Many Chileans Show Growing Interest in Global Investing, as Well as Strong Expectations for Domestic Stock Market Performance According to Franklin Templeton Global Investor Sentiment Survey
SANTIAGO, CHILE–(Marketwire – March 29, 2011) – Enthusiasm for global markets is on the rise. The Franklin Templeton Global Investor Sentiment Survey found that half of respondents globally plan to invest outside their home country in 2011. Those numbers increase over the long term, with 62 percent of respondents globally planning to invest in global markets over the next 10 years.
In the first of its kind global survey of 13,076 people in 12 countries, 60 percent of global respondents think their own country’s stock market will increase in 2011. Yet, only 33 percent of those respondents believe it will perform better compared with the rest of the world, illustrating a willingness to consider opportunities in the global marketplace.
“With an improved global economic outlook, investors are increasingly looking worldwide for investment opportunities,” said Greg Johnson, president and chief executive officer of Franklin Templeton Investments. “A diversified portfolio today is no longer just a mix of asset classes but also a mix of geographies.”
Chile vs. the World
Chilean respondents echo the global sentiment surrounding an improved global economy and opportunities outside of their domestic market. Nearly half (49 percent) of respondents in Chile said they believe the global economy has improved. Thirty percent (30 percent) of Chilean survey respondents currently have investments outside their home country, a number that jumps to 71 percent for planned investments in global markets over the next 10 years.
Chilean survey respondents’ expectations for how their domestic market performed in 2010 versus their planned investment in the Chilean stock market are right in line. Nearly two-thirds (63 percent) of Chilean respondents indicated that the Chilean stock market gained in 2010. In fact, the Chilean stock market (as represented by the Indice General De Precios de Acciones or IGPA) was one of the world’s top performing stock markets in 2010, posting a 38.17 percent gain last year. Seventy-nine percent of Chilean respondents believe that their domestic stock market will also rise again in 2011.
Respondents from Chile also believe the performance of their own stock market will outperform other countries over time. More than half (53 percent) said they believe that Chile’s stock market will do better than the rest of the world over the next decade.
Respondents from Chile analyze the success of their investments over a short time period (two years on average) and expect a higher rate of return on their investments when compared to investors globally (13.3 percent expected rate of return in Chile versus 11.5 percent globally).
“Many Chilean investors are clearly beginning to embrace the idea of a global portfolio and are confident that the domestic market will also perform well in the years to come,” said Sergio Guerrien, Country Manager – South America for Franklin Templeton Investments. “But this survey also demonstrates the need for ongoing investor education about the importance of having a longer term investment horizon and the benefits of professional guidance. As a global investment manager, with more than 30 offices around the world and clients in 150 countries, Franklin Templeton is uniquely positioned to serve the growing need for diversification and global exposure.”
Respondents in Chile also said that they expect real estate to be the best-performing asset class over the next 10 years (31%), followed by non-metal commodities (22%) and stocks (17 percent).
Methodology
The Franklin Templeton Global Investor Sentiment Survey, conducted by ORC International, an Infogroup company, included responses from 13,076 individuals in 12 countries: Brazil, Chile and Mexico in Latin America; Hong Kong, India, South Korea and Singapore in Asia; Germany, Italy and the UK in Europe, and the U.S. and Canada in North America. Survey respondents were between the ages of 18 and 64 in all countries, except in the UK and U.S. where survey respondents were 18 years of age and older. Surveys were completed from January 6 to 17 in all countries except the U.S. where the survey was completed from January 6 to 7. Data were weighted to make the results representative in each country.
Franklin Templeton in Chile and Latin America
Franklin Templeton Investments currently has eight publicly registered funds in Chile, representing the company’s first local SICAV (offshore) fund offerings in South America. The eight funds, which cover equity and fixed income as well as US, global and emerging markets include FTIF Franklin European Growth Fund, FTIF Franklin Mutual Beacon Fund, FTIF Franklin Strategic Income Fund, FTIF Franklin U.S. Opportunities Fund, FTIF Templeton Asian Growth Fund, FTIF Templeton BRIC Fund, FTIF Templeton Frontier Markets Fund, and FTIF Templeton Global Total Return Fund.(1)
The Franklin Templeton Investment Funds (FTIF) are Luxembourg-registered SICAV open-ended mutual funds available to offshore investors. The eight funds listed above are distributed in Chile through LarrainVial, a Chilean financial services company providing an extensive range of services including brokerage, research, asset management, corporate finance and institutional distribution.
Franklin Templeton has been present in Latin America for nearly 20 years. The company opened its first regional office in 1995. Today, we have offices in Rio de Janeiro, Mexico City, Sao Paulo and Buenos Aires. Franklin Templeton mutual funds have been investing in the region since the early 1980s
About Franklin Templeton
Franklin Resources, Inc. (NYSE: BEN) is 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 approximately $693 billion in assets under management as of February 28, 2011. For more information, please visit www.franklinresources.com.
Copyright © 2011. Franklin Templeton Investments. All rights reserved.
(1) These eight funds are sub-funds of Franklin Templeton Investment Funds, a Luxembourg-domiciled SICAV. The funds are registered in the Foreign Securities Registry of the Superintendence of Securities and Insurance, under the “Norma de Carácter General” No. 241. For further information, please refer to the latest Full or Simplified Prospectus. Past performance is no guarantee of future performance. This document does not constitute or form part of any offer for shares or an invitation to apply for shares. Subscriptions for shares can only be made on the basis of the latest available audited annual report accompanied by the current prospectus or Simplified Prospectus (available from the address below). The price of the shares of the Funds and the income received from them can go down as well as up, and investors may not get back the full amount invested. Currency fluctuations may affect the value of overseas investment. An investment in the Franklin Templeton Investment Funds SICAV entails risks, which are described in the Full or Simplified Prospectus. No shares of the SICAV may be directly or indirectly offered or sold to nationals or residents of the United States of America.
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