Sydney - Thursday - October 23: (RWE Australian Business News) -...

Sydney - Thursday - October 23: (RWE Australian Business News) -
Templeton Global Growth Fund Ltd (ASX:TGG) chairman Mr David Walsh told
the annual meeting in Melbourne today that if the present high discount
of its share price to net tangible assets (NTA) persisted, after market
conditions stabilised, the board would consider implementing an
on-market buyback with a view to adding value to the company's shares.
He pointed out that on October 15 the shares hit a low of 75c
and this week they had traded in a range of 75c to 78c.
"This is a discount of over 25pc to the NTA," Mr Walsh said.
"In the 2008 year the MSCI All Country World Free Index,
measured in US dollars, lost nearly 9pc of its value.
"As of last Friday, in the period since 30 June 2008, it had
lost a staggering further 30pc.
"In contrast, the NTA of the company's shares has remained
substantially unchanged since 30 June 2008.
"At that date the NTA was $1.08. At 30 September it was $1.12.
"Management estimates that as of close of business on Tuesday of
this week (21 October) it was between $1.05 and $1.10.
"The principal reason for this is the recent weakening of the
Australian dollar against other major currencies," he said.
"Because the company's investment portfolio is not hedged
against foreign exchange movements, the rerating of the Australian
dollar has produced foreign currency translation gains in the NTA (which
is measured in Australian dollars) that have very largely offset the
further diminution that has occurred in the local currency values of the
stocks held in the portfolio.
"Regrettably, however, this has not protected the company's
share price from being savaged, along with the share prices of a wide
range of other companies, in the present extraordinarily volatile
investment climate," the chairman said.

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On outlook, Mr Walsh said: "Clearly the debt bubble has burst
and this can be expected to lead to changes in the way that capital
markets function in the future, including much more conservative equity
valuations and, I would anticipate, antipathy towards high gearing and
exotic financial engineering.
"Your board is optimistic that the company's investment
portfolio is soundly balanced and should perform better than many
others, in the longer term, notwithstanding further falls in global
equity markets that may occur while the present situation is being
worked through."