Franklin Templeton has launched an African fund for star emerging markets manager Mark Mobius.
The offshore Templeton Africa fund has received verbal approval from the Luxembourg regulator, the CSSF.
The fund will aim for long-term capital growth by investing in African-listed equities or companies based elsewhere but with principal business activies in Africa.
Mark Mobius, executive chairman of the Templeton Emerging Markets Group and lead portfolio manager of the fund, says: “We believe that Africa’s markets present significant opportunities for development due to a combination of strong economic growth, rising demand for the region’s vast natural resources, and a growing consumer market.
“Africa is expected to grow more than 7 per cent annually in the next 20 years, due to an improving investment environment, better economic management and developed as well as emerging markets rising demand for the continent’s resources, all of which offers a compelling proposition to global investors.”
Franklin Templeton UK country head Ian Wilkins says: “UK retail and institutional investors are showing considerable appetite for frontier markets as they look to access the fastest-growing economies in the world.”
The fund will be lauched as a sub-fund of its Luxembourg-registered Sicav. No details of minimum investment or charges were available at the time of writing.