Emerging Markets Overview - Dun & Bradstreet Mobius... · Emerging Markets Overview. ......

Emerging Markets Overview

Emerging Markets : Economic Fundamentals

Growth

4

Templeton Emerging Markets

1987 to 2007F

Source: IMF; World Economic Outlook; April 2007

%Emerging vs Developed Countries: GDP Growth

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

87 88 89 90 91 92 93 94 95 96 97 98 99 0 1 2 3 4 5 6E 07F

Developed CountriesEmerging Countries

5

Templeton Emerging Markets

Emerging vs Developed Countries: GDP Growth%

2007F

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Chin

aIn

dia

Arge

ntin

aRu

ssia

Paki

stan

Pola

ndIn

done

sia

Sing

apor

ePh

ilipp

ines

Turk

eyCh

ileM

alay

sia

Hong

Kon

gCz

ech

Sout

h Af

rica

Kore

aBr

azil

Taiw

anTh

aila

ndM

exic

o

U.K

E.U.

Hung

ary

Japa

n

U.S.

Emerging Markets

Developed Market

Source: EIU

Money Supply

7

Templeton Emerging Markets

US, UK, Japan & EU: Money Supply vs MSCI EMF Index

Source: Factset

US$ billion

10/87 10/89 10/91 10/93 10/95 10/97 10/99 10/01 10/03 10/05 10/072,000

4,000

6,000

8,000

10,000

12,000

0

500

1,000

1,500

2,000

2,50009-OCT-1987-09-OCT-2007

MSCI EM (Emerging Markets) - Price with Gross Dividends - Daily Official - USD (Index) (Right)Money supply M1,U.S. + U.K. + Japan + EU (Left)

MSCI EM Index

U.S.+ U.K.+ Japan + EU Money Supply

Fund Flows

9

Templeton Emerging Markets

Cumulative since Jan 1995 to July 2007

0

10

20

30

40

50

60

70

80

90

100

Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07

Emerging Markets : Monthly Equity Fund Flows

Source: EmergingPortfolio.com

US$ billion

*- Covers funds registered for sale in most major developed market jurisdictions and offshore domiciles, including USA, UK, Canada, Luxembourg, Switzerland, Australia, Hong Kong, Channel Islands, Germany, Austria, France and many others; includes all emerging markets funds, not limited to just emerging markets funds

Inflation

11

Templeton Emerging Markets

Emerging Markets : Inflation

Source: Factset

%

'88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '070

10

20

30

40

50

60

70

80

90

100 30-OCT-1987-28-SEP-2007Cpi % Change Percent Per Annum - Developing Countries

Foreign Exchange Reserves

13

Templeton Emerging Markets

1199

278244

192

139137

92

71

48

361

68

49

31

24

149

76

40

26

1815

893

56

0 200 400 600 800 1000 1200 1400

ChinaJapan

RussiaTaiwan

South KoreaIndia

BrazilHong KongSingapore

MalaysiaMexico

ThailandTurkey

United StatesPoland

IndonesiaArgentina

Czech RepublicSouth Africa

HungaryPeruChile

Emerging AsiaRest of Emerging MarketsLatin AmericaDeveloped

March 2007 US$ bn

Source : EIU; IMF

Emerging vs Developed Markets: Foreign Reserves

Confidence

15

Templeton Emerging Markets

Emerging Markets :Yield Spreads vs Stock Market Index

Source : Factset *- Emerging Markets Bond Yield Spreads Over US Treasuries

Basis Point Index

MSCI EM Index

EM Spread10/02 10/03 10/04 10/05 10/06 10/07

100

200

300

400

500

600

700

800

900

1,000

1,100

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,20009-OCT-2002-09-OCT-2007JP Morgan EMBI+ - Index Spread (Basis Points) - Emerging Markets Indices (Left)MSCI EM (Emerging Markets) - Price with Gross Dividends - Daily Official - USD (Index) (Right)

