Templeton Growth (Euro) Fund* - FONDS professionell · 2015-07-27 · Building the Templeton Portfolio 1. Various factors, such as a portfolio’s specific investment guidelines,

Dealer Use Only / Not for Distribution to the Public

Templeton Growth (Euro) Fund*

Cindy Sweeting, CFAPresident, Templeton Global AdvisorsDirector of Portfolio Management, Templeton Global Equity Group

Fondskongress Mannheim, 29 January 2008

*A subfund of the Franklin Templeton Investment Funds (Luxemburg)

2


Overview

The Templeton Investment Philosophy & ProcessOverview of Markets in 2007Themes for Global Markets in 2008Global ValuationFund Performance


The Templeton InvestmentPhilosophy & Process

4

* Sir John Templeton is no longer affiliated with the Templeton organization. Dealer Use Only / Not for Distribution to the Public

Too many investors focus on outlook and trend; therefore more profit is made by focusing on VALUE. ― Sir John Templeton

If you buy the same securities as other people,you will have the same results as other people. ― Sir John Templeton

The Templeton Investment Philosophy

5


The Templeton Investment Philosophy

Source: Factset as of December 2007, in US-Dollar. The index is provided only to show the investment environment during the specific periods shown. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund. An index typically includes a greater number of securities than are held in any fund. An index is unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Templeton funds follow the investment management principles established by their founder and former chairman, Sir John Templeton, who is no longer affiliated with the Templeton organization.

-8

-6

-4

-2

0

2

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6

8

10

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14

-100

0

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200

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400

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MSCI The World Index Value - Gross Return Ann

MSCI The World Index Growth - Gross Return Cum MSCI The World Index Value - Gross Return Cum

MSCI The World Index Growth – Gross Return Cum

1 Yea

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Time-Tested Templeton Philosophyand Approach

VALUEAbsolute value investorsBuy companies at discount prices

BOTTOM UPStock-by-stock original analysisFocus on businesses within their globalcompetitive environment

PATIENCERolling 5-year investment horizonPerspective and discipline leads to value recognitionHistorical turnover consistently low

Search the world Search the world for the greatest for the greatest

bargainsbargains

Sir John’s Three Tenets:

Templeton funds follow the investment management principles established by their founder and former chairman, Sir John Templeton, who is no longer affiliated with the Templeton organization.

7

As of 1 January 2008. Dealer Use Only / Not for Distribution to the Public

CHIEF INVESTMENT OFFICERGary Motyl, CFA

DIRECTOR OF RESEARCHNorman Boersma, CFA

DIRECTOR OF PORTFOLIO MANAGEMENTCindy Sweeting, CFA

NASSAU

4 PM/Analysts1 Analyst

TORONTO

6 PM/Analysts3 Analysts

FORTLAUDERDALE


EDINBURGH


SINGAPORE

1 PM/Analyst

MELBOURNE

1 PM/Analyst1 Analyst

HONG KONG

3 PM/Analysts1 Analyst

FRANKFURT

1 PM/Analyst

• Average 15 years of industry experience• Average 9 years of tenure with firm• 10 nationalities• 9 languages

