changes in emerging markets · 3/31/2018 · portfolio construction the above chart is for...
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For F
inan
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ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
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ublic
.
THE
NEXT
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NDIN
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MORR
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ADIN
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ERGI
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INVE
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Pre
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Inve
stm
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For D
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Use
Only
/ Not
for D
istrib
ution
to th
e Pub
lic
CH
AN
GES
IN
EMER
GIN
G M
AR
KET
S
Shan
ghai
, Chi
na: A
bout
25
Year
s Ag
oSh
angh
ai, C
hina
: Abo
ut 2
5 Ye
ars
Ago
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Sour
ce: h
ttp://w
ww.bu
sines
sinsid
er.co
m/sh
angh
ai-19
90-vs
-201
0-20
10-6
?IR=T
June
2017
.
Shan
ghai
, Chi
na: N
owSh
angh
ai, C
hina
: Now
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Sour
ce: h
ttp://w
ww.bu
sines
sinsid
er.co
m/sh
angh
ai-19
90-vs
-201
0-20
10-6
?IR=T
June
2017
.
Dub
ai, U
.A.E
.: Ab
out 2
5 Ye
ars
Ago
Dub
ai, U
.A.E
.: Ab
out 2
5 Ye
ars
Ago
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Sour
ce: h
ttps:/
/en.w
ikipe
dia.or
g/wiki
/File
:She
ikh_Z
ayed
_Roa
d_in_
1990
.jpg J
une 2
017.
Dub
ai, U
.A.E
.: N
owD
ubai
, U.A
.E.:
Now
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Sour
ce: h
ttps:/
/en.w
ikipe
dia.or
g/wiki
/File
:Dub
ai_Ne
w.jpg
June
2017
.
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.
Emer
ging
Mar
kets
City
Sky
lines
Bom
bay,
Indi
a
Mos
cow
, Rus
sia
Seou
l, So
uth
Kor
ea
Kua
la L
umpu
r, M
alay
sia
6
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.7
Sour
ces:
MSCI
, S&P
& IF
C an
d EIU
Wor
ld Ba
nk. Im
porta
nt da
ta pr
ovide
r noti
ces a
nd te
rms a
vaila
ble at
www
.fran
klinte
mplet
onda
tasou
rces.c
om.
Inve
stab
le E
mer
ging
Mar
kets
in 1
987
6 m
arke
ts: M
exic
o, H
ong
Kong
, Phi
lippi
nes,
Tha
iland
, Mal
aysi
a an
d In
done
sia
Emer
ging
Mar
kets
—19
87
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.8
Sour
ces:
MSCI
, S&P
& IF
C an
d EIU
Wor
ld Ba
nk. Im
porta
nt da
ta pr
ovide
r noti
ces a
nd te
rms a
vaila
ble at
www
.fran
klinte
mplet
onda
tasou
rces.c
om.
Inve
stab
le E
mer
ging
Mar
kets
in D
ecem
ber 2
017
Emer
ging
Mar
kets
—20
17
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.9
1987
–201
5
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Past
per
form
ance
is n
ot an
indi
cato
r or a
gua
rant
ee o
f fut
ure p
erfo
rman
ce.
Sour
ces:
Wor
ld Ba
nk an
d Wor
ld Fe
dera
tion o
f Exc
hang
es da
tabas
e.
Emer
ging
Mar
kets
: M
arke
t Cap
italiz
atio
n Si
nce
1987
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.10
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Past
per
form
ance
is n
ot an
indi
cato
r or a
gua
rant
ee o
f fut
ure p
erfo
rman
ce.
Sour
ce: U
nited
Nati
ons.
As of
2015
.
With
a M
edia
n Ag
e of
26,
Em
ergi
ng M
arke
ts s
kew
you
nger
.
Dev
elop
ed v
s. E
mer
ging
Mar
kets
: Med
ian
Age
Youn
ger P
opul
atio
n &
Wor
k Fo
rce
With
a M
edia
n Ag
e of
41,
D
evel
oped
Mar
kets
ske
w o
lder
.
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.11
P/E
(%)—
12 M
onth
s Fo
rwar
dAs
of J
anua
ry 3
1, 2
018
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Past
per
form
ance
is n
ot an
indi
cato
r or a
gua
rant
ee o
f fut
ure p
erfo
rman
ce.
Sour
ces:
Fran
klin T
emple
ton In
vestm
ents
and M
SCI. D
evelo
ped M
arke
ts as
repr
esen
ted by
the M
SCI W
orld
and E
merg
ing M
arke
ts as
repr
esen
ted by
MSC
I Eme
rging
Mar
kets.
