Franklin Templeton launches new EM balanced fund

istock_000004508721smallFranklin Templeton announces that it has launched the FTIF Templeton Emerging Markets Balanced Fund, tapping the combined expertise of Dr. Mark Mobius and Dr. Michael Hasenstab and their global teams in emerging markets equities and fixed income respectively. Hong Kong investors can now access this new fund.

The new FTIF Templeton Emerging Markets Balanced Fund seeks to maximize a combination of capital appreciation and income in the long term, consistent with prudent investment management. The Fund will typically hold both emerging markets equity and debt securities, with the proportion of its assets allocated according to each fund manager’s view of the valuation, risk and opportunity set within the asset class that they oversee.

The Fund’s management team, led by Dr. Mark Mobius, executive chairman, Templeton Emerging Markets Group, and Dr. Michael Hasenstab, co-director of the International Bond Department and portfolio manager, Franklin Templeton Fixed Income Group, seeks to add value through bottom-up fundamental sector, security and issuer analysis and top-down economic analysis. To help facilitate this process, the Fund leverages the expertise of research teams on the ground in local markets around the globe. Ultimately, the Fund utilizes the flexibility of its mandate to pursue relative opportunities based on the managers’ assessment of changing economic, market, sector, and issuer conditions.

Dr. Mobius and Dr. Hasenstab will be supported by their team of expert analysts from the Templeton Emerging Markets Group and the Franklin Templeton Fixed Income Group, as they make active asset allocation decisions between fixed income and equity based upon the relative attractiveness and valuations in those two sectors.

While current markets are volatile, the Fund’s management team maintains its view that long-term fundamentals of emerging markets remain intact. The team views these periods of heightened market volatility as opportunities to find investments at attractive valuations in both emerging equity and fixed income markets.

“Interest in emerging markets investing has never been greater, driven by the growth potential of these markets,” notes Dr. Mobius. “Templeton’s time-tested investment philosophy is built on in-depth research and a bottom-up, disciplined yet flexible approach to value which looks beyond short-term news and emotions. We bring that same philosophy to the Templeton Emerging Markets Balanced Fund, leveraging our established investment expertise and infrastructure in both emerging markets equity and fixed income to meet growing investor interest for a balanced approach to the category.”

“This new strategy brings together the long-standing expertise of the Templeton Emerging Markets Group and the Franklin Templeton Fixed Income Group in one strategy, so we look for opportunities across the entire spectrum of emerging markets,” says Dr. Hasenstab. “We can take advantage of equity opportunities, currency, local interest rates, sovereign credit, and corporate credit, encompassing the broadest exposure to emerging markets.”

Given the low correlation between emerging markets equity and emerging markets fixed income, the Fund’s balanced approach between the two asset classes offers diversification. Retail investors seeking long-term capital appreciation and income from emerging markets could consider investing in the Fund according to their personal circumstances. Investors who want the convenience of outsourcing the asset allocation decision between emerging markets equities and bonds to the portfolio management team may also consider investing in the Fund according to their personal circumstances.

“The Templeton Emerging Markets Balanced Fund is a one-stop emerging markets solution, offering access to two of the well known emerging markets experts in the fund management industry, across two growing asset classes. By bringing our established expertise in emerging markets equities and fixed income to the still nascent emerging markets balanced fund category, we’re confident we can offer an appealing solution to investors looking for a balanced exposure to emerging markets,” says Isabella Chan, Director of Sales and Marketing, Franklin Templeton Investments in Hong Kong.