Templeton Global Equity GroupManagement Team

8

As of 1 January 2008. Dealer Use Only / Not for Distribution to the Public

Integrated Global Research Platform

GLOBAL SECTOR TEAMS

INDUSTRIALSAlan Chua, CFANeil Devlin, CFA

Tian Qiu, CFA, CPATina Sadler, CFATucker Scott, CFA

Heather Waddell, CFAUwe Zoellner, CFA

INFORMATIONTECHNOLOGY

James Harper, CFAEric Howe, CFA

Matthew Nagle, CFA, CPAPeter Nori, CFA

Katherine Owen, CFACraig Watson

Peter Wilmshurst, CFA

HEALTH CAREMohan KandiahPeter Nori, CFA

Katherine Owen, CFATian Qiu, CFA

FINANCIALSDylan Ball

Neil Devlin, CFAHarlan Hodes, CPAAndrew MacKirdyBrad Radin, CFA

Simon Rudolph, ACAMathias Strohfeldt, CFA

ENERGYMaarten Bloemen

Martin CobbMathias Strohfeldt, CFA

CONSUMERHerbert Arnett

Alan Chua, CFATony Docal, CFA

Harlan Hodes, CPAPeter Moeschter, CFA

Lisa Myers, CFAMatthew Nagle, CFAKatherine Owen, CFA

Craig Watson

Director of Research: Norman Boersma, CFA

ADDITIONAL RESOURCESResearch

TechnologyGroup

Global Research

Library

JuniorResearch Analysts

GlobalRisk

Management

GlobalTradingPlatform

Emerging MarketsGroup

InstitutionalProduct

Management

MATERIALSMaarten Bloemen

Martin Cobb Neil Devlin, CFATony Docal, CFATina Sadler, CFA

Mathias Strohfeldt, CFACraig Watson

UTILITIESMathias Strohfeldt, CFA

Joanne Wong, CFA Guang Yang, CFA

TELECOM SERVICESJames Harper, CFAMatthew Nagle, CFA

Tina Sadler, CFAPeter Wilmshurst, CFA

Joanne Wong, CFA

9


Templeton Investment Process

Templeton Screen/Analysis

Research Evaluation & Critique

Portfolio Developmentand Risk Management

Universe ofCompanies

Director ofGlobal Research

BargainList Portfolio

Sourceof Funds

Best Undervalued Opportunities

V a l u a t i o n / R i s k

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Portfolio Monitoringand Risk Management

Bottom-UpPortfolio Construction

ResearchTeam Evaluation

In-Depth FundamentalAnalysis

Identifypotential bargains

Ongoing valuation analysisDisciplined sell methodology Weekly peer review and risk analytics

Investment guidelinesIndustry and sector frameworkBuild and diversify portfolioLong-term approach: Aims for low turnover1

Presentation of investment thesisDevil’s advocate counter-caseInvestment debate and critiqueDirector of Research approval

Five-year financial forecastManagement/supplier/competitive evaluationRecommendation of Bargain List candidates

Experienced analystsFocus on global industry sectorsQuantitative and qualitative assessment

Building the Templeton Portfolio

1. Various factors, such as a portfolio’s specific investment guidelines, and market or economic conditions, may cause portfolio turnover to vary.

11


Integrated Global Research PlatformA framework for Templeton’s best thinking

CORE LISTAttractively priced stocks with potential

for significant price upside

BARGAIN LISTStocks priced at a significant discount to their long-term prospects

YEAR 0 1 2 3 4 5

Target Lifecycle of a Templeton Stock

VA

LUA

TIO

N

SOURCE OF FUNDSFully valued stocks recommended for sales


2007 Recap

13

Source: Independent Strategy, 2 November 2007. Dealer Use Only / Not for Distribution to the Public

Derivatives

Securitized Debt

Broad Money

PowerMoney

976% of world GDP

145% of world GDP

80% of world GDP

7% of world GDP

81% of liquidity

12% of liquidity

6% of liquidity

1% of liquidity

Printing Money: Breakdown of Liquidity

14

Source: Goldman Sachs. Dealer Use Only / Not for Distribution to the Public

We are somewherein here

Exacerbated by leverage in the system

The Credit Supply Loop:What happens when credit contracts

15


Lending Standards Tighten Across the Board

16

Source: Bloomberg. Dealer Use Only / Not for Distribution to the Public

BBB Bond Yield:January 2007

Strips Yield:January 2007

BBB Bond Yield:January 2008

Strips Yield:January 2008

2007 Long-Dated Spread

170 BPs

2008 Long-Dated Spread

230 BPs

The Fed Can Lower Short Rates . . .

. . . But The Rates That Matter Have Risen

3M 6M 1Y 3Y 5Y 7Y 9Y 15Y 20Y 25Y 30Y

Flight to Quality: Long Rates Rise andCredit Spreads Widen Despite Fed Action

17


Without Housing Gains –Less Consumer Spending?

Wealth Effects from Real Estate and Financial Asset Appreciation1

as a Share of Personal Income

0.00.20.40.60.81.01.21.41.61.82.0

53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07

Real Estate Financial Assets

%

Source: Federal Reserve Board.1 Assumes consumption of 9% of real estate equity over three-years and 3% of financial assets over two-years.