Ther
e is n
o ass
uran
ce th
at an
y pro
jectio
n, es
timate
or fo
reca
st wi
ll be r
ealiz
ed. Im
porta
nt da
ta pr
ovide
r noti
ces a
nd te
rms a
vaila
ble at
www
.fran
klinte
mplet
onda
tasou
rces.c
om.
Emer
ging
vs.
Dev
elop
ed M
arke
ts:
P/E
Valu
atio
ns
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.
MSC
I EM
Inde
x %
Wei
ghts
–200
8 an
d 20
18
IT, F
inan
cial
s an
d En
ergy
/Mat
eria
ls
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Past
per
form
ance
is n
ot an
indi
cato
r or a
gua
rant
ee o
f fut
ure p
erfo
rman
ce.
Sour
ce: M
SCI. I
mpor
tant d
ata pr
ovide
r noti
ces a
nd te
rms a
vaila
ble at
www
.fran
klinte
mplet
onda
tasou
rces.c
om.
Janu
ary
2008
vs.
Jan
uary
201
8 (%
)
2008
2008
2008
2018
2018
2018
12
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.13
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Past
per
form
ance
is n
ot an
indi
cato
r or a
gua
rant
ee o
f fut
ure p
erfo
rman
ce.
Sour
ces:
Bloo
mber
g and
Tec
hcru
nch.
*Blac
k Frid
ay on
line s
ales U
S$5.0
B, C
yber
Mon
day;
US$6
.6bn a
nd T
hank
sgivi
ng U
S$2.9
bn. T
otal w
as fo
r the
perio
d fro
m No
vemb
er 23
–27,
2017
.
Alib
aba
Sing
les
Day
Sal
es20
17
Than
ksgi
ving
, Bla
ck F
riday
and
C
yber
Mon
day
Onl
ine
Sale
s*20
17
$25.
3Bn
$19.
6Bn
All R
etai
lers
in U
.S.
Tech
nolo
gy: C
hine
se O
nlin
e Sp
endi
ngSi
ngle
s D
ay B
igge
st R
etai
l Eve
nt G
loba
lly
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.14
Cal
enda
r Yea
r Ret
urn
(CA
D)
Emer
ging
vs.
Dev
elop
ed M
arke
ts19
88–2
017
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Past
per
form
ance
is n
ot an
indi
cato
r or a
gua
rant
ee o
f fut
ure p
erfo
rman
ce.
Sour
ces:
©20
17 M
orga
n Stan
ley C
apita
l Inter
natio
nal (M
SCI)
and M
ornin
gstar
Res
earch
Inc.
All M
SCI d
ata is
prov
ided “
as is
.”In
no ev
ent s
hall M
SCI, i
ts aff
iliates
or an
y MSC
I data
prov
ider h
ave a
ny
liabil
ity of
any k
ind in
conn
ectio
n with
the M
SCI d
ata de
scrib
edhe
rein.
Cop
ying a
nd re
distrib
uting
the M
SCI d
ata is
stric
tly pr
ohibi
ted. In
dex r
eturn
s inc
lude r
einve
stmen
t of d
ivide
nds.
Indice
s are
un
mana
ged,
and o
ne ca
nnot
inves
t dire
ctly i
n an i
ndex
. Eme
rging
mar
kets
as re
pres
ented
by th
e MSC
I Eme
rging
Mar
kets
Index
and w
orld
as re
pres
ented
by th
e MSC
I Wor
ld Ind
ex. Im
porta
nt da
ta pr
ovide
r noti
ces a
nd te
rms a
vaila
ble at
www
.fran
klinte
mplet
onda
tasou
rces.c
om.
Emer
ging
Mar
kets
: Per
form
ance
Sin
ce 1
988
19 o
ut o
f 30
Year
s O
utpe
rform
ance
(63%
)
Emer
ging M
arke
ts ou
tperfo
rmed
19xs
ou
t of th
e las
t 30
1-ye
ar pe
riods
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.15
For i
llust
rativ
e and
disc
ussio
n pu
rpos
es o
nly.
Past
per
form
ance
is n
ot an
indi
cato
r or a
gua
rant
ee o
f fut
ure p
erfo
rman
ce.
