The fund will be managed by Alan Muschott who has been lead portfolio manager of the Franklin Convertible Securities Fund, a US version of Franklin Global Convertible Securities Fund, since 2002. The Sicav will follow a similar strategy to Muschott’s existing proposition.
A spokesman for Franklin Templeton confirmed the launch is the first Sicav currently available in its own range that invests primarily in convertible securities globally rather than the first of its kind in the market.
It will seek to maximise total return through capital appreciation and income generation under varying market conditions. Muschott, who joined the company in 1998, will invest primarily in convertible securities, including low-rated, non-investment grade securities and/or securities in default, of corporate issuers globally.
He will run this fund alongside his current responsibilities as manager of various Franklin and Franklin Templeton-branded funds that are currently available to US investors only.
While there is not yet a sterling share class available for the new convertibles fund, Ian Wilkins, Franklin Templeton’s UK country head, said: “We routinely register Sicav sub funds for public sale in the UK, and also routinely apply for reporting funds status.
“There are many international banks in London who need capital gains tax efficiency for clients whose reference currency is not sterling, so the fund perfectly fits the needs of the cross-border market. Our primary focus in the UK is currently RDR, and we are considering what share classes we need across the Oeic and Sicav umbrellas in that light."
Franklin Templeton Investments has a global presence helped by 12 local asset management groups based in and investing in their local markets.