18

Source: JP Morgan Chase & Co.. Dealer Use Only / Not for Distribution to the Public

60,9%

94,7%

252,3%

104,8%

45,1%

175,4%

31,2%

-0,2%

-50% 0% 50% 100% 150% 200% 250% 300%

MSCI World Index

MSCI EAFE Index

MSCI EmergingMarkets Index

MSCI EuropeIndex

MSCI Japan Index

MSCI Pacific ex-Japan Index

S&P 500 Index

CitiGroup WldGovt. Bond Index

Capital Market Returns (in EUR)

-0,9%

0,7%

26,1%

3,2%

-13,5%

18,8%

-4,9%

0,1%

-20% -10% 0% 10% 20% 30%

MSCI World Index

MSCI EAFE Index

MSCI EmergingMarkets Index

MSCI EuropeIndex

MSCI Japan Index

MSCI Pacific ex-Japan Index

S&P 500 Index

CitiGroup WorldGovt. Bond Index

1-Year to December 2007 (in EUR) 5-Years ending December 2007 (in EUR)

Global Market Review

19


Themes for Global Markets

Despite the unfolding credit crisis in the leveraged structured debt and derivative markets, corporate earnings outside of the financial sector, free cash flow and financial liquidity remained strong through 2007.However, corporate profits and profitability are at elevated levels- avoid the trap of extrapolationThere is little excess reward for taking on risk- are investors still too complacent?Global valuations are selectively attractive“Traditional” value stocks- cyclicals, commodities, financials, industrials-are not cheap…Bargains are coming up in unusual places- “non traditional value”• Large Cap, Media, Healthcare, Telecoms, and Technology


Global Valuations

21

Source: Factset. Dealer Use Only / Not for Distribution to the Public

More expensive

Less expensive

Price-to-Book Value, Last 10 Years

High-low range Mean Current

Pockets of Attractive Valuations

0,0

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AC Wor

ldEne

rgy

Materia

lsIndustr

ials

Cons.

Disc.

Media

Cons S

taples

Health

Care

Financia

lsInfo

Tech

Teleco

m

Utilitie

s

0,0

2,0

4,0

6,0

8,0

10,0

12,0

22

Source: FactSet. As of December 2007. Dealer Use Only / Not for Distribution to the Public

Dividend Yield: Major TelecomPrice to FY1 EPS: Major Telecom

Price to Cash Flow: Major Telecom

Finding Value in Telecom

'98 '99 '00 '01 '02 '03 '04 '05 '06 '070

0.5

1

1.5

2

0.6

0.8

1

1.2

1.4

1.6

1.8

2

2.2

MSCI AC World - CF Yield (Left)MSCI AC Europe / Telecom Services - CF Yield (Right)

'98 '99 '00 '01 '02 '03 '04 '05 '06 '070

20

40

60

80

100

120

140

160 FDSAGG Europe / Major Telecommunications -IND - Price to EPS - FY1

'98 '99 '00 '01 '02 '03 '04 '05 '06 '070

1

2

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5

6 FDSAGG Europe / Major Telecommunications -IND - Dividend Yield

'98 '99 '00 '01 '02 '03 '04 '05 '06 '070

5

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30 FDSAGG Europe / Major Telecommunications -IND - Price to Cash Flow

23


Vodafone focuses on repairing balance sheetCapital expenditures slashed and company becomes

more disciplined in spending strong cash flows

REASONS FOR INVESTINGMarket reacts to new CEO’s plans for use of cash flow

Solid long-term fundamentals, compelling valuations and strong free cash flow generationAdded to Templeton Bargain List

Bursting of TMT BubbleVodafone stock price falls 80% from March 2000 highs

Poor fundamentals remain

Company profit warning and cautious outlook creates share price weakness

Market not giving credit for value of global brand and level of cash generation

ADDITIONAL BUYING OPPORTUNITY

TMT Bubble Vodafone valuations

reach peak levels

Vodafone is the world’s largest mobile telecommunications company with interests in mobile networks spanning five continents. (As of January 2008.)