Sour
ce: F
actS
et. A
s of J
anua
ry 31
, 201
8. Bu
ll and
bear
mar
kets
are b
ased
on 30
% ch
ange
s of th
e MSC
I EM
Index
, ave
rage
does
not ta
ke in
to ac
coun
t the c
urre
nt bu
ll nu
mber
s. Im
porta
nt da
ta pr
ovide
r noti
ces a
nd te
rms a
vaila
ble at
www
.fran
klinte
mplet
onda
tasou
rces.c
om.
Cum
ulat
ive
Ret
urns
(%)
Bull
Mar
kets
Bear
Mar
kets
Dat
es%
Incr
ease
# of
M
onth
sD
ates
%D
eclin
e#
ofM
onth
s
Bul
l01
/88–
08/9
761
9%11
6B
ear
08/9
7–09
/98
-56%
12
Bul
l09
/98–
04/0
011
7%19
Bea
r04
/00–
09/0
1-5
0%18
Bul
l09
/01–
10/0
754
2%73
Bea
r10
/07–
10/0
8-6
5%12
Bul
l10
/08–
09/1
418
5%70
Bea
r09
/14–
01/1
6-3
5%17
Bul
l01
/16–
Ave
rage
365%
70-5
2%15
Emer
ging
Mar
kets
: Be
ar/B
ull M
arke
ts
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.16
Why
Em
ergi
ng M
arke
ts N
ow?
•Hig
h gr
owth
•Fav
oura
ble
dem
ogra
phic
s
•Che
ap v
alua
tions
•Im
prov
ing
sent
imen
t
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.
Fran
klin
Li
bert
ySha
res®
ETFs
Fran
klin
Lib
erty
Shar
es E
TFs
Fran
klin
Lib
erty
Shar
es E
TFs
offe
r a b
road
sui
te o
f pas
sive
, sm
art b
eta
and
activ
ely
man
aged
ETF
s.
Our
ETF
s he
lp y
ou p
ursu
e yo
ur d
esire
d in
vest
men
t out
com
es. S
pann
ing
mul
tiple
as
set c
lass
es a
nd re
gion
s, o
ur E
TFs
prov
ide
inve
stor
s w
ith a
var
iety
of c
hoic
es in
bu
ildin
g di
vers
ified
por
tfolio
s.
Pass
ive
ET
FsSm
art B
eta
ET
Fs
Act
ivel
y
Man
aged
ET
Fs
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.
Type
s of
ETF
s ETF
Trac
ks A
ltern
ativ
ely
Des
igne
d In
dex
ETF
Mea
sure
d A
gain
st B
ench
mar
k In
dex
ETF
Trac
ks B
road
, M
arke
t-Wei
ghte
d In
dex
Fund
amen
tally
or
Equ
ally
W
eigh
ted
“Tra
ditio
nal”
Styl
e Ti
lted
ESG
or
SRI*
Cur
renc
y H
edge
d
Libe
rtyQ
T ET
FsLi
bert
y ET
Fs
Smar
t B
eta
Act
ivel
y M
anag
ed
PUR
E PA
SSIV
EPr
oxy
for M
arke
tA
CTI
VE M
AN
AG
EMEN
TSe
eks
to O
utpe
rfor
mA
CTI
VE B
Y D
ESIG
NTa
rget
s Sp
ecifi
c In
vest
men
t Out
com
e
For I
llustr
ative
Pur
pose
s Only
. The
re is
no gu
aran
tee an
y stra
tegy w
ill ac
hieve
its ob
jectiv
e. *E
SG: E
nviro
nmen
tal, S
ocial
& G
over
nanc
e
SRI: S
ocial
ly Re
spon
sible
Inves
tmen
t19
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.20
Tim
ing
of F
acto
rs C
an B
e D
iffic
ult
Cal
enda
r Yea
r Ret
urns
CAD
—M
SCI E
mer
ging
Mar
kets
Fac
tor I
ndic
es
Sour
ce: M
ornin
gstar
Dire
ct. A
s of D
ecem
ber 3
1, 20
17.
Past
perfo
rman
ce is
not a
n ind
icator
or a
guar
antee
of fu
ture p
erfor
manc
e. Fa
ctor in
dex p
erfor
manc
e is d
erive
d fro
m ba
ck-te
sted p
re-in
cepti
on pe
rform
ance
and i
s not
repr
esen
tative
of an
y ETF
’s pe
rform
ance
. Per
forma
nce f
or
the M
SCI E
merg
ing M
arke
ts Ind
ex re
pres
ents
actua
l per
forma
nce.
