KUCHING: Franklin Templeton Asset Management (Malaysia) Sdn Bhd (Franklin TempletonTAM) has announced the launch of the Templeton Global Balanced Fund (the Fund) for qualified investors in Malaysia.
This multi-asset fund that invests in global equities and fixed income is one of the few truly global balanced funds available to Malaysian investors.
It is structured as a feeder fund, which invests a minimum of 95 per cent of its net asset value (NAV) into the Luxembourg-registered FTIF – Templeton Global Balanced Fund.
The Fund will typically invest 65 per cent of its portfolio in equity and equity-linked securities and 35 per cent in fixed income securities.
The Fund provides investors in Malaysia with access to the combined investment expertise of two leading global equity and global fixed income investment teams, namely the Templeton Global Equity Group and the Templeton Global Macro.
The Target Fund has a long track record of over 20 years since inception on June 1, 1994 and an asset size of over US$1.2 billion.
The equity portion of the Fund is managed by Templeton Global Equity Group, which manages over US$120 billion in assets with 24 portfolio managers/analysts and 14 research analysts located in different markets worldwide.
The fixed income portion of the Fund is managed by the Templeton Global Macro, which is led by, CIO, Dr Michael Hasenstab.
The Templeton Global Macro manages over US$170 billion in assets, and the team’s unconstrained investment strategy involves evaluating fixed income instruments on three fronts – credit, curve and currency.
Sandeep Singh, country head of Malaysia and chief executive officer (CEO) of Malaysia for FTAM commented, “At the launch of this new Fund, I am pleased to welcome Hong Leong Bank as a distributor of our range of wholesale funds, including the Templeton Global Balanced Fund.
“With its extensive bank branches across Malaysia, our collaboration with Hong Leong Bank will allow investors to access established global investment funds, and in turn, enable Franklin Templeton to serve the needs of local investors.”
“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, Singh said 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,” noted Singh.
The Fund seeks to provide capital appreciation and income by investing in the Target Fund with the objective of investing principally in equity securities and government debt securities issued by entities throughout the world, including emerging markets.
The Templeton Global Balanced Fund is available for individual qualified investors in two currency classes, ringgit and US dollar.
The minimum initial investment for its Class A (ringgit) share class is RM10,000 and Class A (US dollar) share class is US$5,000.