Mohieddine Kronfol Chief Investment Officer Global Sukuk and MENA Fixed Income

1. MohieddineKronfol Chief Investment Officer Global Sukuk and MENA Fixed Income Franklin Templeton Investments (ME)

2. Swiss Arab Forum Geneva, April 2013

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

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

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

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

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

8. Retail Equity Funds Database CoverageThe US still commands 52% of the retail market Source: EPFR Global Database, March 2013

9. Retail Bond Funds Database CoverageEmerging markets represent only 3.6% of Bond Assets Source: EPFR Global Database, March 2013

10. 2013 has had a very strong start “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” “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”

11. Asset Allocation JP Morgan, Global Markets Outlook and Strategy, March 6, 2013 RGE Cross Asset Model Portfolio, December 2012 HSBC Asset Allocator, March 14, 2013

13. Alternative Strategies

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

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

16. Your Questions Please …..