Templeton Releases Closed-End Funds' Portfolio Allocation Updates and Announces Change to Certain Investment Strategies
|From:||Franklin Resources, Inc.|
|Contact:||Franklin Templeton Investments|
Fort Lauderdale, Florida, December 15, 2011. The Templeton closed-end Funds referenced below, which trade on the New York Stock Exchange, today released portfolio allocation updates containing the following information as of November 30, 2011:
- Asset Allocation
- Portfolio Characteristics
- Net Currency Distribution
- Country Distribution
To obtain a copy of the updates, please contact Fund Information at 1-800-342-5236.
Templeton closed-end Funds:
Templeton Emerging Markets Income Fund (NYSE: TEI)
Templeton Global Income Fund (NYSE: GIM)
At recent meetings of the Boards of Trustees, each Fund was authorized to increase use of currency forward contracts for hedging and investment purposes when the investment manager believes it is advisable to do so. Currency forwards are used to manage and implement various currency exposures. A forward contract is an obligation to purchase or sell a specific foreign currency at an agreed exchange rate (price) at a future date, which is individually negotiated and privately traded by currency traders and their customers in the interbank market. Through the use of currency derivatives, a Fund can hedge or decrease its exposure to one currency (which may include establishing or increasing a short position), while increasing exposure to another currency.
Investing in derivative instruments, including currency forward contracts, involves risk. The performance of derivative instruments (including currency related derivatives) depends largely on the performance of an underlying currency, security or index and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivatives involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause a Fund to participate in losses (as well as enable gains) on an amount that exceeds the Fund’s initial investment. Other risks include illiquidity in the Fund, mispricing or improper valuation, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits. When used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security or other risk being hedged. The Funds are actively managed but there is no guarantee that the investment manager’s investment decisions will produce the desired results.
The Funds’ investment goals, as well as their other investment policies, restrictions and tax diversification requirements, remain the same as previously disclosed for each Fund.
The Funds’ investment manager, Franklin Advisers, Inc., is a wholly-owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over $675 billion in assets under management as of November 30, 2011. For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.