Templeton Emerging Markets Investment Trust PLC · LSE:TEM
Templeton Emerging Markets Investment Trust — Franklin India Fund — Investor Presentation (2006)
29 slides from Templeton Emerging Markets Investment Trust's investor presentation, May 27, 2006
Slide 1: Franklin India Fund
Franklin India Fund Franklin Templeton Investment Funds (Luxembourg registered SICAV)
Slide 2: Agenda
Agenda Why India? Why Franklin? Why the Franklin India Fund? Fund Facts Summary Appendix 1
Slide 3: Why India?
» Why India? INVESTMENTS
Slide 4: Strong Growth Predicted
Why India? Strong Growth Predicted Star Growth Performer In The Next 10-15 Years India Malaysia India’s growth China is balanced Thailand across Turkey services, Ireland manufacturing Indonesia and agriculture Korea Mexico Chile USA Argentina Spain Average annual Brazil growth rate (%), 2006-2020 Ca
Slide 5: Why India? Economy Enabling
Why India? Economy Favourable demographics Recent revival of Manufacturing Exports on the rise Current Infrastructure development 1 Enabling Government policies Corporate India Equity Markets Higher earnings growth Improved Governance standards 2 3 3rd largest economy by 2050 Domestic and foreign fl
Slide 6: Estimated to be the 3rd largest economy in 2050
Why India? Estimated to be the 3rd largest economy in 2050 The Present: The Past: The Future: 12th largest 17th largest economy Estimated to be 3rd largest economy economy 37500 (US$bn) 3.1% cagr 5.1% cagr 9% cagr est. 35000 32500 USA 30000 Continued reforms. 27500 Favourable Era of reforms, demogra
Slide 7: Large population and favourable demographics
Why India? Percentage of working age population to rise India’s population is young, with 54% under the age of 25 and 80% under 45 Global Growth in Working-Age Population (15-64) Large population and favourable demographics Over the Next Five Years (Million) 1.6 bn Population (LHS) Dependency ratio
Slide 8: Potential For Increased Consumption
Why India? Potential For Increased Consumption Durables Penetration In India: A Global Comparison per 1,000 persons Passenger Motor TV Sets Personal Mobile Car Cycle/ Computer Phones Scooter India 6 53 83 7 52 China 12 26 350 28 269 Brazil 64 28 349 75 263 France 491 40 632 347 647 Japan 428 106 785
Slide 9: Modest valuation level compared to other emerging markets
Why India? Modest valuation level compared to other emerging markets 50 BSE Sensex one year forward PE (x) 40 30 20 Average = 18.4 10 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 Source: CLSA 8
Slide 10: Increasingly affluence, more consumption
Why India? Increasingly affluence, more consumption Developing a bulge in the right place Household (Million) Household (Million) Household (Million) 1996 2002 2007E 1.2 2.6 5.2 VERY RICH 46.4 75.5 CONSUMING 32.5 CLASS CLIMBERS 54.1 74.4 81.7 ASPIRANTS 44.0 33.1 20.2 33.0 24.1 16.5 DESTITUTES Increa
Slide 11: Revival of Manufacturing
Why India? Revival of Manufacturing Manufacturing trending upwards YoY (%) 13 11 9 7 5 3 1 3QFY99 1QFY00 3QFY00 1QFY01 3QFY01 1QFY02 3QFY02 1QFY03 3QFY03 1QFY04 1QFY05 3QFY05 1QFY06 3QFY04 10 Source: Central Statistical Organization, Citigroup Manufacturing GDP
Slide 12: India – potential 'Services Capital' of the world
Why India? India – potential ‘Services Capital’ of the world With services becoming increasing tradable, India is well placed in terms of costs and skill sets. Over the past 13 years, India’s services sector growth has averaged 7.8% a year compared with 5.8% for manufacturing. 120 Rapidly changing c
Slide 13: Corporate India - Adding value
Why India? Corporate India - Adding value Indian companies had been adding value and profits 26 (%) 24 22 Return on equity 20 18 Value created 16 14 Current cost of equity 12 Cost of Equity 10 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05CL FY06CL FY07CL 12 Source: CLSA, December 2005
Slide 14: Liquidity – Foreign Institutional Investors (FIIs)
Why India? Liquidity – Foreign Institutional Investors (FIIs) Growing recognition amongst global fund managers regarding India’s long term potential Steady stream of new Foreign Institutional Investors (FIIs) 18 16 15 14 12 11 10.7 10 8.5 8 6.7 6 6 6 4 4 4 2.7 1.5 2 0.7 0 00 01 02 03 04 05 Average F
Slide 15: Why Franklin?
