The Luxembourg-domiciled fund, launched on 29 April, will hold both emerging markets equity and debt securities, with proportions allocated to each depending on the managers’ view of the valuation, risk and opportunity set within each asset class.
Franklin Templeton says the fund seeks to “maximise a combination of capital appreciation and income” over the long-term; it believes the low correlation between emerging markets debt and emerging markets equities will potentially lead to lower volatility and higher risk-adjusted returns than a typical emerging markets equity fund.
Mobius, executive chairman of Templeton Emerging Markets Group, and Hasenstab, co-director of the international bond department, will lead the management team on the fund.
Mobius will be supported by Dennis Lim, Tom Wu and Allan Lam along with 49 emerging markets analysts. Hasenstab will be supported by Laura Burakreis on the fixed income side and a further 37 investment professionals.
Hasenstab said: “This new strategy brings together the long-standing expertise of the Templeton emerging market equity team and the Templeton emerging market debt teams in one strategy, so we look for opportunities across the entire spectrum of emerging markets”.
“We can take advantage of equity opportunities, currency, local interest rates, sovereign credit, and corporate credit, encompassing the broadest exposure to emerging markets.”
The firm is currently seeking FSA approval to distribute the fund in the UK.