MSCI
Eme
rging
Mar
kets
Quali
ty, M
omen
tum, M
inimu
m Vo
latilit
y and
Valu
e Ind
ices w
ere i
ncep
ted on
June
30, 1
994,
Dece
mber
29, 2
000,
May 3
1, 19
93 an
d De
cemb
er 31
, 199
6 res
pecti
vely.
Whil
e the
infor
matio
n is b
ased
on hy
pothe
tical
pre-
incep
tion i
ndex
retur
ns fo
r MSC
I Eme
rging
Mar
kets
Quali
ty Ind
ex,M
SCI E
merg
ing M
arke
ts Mo
mentu
m Ind
ex, M
SCI E
merg
ing M
arke
ts Mi
nimum
Vola
tility
Index
, and
MSC
I Eme
rging
Mar
kets
Value
Inde
x,the
y do n
ot re
pres
ent a
ny E
TF’s
actua
l per
forma
nce.
MSCI
facto
r inde
x per
forma
nce i
nclud
es pr
e-inc
eptio
n ind
ex re
turns
, bas
ed on
crite
ria ap
plied
retro
activ
elypr
ior to
the i
ndex
ince
ption
date
and,
as su
ch is
hypo
thetic
al an
d for
illus
trativ
e pur
pose
s only
. The
y pro
vide a
gene
ral in
dicati
on of
the r
isk/re
turn p
rofile
of th
e res
pecti
ve M
SCI s
ingle
factor
indic
es. In
dex r
eturn
s are
adjus
ted fo
r wi
thhold
ing ta
xes.
Retur
ns da
ta re
pres
ents
aver
age a
nnua
l total
retur
ns an
d ass
umes
reinv
estm
ent o
f inter
est o
r divi
dend
s. Ind
exes
are u
nman
aged
, and
one c
anno
t inve
st dir
ectly
in an
inde
x. Th
ey do
not r
eflec
t any
fees
, ex
pens
es or
sales
char
ges.
Index
es ar
e unm
anag
ed, a
nd on
e can
notin
vest
direc
tly in
an in
dex.
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
10-Y
r Ret
urn
Mini
mum
Vol
.
-3.85
%Mi
nim
um V
ol.
Mini
mum
Vol
.Mo
men
tum
Mini
mum
Vol
.Mo
men
tum
Quali
tyMi
nim
um V
ol.
-27.7
5%22
.17%
-9.73
%19
.53%
10.81
%12
.91%
7.32%
Valu
eVa
lue
Mom
entu
mQu
ality
Mom
entu
mMi
nim
um V
ol.
Mom
entu
mMi
nim
um V
ol.
Quali
ty
-37.8
0%52
.10%
18.06
%-9
.90%
17.60
%6.6
6%11
.22%
5.48%
6.49%
Quali
tyQu
ality
Quali
tyVa
lue
Quali
tyQu
ality
Mini
mum
Vol
.Qu
ality
Valu
eMo
men
tum
Mom
entu
m
-37.9
6%51
.97%
17.77
%-1
5.83%
16.41
%5.3
4%10
.21%
4.88%
10.93
%39
.39%
4.32%
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
MSCI
Em
ergi
ng
Mark
ets
-41.6
3%51
.59%
12.67
%-1
6.40%
15.61
%3.9
3%6.6
3%2.0
4%7.3
4%28
.26%
4.14%
Mom
entu
mMo
men
tum
Valu
eVa
lue
Valu
eVa
lue
Mom
entu
mQu
ality
Quali
tyVa
lue
-48.6
7%36
.47%
12.23
%13
.31%
1.25%
4.57%
0.74%
2.89%
25.42
%3.3
5%Mi
nim
um V
ol.
Valu
eMo
men
tum
Valu
e
35.65
%-2
.35%
0.51%
19.65
%Mi
nim
um V
ol.
Mini
mum
Vol
.
0.31%
18.40
%MS
CI E
M Qu
ality
Inde
x MS
CI E
M Va
lue I
ndex
MS
CI E
M Mo
men
tum
Inde
xMS
CI E
M Mi
nim
um V
olat
ility I
ndex
MS
CI E
M In
dex
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.
