SANTIAGO, CHILE--(Marketwire - May 14, 2012) - In the near term, respondents remain cautious, fairly conservative, and in favor of keeping their investment money close to home, a Franklin Templeton global poll has found. When asked about their long-term perspectives, that sentiment starts to change.

Conducted earlier this year, the [ Franklin Templeton Global Investor Sentiment Survey ] polled more than 20,000 individuals in 19 countries that represent 70 percent of the world's GDP.¹ The survey provides a unique snapshot of global sentiment and attitudes at a critical juncture in the market cycle.

Investment Optimism Building
In its annual global survey, Franklin Templeton found that when considering stocks, 48 percent of investors in Chile expect a rate of return of five to 15 percent in 2012. Similarly, optimism increases when respondents consider a 10-year time horizon, with 57 percent anticipating annualized investment returns on stocks of five to 25 percent.

In terms of investments currently held by Chilean investors, real estate accounts for 27 percent, mutual funds 15 percent, precious metals 11 percent, stocks eight percent and bonds three percent.

Recent Global Uncertainty Has Led to More Conservative Investing and Risk Aversion
Uncertainty about the global economy has continued to heavily influence respondents' attitudes toward investing. Nearly half of those surveyed in Chile (49 percent) believe the global economy has deteriorated, and 36 percent report that they have become "somewhat to more" risk averse over the last three years.

"Global uncertainty continues to weigh on investors' minds, and reinforces the need for a well-diversified investing plan and approach to risk management," said Greg Johnson, president and chief executive officer of Franklin Templeton Investments. "This is clearly an area where we believe financial advisors can play a critical role, through the value of their expertise and advice for investors."

According to the survey, Chilean respondents value professional advice when it comes to investing, with 79 percent of participants viewing advice from a financial advisor as important or very important.

Long-term Interest in Global Opportunities
The survey found that respondents in Chile have a strong home country bias and a preference to invest closer to home in the near term. When given the choice to invest in only one region next year, almost half of respondents (47 percent) would invest in their home country.

Home country bias may be generated by two main factors. According to Professor Dan Ariely of Duke University, "The first is an overly optimistic belief about one's own economy. The survey shows us that respondents in almost every country had an expectation of performance in their country that is higher than what would be statistically realistic. The second reason is most likely due to procedural difficulties in investing outside the country -- such as less knowledge about how to access these markets, not having recommendations for such products and of course having fewer products available."

In the longer term, the story changes. Chilean respondents indicate a desire to gradually increase their investments outside their local market in the next 10 years. Almost half of Chilean respondents surveyed (49 percent) foresee a fifth or more of their investments to be outside their home country when the time horizon is extended to look out over the next 10 years, indicating a clear trend toward embracing global investing among long-term investors.

"Many individual investors still see their local markets as the safest place to invest. Wherever they are in the world, the chance that their own country will consistently outperform all others is pretty slim. With markets around the globe gaining momentum there are many compelling new investment opportunities. Today, the majority of the world's investment opportunities are global," said Sergio Guerrien, Director and Country Manager, South America for Franklin Templeton Investments.

"While many investors may have a home country bias for the near term, the survey findings show that respondents have a longer-term interest in broadening their investment universe across more countries," said Greg Johnson.

Respondents Eye Emerging Markets for Strongest Returns
Respondents remain slightly more optimistic about investment opportunities in emerging markets compared to opportunities in developed countries. Expectations are for emerging markets investments in both stocks and bonds to deliver the strongest returns vs. developed markets over the next five years.

In Chile, participants are bullish when it comes to emerging markets equities, with 70 percent expecting that emerging market equities will be the strongest option over the next five years with returns of five to 25 percent.

"Emerging markets continue to grow quickly and are no longer small or niche markets. Many have become key global economies, offering significant investment opportunities. The survey results show that Chilean investors surveyed are not overlooking this trend," said Guerrien.

When asked about what elements are taken into consideration when making international investments, almost 70 percent of Chilean respondents think that the risk level is important to very important, followed by brand recognition (65 percent) and performance (64 percent).

Methodology
The 2012 Franklin Templeton Global Investor Sentiment Survey, included responses from 20,623 individuals in 19 countries: Brazil, Chile, Mexico, Canada and the US in the Americas; Australia, China, Japan, Hong Kong, India, Malaysia, South Korea and Singapore in APAC; and Belgium, France, Germany, Italy, Poland and the UK in Europe. The survey was designed in partnership with Dan Ariely, a professor of psychology and behavioral economics at Duke University and conducted online by Qualtrics. Respondents were selected from among those who have volunteered to participate in online surveys and polls and all were 18 years of age or older. Surveys were completed from January 30 to February 13 in all countries except Canada where the survey was completed from March 2 to 8. In general, gender distribution was representative of the larger population of each country, as were marital status, education and age.

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 $725 billion in assets under management as of March 31, 2012. For more information, please visit [ www.franklinresources.com/global ]

This material does not constitute investment advice or an invitation to apply for securities. Investors should seek professional financial advice and obtain a full explanation of any proposed investment before making a decision to invest. Investments involve risks. The value of investments can go down as well as up, and investors may not get back the full amount invested.

Investors should look for financial advice and obtain a complete explanation of any investment before deciding to invest. Investments imply risks. The value of investments can go up and down and the investors might not get back the amount invested.

1. Source: International Monetary Fund, World Economic Outlook Database, September 2011. Gross domestic product figure based on purchasing-power-parity (PPP) share of the world total.

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