Franklin Templeton is offering an Africa fund run by star emerging markets manager Mark Mobius.
The offshore Templeton Africa fund has had verbal approval from Luxemburg regulator the CSSF. It will be launched as a sub-fund of its Luxemburg-registered Sicav.
The fund will aim for long-term capital growth by investing in African-listed equities or companies based elsewhere but with principal business activities in Africa. Details of the charges are not yet available.
Templeton Emerging Markets Group executive chairman Mobius 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 as well as emerging markets’ rising demand for the continent’s resources, all of which offers a compelling proposition to global investors.”
Hargreaves Lansdown senior analyst Meera Patel says: “Africa funds can offer good diversification in terms of emerging market exposure for investors. However, it is a specialist product and so will not be suitable for every retail investor.”