Friday 29 Mar 2024
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Franklin Templeton Asset Management (Malaysia) Sdn Bhd (FTAM) will launch its first global equity fund on April 13, providing high net worth investors access to equity markets around the world.

The Templeton Global Equity Fund is a wholesale fund structured as a feeder fund. The fund will invest up to 95% of its net asset value (NAV) in the Luxembourg-registered FTIF Templeton Global Fund, which is the target fund.

According to the Securities Commission Malaysia's Guidelines on Wholesale Funds, an individual whose total net personal assets exceed RM3 million or a corporation with total net assets exceeding RM10 million is qualified as a wholesale fund investor.

The fund aims to provide capital appreciation by investing in the target fund, with the objective of investing in equity securities of companies throughout the world, including emerging markets.

Sandeep Singh, country head (Malaysia) at FTAM, said the target fund has a long track record of 24 years and an asset size of over US$1.6 billion. "The launch of the fund is timely, given the growing sophistication of local investors who better understand the benefits of diversifying investments geographically and have become more confident in investing globally," he added.

As at Feb 28, the target fund has provided returns of -2.10%, 59.72% and 54.39% for the past one, five and 10 years. Its top three equity holdings as at Feb 28 were Amgen Inc, China Telecom Corp Ltd and Samsung Electronics Co Ltd. 

The fund is available in two currency denominations -- the ringgit and US dollar. The minimum initial investment is RM10,000 and US$5,000 respectively. Minimum additional investments are RM1,000 and US$500 respectively.

"The US dollar currency class has become more popular in the last couple of years as Malaysian investors are looking to diversify their currency risk," said Sandeep.

The initial offer price for both currency classes are RM0.50 and US$0.50. Both currency classes carry an initial sales charge up to 5% of the NAV per unit and an annual management fee of 1.75% per annum of the NAV. However, there is no redemption charge for the fund.

Templeton Global Equity Fund will be distributed at Citibank branches nationwide when launched.
 

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