Templeton Shariah Global Equity Fund

53 Pages·2017·1.55 MB·English

Templeton Global Equity Group
Data as of 30 June 2019
Franklin Templeton Shariah Funds
Templeton Shariah Global Equity Fund - A (acc) USD
For professional investor use only. Not for distribution to retail investors.
Templeton Shariah Global Equity Fund
Table of Contents
Investment Capabilities Overview............................................................................................4 Performance and Characteristics...................................................................24
Franklin Templeton—A Trusted, Long-Term Partner in Investment Management.......................5
Summary..............................................................................................................................25
Franklin Templeton—ESG and Corporate Sustainability Franklin Templeton—ESG .................6
What are the Key Risks?......................................................................................................26
and Corporate Sustainability
Sector Allocation...................................................................................................................27
Exceptional Asset Management Combined with Customised Shariah Compliant ......................7
Investment Solutions Geographic Allocation...........................................................................................................28
Extensive Shariah Compliance Resources...............................................................................8 Top Ten Holdings..................................................................................................................29
Why Invest in a Shariah Global Equity Fund?..........................................................................9 Portfolio Characteristics........................................................................................................30
Basic Building Block of a Shariah-Compliant Asset Allocation................................................ 10 Discrete Performance........................................................................................................... 31
Amanie International Shariah Supervisory Board....................................................................11 Historical Performance..........................................................................................................32
Templeton Global Equity Group—Focus on Core Competencies............................................12 Calendar Year Returns......................................................................................................... 33
Templeton Global Equity Group—Value Investors Focused on Seeking Long-Term ............... 13 Performance Risk Statistics.................................................................................................. 34
Capital Growth for Our Clients
Supplemental Information......................................................................................................35
The Templeton Investment Philosophy.................................................................................. 14
Templeton Global Equity Group—Value Investors Focused on Seeking Long-Term ............... 38
Templeton Global Equity Group Organisational Structure.......................................................15 Capital Growth for Our Clients
Bottom-Up Stock Pickers: Global Focus Seeks to Uncover Investment Opportunities ............ 16
Across Regions
Management Profiles.......................................................................................39
Bottom-Up Stock Pickers: Global Focus Seeks to Uncover the Best Opportunities ................ 17
Management Profile..............................................................................................................40
Across Sectors and Geographies
Appendix............................................................................................................42
Templeton’s Valuation-Driven Investment Process.....................................18
Collaboration with Financial Experts Across Franklin Templeton.............................................43
Templeton’s Valuation-Driven Investment Process.................................................................19
Risk Management—Templeton Global Equity Group..............................................................44
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Templeton Shariah Global Equity Fund
Table of Contents (continued)
An Integrated Global Trading Platform...................................................................................45
Important Information......................................................................................46
Glossary...............................................................................................................................47
Important Information............................................................................................................48
Important Disclosures...........................................................................................................50
GIPS Performance Presentation............................................................................................51
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Templeton Shariah Global Equity Fund
Investment Capabilities Overview
FRANKLIN TEMPLETON
Total Combined Assets Under Management: US$715.2 Billion
2 5 8 11
Equity Fixed Income Multi-Asset Solutions Alternatives
AUM US$289.2 Billion US$269.8 Billion US$116.0 Billion US$42.2 Billion
CAPABILITIES • Value • Government • Multi-Asset Income • Commodities
• Deep Value • Municipals • Diversified Outcome-Oriented • Infrastructure
• Core Value • Corporate Credit • Risk Premia • Real Estate
• Blend • Bank Loans • Smart Beta • Hedge Funds
• GARP • Securitised • Balanced Allocation • Private Equity
