11 augustus 2011
Fund Taps Combined Investment Expertise of Mark Mobius and Michael Hasenstab

Franklin Templeton Investments is pleased to announce that Dutch investors now have access to the newly-launched Templeton Emerging Markets Balanced Fund which taps into the combined expertise of

Dr. Mark Mobius and Dr. Michael Hasenstab along with their respective global teams in emerging markets equities and fixed income.

The Fund seeks to maximize a combination of capital appreciation and income in the long term, consistent with prudent investment management. The Fund will typically hold both emerging markets

equity and debt securities, with the proportion of its assets allocated to each depending on the Fund managers’ view of the valuation, risk and opportunity set within each asset class.

The Fund’s management team, led by

Dr. Mark Mobius, executive chairman, Templeton Emerging Markets Group, and Dr. Michael Hasenstab, co-director of the International Bond Department and portfolio manager, Franklin Templeton Fixed Income Group, seeks to add value through bottom-up fundamental sector, security and issuer analysis and top-down economic analysis. To help facilitate this process, the Fund leverages the expertise of research teams on the ground in local markets around the globe. Ultimately, the Fund uses the flexibility of its mandate to pursue opportunities based on the managers’ assessment of changing economic, market, sector, and issuer conditions. Dr. Mobius and Dr. Hasenstab will be supported by a team of senior members from the Templeton Emerging Markets Group and the Franklin Templeton Fixed Income team to make asset allocation decisions between fixed income and equity depending upon the relative activeness and valuations in those two sectors.

“Interest in emerging markets investing has never been greater, driven by the growth potential of these countries,” notes Dr. Mobius. “Templeton’s time-tested investment philosophy is built on in-depth research and a bottom-up, disciplined yet flexible approach to value which looks beyond short-term news and emotion. We bring that same philosophy to the Templeton Emerging Markets Balanced Fund, leveraging our established investment expertise and infrastructure in both emerging markets equity and fixed income to meet the growing investor interest for a balanced approach to the category.”

“This new strategy brings together the long-standing expertise of the Templeton Emerging Market Equity team and the Templeton Emerging Market Debt teams in one strategy, so we look for opportunities across the entire spectrum of emerging markets, said Dr. Hasenstab. “We can take advantage of equity opportunities, currency, local interest rates, sovereign credit, and corporate credit, encompassing the broadest exposure to emerging markets.” Given the low correlation between emerging markets equity and emerging markets fixed income, the Fund’s balanced approach between the two asset classes offers superior diversification, as well as potentially lower volatility and higher risk-adjusted returns than a pure emerging markets equity fund. These characteristics make the Fund suitable for retail investors seeking long-term capital appreciation and income from emerging markets, with less risk. Investors who want the convenience of outsourcing the asset allocation decision between emerging markets equities and bonds to the portfolio management team may also find the Fund an attractive solution.