16

Templeton Emerging Markets

Source: Markit; Macquaire

Emerging Markets Vs U.S Corporate Bonds :Yield Spreads Over U.S. Treasuries

10/02 10/03 10/04 10/05 10/06 10/070

200

400

600

800

1,000

1,200

09-OCT-2002-09-OCT-2007JP Morgan EMBI+ - Index Spread (Basis Points) - Emerging Markets IndicesUS Coporates BB Spread over US TreasuriesUS Coporates BBB Spread over US Treasuries

3 C‘s THEMES

Convergence

Consumers

Commodities

Convergence

Mergers & Acquisitions

20

Templeton Emerging Markets

DateAnnounced Acquiror Name

Acquiror Nation Target Name

TargetNation

Value ofTransaction($mil)

2006 Tata Steel India Corus Group PLC U.K. 16,4002006 Cemex SAB de CV Mexico Rinker Group Ltd Australia 15,4332004 Ambev Brazil John Labatt Ltd Canada 7,7582005 Teva Pharma Inds Ltd Israel IVAX Corp U.S. 7,3672006 Vimpelcom OJSC Russia ZAO Kyivstar GSM Ukraine 5,4562006 Sinopec Corp Qingdao Br,China China OAO Udmurtneft Russia 3,5002006 Tenaris SA Argentina Maverick Tube Corp U.S. 3,0962006 Cia Vale do Rio Doce SA Brazil Inco Ltd Canada 2,3162007 Tenaris SA Argentina Hydril Co LP U.S. 2,2122005 Lukoil Overseas Holding Ltd Russia Nelson Resources Ltd U.K. 2,0002005 Bank Polska Kasa Opieki SA Poland Bank BPH SA Poland 1,9332005 Doosan Heavy Inds & Constr Co South Korea Daewoo Heavy Industries & Mach South Korea 1,8282004 Lenovo Group Ltd Hong Kong IBM Corp-Personal Computing U.S. 1,7502006 Sadia SA Brazil Perdigao SA Brazil 1,7022004 OAO Gazprom Russia Sevmorneftegaz Russia 1,7002005 Alfa Group Russia Turkcell Iletisim Hizmetleri Turkey 1,6022005 TPSA Poland PTK Centertel SP zoo Poland 1,5072006 PKN ORLEN Poland Mazeikiu Nafta Lithuania 1,501

Some Major Mergers and Acquisitions Done by Emerging Market Companies

Source: Thomson

Trade Convergence

22

Templeton Emerging Markets

'99 '00 '01 '02 '03 '04 '05 '06 '074%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%31-MAR-1999-28-SEP-2007

Asian Exports To US /Total ExportsAsian Exports To China /Total Exports

USUS

ChinaChina

* data Smoothed by 12-mths moving average; Includes Hong Kong, Taiwan, South Korea, Singapore, Malaysia, Thailand and the Philippines

Asian Export Shares to U.S. and China

Source: Factset

Exports /Total Exports

23

Templeton Emerging Markets

01/99 01/00 01/01 01/02 01/03 01/04 01/05 01/06 01/070%

5%

10%

15%

20%

25%

30% 29-JAN-1999-28-SEP-2007

Taiwan's Exports To China / Total ExportsTaiwan's Exports To US / Total Exports

US

China

Exports /Total Exports

Source: Factset

Taiwan’s Export Shares to U.S. and China

24

Templeton Emerging Markets

01/99 01/00 01/01 01/02 01/03 01/04 01/05 01/06 01/07

6%

8%

10%

12%

14%

16%

18%

20%

22%

24% 29-JAN-1999-28-SEP-2007

(Korea's Exports To China / Total ExportsKorea's Exports To US / Total Exports

US

China

Exports /Total Exports

Source: Factset

Korea’s Export Shares to U.S. and China

Consumers

26

Templeton Emerging Markets

Million2006

0

200

400

600

800

1,000

1,200

1,400

People'sRepublic of

China

India EU US Brazil Russia Japan Korea Taipei,China

Developed Countries

Selected Emerging Countries

Source: EIU

Emerging vs Developed Countries: Population

27

Templeton Emerging Markets

01/81 09/83 05/86 02/89 10/91 07/94 03/97 11/99 08/02 04/05 12/07

-5

0

5

10

15

20

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

2

2.131-DEC-1981-31-DEC-2007(% 1YR) Nominal GDP (US$) - Developing countries (Left)Population (% change pa) - Developing countries (Right)