Source: FactSet. Information relating to the company identified is provided solely to illustrate the economic lifecycle of a company in a particular sector. It is not a recommendation to purchase, sell or hold any particular security. The stock identified is not necessarily indicative of a portfolio’s holding at any one time.

VodafoneOpportunities in Non-Traditional Value Sectors

'01 '02 '03 '04 '05 '06 '07 0.8

1

1.2

1.4

1.6

1.8

2

2.2

2.4

Vodafone Group PLC (VOD-GB) VOD-GB B16GWD5 London Common stock 30-Mar-2001 to 18-Jan-2008 (Weekly)

High: 2.21 Low: 0.88 Latest: 1.78

Price (GBP)

24

Dealer Use Only / Not for Distribution to the PublicSource: Factset. Data Source: MSCI As of September 2007. An index is unmanaged and one cannot invest directly in an index

Pharmaceuticals: Growth Turned Value

MSCI AC World / Pharmaceuticals -IND (106789)

'98 '99 '00 '01 '02 '03 '04 '05 '06 '0715

20

25

30

35

40106789

Price to Earnings

25


Source: Factset, December 2007. Information relating to the company identified is provided solely to illustrate the economic lifecycle of a company in a particular sector. It is not a recommendation to purchase, sell or hold any particular security. The stock identified is not necessarily indicative of a portfolio’s holding at any one time.

Pharmaceuticals:Merck & Co. and GlaxoSmithKline Plc.

01 02 03 04 05 06 0710

11

12

13

14

15161718

GlaxoSmithKline PLC31-Dec-2001 to 31-Dec-2007 (Weekly) British Pounds

Price

01 02 03 04 05 06 0720

25

30

35404550556065

Merck & Co. Inc.31-Dec-2001 to 31-Dec-2007 (Weekly) U.S. Dollars

Price

26


Source: Factset.Information relating to the company identified is provided solely to illustrate the economic lifecycle of a company in a particular sector.It is not a recommendation to purchase, sell or hold any particular security. The stock identified is not necessarily indicative of a portfolio’s holding at any one time.

Pfizer:Attractive at 1998 prices, and historically low P/E

5101520253035404550

Pfizer Inc. (PFE)PFE 717081103 2684703 NYSE Common stock

Price (USD)

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '070

10

20

30

40

50

60

70

Price to Earnings - FY1

27


0

50

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450

72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08F

Low Nov. 1993(Index = 67)Low Dec. 1982

(Index = 56)Low Nov. 1977(Index = 54)Low Nov. 1972

(Index value = 41)

Low Dec. 1986(Index = 60)

Peak April 1974(Index = 83)

Peak Feb. 1980(Index = 110)

Peak Aug. 1983Up 50%; Down 29%

(Index 84)

Peak Jan. 1995(Index = 127)

Low Dec. 1998(Index = 66)

Peak March 2000(Index = 105)

Trough October 2001(Index = 68)

ABN-AMRO Base Metal Price Index Consumption Value Weightings

January 2000 =100Al 43%, Cu 30%, Ni 11%, Zn 11%, Pb 3%, Sn 2%

"First Oil Shock" Boom duration 17 mths. Trough to peak 102%. Peak to trough 40%

"Second Oil Shock" Boom duration 27 mths.

Up 103%; Down 49%

Stock Market Crash of Oct.1987 Twin Peaks June 88 & Jan. 89

Duration 18mths Up 195%; Down 62%(Index value = 178) Dissolution of Soviet Union

Huge Inventory Build, Duration 14 mths.Up 89%; Down 48%

Asian Crisis Boom duration 15 mths.

Up 59%; Down 35%

The ABN AMRO Base Metal Price Index has tumbled 35% since its record high seen in May 2007. It is always an exogenous event which brings price cycles to an end. Sub-prime looks to be the culprit this time around.Rising economic headwinds at a time of aggressively rising supply will lead to the first global supply surpluses for some years. Directional call for the metals remains downwards but to still handsome price levels.

Sub-Prime MaelstromBoom duration 67 mths.