• Growth • Multi-Sector • Target Date/Risk • Private Debt
• Convertibles • Currencies • Model Portfolios
• Sector • Sukuk • Inflation Protection
• Shariah • Managed Volatility
• Smart Beta
INVESTMENT • Templeton Global Equity Group (1940) • Franklin Templeton Fixed Income Group (1970) • Franklin Templeton Multi-Asset Solutions (1948) • Franklin Real Asset Advisors (1984)
TEAMS • Franklin Equity Group (1947) • Templeton Global Macro (1986) • Franklin Systematic (2011) • Darby Overseas Investments (1994)
• Franklin Mutual Series (1949) • Franklin LAM-Fixed Income (1993) • K2 Advisors (1994)
• Franklin Templeton Emerging Markets Equity (1987) • Pelagos (2005)
• Franklin LAM-Developed Markets Equity (1993) • Benefit Street Partners (2008)
• Edinburgh Partners (2003)
Source: Franklin Templeton Investments (FTI), as of 30 June 2019, based on latest available data. Total combined Assets Under Management (Total AUM) combines U.S. and non-U.S. AUM of the investment management subsidiaries of the parent
company, Franklin Resources, Inc. (FRI) [NYSE: BEN], a global investment management organisation operating as FTI. Only selected business entities within FTI claim compliance with the GIPS standards as described in the table of contents if
applicable. Total and platform AUM includes discretionary and non-discretionary accounts, including pooled investment vehicles, separate accounts and other vehicles. Total and platform AUM may also include advisory accounts with or without trading
authority. In addition, assets for which certain FTI advisers provide limited asset allocation advisory services, and assets that are not allocated to FTI products are not included in the AUM figures shown. Franklin Templeton Multi-Asset Solutions may
invest in various investment platforms advised by a number of investment advisory entities within FTI. Platform AUM reported for FT Multi-Asset Solutions therefore may include certain AUM separately reported under each utilised investment platform.
Total AUM also includes assets managed by certain FTI advisers that do not form part of the selected investment platforms shown. As a result, the combined platform AUMs may not equal Total AUM and may be calculated and reported separately for
regulatory or other purposes under each investment adviser. Each local asset manager may be considered as an entity affiliated with or associated to FTI by virtue of being a direct or indirect wholly-owned subsidiary of FRI, an entity or joint venture in
which FRI owns a partial interest, which may be a minority interest, or a third party asset management company to which investment advisory services have been delegated by an FTI adviser.
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Franklin Templeton—
FranklAin Treumsptletdo,n L—oAnTgr-uTsetermd, LPoanrgt-nTeer minP Ianrvtneesrtimn Iennvet sMtmaennatgMeamnaegnetment
Investment excellence
• Diverse investment solutions across multiple asset classes
• Time-tested investment disciplines plus exceptional research enables strong long-term performance
potential
• Integrated, comprehensive and proven approach to investment risk management
• Committed to environmental, social and governance (ESG) investment integration
Global perspective, local expertise
• Pioneer in global investing, with track record of innovation
• Unmatched breadth and depth of global presence
• Deep experience and long-term commitment to the markets we enter
Strength and experience
• Over 70 years of navigating well through all market cycles
• Global business diversified by investment objective, geography and client type
• Values-driven culture guides how we work
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Templeton Shariah Global Equity Fund
Franklin Templeton—ESG and Corporate Sustainability Franklin Templeton—ESG
and Corporate Sustainability
Guides How We Work
• Our primary objective is to deliver exceptional investment management through an active fundamental
approach…while always acting in the best interests of our clients and shareholders
• As a fiduciary, we recognise that ESG considerations are a driver of long-term investment performance and
thus affect our business and the companies we invest in
• Our approach to ESG is one of the many strengths of our organisation
ESG considerations at the corporate level that impact our business:
Environmental Impact Social Factors Governance
Energy usage Diversity and inclusion Anti-money laundering
Greenhouse gases Talent management Code of ethics/conduct
(attracting, retaining top talent)
Waste/recycling Compliance
Charitable giving
Water consumption Executive compensation
Customer privacy and data security
Enterprise risk management
Employee volunteering
ESG investment integration
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ExcEexpctieopnatiloAnsasle tAMsasneatg MemaennatgCeommebninte dCowmithbCinuestdo mwiistehd Shariah Compliant
Investment Solutions
Customised Shariah-Compliant Investment Solutions
• As the world’s largest cross-border fund manager, Franklin Templeton has offices in over 30 countries and manages over US$3.24 billion
in Shariah-compliant assets1
• Franklin Templeton combines the breadth and depth of our global asset management capabilities with the expertise of focused
investment management teams which operate independently
• For clients who seek adherence to the investment principles of Islamic law, we apply our management expertise in combination with the
knowledge and advice of Shariah scholars to offer our clients customised Shariah-compliant portfolios across a wide range of asset
classes and strategies, including global, regional and local equities, and fixed income (sukuk)
• Named “Best Islamic Asset Management House (Institutional)” in Malaysia by The Asset Triple A Islamic Finance Awards in 2017, 2018
and 2019
• Won “The Most Outstanding Islamic Fund Manager,” 14th KLIFF Islamic Finance Awards 2017
