Franklin Templeton Investments to make its mark in the global Shariah compliant fund industry (By IFN)

Franklin Templeton Investments to make its mark in the global Shariah compliant fund industry

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GLOBAL: US-based investment powerhouse Franklin Templeton Investments is making its global foray into Islamic investing with the launch of two Shariah compliant equity funds and a Sukuk fund catered to retail investors. At the helm of the Shariah Asian Growth Fund is Mark Mobius, executive chairman of the Templeton Emerging Market Groups. “I think (the potential for) Sukuk will be enormous and the Asia fund should be hundreds of millions of dollars — I'd be disappointed if we don't get that kind of money," said Mobius at a press conference in Dubai. Mobius has long been known to be a keen supporter of Islamic investments in emerging markets, inclusive of Asia. In a 2011 interview with Islamic Finance Asia, now Islamic Finance news Supplements, Mobius said: “We believe there is incredible opportunity in frontier markets as our investments in the Middle East have been increasing dramatically, because the amount of money coming into frontier market funds is increasing very rapidly.” The Shariah Asian Growth Fund will have an initial capital of US$5 million, and will invest in oil and petroleum companies as well as consumer sector firms; including banks. The firm’s two other Shariah compliant funds are the Shariah Global Equity Fund, also with a seed capital of US$5 million and the Global Sukuk Fund, worth US$20 billion. Mohieddine Kronfol, chief investment officer of Middle East and North Africa for fixed income and global Sukuk will head up the Global Sukuk Fund, while Islamic consultancy Amanie Advisors has been mandated as advisor to all three funds.