Franklin Templeton Investments Introduces Templeton Emerging Markets Balanced Fund for U.S. Investors
|From:||Franklin Templeton Distributors, Inc.|
San Mateo, CA, January 3, 2012 -- Franklin Templeton Investments today announced the introduction of Templeton Emerging Markets Balanced Fund, which leverages the combined expertise of Dr. Mark Mobius and Dr. Michael Hasenstab, and their respective global emerging markets equity and fixed income research teams, to identify investment opportunities across the entire emerging markets spectrum.
Available to U.S. investors, the actively-managed fund seeks both income and capital appreciation, and invests predominantly in a diversified portfolio of equity securities, and fixed and floating rate debt obligations issued by governments, government-related entities and corporate entities which are located, incorporated or have significant business activities in, or are impacted by economic developments in, developing or emerging market countries.
“Interest in emerging markets investing has never been greater, driven by the growth potential of these markets, and Templeton Emerging Markets Balanced Fund addresses growing investor interest for a balanced approach to the category,” said Mobius, executive chairman of Templeton Emerging Markets Group. “Our time-tested investment philosophy is built on in-depth fundamental research and a disciplined yet flexible approach to value, which looks beyond short-term news and emotions to uncover compelling investment opportunities.” For more commentary from Mobius, visit his blog at http://mobius.blog.franklintempleton.com.
The fund employs a collaborative investment approach combining fundamental analysis with top-down asset allocation views. The fund normally invests at least 25% of its net assets in equity securities and at least 25% of its net assets in fixed income securities, with the balance allocated as the fund’s managers see opportunity. Templeton Emerging Markets Balanced Fund is run independently of its benchmarks, allowing the managers to hold only those positions they believe have the best potential to help maximize long-term risk-adjusted returns for shareholders.
“On the fixed income side, we can take advantage of opportunities in currencies, local interest rates, sovereign credits and corporate credits, to gain a broad exposure to emerging markets,” said Hasenstab, co-director of the International Bond Department of the Franklin Templeton Fixed Income Group®. “Many emerging markets have experienced strong growth, free from many of the leverage issues we often see in the developed world.” For more global market viewpoints from Hasenstab and other Franklin Templeton portfolio managers, visit https://www.franklintempleton.com/commentary/global-market-viewpoints, and the company’s blog, Beyond Bulls & Bears.
Templeton Emerging Markets Group consists of over 45 investment professionals who bring first-hand knowledge of specific countries and thus the ability to capitalize on opportunities others may fail to uncover. The team has offices in 17 emerging market locations, and members travel to some 100 cities each year to perform company visits and gather information that can facilitate timely and astute investment decision-making. Templeton was a pioneer in 1987 when it launched the first fund dedicated to emerging markets, which Mobius has managed since its inception. Templeton has consistently adhered to a fundamental research, value-oriented, long-term approach throughout its history, enduring many different market cycles and offering investors a truly global perspective.
Franklin Templeton Fixed Income Group is composed of more than 140 investment professionals based in New York, San Mateo, London and Singapore and local asset management teams in China, Brazil, India, South Korea and the United Arab Emirates. The group’s international bond department takes a top-down approach, looking at foreign countries’ economies, geopolitical risks, interest rates and currencies. The team is also valuation sensitive, combining the top-down approach with bottom-up analysis to examine opportunities at the individual security level.
All investments involve some degree of risk. Generally, investors should be comfortable with fluctuation in the value of their investments, especially over the short term. Stocks have historically outperformed other asset classes over the long term, but they tend to fluctuate more dramatically over the shorter term. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline. Special risks are associated with foreign investing, including currency fluctuations, economic instability, and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. The risks associated with higher-yielding, lower rated securities include higher risk of default and loss of principal. The fund’s use of foreign currency techniques involve special risks, as such techniques may not achieve the anticipated benefits and/or may result in losses to the fund.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN /(800)342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.
Franklin Templeton Distributors, 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.
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