The Hindu : Templeton MF to launch Intl. Fund

Online edition of India's National Newspaper
Wednesday, Nov 27, 2002

Business

Business

Templeton MF to launch Intl. Fund

By Our Special Correspondent

CHENNAI NOV. 27. Even as it is readying to launch the open-ended Franklin India International Fund (FINTF) to provide Indian investors a window to park their savings in foreign currency assets, Templeton Mutual Fund, promoted by Franklin Templeton Investments Inc. of the U.S., is contemplating a slew of initiatives to bridge the gap in product offerings.

Giving a broad hint to this effect at a press conference here today, Suraj Kaeley, Senior Vice-President (Sales and Marketing), Templeton Asset Management India Pvt. Ltd., said opportunities were abound in the Indian market and indicated that Templeton Mutual Fund would come out with newer products sooner than later. In this context, he cited the potential for portfolio management service, dynamic fund and high-yielding equity fund.

Mr. Kaeley said he was hopeful that the proposed Franklin India International Fund would garner around Rs. 150 crores. The open-ended fund will open for subscription on December 2 and close on December 12. The ongoing sales and redemption of units will begin from January 13.

Ravi Mehrotra, Director and Chief Investment Officer (Equity), Franklin Templeton Investments, said the Franklin India International Fund `is the first of our series of initiatives over the next 2-3 years to facilitate investment of domestic savings into foreign currency assets". Indian investors hitherto were in a position to diversify their portfolio risks across asset classes. Since their investments were in rupee, they were exposed to currency risk. The Franklin India International Fund, Mr. Mehrotra, said would help investors diversify their portfolio across currencies and minimise in the process country risk as well.

The fund will invest in units of Franklin U.S. Government Fund (U.S. Fund), which manages $2.5billion of assets. The U.S. Fund invests primarily in securities backed by the U.S. Government.

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