» Why Franklin? pe FRANKLIN TEMPLETON INVESTMENTS
Slide 16: Why Franklin? A Unique Heritage
Why Franklin? A Unique Heritage 1947 - Franklin Distributors founded in New York 1996 - Franklin Templeton Investments opens office in India 2002 - Franklin Templeton India acquired Pioneer ITI 2005 - Franklin India Fund SICAV (Luxembourg) launched £2.2 bn managed by Franklin Templeton Equity India
Slide 17: Why Franklin?
Why Franklin? Managing the largest equity assets in India across a range of funds including some of India’s biggest large and mid cap funds The funds with a track record of over 10 years offer superior long-term results – both absolute and risk adjusted returns Over 1 million domestic Indian shareho
Slide 18: Investment Philosophy
Why Franklin? Investment Philosophy Based on experience in local Indian investing - the combined investment experience of the team is over 80 years. A bottom-up approach to stock selection - research on a stock by stock basis, focusing on individual companies and the wealth they are creating for the
Slide 19: Investment Process
Why Franklin? Investment Process Decade-long experience of managing a diverse range of products Finding opportunities that have potential to deliver value over the long-term Analysts search for new ideas that fit parameters of Franklin Templeton Equity India team’s investment philosophy Continuous t
Slide 20: Investment Process Steps
Why Franklin? Investment Process PMs continuously evaluate switches based on STEP 5 Portfolio and Risk Management research ideas and group discussions. Regular calls with Risk Managers to evaluate risks. Portfolio managers work within fund objectives STEP primarily focusing on long term out pe
Slide 21: Why the Franklin India Fund?
» Why the Franklin India Fund? FRANKLIN TEMPLETON INVESTMENTS
Slide 22: A blend of growth and value
Why the Franklin India Fund? A blend of growth and value Bottom-Up Strategy Stephen Dover and team manage over £2.2bn in Indian assets Lead Portfolio Manager: Stephen H. Dover, CFA Investment Advisors: Sukumar Rajah, KN Sivasubramanian and Satish Ramanathan Stephen H. Dover Independent recognition F
Slide 23: Why the Franklin India Fund?
Why the Franklin India Fund? Take advantage of the experience & expertise of Franklin Templeton’s investment team in India Will invest across the entire market cap range to take full advantage of opportunities Consistent performance track record of flagship equity funds investing across different ma
Slide 24: Fund Facts
» Fund Facts INVESTMENTS
Slide 25: Fund Facts
Fund Facts Launch Date 25 October 2005 Benchmark MSCI India Index Fund Size USD 20.0 million Fund Sector Equity India Number of Holdings 46 Share Classes and Codes GBP: A dis USD: A acc USD: I acc EUR: A acc EUR: I acc ISIN Number LU0231206078 LU0231203729 LU0231204701 LU0231205187 LU0231205427 SEDO
Slide 26: Fund Facts: Charges
Fund Facts Charges Initial charge A shares 5.00% I shares 0.00% Annual management charge A shares 1.50% I shares 0.70% Commission Initial Commission A shares 3.00% Trail Commission A shares 0.50% 25
Slide 27: Summary
» Summary FRANKLIN TEMPLETON INVESTMENTS
Slide 28: Summary
Summary Opportunity to invest in one of the world’s fastest growing economies Favourable demographics in India Franklin Templeton manages the largest equity funds in India Invest across the entire market cap range Disciplined and efficient investment process and management Independently Rated – 27
Slide 29: Important Information
Important Information Franklin Templeton Investments The Adelphi, 1-11 John Adam Street, London WC2N 6HT. UK Freefone: 0800 305 306 Tel: 020 7073 8690 ifasupport@franklintempleton.co.uk www.franklintempleton.co.uk Disclaimer Franklin Templeton Investments and its management groups have exercised pro