Franklin Templeton Investments launches feeder funds for SA investors seeking offshore diversification
Franklin Templeton Investments is pleased to announce the introduction of three local feeder funds together with Boutique Collective Investments (BCI), one of South Africa’s foremost providers of independent collective investment services to wealth and asset management professionals. Franklin Templeton today launched the BCI Franklin Global Real Estate Feeder Fund, BCI Templeton Global Balanced Feeder Fund and BCI Templeton Global Feeder Fund targeted at local investors in South Africa.
Jo-Anne Bailey, Sales Director and Country Manager for Africa, Franklin Templeton Investments, commented, “The introduction of these funds is timely as we see continued appetite for offshore diversification among South African investors – both retail and institutional.
The additions to our range will be welcomed by those who buy into Templeton’s long-term, value-focused investment style and bottom-up stock selection process.
“International diversification is a key ingredient for long-term success of an investment portfolio. The increased market volatility since 2008 has increased the acceptance of diversification as a key investment tool and clients can invest in the funds in local currency while achieving broad geographic exposure across key asset classes. In uncertain market conditions we believe South Africans are increasingly eager for meaningful offshore exposure such as this” added Jo-Anne.
The BCI Franklin Global Real Estate Feeder Fund invests directly into the Franklin Global Real Estate Fund, a Luxembourg domiciled SICAV Fund, and is managed by Wilson Magee, director of Franklin Global Real Estate and Infrastructure Securities. The portfolio managers are supported by an experienced team of regional research analysts focused on Europe, Asia, Australia, the U.S, and the Americas. Franklin Real Asset Advisors has been investing globally in listed real estate securities since 1984. The investment team also leverages the broader resources of Franklin Templeton Investments, including risk management and trading professionals. The fund aims to maximise total investment returns, achieving income and capital growth through investment in real estate investment trusts (REITs) and other real estate companies. The fund invests in a wide range of real estate sectors and countries.
The BCI Templeton Global Balanced Feeder Fund invests directly into the Templeton Global Balanced Fund, a Luxembourg domiciled SICAV Fund, and is managed by Peter Wilmshurst, EVP, Portfolio Manager, at Templeton Global Equity Group and fixed income specialist Michael Hasenstab, EVP, Portfolio Manager and Chief Investment Officer of Templeton Global Macro. The fund seeks capital appreciation and current income through positions in equities and government debt securities issued worldwide, including emerging markets. The majority of the Fund’s portfolio is normally invested in equity securities. Two separate teams using different strategies manage the Fund's equity and debt portfolios. The equity team uses in-depth analysis to select individual securities that it believes are significantly undervalued and will provide the best opportunities, over the long term, for increased value. The debt securities team evaluates each issuer individually while also looking at broad-based trends.
The BCI Templeton Global Feeder Fund invests directly into the Templeton Global Fund, a Luxembourg domiciled SICAV Fund, and is managed by Heather Arnold, Director of Research and Portfolio Manager at Templeton Global Equity Group, Dylan Ball, EVP and Portfolio Manager at Templeton Global Equity Group and Peter Moeschter, EVP, Portfolio Manager and Research Analyst at Templeton Global Equity Group. The fund aims to achieve long-term capital appreciation by investing in equity and debt obligations of companies and governments of any nation throughout the world, including emerging markets. The fund invests principally in common stocks.
Wilson Magee, Director of Franklin Global Real Estate and Infrastructure Securities, noted: “Generally speaking, there are two ways to invest in real estate. Investors can buy property and assume the ongoing responsibilities of managing it, or they can invest in Real Estate Investment Trusts (REITs). The outlook remains positive for the global property market, especially for those who take a medium- to long-term view. At a time when many markets have undergone periods of uncertainty, we are able to reduce portfolio volatility by making allocations across a wide range of countries, regions and property types, thereby exploiting low correlation across real estate market cycles.”
“We are pleased to launch the fund because it provides investors with liquid access to a traditionally illiquid market. The infrastructure market has historically been limited to institutional investors who could invest large sums of capital, but the growing publically, traded listed infrastructure market provides retail investors a similar opportunity to earn income and capital appreciation” added Wilson.
Peter Wilmshurst, Executive Vice President & Portfolio Manager, at Templeton Global Equity Group pointed out: “Investors are well aware that fund management expertise makes a vital contribution to wealth accumulation over time. The Templeton Global Balanced Fund enables investors to benefit from two sources of expertise in one portfolio. Understanding the dynamics of how equity and fixed income asset classes interact together in the global market environment is a unique insight which can add value to an investor’s portfolio. A diversified portfolio that consists of both asset classes, with investments spread globally, helps to mitigate risks.”
“Historically, balanced portfolios have exhibited significantly lower negative returns compared to equities, while being less volatile than equities. At the same time, stocks have historically performed well over the long-term. The equity portion of the portfolio serves to generate capital appreciation by gaining from the market upside, while the fixed income portion helps to reduce portfolio volatility and provide regular income streams. The globally diversified nature of the portfolio functions to mitigate risks” added Peter.
Heather Arnold, Director of Research and Portfolio Manager at Templeton Global Equity Group, commented: “Templeton has always believed that when searching for the best investment opportunities, bargains are borderless. With the Templeton Global Fund, Templeton brings a premier global equity strategy, a value investment style and a research process that has been tested over 70 years to investors seeking global diversification.”