Emerging Markets : GDP* Vs Population Growth Rate%

* Shown as nominal GDP Growth RateSource : EIU

Population

GDP Growth

28

Templeton Emerging Markets

50%

25%

0%

10%

20%

30%

40%

50%

60%

Emerging Markets Developed Markets

2001-2005

Source : EIU * - GPD Per Capita Growth for the5 year period from 2001 to 2005

Emerging Vs Developed Markets : GDP Per Capita Growth

29

Templeton Emerging Markets

Cellular Phone Subscribers

Millions

Source :ML; ITU

102 88 83 7150 41

481

103

239

162 155

0

100

200

300

400

500

600

China US India Russia Brazil Japan Germany Italy UK France SouthKorea

Q1 2007

Commodities

31

Templeton Emerging Markets

Oil Prices - EM Index vs Crude Oil

Source:Factset01/88 01/90 01/92 01/94 01/96 01/98 01/00 01/02 01/04 01/060

500

1,000

1,500

2,000

0

10

20

30

40

50

60

70

80

90

01-JAN-1988-05-OCT-2007MSC EM Total Return Price Index (Left)Energy Oil Brent Crude Futures 1-Pos, IPE, Price, Close - World (Right)

Recession Periods - United States

MSCI EM Index

Oil

32

Templeton Emerging Markets

Commodities : EM Index vs CRB Commodities Index (USD)

Source : Factset

MSCI EM Index

Commodities Index

01/88 01/90 01/92 01/94 01/96 01/98 01/00 01/02 01/04 01/060

500

1,000

1,500

2,000

150

200

250

300

350

400

450

01-JAN-1988-09-OCT-2007(INDEX) MSCI EM (Emerging Markets) - Price with Gross Dividends - Daily Official - USD (Index) (Left)CRB Spot Index, USD, Close - World (Right)Recession Periods - United States

Raw Industrials: Hides, tallow, copper scrap, lead scrap, steel scrap, zinc, tin, burlap, cotton, print cloth, wool tops, rosin,and rubber (59.1%). Foodstuffs: Hogs, steers, lard, butter, soybean oil, cocoa, corn, Kansas City wheat, Minneapolis wheat, and sugar (40.9%).

Asia

34

Templeton Emerging Markets

EM Asia : GDP Growth

%

Source: EIU; Factset Asia Includes Hong Kong, Singapore, Taiwan, India, Indonesia, China, Philippines, Thailand & Malaysia'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

0

1

2

3

4

5

6

7

8

931-DEC-1997-31-DEC-2007

(% 1YR) Real GDP Growth - Asia

35

Templeton Emerging Markets

Emerging Asia vs Developed Countries : GDP Growth%

2007F

0.0

2.0

4.0

6.0

8.0

10.0

12.0

China India Pakistan Indonesia Singapore Philippines Malaysia Hong Kong Korea Taiwan Thailand U.K E.U. Japan U.S.

Emerging AsiaDeveloped MarketEmerging Asia _ Average (Simple)

Source: EIU

36

Templeton Emerging Markets

Million 2006

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Emerging Asia Developed Europe U.S. Japan

Developed Europe Emerging AsiaU.S. Japan

Source: EIU

Emerging Asia vs Developed Countries: Population

**Comprises Bangladesh, China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam...Developed Europe includes Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia, Spain & U.K.

37

Templeton Emerging Markets

Aluminum Corp. of China (Chalco)

• Chalco produced approximately 8.8 million tons of alumina products in 2006, which supplied about 64% and 46% of all alumina products produced and consumed in China that year, respectively.

• The company's main production facilities include four integrated alumina refineries, one primary aluminum smelter and one research center that are located in Qinghai, Shanxi, Shandong, Zhongzhou, Zhengzhou, Guizhou and Pingguo.