Qua
lity
Valu
e
Mom
entu
m
Low
Vol
atili
tySt
ock
Perf
orm
ance
Fact
ors
•Prim
ary
char
acte
ristic
s th
at e
xpla
in s
tock
be
havi
our o
ver t
ime
•S
ome
fact
ors
have
of
fere
d a
“retu
rn p
rem
ium
”•S
tock
s ca
n be
gro
uped
ba
sed
on s
hare
d fa
ctor
s
Fact
ors
–D
NA
Mar
kers
of S
tock
B
ehav
iour
21
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.22
Fact
ors
& W
eigh
tings
Roo
ted
in
Econ
omic
Rat
iona
le
*Ave
rage
of T
railin
g and
For
ward
Ear
nings
**S
tocks
that
appe
ar to
be un
derva
lued a
nd co
ntinu
e to t
rade
at lo
w va
luatio
ns fo
r exte
nded
perio
ds
Libe
rtyQ
Q
ualit
y Fa
ctor
Libe
rtyQ
Va
lue
Fact
orLi
bert
yQ
Mom
entu
m F
acto
rLi
bert
yQ
Vola
tility
Fac
tor
Fact
ors
and
Wei
ghts
Fact
or R
ole
May
hel
p dr
ive
stoc
k pe
rform
ance
&
redu
ce p
ortfo
lio
vola
tility
May
hel
p ca
ptur
e op
portu
nitie
s in
un
derv
alue
d co
mpa
nies
May
hel
p av
oid
valu
e tra
ps**
May
hel
p re
duce
do
wns
ide
risk
in
unev
en m
arke
ts
How
We
Mea
sure
•R
etur
n on
Equ
ity
•Ea
rnin
gs
Varia
bilit
y•
Cas
h R
etur
n on
As
sets
•Le
vera
ge
•Fo
rwar
d/Tr
ailin
g
Pric
e/Ea
rnin
gs•
Pric
e/Bo
ok•
Div
iden
d Yi
eld
•6-
Mon
th R
isk-
Adju
sted
Pric
e M
omen
tum
•12
-Mon
th R
isk-
Adju
sted
Pric
e M
omen
tum
•H
isto
rical
bet
a ba
sed
on 2
-yea
r w
eekl
y re
turn
s
50%
30%
10%
10%
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.23
Port
folio
Con
stru
ctio
n
The a
bove
char
t is f
or ill
ustra
tive a
nd d
iscus
sion
purp
oses
onl
y. Th
e way
we i
mplem
ent o
ur m
ain in
vestm
ent s
trateg
ies an
d the
resu
lting p
ortfo
lio ho
lding
s may
ch
ange
depe
nding
on fa
ctors
such
as m
arke
t and
econ
omic
cond
itions
.
The
portf
olio
des
ign
of s
mar
t bet
a ET
Fs is
bas
ed o
n a
prop
rieta
ry m
odel
that
in
corp
orat
es fo
ur fa
ctor
s as
key
driv
ers
of p
erfo
rman
ce: Q
ualit
y, V
alue
, M
omen
tum
, and
Low
Vol
atilit
y.
The
Proc
ess
in A
ctio
n
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.24
Fran
klin
Lib
erty
QT
Emer
ging
Mar
kets
In
dex
ETF
Cou
ntry
Allo
catio
nsAs
of M
arch
31,
201
8
Sour
ce: F
rank
lin T
emple
ton In
vestm
ents.
Tota
l may
not e
qual
100%
due t
o rou
nding
.
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.25
Sour
ce: F
rank
lin T
emple
ton In
vestm
ents.
Tota
l may
not e
qual
100%
due t
o rou
nding
.
Sect
or A
lloca
tions
As o
f Mar
ch 3
1, 2
018
Fran
klin
Lib
erty
QT
Emer
ging
Mar
kets
In
dex
ETF
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.26
Sour
ce: B
loomb
erg.
All c
urre
ncies
in U
SD. A
ll valu
es as
of la
test fi
nanc
ial st
ateme
nts.
VOD
AC
OM
IN
FOSY
SLU
KO
IL
Joha
nnes
burg
, S.
AFR
ICA
Ban
galo
re, I
ND
IAM
osco
w, R
USS
IA
~8,0
00 e
mpl
oyee
s20
0,00
0+ e
mpl
oyee
s11
0,00
0+ e
mpl
oyee
s
$966
Mn
Net
Inco
me
$2.5
Bn N
et In
com
e $6
.8Bn
Net
Inco
me
Foun
ded
in 1
994
Foun
ded
in 1
981
Foun
ded
in 1
991
Mar
ket c
ap $
23Bn
M
arke
t Cap
$39
BnM
arke
t Cap
$58
Bn
Prov
ides
voi
ce, m
essa
ging
, da
ta a
nd c
onve
rged
se
rvic
es to
ove
r 55
milli
on
cust
omer
s
Info
sys
has
84 s
ales
and
m
arke
ting
offic
es a
nd 1
16
deve
lopm
ent c
ente
rs
acro
ss th
e w
orld
in 2
017
Seco
nd la
rges
t oil
prod
ucer
in
Rus
sia,
pro
duci
ng 1
2% o
f na
tiona
l oil
rese
rves
(~1.