Peak Index May 2007 Up 503%

Source: 36 Year ABN-AMRO Base Metal Price Index (Nominal – Money of the Day), LME, ABN AMRO.The index is provided only to show the investment environment during the specific periods shown. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund. An index typically includes a greater number of securities than are held in any fund. An index is unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

Base Metal = Fool‘s Gold?Peak Levels in Commodities are Unsustainable

36 Year ABN-AMRO Base Metal Price Index (Nominal - Money of the Day)After 6 glorious years index peaked in May 2007, now at an 18 month low

28


BHP Billiton is one of the world’s largest diversified mining companies with leading positions in aluminum, iron ore and copper and an exposure to oil. (As of 30 September 2007.)

Source: FactSet. The sample stock provided is for illustration of our investment cycle only. It is not a recommendation to purchase, sell or hold any particular security. The stock identified is not necessarily indicative of a portfolio’s holding at any one time.

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

2

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Strong commodity demand from China and rising oil prices

drive stock price appreciation.

ADDITIONAL BUYING OPPORTUNITYBHP merges with Billiton

Merger concerns create share price weakness

REASONS FOR INVESTING

Market reacts to loss of CEO andstruggling commodity prices

Added to Templeton Bargain List New CEO and cost-cutting strategycreate long-term restructuring story

Stock price reaches fair valuation

Templeton trims into strength

CATALYST FOR TRIMMING

Continued price appreciation driven

largely by momentum. Current peak levels in

commodities are, in our opinion, unsustainable.

BHP Billiton – Templeton’s Patience and Focus onFundamentals Adds Value Over the Longer-Term

29


Templeton Research Drives the Portfolio –Global

As Large Valuation Gaps Converge, New Opportunities Arise.

USAU.S. equities have lagged as investors ignored strong and stable earnings. As a result, we are increasingly finding new bargain opportunities.

EuropeDespite strong performance, we continue to identify bargain opportunities as European stocks are among the cheapest globally.

JapanAlthough Japan‘s economy appears to have stabilized, our bottom-up research indicates a lack of undervalued ideas based on our long-term revenue and margin assumptions. Utilities

• Strong contributor toperformance over the past

several years. RobustM&A activity drives valuations

higher.• We trim our holdings as

stocks reach full valuation.

Media & Telecommunications

• Companies improvingbalance sheets and

increasing shareholder focus.

• We find attractiveopportunities as market

concerns, in our opinion, areoverblown.

Pharmaceuticals

• Valuations remain attractive. We believe strong cash

generation, stable earningsgrowth and restructuring

opportunities offset top-lineindustry challenges.

BARGAIN LIST

CORE LIST

SOURCE OF FUNDS

Metals & Mining

• Strong contributor to past performance due to a

favorable commodities environment.

• Commodity prices remainstrong. We continue to

believe stocks in the sectorare overvalued.

Energy

• Production disappointmentsand challenges in reserve

replacement negatively affectmarket sentiment. In addition,little value is being ascribed

to probable rather thanproven reserves.

• We prefer large integratedoils and find considerable

value in this sector.

Information Technology

• Strong global growth supports a reacceleration in

corporate technologyspending.

• With attractive valuations, wefind selected opportunities.

Portfolio and market data is as of June 30, 2007 and is subject to change. This material is intended solely to help illustrate Templeton’s research process and is not intended as investment advice or a recommendation to buy or sell any security nor to reflect any individual portfolio managed by Templeton.

Market CapLarge-caps have lagged their small-and mid-cap peers as the latter have been strong beneficiaries of M&A activity and cyclical trends in the global economy. This presents a unique opportunity to buy quality, large-cap companies at prices that do not reflect their longer-term value.

