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Franklin launches global convertible fund

Franklin Templeton has launched a global convertible securities fund to be run by portfolio manager Alan Muschott.

Structured as a Luxemburg-domiciled Sicav, the fund aims to maximise total return through capital appreciation and income by investing primarily in the convertible securities of corporate issuers globally.

The fund, launched on February 24, may also invest in other securities, such as common or preferred stocks and non-convertible debt securities.
Minimum investment in the fund is £3,154.

The Franklin global convertible securities fund employs a similar strategy to the US-domiciled £695m Franklin convertible securities fund, which launched in 1987.
Manager Muschott has been lead portfolio manager of the Franklin convertible securities fund since 2002.

Franklin Templeton UK country head Ian Wilkins says: “There are many international banks in London that need capital gains tax efficiency for clients whose reference currency is not sterling, so the fund fits the needs of the cross-border market.

“We routinely register Sicav sub-funds for public sale in the UK and also routinely apply for reporting funds status.”

Equilibrium Asset Management investment manager Mike Deverell says: “Asset managers are pushing convertibles and the returns are quite high. It may seem to some investors that they are just fixed-interest funds but the bonds convert to equity and are suitable only for sophisticated investors.”

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