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Overview

The strategy’s investment objective is to maximise total investment return through a combination of interest income, capital appreciation and currency gains by investing in issuers from, or that conduct substantial business in, the Gulf Cooperation Council (GCC) region.

Key Features

Access to rapidly growing economies and an expanding bond market

GCC countries offer the growth potential of emerging economies with many of the fundamentals of developed markets. This strategy provides the opportunity to invest in a bond market that has expanded significantly over the last decade.

Fundamental research performed by local regional analysts

The strategy is managed by local, dedicated investment team in Dubai with full access to the global insights and expertise of fixed income investment, trading and risk professionals within Franklin Templeton’s well-established, integrated global platform.

An actively managed investment approach

Franklin GCC Bond strategy has demonstrated strong risk/return profiles and low correlation to major fixed income and equity indexes. We believe that a portfolio of low/uncorrelated positions, selected on the basis of intensive bottom-up research and guided by top-down macroeconomic analysis, has the potential to deliver above-benchmark returns over a full market cycle, whilst seeking to manage volatility and downside risk.

Other Strategies to Consider

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Important Information

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. All investments involve risks, including possible loss of principal. There is no guarantee that a strategy will meet its objective. The value of shares and income received can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency and exchange-rate fluctuations. Reduced liquidity may affect the ability to sell assets and have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where a strategy invests in emerging markets, the risks can be greater than in developed markets. Where a strategy invests in derivative instruments, this entails specific risks that may increase the risk profile of the strategy. Where a strategy invests in a specific sector or geographical area, the returns may be more volatile than a more diversified strategy. Investments may also be exposed to operational risks, being the risk that operational processes may fail, resulting in losses as well as other risks (that can be outside of their control).