30

Source: Factset. As of December 2007. Dealer Use Only / Not for Distribution to the Public

Global Valuations Selectively Attractive

More expensive

Less expensive

High-low range Mean Current

Price-to-book value, last 10 years

01234567

World France Germany UK AC Asiaex Japan

Japan China Canada USA Brazil01234567

31

Source: Factset. As of December 2007. *Largest 100 stocks based on Market Capitalization Dealer Use Only / Not for Distribution to the Public

0,80

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1,70

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Relative Forward P/E Ratio Average

Global Large Caps:Cheapest in Many Years

Citigroup BMI World Largest 100 Stocks* Relative to the Citigroup BMI Forward P/E Ratio (1989 to August 2007)

32


Valuation Spreads Top Quintile Compared to the Market Average 1952 – January 2008

The US increasingly Looks Like a Bargain,But Earnings are at Risk

High Quality at Bargain Prices

AverageAverage

S&P 500 Forward P/E S&P 500 Forward P/E 19981998--20082008

'98 '99 '00 '01 '02 '03 '04 '05 '06 '0715

20

25

30

35

40

45S&P 500 Index (SP50)PE - FY1Average

33

Source: Factset, Bloomberg. As of January 2008. Dealer Use Only / Not for Distribution to the Public

USA & Europe: Buying Quality and Global and Global Exposure at a Discount

Company 5 YR EPS CAGR

Net Debt/ Total Capital

% Revs Outside US

Dividend Yield

Microsoft 8.69% -21% 38.7% 1.33

American International Group

21.17% 63% 48.8% 1.54

General Electric 7.92% 72% 46.2% 3.61

Pfizer 7.07% 8% 46.6% 5.69

Oracle 20.11% -2% 56.5% 0,00

Time Warner 7.79% 35% 19.5% 1.61

Siemens 9.56% 26% 79.5% 1.85

Vodafone 3.47% 24% 100% 4.00

GlaxoSmithKline 7.14% 28% 52.2% 2.97

34

Source: Factset. As of January 2008. Dealer Use Only / Not for Distribution to the Public

Emerging Markets Are At All Time Highs

MSCI Asia-Ex Japan, Emerging Markets and BRIC indices relative to S&P 500 Index

01/07 02/07 03/07 04/07 05/07 06/07 07/07 08/07 09/07 10/07 11/07 01/0880

90

100

110

120

130

140

150

160

170

S&P 500 Index MSCI AC Asia ex JP MSCI BRIC MSCI EM (Emerging Markets)

35

Source: Factset. As of December 2007. Dealer Use Only / Not for Distribution to the Public

More expensive

Less expensive

Emerging Markets:Expensive on an Absolute Price-to-book Basis

'98 '99 '00 '01 '02 '03 '04 '05 '06 '070.5

1

1.5

2

2.5

3

3.5MSCI EM (Emerging Markets) - Price to Book Value Ratio - Monthly

36


Emerging Markets P/E RisingAbove the World Index

Trailing P/E: MSCI EM Index and MSCI World Index

5x

10x

15x

20x

25x

30x

35x

40x

Dez

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Trailing MSCI EM Trailing MSCI World

Source: Wind Info, Morgan Stanley Team. Priced as of December 2007. An index is unmanaged and one cannot invest directly in an index.

37

Source: MSCI, Factset, Morgan Stanley Research. Dealer Use Only / Not for Distribution to the Public

Emerging Markets Multiple Expansion –China Has Seen a Substantial Re-rating

EM; 104Korea; 98

China; 197

Taiwan; 85

Brazil; 108

Russia; 89S. Africa; 87

India; 159

Mexico; 8460

100

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Dec

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EM Korea China Taiwan Brazil

Russia S. Africa India Mexico

38


The Myth of Decoupling

39


The Reality:Chinese Total Exports to Retail Sales

'03 '04 '05 '06 '070

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140,000Export ; fob - China (Left)Domestic Retail Sales - Billions $US (Right)

40


Templeton Growth (Euro) FundPortfolio Composition

34,2%

51,1%

11,5%

0,1%

0,0%

3,2%

40,7%

45,8%

11,4%

0,0%

4,0%

0,0%

0% 10% 20% 30% 40% 50% 60%

Europe

North America

Asia

L.America/Caribbean

Mid-East/Africa

Australia/NZTempleton Growth (Euro) Fund

Source: Factset. Data as of December 31, 2007. An index is unmanaged and one cannot invest directly in an index.

MSCI World Index (in EUR)

Geographic Allocation – Templeton Growth (Euro) Fund vs. MSCI World Index (in EUR)

41


Templeton Growth (Euro) FundPortfolio Composition

Source: Factset. Data as of December 31, 2007. An index is unmanaged and one cannot invest directly in an index.

