Templeton Global Growth Fund (TGC) has reported the portfolio of investments’ return as 22 per cent, net of fees, for the 2017 financial year, thanks to the fund’s portfolio being overweight in Europe and Asia and underweight US stocks.
According to its investment manager’s report, TGC’ holdings outperformed their peers in all the major regions, although almost 40 per cent of returns in the portfolio’s Eurozone domiciled stocks stood out against the 24 per cent average return for stocks.
“As always, our strategy at Templeton has been to buy undervalued stocks through patient, bottom-up investing founded on detailed fundamental analysis,” the report reads.
“This process has produced a portfolio that is regionally overweight in Europe and Asia and underweight US stocks.”
The portfolio of investments’ return, gross of fees, stood at 23.3 per cent, as compared to the MSCI All Country World Index of 15.3 per cent.
The company’s net tangible asset backing increased 15.6 per cent to $1.48 per share at June 30, 2017, after the payment of a 4.5 per cent share dividend to shareholders in September, 2016, it said.
According to the company’s dividend/distribution policy, the target dividend for the year ended June 30, 2018, will be 4.5 cps.
By sector, TCG’s portfolio is overweight financials, energy, health care, telecommunications, and underweight consumer discretionary and staples, technology, industrials, real estate and utilities.