38

Templeton Emerging Markets

PetroChina

• China’s largest oil & gas company in terms of reserves and has been diversifying into marketing and downstream activities.

• Total proved reserves were 17.8 billion BOE comprising 11 billion barrels of crude oil and 41 tcf of natual gas, equivalent to roughly 75% of China total oil & gas reserves.

• Approximately 3,600 service stations wholly-owned by CNPC or jointly-owned by CNPC and third parties which exclusively sell refined products produced or supplied by the Company and to which the Company provides supervisory support under contractual arrangements, .

• These service stations are located across China and sell exclusively gasoline and diesel produced by the Company.

Emerging Europe & South Africa

40

Templeton Emerging Markets

Emerging Europe : Real GDP Growth

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007-1

0

1

2

3

4

5

6

7

831-DEC-1997-31-DEC-2007

(% 1YR) Real GDP US$ Emerging Europe

Source: EIU Countries Includes Poland, Czech, Hungary, Russia & Turkey

41

Templeton Emerging Markets

South Africa : GDP Growth

Source: EIU

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

1

2

3

4

5

6 31-DEC-1997-31-DEC-2007GDP (% real change pa) - South AfricaGDP (% real change pa) - South Africa 2007F

42

Templeton Emerging Markets

Emerging Europe & South Africa vs Developed Countries : GDP Growth%

2007F

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Russia Poland Turkey Czech South Africa U.K E.U. Hungary Japan U.S.

Emerging Europe & S. Africa

Developed Market

Emerging Europe & S. Africa Average ( Simple)

Source: EIU

43

Templeton Emerging Markets

Million2006

0

50

100

150

200

250

300

350

400

450

500

Emerging Europe, South Africa

Developed Europe U.S. Japan

Emerging Europe Developed EuropeSouth Africa U.S.Japan

Source: EIU

Emerging Europe vs Developed Countries: Population

*Emerging Europe includes the Balkans, Baltics, East-central Europe, CIS and Turkey; Developed Europe includes Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia, Spain & U.K.

44

Templeton Emerging Markets

Norilsk Nickel

• Norilsk Nickel produces nickel, copper, cobalt, palladium, platinum, selenium, tellurium, technical sulfur, hard coal and other materials for industrial needs.

• The company is the world’s largest producer of nickel and palladium and one of the biggest producers of platinum.

• Its market share exceeds 10% of cobalt and 2.7% of copper production worldwide.

• The company accounts for 4.3% of Russia’s exports and 1.9% of the country’s GDP.

45

Templeton Emerging Markets

Akbank

• Founded in 1948, Akbank is one of Turkey's largest privately owned banks with 682 (2006) branches

• Akbank, operating Turkey’s second largest branch network among private banks, has more than 5.4 million retail customers.

• Citigroup now owns 20% of Akbank

46

Templeton Emerging Markets

Anglo American

• Anglo American is a international natural resources group with operations in sixty four countries (mainly emerging markets)

• Covers eight principal product groupings, gold (5%), Platinum (7%), Diamonds (12%), Coal (11%), Base Metals (31%), Industrial Minerals (8%), Paper & Packaging (12%) and Ferrous Metals (14%).

• De Beers is active in every category of diamond mining: Open-pit, underground, large-scale alluvial, coastal and deep sea mining across South Africa and in partnership with the governments of Botswana, Namibia and Tanzania. It produces around 40% of the world's supply of rough diamonds.

47

Templeton Emerging Markets

Remgro

• The group has interests in tobacco, liqour, mining, financials, packaging, food and other.

• Firstrand, is one of the big four banking groups in South Africa. It provides merchant banking, retail banking, asset and fund management, property management and other services through First National Bank and Rand Merchant Bank. The Group also provides life insurance and pension and provident fund services through Momentum Life Assurers and Southern Life Association.

• Remgro also has a substantial invesment in one of the big three South African private healthcare providers, Medi-Clinic

Latin America

49

Templeton Emerging Markets

Latin America: GDP Growth

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007-1

0

1

2

3

4

5

6 31-DEC-1997-31-DEC-2007(% 1YR) Real GDP - Latin America

Source: EIU

50

Templeton Emerging Markets

Latin America vs Developed Countries : GDP Growth%

2007F

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Argentina Chile Brazil Mexico U.K E.U. Japan U.S.