9 M
n ba
rrels
dai
ly)
FLEM
—Fr
ankl
in L
iber
tyQ
T Em
ergi
ng
Mar
kets
Inde
x ET
F
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.27
Fran
klin
Lib
erty
QT
Emer
ging
Mar
kets
In
dex
ETF
Sour
ce: F
rank
lin T
emple
ton In
vestm
ents.
Fran
klin
Lib
erty
QT
Emer
ging
Mar
kets
In
dex
ETF
MSC
I Em
ergi
ng M
arke
ts
(Net
Div
iden
ds) I
ndex
($
CA
D)
Pric
e to
Ear
ning
s 12
.05
14.7
0
Pric
e to
Cas
hflo
w7.
629.
35
Pric
e to
Boo
k Va
lue
1.75
1.76
Div
iden
d Yi
eld
(%)
3.56
2.36
Wei
ghte
d M
arke
t Cap
($m
illion
s)35
,944
.86
113,
315.
79
Tota
l Ass
ets
14,0
44,6
01.7
5—
Num
ber o
f hol
ding
s (e
x-C
ash)
201
846
Ret
urn
on E
quity
24.2
817
.23
Ret
urn
on A
sset
s12
.86
8.33
Deb
t to
Equi
ty15
.84
21.1
0
Port
folio
Cha
ract
eris
tics
As o
f Mar
ch 3
1, 2
018
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.28
Fran
klin
Lib
erty
QT
Emer
ging
Mar
kets
In
dex
ETF
Sour
ces:
Fran
klin T
emple
ton In
vestm
ents
and M
orga
n Stan
ley C
apita
l Inter
natio
nal (M
SCI).
Comm
ission
s, ma
nage
ment
fees a
nd ex
pens
es m
ay al
l be a
ssoc
iated
with
inve
stmen
ts in
ETFs
. Inve
stors
shou
ld ca
reful
ly co
nside
r anE
TF’s
inves
tmen
t obje
ctive
s and
stra
tegies
, risk
s, fee
s and
ex
pens
es be
fore i
nves
ting.
The p
rosp
ectus
and E
TF fa
cts co
ntain
this a
nd ot
her in
forma
tion.
Plea
se re
ad th
e pro
spec
tus an
d ETF
facts
care
fully
befor
e inv
estin
g. ET
Fs tr
ade l
ike st
ocks
, fluc
tuate
in ma
rket v
alue a
nd m
ay tr
ade a
t pric
es ab
ove o
r belo
w the
ETF
’s ne
t ass
et va
lue. B
roke
rage
comm
ission
s and
ETF
expe
nses
will
redu
ce re
turns
. Per
forma
nce o
f an E
TF m
ay va
ry sig
nifica
ntly f
rom
the
perfo
rman
ce of
an in
dex,
as a
resu
lt of tr
ansa
ction
costs
, exp
ense
s and
othe
r fac
tors.
ETFs
are n
ot gu
aran
teed,
their v
alues
chan
ge fr
eque
ntly a
nd pa
st pe
rform
ance
may
not b
e rep
eated
.
Perf
orm
ance
Sta
tistic
s (%
)As
of M
arch
31,
201
8
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.29
Mar
ket C
ompa
rison
Fran
klin
Lib
erty
QT
Emer
ging
Mar
kets
Inde
x vs
.M
SCI E
mer
ging
Mar
kets
(Net
Div
iden
ds) I
ndex
(%)
Up/
Dow
n C
aptu
re R
atio
Dec
embe
r 1, 2
002–
Mar
ch 3
1, 2
018
Perfo
rman
ce d
ata r
epre
sent
s pre
-ince
ptio
n hy
poth
etica
l per
form
ance
, whi
ch d
oes n
ot g
uara
ntee
futu
re re
sults
. The
actua
l per
form
ance
of an
y exc
hang
e tra
ded
prod
uct m
ay va
ry sig
nifica
ntly
from
the p
re-in
cept
ion da
ta pr
esen
ted du
e to
assu
mpti
ons r
egar
ding
fees,
trans
actio
n cos
ts, liq
uidity
or o
ther m
arke
t facto
rs. P
lease
see
slide
45 fo
r add
itiona
l impo
rtant
disclo
sure
s. So
urce
: Mor
nings
tar D
irect.
