 3 357,863 526,462
The accompanying notes form an integral part of these financial statements.
4
TEMPLETON GLOBAL BALANCED FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
1. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
30 Jun 2019 30 Sep 2018
RM RM
Designated at fair value through profit or loss
at inception:
- Foreign collective investment scheme 22,604,838 28,298,156
1 Oct 2018 to 1 Oct 2017 to
30 Jun 2019 30 Jun 2018
RM RM
Net loss on financial assets at fair value
through profit or loss:
- Realised loss on disposals (300,655) (40,412)
- Unrealised fair value loss (152,088) (864,389)
(452,743) (904,801)
Foreign collective investment scheme
Name of collective Percentage
investment scheme Quantity Value of net asset
value
30 Jun 2019 Units RM %
Luxembourg
Target Fund - Cost 22,954,508
Accumulated unrealised loss on
financial assets at fair value
through profit or loss (349,670)
Quantity/Market Value 547,881 22,604,838 98.35
Name of collective Percentage
investment scheme Quantity Value of net asset
value
30 Sep 2018 Units RM %
Luxembourg
Target Fund - Cost 28,495,738
Accumulated unrealised loss on
financial assets at fair value
through profit or loss (197,582)
Quantity/Market Value 678,597 28,298,156 98.77
5
TEMPLETON GLOBAL BALANCED FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
2. DERIVATIVE FINANCIAL INSTRUMENTS
Foreign currency swap
30 Jun 2019 30 Sep 2018
RM RMFinancial assets/(liabilities) at fair value through profit or loss
- held for trading :
- Foreign currency swap 65,684 (26,919)
1 Oct 2018 to 1 Oct 2017 to
30 Jun 2019 30 Jun 2018
RM RM
Net realised (loss)/gain on foreign currency swap (147,229) 291,425
Net unrealised gain/(loss) on foreign currency swap 92,603 (75,645)
(54,626) 215,780
3. CASH AND CASH EQUIVALENTS
30 Jun 2019 30 Sep 2018
RM RM
Bank balances in a licensed financial institution 357,863 442,043
4. ACCRUED MANAGEMENT FEE
1 Oct 2018 to 1 Oct 2017 to
30 Jun 2019 30 Jun 2018 30 Jun 2019 30 Sep 2018
RM RM RM RM
Management fee 278,028 302,258 27,896 36,458
Management fees are billed and payable monthly in arrears.
Expense Accrual
At the end of the financial period, there is 1 (30 September 2018: 1) foreign currency swap outstanding. The
notional principal amount of the outstanding foreign currency swap amounted to RM17,169,426 (30
September 2018: RM22,501,075 ).
The foreign currency swap entered into during the financial period was for hedging against the currency
exposure arising from the investment in the foreign collective investment scheme denominated in US Dollar.
As the Fund has not adopted hedge accounting during the financial period, the change in the fair value of the
foreign currency swap is recognised immediately in the statement of comprehensive income during the
financial period.
Net fair value (loss)/gain on the foreign currency swap at fair value through profit or loss is as follows:
For the current and prior comparative periods, the Manager is entitled to receive a fee of 1.50% per annum of
the net asset value of the Fund.
6
TEMPLETON GLOBAL BALANCED FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
5. ACCRUED TRUSTEE FEE
1 Oct 2018 to 1 Oct 2017 to
30 Jun 2019 30 Jun 2018 30 Jun 2019 30 Sep 2018
RM RM RM RM
Trustee fee 13,464 14,183 1,480 1,480
Trustee fees are billed and payable monthly in arrears.
6. NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS
(a) RM CLASS
Number of Number of
units RM units RM
Beginning balance 46,863,550.85 23,046,679 24,312,287.29 12,114,729
Creation 1,361,383.89 642,751 40,304,169.99 20,470,585
Cancellation (10,513,229.35) (4,961,926) (18,264,879.77) (9,146,245)
Reinvestment of
distributions - - 511,973.34 255,987
Decrease
in net assets
attributable
to unit holders - (639,030) - (648,377)
Closing balance 37,711,705.39 18,088,474 46,863,550.85 23,046,679
30 Jun 2019 30 Sep 2018
Expense Accrual
For the current and prior comparative periods, the Trustee is entitled to receive a fee of 0.05% per annum of
the net asset value of the Fund, subject to a minimum fee of RM18,000 per annum.