Latin AmericaDeveloped MarketLatin America Average ( Simple)

Source: EIU

51

Templeton Emerging Markets

Million 2006

0

100

200

300

400

500

600

Latin America Developed Europe U.S. Japan

Developed Europe Latin AmericaU.S. Japan

Source: EIU

Latin America vs Developed Countries: Population

**Comprises Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela.Developed Europe includes Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia, Spain & U.K.

52

Templeton Emerging Markets

Vale Do Rio Doce

Vale Do Rio Doce is present in 13 Brazilian states and in 32 countries, in the five continents

Among the top world's producer of iron ore and pellets as well as Nickel.

CVRD is an integrated company with more than 9 thousand kilometers of railways and 10 port heads and mines.

Holdings may change without notice and this is not a complete analysis of every material fact regarding an industry, security or investment.

It should not be viewed as an investment recommendation, but is intended to provide insight into the firm’s portfolio selection process.

53

Templeton Emerging Markets

Petrobras

National oil and gas company in Brazil with activities in exploration, production, refining, transportation and distribution of oil and byproducts.

Operations are mainly in Brazil but also through out South America, Gulf of Mexico, Africa and Middle east.

6,933 gas stations (763 owned) with 34% market share

Holdings may change without notice and this is not a complete analysis of every material fact regarding an industry, security or investment.

It should not be viewed as an investment recommendation, but is intended to provide insight into the firm’s portfolio selection process.

Currency

55

Templeton Emerging Markets

Currencies : % Change Against the U.S. Dollar

%

Source :Bloomberg

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Czech

Koru

na

Slovakia

Kor

una

Polish

Zloty

Hungari

an Fo

rint

Euro

British

Pounds

South

Korea

n Won

China R

enminbi

Malays

ian R

inggit

Singapo

re D

ollar

Indian R

upee

Russia

n Rou

bleTh

ai Bah

t

Chilea

n Pes

o

Israe

li She

kel

Hong K

ong D

ollar

Brazilia

n Rea

l

Colombian

Peso

Philippin

es Pes

o

Japan

ese Y

en

South

Africa

n Ran

d

Mexica

n Pes

o

Indones

ian R

upiah

Egypti

an Pou

nd

Turki

sh N

ew Li

ra

Argen

tine P

eso

Venez

uelan

Boli

var

Jan 2000 to Sept 21st 2007

56

Templeton Emerging Markets

China : Currency

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.090 91 92 93 94 95 96 97 98 99 0 1 2 3 4 5 6 7

RMB/ US$ Exchange Rates vs China/ US PPP Index

RMB per US$China / US PPP

21/08/07: 7.6 RMB/US$

RMB undervalued 14%

RMB per US$

Based date : JAN 1990

Source: IMF; Templeton

Valuations

58

Templeton Emerging Markets

01/98 01/99 01/00 01/01 01/02 01/03 01/04 01/05 01/06 01/07

8

10

12

14

16

18

20

22

24

26

31-OCT-1997-28-SEP-2007MSCI USA - IBES Aggregates - Price to Earnings - 12 MonthMSCI EM (Emerging Markets) - IBES Aggregates - Price to Earnings - 12 MonthTrendline: Average

Source : MSCI; I/B/E/S

US

Average

Emerging Markets

P/E : Emerging Markets vs U.S.

59

Templeton Emerging Markets

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

1

2

3

4

5

631-OCT-1997-28-SEP-2007

MSCI EM (Emerging Markets) - Price to Book Value Ratio - Monthly (Index)MSCI USA - Price to Book Value Ratio - Monthly (Index)Trendline: Average

Source : MSCI

US

Average

Emerging Markets

P/BV : Emerging Markets vs U.S.