22,5%

9,6%

4,9%

8,7%

11,5%

11,2%

10,8%

7,3%

8,8%

4,7%

21,1%

1,3%

0,0%

1,9%

8,5%

18,9%

7,5%

10,0%

11,5%

16,9%

0% 5% 10% 15% 20% 25%

Financials

Cons. Discretionary

Telecom Svcs

Health Care

Info Tech

Industrials

Energy

Materials

Cons Staples

Utilities

Templeton Growth (Euro) FundMSCI World Index (in EUR)

Sector Allocation – Templeton Growth (Euro) Fund vs. MSCI World Index (in EUR)

42


Templeton Growth (Euro) FundTop 10 Holdings

Country Industry Group Pct of Total

1. Microsoft Corp 3.5%

2. Siemens AG

Software and ServicesUnited States

Germany

3. Oracle Corp United States Software and Services 2.7%

4. News Corp Inc United States Media 2.4%

5. General Electric United States Capital Goods 2.4%

6. Seagate Technology United States Technology Hardware & Equipment 2.3%

7. BMW Germany Automobiles & Components 2.0%

8. Pfizer Inc United States Pharmaceuticals, Biotechnology & Life Sciences 2.0%

9. France Telecom Netherlands Telecommunication Services

3.4%

1.9%

Capital Goods

United States Pharmaceuticals, Biotechnology & Life Sciences10. BP PLC 1.9%

Source: Franklin Templeton Performance Dept. As of December 2007. All Data Represents Gross Returns. These securities represent the ten largest holdings held in 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. Holdings are subject to change.

Gross Returns as of December 31, 2007: Returns in US-Dollar


Fund Performance

44


Templeton Growth (Euro) FundPerformance in EUR

Performance data may represent blended share class performance, e.g. hybrid created from an A(dis) share class which was converted to A(acc).All MSCI data is provided “as is.” The portfolio 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 portfolio described herein. Copying or redistributing the MSCI data is strictly prohibited.

45


Market Capitalization (Millions EUR)

Fund

Benchmark

62,026.22

52,130.44

Price to Earnings Price to Book Value

Fund

Benchmark

1.95x

2.48x

Fund

Benchmark

14.46x

15.67x

Price to Cash Flow

Fund

Benchmark

6.75x

10.59x

Dividend Yield

Fund

Benchmark

2.41%

2.30%

Templeton Growth (Euro) FundFundamental Portfolio Characteristics

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Franklin Templeton Investments

This presentation was issued by Franklin Templeton Investments. Please note that this is not a complete representation and/or analysis of every material fact regarding an industry, a security or the respective investment fund. The information given does not constitute an analysis of any security.The value of the shares can go down as well as up and is not guaranteed. You may not get back the full amount invested. Investors should be aware of the fact that the fund invests in markets which can be very risky and volatile and that it may be difficult for the fund to sell its holdings. The performance data stated are examples and do not represent an offer to buy or to sell. Franklin Templeton Investments publishes product-related information only and does not give any investment recommendations. SICAV shares may not be offered to citizens or residents of the United States of America, no matter whether directly or indirectly.

Subscriptions for shares in the funds can only be made on the basis of the relevant prospectus which describes in detail the risks inherent in this investment and to which the current accounting report of the respective fund is attached. Please consult your professional advisor for advice. On request we will be happy to refer you to one of our independent dealers.

Selling prospectuses and further documentation are available free of charge from your advisor or at:

Franklin Templeton Investment Services GmbHPostfach 11 18 03, D-60053 Frankfurt a. M., Mainzer Landstraße 16, D-60325 Frankfurt a. M.Tel.: 0800/0738001 (Germany), 0800/295911(Austria), Fax +49(0)69/27223-120Email: [email protected] (Germany), [email protected] (Austria)Internet: www.franklintempleton.de (Germany), www.franklintempleton.at (Austria)

Documents

Templeton Growth (Euro) Fund* - FONDS professionell · 2015-07-27 · Building the Templeton Portfolio 1. Various factors, such as a portfolio’s specific investment guidelines,