Franklin Templeton launches UAE funds to attract retail investors

Image credit: Natalie Naccache/ Getty Images

Global investment management firm Franklin Templeton said on Monday that it is launching seven feeder funds in the UAE targeted at retail investors through its two Dubai International Financial Centre–domiciled fund ranges: Franklin Templeton Investments Feeder Funds and Franklin Templeton Shariah Feeder Funds.

“The UAE’s changing regulatory landscape offers Franklin Templeton a compelling opportunity to better serve our clients,” said Jaspal Sagger, head of Global Product Strategy at Franklin Templeton.

“With these new funds, UAE retail investors can benefit from one of the firm’s key competitive advantages: access to a robust global platform combined with its deep knowledge and expertise in the local market.”

UAE retail investors can access the feeder funds exclusively by investing in Franklin Templeton’s Luxembourg and Ireland-domiciled UCIT funds.

The feeder funds will be distributed in the UAE by locally licenced promoters, including onshore conventional and Shariah-compliant consumer banks.

Franklin Templeton said the promoters will offer access to a range of asset classes, sectors and geographies, including global and regional fixed income, technology and Shariah-compliant strategies.

Meanwhile, the UAE markets regulator, the Securities and Commodities Authority, recently said foreign funds can no longer be promoted to retail investors within the country.

The regulation was issued to boost the country’s asset management industry and align its practices to other GCC countries like Saudi Arabia.

Franklin Templeton joins other asset managers, including Allianz Global Investors, in aligning its product offerings with new regulations in the UAE.

Read: Franklin Templeton opens in Saudi Arabia with key hires to tap deals