The company said it has received “verbal approval” from the CSSF to launch the Templeton Africa Fund, a sub-fund of its Luxembourg-registered Sicav range, Franklin Templeton Investment Funds. Investors will be able to access the fund, which will initially offer only a sterling share class, from May 2012.
“We believe that Africa’s markets present significant opportunities for development due to a combination of strong economic growth, rising demand for the region’s vast natural resources, and a growing consumer market,” said Mobius, executive chairman, Templeton Emerging Markets Group and lead portfolio manager of the new fund.
“Africa is expected to grow more than 7% annually in the next 20 years, due to an improving investment environment, better economic management and developed as well as emerging markets rising demand for the continent’s resources, all of which offers a compelling proposition to global investors.”
Templeton said it believes that Africa is ideally positioned, not only for the strong growth rates the continent offers but also for its wealth of natural resources and the impact of a rising emerging middle class.
Mobius added: “Africa has impressive stores of resources, not only in minerals but also in agriculture — 60% of the world’s uncultivated arable land is found in Africa. 4 As global demand for hard and soft commodities continues to grow, we believe Africa is in an enviable position with its vast natural resources.”