Per
forma
nce f
or M
SCI E
M re
pres
ents
actua
l per
forma
nce.
Appl
ying
Fra
nklin
Te
mpl
eton
’s
met
hodo
logy
to
bund
ling
fact
ors
coul
d ha
ve p
rovi
ded
bette
r re
turn
s in
bot
h m
arke
t ra
llies
and
dow
ntur
ns.
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.
Ave
rage
Ann
ual R
etur
ns
Fran
klin
Lib
erty
QT
Emer
ging
Mar
kets
Inde
x vs
.M
SCI E
mer
ging
Mar
kets
(Net
Div
iden
ds) I
ndex
(%)
Dec
embe
r 1, 2
002–
Mar
ch 3
1, 2
018
Perfo
rman
ce d
ata r
epre
sent
s pre
-ince
ptio
n hy
poth
etica
l per
form
ance
, whi
ch d
oes n
ot g
uara
ntee
futu
re re
sults
. The
actua
l per
form
ance
of an
y exc
hang
e tra
ded
prod
uct m
ay va
ry sig
nifica
ntly
from
the p
re-in
cept
ion da
ta pr
esen
ted du
e to
assu
mpti
ons r
egar
ding
fees,
trans
actio
n cos
ts, liq
uidity
or o
ther m
arke
t facto
rs. P
lease
see
discla
imer
slide
for a
dditio
nal im
porta
nt dis
closu
res.
Sour
ce: M
ornin
gstar
Dire
ct. P
erfor
manc
e for
MSC
I EM
repr
esen
ts ac
tual p
erfor
manc
e. 30
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.
Annu
aliz
ed
10-Y
ear R
etur
n 6.
11%
7.50
%An
nual
ized
10-
Year
St
anda
rd D
evia
tion
15.6
0%14
.38%
10-Y
ear S
harp
e R
atio
0.40
0.51
Max
Dra
wdo
wn
4/1/
2008
–3/3
1/20
18
-44.
10%
-39.
67%
25%
Libe
rtyQ
EM
1
75%
MSC
I EM
2
75%
Libe
rtyQ
EM
1
25%
MSC
I EM
2
HYP
OTH
ETIC
AL
EMER
GIN
G M
AR
KET
S EQ
UIT
Y PO
RTF
OLI
OS
Ass
et A
lloca
tion
with
Sm
art B
eta:
Hyp
othe
tical
Exa
mpl
e
Perfo
rman
ce d
ata r
epre
sent
s pre
-ince
ptio
n hy
poth
etica
l per
form
ance
, whi
ch d
oes n
ot g
uara
ntee
futu
re re
sults
. The
actua
l per
form
ance
of an
y exc
hang
e tra
ded
prod
uct m
ay va
ry sig
nifica
ntly
from
the p
re-in
cept
ion da
ta pr
esen
ted du
e to
assu
mpti
ons r
egar
ding
fees,
trans
actio
n cos
ts, liq
uidity
or o
ther m
arke
t facto
rs. P
lease
see
discla
imer
slide
for a
dditio
nal im
porta
nt dis
closu
res.
1. Lib
ertyQ
Eme
rging
Mar
kets
Index
–Em
ergin
g Mar
kets
Equit
y Stra
tegy
2. MS
CI E
merg
ing M
arke
ts Ind
ex
Index
es ar
e unm
anag
ed, a
nd on
e can
not in
vest
direc
tly in
an in
dex.
They
do no
t refl
ect a
ny fe
es, e
xpen
ses o
r sale
s cha
rges
.31
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.32
Fran
klin
Lib
erty
Shar
es –
Can
ada
Libe
rty
ETFs
ACTI
VE E
TFs
Libe
rtyQ
T ET
FsSM
ART
BETA
ETF
s
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.
Que
stio
ns
For F
inan
cial P
rofe
ssio
nal U
se O
nly.
Not f
or D
istrib
utio
n to
theP
ublic
.34
Bio
grap
hy Ahm
ed F
aroo
q, C
FP, C
IMA
®Vi
ce P
resi
dent
, ETF
Bus
ines
s D
evel
opm
ent
Fran
klin
Tem
plet
on In
vest
men
ts C
anad
aAh
med
Far
ooq
is V
ice
Pres
iden
t, ET
F Bu
sine
ss D
evel
opm
ent,
resp
onsi
ble
for d
irect
ing
and
expa
ndin
g th
e Fr
ankl
in L
iber
tySh
ares
™ET
F bu
sine
ss a
cros
s m
ajor
Can
adia
n In
vest
men
t D
eale
rs a
nd fi
nanc
ial p
rofe
ssio
nals
. Ahm
ed’s
resp
onsi
bilit
ies
incl
ude
prov
idin
g ET
F st
rate
gy,
mar
ketin
g an
d pr
oduc
t dev
elop
men
t sup
port.
