Specialises in benchmark-driven structured portfolios

In 1982, Franklin Portfolio Associates became the first of Mellon's speciality investment management subsidiaries. The firm uses a distinctive value approach, creating analytical comparisons of domestic (US) and international stocks through extensive proprietary quantitative measures.

• Headquartered in Boston, Massachusetts, US
• Assets under management US$35.1 billion^*
• Mellon's first speciality asset management subsidiary (acquired by Mellon in 1982)
• Active management of large institutional portfolios
• Benchmark-driven structured portfolio specialist manager
• Distinctive quantitative investment approach; sophisticated in-house computer systems

• Active quantitative model driven equity manager
• Seeks to outperform a wide range of performance objectives
• Believes that thorough analytical comparison of investment fundamentals combined with risk control can produce above-average returns
• Prospective holdings judged according to:
• • - Relative value: How does the stock's price compare to history?
    - Fundamental momentum: How is the company doing currently?
    - Future cash flow: What are the company's future prospects?
    - Supplementary factors: What other considerations, such as insider trading, might affect a company's price?

• Uses a blend of computer systems and investment expertise to monitor approximately 6,000 securities
• Stock selection using proprietary optimiser and risk control system
• Global portfolios use country valuation techniques and value screens
• All models and weightings continually evaluated, ensuring implementation of up-to-date methods

^{* Source: Franklin Portfolio Associates, LLC as at 30 June 2007
Franklin Portfolio Associates has no affiliation to the Franklin Templeton Group of Funds or Franklin Resources, Inc}