1. FRANKLIN TEMPLETON INVESTMENTS 1 Mohieddine Kronfol Chief Investment Officer Global Sukuk and MENA Fixed Income Franklin Templeton Investments (ME)

2. FIDUCIARY TRUST INTERNATIONAL FRANKLIN TEMPLETON INVESTMENTS Swiss Arab Forum Geneva, April 2013

3. FRANKLIN TEMPLETON INVESTMENTS Questions to answer 1.What do the panelists think of headline investment themes? 2.To which asset class will money flow to? 3.Is there a “rotation into equity” trend? 4.What are your key asset allocation conclusions? 5.How do unconventional and alternative strategies fit into your model portfolio? 3

4. FRANKLIN TEMPLETON INVESTMENTS Headlines Rising US Treasury rates Eurozone debt problems Slowdown in China Political confrontations with Iran Frontier Market momentum Currency Wars 4 December 2011 May 2012 March 2012 January 2013 March 2013 Sep 2008 January 2009 May 2009 January 2010 February 2011

5. FRANKLIN TEMPLETON INVESTMENTS Global Financial Assets (USD 220 Trillion) 22% of which is managed by asset managers 5 Source: McKinsey Global Asset Management Database

6. FRANKLIN TEMPLETON INVESTMENTS The Institutional Segment Represents 2/3 rd of the Market With Defined Contribution plans generating almost all of the growth 6 Source: McKinsey Global Asset Management Database

7. FRANKLIN TEMPLETON INVESTMENTS The Retail Market (USD 19 Trillion) Has Shifted Principally through money market, fixed income and emerging market allocations 7 Source: McKinsey Global Asset Management Database

8. FRANKLIN TEMPLETON INVESTMENTS Retail Equity Funds Database Coverage The US still commands 52% of the retail market 8 Monthly Report Fund Group# of Funds$US Billions Market Share Asia ex-Japan2,495381 3.7% EMEA77655 0.5% GEM1,948594 5.8% Global8,4482,788 27.3% Japan858112 1.1% Latin America44759 0.6% Pacific42781 0.8% USA10,1695,312 52.0% Western Europe4,421822 8.0% TOTAL29,98910,208 100% Source: EPFR Global Database, March 2013

9. FRANKLIN TEMPLETON INVESTMENTS Retail Bond Funds Database Coverage Emerging markets represent only 3.6% of Bond Assets Monthly Report Fund Group# of Funds$US Billions Market Share Balanced1,8561,087 11.5% Emerging Markets2,432339 3.6% Global4,9151,261 13.3% High Yield1,921544 5.7% Money Market2,5253,479 36.8% USA4,8082,735 28.9% TOTAL18,4579,448 100% 9 Source: EPFR Global Database, March 2013

10. FRANKLIN TEMPLETON INVESTMENTS 2013 has had a very strong start 10 “The aggregate inflow to start 2013 has been far and away the best start of any year this cycle (measured as the past five years). 2013 has now tallied over $40.8 billion in new investor subscriptions into foreign stock funds, over 6 times greater than the $6.6 billion over the same period last year. The next best year, 2010, had just half the investor interest of 2013 with just over $19.0 billion allocated to foreign stock funds during the first 10 weeks that year. Both 2008 and 2009 had foreign stock outflows during their first 10 weeks” “In aggregate, the first 2 and a half months of 2013 have been the best start for domestic equity fund flows over the past 5 years with $21.2 billion of new stock funds having been purchased by investors (compared to the $7.1 billion of redemptions by investors in the category over the same time period last year, and the $13.6 billion that came into funds in 2011). The years of 2008, 2009, and 2010 all had outflows during the first 10 weeks”

11. FRANKLIN TEMPLETON INVESTMENTS Asset Allocation BenchmarkJP MorganRoubiniHSBC Equity40563928 DM Equity353412 EM Equity5516 Fixed Income50405159 Sovereign40174423 Corporate423211 EM Fixed Income4+39 Inflation Protected2+216 Commodities54513 Cash5040 11 JP Morgan, Global Markets Outlook and Strategy, March 6, 2013 RGE Cross Asset Model Portfolio, December 2012 HSBC Asset Allocator, March 14, 2013

12. FIDUCIARY TRUST INTERNATIONAL FRANKLIN TEMPLETON INVESTMENTS

13. Alternative Strategies 13

14. FRANKLIN TEMPLETON INVESTMENTS 14 Source: Central Bank Reports, Securities Commission Malaysia, DataMonitor, Eureka Hedge, Zawya, IFSL, Ernst & Young analysis Islamic Financial Services: A $1 Trillion Market Growing at 30% Annually Since 2000

15. FRANKLIN TEMPLETON INVESTMENTS Islamic Asset Management Landscape 15 FRANKLIN TEMPLETON GLOBAL SUKUK FUND Source: Eurekahedge, Zawya, Ernst & Young – The Islamic Funds & Investments Report 2011 *Note: Other includes alternative investments and feeder funds

16. FRANKLIN TEMPLETON INVESTMENTS Your Questions Please ….. 16