M
r. Fa
rooq
has
10
year
s of
exp
erie
nce
in th
e ET
F in
dust
ry a
nd 1
4ye
ars
in th
e in
vest
men
t in
dust
ry o
vera
ll. P
rior t
o jo
inin
g Fr
ankl
in T
empl
eton
in 2
017,
Mr.
Faro
oq s
pent
10
year
s at
Bl
ackR
ock
Can
ada
supp
ortin
g th
e pr
omot
ion
and
grow
th o
f iSh
ares
ETF
s. R
ecen
tly, A
hmed
w
as a
sen
ior w
hole
sale
r cov
erin
g To
ront
o an
d O
ttaw
a. P
revi
ousl
y,he
man
aged
the
inte
rnal
sa
les
team
for t
he iS
hare
s ET
F bu
sine
ss a
cros
s C
anad
a an
d le
ad w
hole
sale
r act
iviti
es fo
r the
fir
m in
Atla
ntic
Can
ada.
M
r. Fa
rooq
ear
ned
his
Bach
elor
of C
omm
erce
deg
ree
in E
cono
mic
s w
ith a
spe
cial
izat
ion
in
Com
mer
ce a
nd F
inan
ce, a
nd a
maj
or in
Eco
nom
ics
from
the
Uni
vers
ity o
f Tor
onto
. He
has
com
plet
ed th
e C
ertif
ied
Fina
ncia
l Pla
nner
(CFP
) and
has
ear
ned
his
CIM
A®de
sign
atio
n fro
m
the
Inve
stm
ent M
anag
emen
t Con
sulta
nts
Asso
ciat
ion®
in c
onju
nctio
n w
ith th
e W
harto
n Sc
hool
of
Bus
ines
s at
the
Uni
vers
ity o
f Pen
nsyl
vani
a. M
r. Fa
rooq
has
als
o co
mpl
eted
the
Can
adia
n Se
curit
ies
Cou
rse
(CSC
), C
ondu
ct &
Pra
ctic
es H
andb
ook
(CPH
), Pr
ofes
sion
al F
inan
cial
Pl
anni
ng C
ours
e (P
FP),
Wea
lth M
anag
emen
t Tec
hniq
ues
(WM
T) a
nd h
as re
ceiv
ed th
e de
sign
atio
n of
Fin
anci
al M
anag
emen
t Adv
isor
(FM
A).
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inan
cial P
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ssio
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se O
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or D
istrib
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ports
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orld
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ussio
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rpos
es o
nly.
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form
ance
is n
ot an
indi
cato
r or a
gua
rant
ee o
f fut
ure p
erfo
rman
ce.
Sour
ce: W
orld
Bank
, Wor
ld Fe
dera
tion o
f Exc
hang
es da
tabas
e.
1987
–201
5
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018
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ces:
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klin T
emple
ton In
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Fac
tSet,
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mber
g and
MSC
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ortan
t data
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ider n
otice
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term
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ilable
at w
ww.fr
ankli
ntemp
leton
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ource
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.
Wor
ld M
arke
ts 2
007
and
2017
Inde
x W
eigh
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ETF
Use
Cas
esA
Dec
isio
n Fr
amew
ork
Pure
Pa
ssiv
e ET
FSm
art
Bet
a ET
FA
ctiv
ely
Man
aged
ETF
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arke
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w
eigh
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inde
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gy•C
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kets
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es-b
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inde
x m
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gy•R
isk
man
agem
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com
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ed
•Por
tfolio
man
ager
insi
ghts
•Pot
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l to
outp
erfo
rm
benc
hmar
k in
dex
•Max
imiz
e in
vest
men
t ob
ject
ive
•W
hat i
s yo
ur in
vest
men
t obj
ectiv
e?•
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t cha
lleng
es a
re y
ou lo
okin
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ieve
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ar
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x.Pa
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urce
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orma
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Vide
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rce: Y
outub
e.com
BBC
Cha
nnel
https
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be.co
m/wa
tch?v
=jbkS
RLYS
ojo
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