This strategic initiative, unveiled on July 29, represents a significant milestone in broadening the scope of investment opportunities available within the country.
Franklin Templeton stands as one of the pioneering global asset managers to introduce feeder funds across distribution platforms in the UAE, offering both conventional and Islamic strategies through locally licensed promoters.
The newly launched funds are accessible through Franklin Templeton's Dubai International Financial Centre (DIFC) - domiciled fund ranges - Franklin Templeton Investments Feeder Funds (FTIFF) and Franklin Templeton Shariah Feeder Funds (FTSFF). These funds grant UAE-based retail investors access to a diverse array of asset classes, sectors, and geographies, enabling them to tap into global markets while maintaining a local focus.
Amar Mehta, Franklin Templeton's Head of Retail for the Gulf, Eastern Mediterranean, and Africa, underscored the importance of these offerings, stating, "The introduction of these funds is timely, given the increasing demand for multi-asset income, global and regional fixed income, technology, as well as Shariah-compliant strategies."
The minimum subscription amount for these funds is set at $1,000 (Dh3,670), with no upper limit on the investment amount. "Investors will have a wide range of choices and best-in-class strategies available to them from Franklin Templeton, along with increased ease of access to strategies managed by long-tenured investment teams," Mehta added.
The launch underscores the company's deep commitment to the UAE and the broader region, reflecting its innovative approach and established presence, bolstered by a dedicated on-the-ground office.
For more info on the fund ranges, visit www.uaefeederfunds.com.
These fund launches respond to the recent regulatory changes by the UAE's Securities and Commodities Authority, which restricts the public distribution of foreign funds within the country. This shift has driven increased collaboration between global asset managers like Franklin Templeton and UAE-based firms, leading to the development of locally domiciled funds that cater to the unique needs of the country.
The introduction of these feeder funds aligns with the growing appetite for diversified investment options among UAE retail investors. By facilitating access to Franklin Templeton's Luxembourg and Ireland-domiciled UCITS funds through feeder funds, the company is empowering local investors to explore a wider range of opportunities, including those with a focus on Shariah compliance, which is increasingly sought after in the region.
The introduction of seven new feeder funds by Franklin Templeton in the UAE represents a noteworthy development for retail investors. Here are five key reasons to consider these funds:
1. Diversification: These funds provide exposure to a diverse range of asset classes, sectors, and geographies, enabling you to diversify your portfolio and mitigate risk. Besides, the inclusion of Shariah-compliant funds to the list offers ethically aligned investment options for those seeking to invest according to Islamic principles.
2. Experienced management: Franklin Templeton is a globally recognised asset management firm with a long history of successful investment strategies. These funds are managed by seasoned investment teams with deep expertise in their respective markets, ensuring informed decision-making.
3. Local accessibility: Specifically designed for UAE retail investors, these funds offer a convenient and accessible investment option tailored to local market conditions. Being domiciled in the DIFC ensures adherence to local regulations and high standards of investor protection.
4. Investment goals: With seven distinct funds catering to various investment objectives - whether you're seeking income, growth, or a balanced approach - there's a fund to meet your needs. Each fund is designed with a specific investment strategy, optimised to deliver the best possible returns based on its targeted asset class.
5. Potential for growth: The funds provide access to growth markets, including the US and technology sectors, which have the potential for generating higher returns. Investing in these funds with a long-term outlook would allow investors to benefit from the power of compounding and the natural cycles of the market.
Investing is a crucial aspect of wealth creation. Through the power of compounding, savings not only grow over time, helping investors achieve their financial goals, but also outpace inflation, preserving the value of money in the long run.
Investors should reach out to locally licensed promoters for their investment needs. A full list of locally licensed promoters can be obtained by contacting taoversightlux@franklintempleton.com.
Franklin Templeton is deeply committed to the UAE. With the launch of these funds, the asset management company has initiated a comprehensive campaign to educate residents on the importance of investing and to raise awareness of the available options.
As the financial landscape continues to evolve, Franklin Templeton remains dedicated to monitoring market trends and expanding its offerings to meet the dynamic preferences of investors.