• Received first-ever Failaka Islamic Award for “The Best Sukuk Fund (1-Year)”2
1. As of 30 June 2019.
2. This award was given in 2010 to “The Sukuk Fund” as of 31 January 2011.
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Extensive Shariah Compliance Resources
Extensive Shariah Compliance Resources
Independent Endorsement from Esteemed Board of Scholars
• Our portfolios are independently reviewed and endorsed by the Amanie International Shariah Supervisory Board
• The Amanie scholars provide initial approval on investment objectives and strategy of the funds, as well as ongoing supervisory and
monitoring services to ensure continuous adherence and validation to internationally accepted Shariah principles and standards
World-Class Screening Technology
• To ensure Shariah compliance, we leverage best-in-class technology utilising criteria established by our screening
provider to:
– Screen approximately 40,000 global securities
– Examine the business activities of each company
– Evaluate selected financial ratios according to prescribed algorithms
– Identify and cleanse non-compliant income in a manner consistent with Shariah law
Comprehensive, Integrated Risk Management
• Each portfolio team employs a highly disciplined investment philosophy and process designed to comprehensively measure and
manage risk
• The teams also leverage analysis and insight from a worldwide network of locally-based risk management specialists
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Why Invest in a Shariah Global Equity Fund?
Why Invest in a Shariah Global Equity Fund?
Basic Building Block of a Shariah-Compliant Asset Allocation
• A diversified Shariah Global Equity fund is a great complement for Shariah-compliant portfolios as it can
increase returns compared to an all-global sukuk portfolio
Opportunity to Capitalise on Shariah-Compliant Investment Ideas Worldwide
• Investing in a Shariah Global Equity fund provides easy access to Shariah-compliant global investment
opportunities
Shariah Compliance with a Strong Governance Framework
• A UCITS-compliant Shariah Global Equity fund provides international “passportability” and a strong
1
governance framework
1. “Undertaking for the collective investment of transferable securities – UCITS” coordinates the distribution and management of unit trusts amongst countries within the European Union.
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Templeton Shariah Global Equity Fund
Basic Building Block of a Shariah-Compliant Asset
Basic BAullioldcinagtiBolnock of a Shariah-Compliant Asset Allocation
Shariah Global Equities Can Provide Diversification Benefits
A 50% allocation to Global Shariah equities would have increased returns of an all-global sukuk portfolio.
Growth of US$10,000 Over the Last 5 Years
As of 31 March 2019
$14,000
100% Global Shariah Equity
5.20% p.a.
50% Global Shariah Equity/50%
Global Sukuk
4.45% p.a.
$12,000
100% Global Sukuk
3.51% p.a.
$10,000
$8,000
Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 Aug-17 Jan-18 Jun-18 Nov-18 Mar-19
© 2019 FactSet Research Systems Inc. All rights reserved. The information contained herein: (1) is proprietary to FactSet Research Systems Inc. and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely. Neither FactSet Research Systems Inc. nor its content providers are responsible for any damages or losses arising from any use of
this information.
Source: S&P and MSCI as of 31 March 2019. Global Sukuk as represented by the Dow Jones Sukuk Index; Shariah Global Equities as represented by the MSCI AC World Islamic Index. Returns are
in USD.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or
used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.
Past performance is not an indicator or a guarantee of future performance.
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