60

Templeton Emerging Markets

10/97 09/98 09/99 09/00 09/01 09/02 09/03 09/04 09/05 09/06 09/071

1.5

2

2.5

3

3.5

431-OCT-1997-28-SEP-2007

MSCI USA - Dividend Yield - Monthly (Index)MSCI EM (Emerging Markets) - Dividend Yield - Monthly (Index)Trendline: Average

Source : MSCI

US

Average

Emerging Markets

Dividend Yield : Emerging Markets vs U.S.

Performance

62

Templeton Emerging Markets

Source: Factset Declines of over 20% are indicated

MSCI Emerging Markets Index

01/88 01/89 01/90 01/91 01/92 01/93 01/94 01/95 01/96 01/97 01/98 01/99 01/00 01/01 01/02 01/03 01/04 01/05 01/06 01/07

500

1,000

1,500

2,000

Log

Scal

e

MexicanCrisis:-24%

5Months

AsiaFinancial

Crisis : -56%13 Months

TMTBubble

Burst : -49%17 Months

2006 Fall : -24%1 Month

UP : 38%28 Months

UP : 114%18 Months

UP : 116%18 Months

Gulf War-29%

4 months

AccountingScandal

:-29%5 Months

MadridTrain Bombing

-20%1 Month

UP : 251.4%47 Months

UP : 181%31 Months

UP : 136%24 Months

UP : 96%

UP : 50%7 Months

01-JAN-1988-09-OCT-2007MSCI EM (Emerging Markets) - - Price with Gross Dividends - Daily Official - USD (Index)

63

T E M P L E T O N

Emerging Markets Equity

01/06 04/06 07/06 10/06 01/07 04/07 07/07 10/071,000

1,200

1,400

1,600

1,800

2,000

2,200

2006 Fall : -24%1 Month

30-DEC-2005-09-OCT-2007MSCI EM (Emerging Markets) - - Price with Gross Dividends - Daily Official - USD (Index)

Source: Factset Declines of over 20% are indicated

MSCI Emerging Markets Index

-10%

-18%

+44%

+39%

Index

64

Templeton Emerging Markets

Emerging Markets : Bear / Bull Markets

Source: Factset

Dates%

Increase# of

Months Dates%

Decline# of

MonthsBull 01/88-08/90 181% 31 Bear 08/90-12/90 -29% 4Bull 12/90-11/94 251% 47 Bear 11/94-04/95 -24% 5Bull 04/95-08/97 38% 28 Bear 08/97-09/98 -56% 13Bull 09/98-04/00 114% 19 Bear 04/00-10/01 -49% 17Bull 10/01-05/02 50% 7 Bear 05/02-10/02 -29% 5Bull 10/02-04/04 116% 18 Bear 04/04-05/04 -20% 1Bull 05/04-05/06 136% 24 Bear 05/06-06/06 -24% 1Bull 06/06- 95%Average 123% 25 -33% 7

* Based on 20% changes

Templeton Emerging Markets Group

66

Templeton Emerging Markets

0

5

10

15

20

25

30

35

40

45

50

12/8712/8812/8912/9012/9112/9212/9312/9412/9512/9612/9712/9812/9912/0012/0112/0212/0312/0412/0512/06

AUM

Source : Templeton

February 1987 to September 2007US$ US$ BnBn

US$45 billionUS$45 billion

Templeton Emerging Markets Group : AUM

67

Templeton Emerging MarketsTempleton Emerging Markets Research Offices : A Team Approach

RIO DE JANEIRO

BUENOS AIRES

WARSAW

JOHANNESBURG

MUMBAI

SINGAPORE

ISTANBUL

MOSCOW

SHANGHAI

SEOUL

HONG KONG

Emerging MarketsResearch Offices

VIENNA

Dubai

- A DEEP AND EXPERIENCED TEAM- PEER REVIEW DISCUSSIONS

• 13 Offices

• 35 Portfolio Managers and Analysts

• 60 Professionals

• 18 Nationalities

• 19 Languages

Templeton’s competitive advantage: Global resources supporting seasoned local teams to identify opportunities and execute transactions.

68

Templeton Emerging Markets

Templeton’s Investment Philosophy

*VALUE

*PATIENCE

*BOTTOM-UP

End