7
TEMPLETON GLOBAL BALANCED FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
6. NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS (CONTINUED)
(b) USD CLASS
Number of Number of
units RM units RM
Beginning balance 2,799,156.13 5,604,345 1,023,260.00 2,109,605
Creation 60,937.52 120,878 2,171,468.53 4,353,956
Cancellation (355,774.00) (662,754) (423,108.33) (862,751)
Reinvestment of
distributions - - 27,535.93 55,044
Decrease
in net assets
attributable
to unit holders - (166,055) - (51,509)
Closing balance 2,504,319.65 4,896,414 2,799,156.13 5,604,345
TOTAL 22,984,888 28,651,024
7. UNITS HELD BY RELATED PARTY
Number of Number of
units RM units RM
Holding company of the
Manager
- Franklin Templeton
Capital Holdings
Pte. Ltd.
- RM class 361,860.79 173,585 361,860.79 177,963
- USD class 10,099.35 19,746 10,099.35 20,222
8. DISTRIBUTION
9. MANAGEMENT EXPENSE RATIO (“MER”)
1 Oct 2018 to 1 Oct 2017 to
30 Jun 2019 30 Jun 2018
% p.a. % p.a.
MER 1.64 1.77
No distribution was declared by the Fund for the financial periods ended 30 June 2019 and 30 June 2018.
The MER of the Fund is the ratio of the sum of annualised fees and expenses incurred by the Fund to the
average net asset value of the Fund calculated on a daily basis.
As at 30 June 2019 and 30 September 2018, the above units are legally held and were transacted at the
prevailing market price.
30 Jun 2019 30 Sep 2018
30 Jun 2019 30 Sep 2018
8
TEMPLETON GLOBAL BALANCED FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS (CONTINUED)
FOR THE FINANCIAL PERIOD FROM 1 OCTOBER 2018 TO 30 JUNE 2019
10. PORTFOLIO TURNOVER RATIO (“PTR”)
11. TRANSACTIONS WITH THE TARGET FUND MANAGERS
Details of transactions with the Target Fund Managers for the financial periods are as follows:
Target Fund
Managers
RM % RM %
Franklin Templeton
Investments Australia
Limited and Franklin
Advisers, Inc.* 7,839,788 100.00 28,803,250 100.00
*
12. CHANGES TO PRESENTATION OF COMPARATIVE AMOUNTS
For the current financial period, foreign currency swap has been classified as derivative financial
instruments. Comparative amounts have been reclassified from financial assets at fair value through profit or
loss and net gain/loss from financial asset at fair value through profit or loss to conform with the current
period's presentation.
The above transaction values are in respect of transactions in foreign collective investment scheme.
Transactions in this investment do not involve any commission or brokerage and all the above transactions
have been established under terms that are no less favorable than those arranged with independent third
parties.
1 Oct 2017 to
30 Jun 2018
With effect from 4 June 2018, the Target Fund Managers are Franklin Templeton Investments Australia
Limited and Franklin Advisers, Inc. (Prior to that, the Target Fund Managers were Franklin Templeton
Investment Management Limited and Franklin Advisers, Inc.)
The Fund is a feeder fund which invests primarily into the Target Fund, hence all transactions were made
with the Target Fund Managers.
1 Oct 2018 to
30 Jun 2019
The PTR of the Fund, which is the ratio of average total acquisitions and disposals of investment to the
average net asset value of the Fund calculated on a daily basis is 0.16 times (30 June 2018: 0.56 times).
9
TEMPLETON GLOBAL BALANCED FUND
STATEMENT BY THE MANAGER
Avinash Deepak Satwalekar
For and on behalf of the Manager
Franklin Templeton Asset Management
(Malaysia) Sdn. Bhd.
Kuala Lumpur, Malaysia
20 August 2019
I, Avinash Deepak Satwalekar, being Director of the Manager, Franklin Templeton Asset Management
(Malaysia) Sdn. Bhd., for Templeton Global Balanced Fund do hereby state that in the opinion of the
Manager, the accompanying unaudited statement of financial position, unaudited statement of comprehensive
income, unaudited statement of changes in net assets attributable to unit holders and unaudited statement of
cash flows are drawn up so as to give a true and fair view of the financial position of the Fund as at 30 June
2019 and the comprehensive income, the changes in net assets attributable to unit holders and cash flows of
the Fund for the financial period from 1 October 2018 to 30 June 2019.
10
© 2018 Franklin Templeton Investments. All rights reserved. FTIFMY TGBAR 07/19
Franklin Templeton Asset Management (Malaysia) Sdn. Bhd.Suite 31-02, 31st Floor, Menara Keck Seng203, Jalan Bukit Bintang55100 Kuala Lumpur, Malaysiatel +60 (3) 2264 6688fax +60 (3) 2145 9071www.franklintempleton.com.my