MEXICO CITY--(Marketwire - May 14, 2012) - The Franklin Templeton Global Investor Sentiment Survey revealed disparities in Mexican investors' perceptions between their outlook on economy and expected investment performance. In the near term, Mexican respondents remain fairly conservative, and in favor of keeping their investment money close to home.

Conducted earlier this year and for second year in a row, 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

Mexican Disparities
In the annual global survey, Franklin Templeton found that nearly half of those surveyed in Mexico (45 percent) believe the local economy has deteriorated and 37 percent report that they have become "somewhat to significantly more" risk averse over the last three years. Reflecting that conservative outlook, only 24 percent of respondents would seek to make their portfolios more aggressive this year.

Yet, despite their negative views on the economy, survey respondents expect solid investment returns in the current market environment, with more than half of investors (57 percent) anticipating annualized investment returns on their investments of five to 25 percent.

"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."

Interest in Mexican Market, Despite Negative Outlook
The survey also found that respondents in Mexico 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 (49 percent) would invest in their home country. Surprisingly, however only 14 percent believe that Mexico will offer the best investment returns.

Similarly, the survey revealed that most respondents globally will invest in their home country next year. Regionally, 60 percent of investors in the Americas (US, Canada, Brazil, Mexico and Chile) say they will be home country centric, while 51 percent in Europe acknowledge such a preference. Respondents from India and Australia (80 percent) and Brazil (74 percent) will invest mostly in their home country.

Over the longer term, the story changes. Mexican investors indicate a desire to gradually increase their investments outside their local market in the next 10 years. Almost half of Mexican investors surveyed (43 percent) foresee at least 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.

"While many investors may have a home country bias in 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.

"Today, with the majority of the world's investment opportunities being global, investors who prefer to invest only in their local markets could be missing out on potential opportunities in other parts of the world. With over 60 years of experience, we offer investors an expert perspective on the increasingly important and complex world of global investing," said Hugo Petricioli, Country Manager, Mexico for Franklin Templeton Investments.

Mexicans Show Preference for Hard Assets
According to the survey, only six percent of Mexican investors currently hold mutual funds, with real estate being the most popular type of investment (30 percent), followed by precious metals (15 percent), stocks (four percent) and bonds (four percent), showing a preference for tangible assets. Also, despite their current pessimistic economic outlook, almost half of Mexican respondents (47 percent) think all investment types will return at least five to 15 percent in 2012.

When considering the long-term investment risks of various asset classes over the next 10 years, stocks were perceived as the riskiest asset class, with half (50 percent) of Mexican respondents considering them to be risky, followed by bonds (41 percent). By contrast, fewer respondents think non-metal commodities (34 percent), real estate (19 percent), precious metals (49 percent) and money markets (30 percent) will prove to be less risky over the next decade.

When it comes to investing, Mexicans value professional advise with 81 percent of participants viewing advice from a financial advisor as important or very important.

Emerging and Developed Markets
In Mexico, respondents remain optimistic about investment opportunities in emerging markets and developed countries over the next five years. An average of 56 percent in Mexico think emerging and developed equity markets will achieve returns between five and 15 percent. Meanwhile, 55 percent believe emerging and developed fixed income markets will achieve the same returns.

Regionally, survey participants in Asia Pacific are the most bullish when it comes to emerging markets equities, with 67 percent expecting annual returns of five percent or more over the next five years, whereas, respondents in Europe are slightly less bullish, with 56 percent expecting a similar rate of return.

Globally, participants also see the potential of developed market equities, with just less than half (49 percent) anticipating an annual return of five percent or more; compared to those in the Americas who were most likely to hold that view with 57 percent anticipating returns at those levels.

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.franklintempleton.com.mx ]

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.

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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