Matthew Harrison: The expansion of our shariah fund range reflects growing demand from institutional and wholesale clients
Franklin Templeton has launched two additional funds in its Shariah range in response to rising demand from European investors for Shariah-compliant investment solutions.
The asset management firm – which has over 35 years of experience investing in Islamic markets – said the FTSF Franklin Global Sukuk Ultra Short Duration Fund launched on 23 April, while the FTSF Franklin Shariah Systematic Global Equity Fund was expected to be available to investors this month.
The move expands the asset management firm's Luxembourg-domiciled Franklin Templeton Shariah Funds (FTSF) offering across liquidity, fixed income, and global equities.
Franklin Templeton head of EMEA and Americas ex-US Matthew Harrison said: "Franklin Templeton is well recognised for its Sukuk capabilities. As one of the few global Shariah-compliant asset managers, we have investment professionals based in key Sukuk issuance hubs, including Kuala Lumpur, Dubai and Riyadh, supported a global network of more than 200 investment, trading and risk professionals.
"The expansion of our shariah fund range reflects growing demand from institutional and wholesale clients for high quality Shariah compliant investment solutions."
Franklin Templeton ‘s Shariah-compliant strategies are supported by a rigorous governance framework, including independent oversight from the Amanie Shariah Supervisory Board, as well as advanced screening technology and integrated risk management processes.
The FTSF Franklin Global Sukuk Ultra Short Duration Fund is designed to provide capital preservation and liquidity, while seeking to maximise total returns and income.
The fund invests in a highly liquid portfolio of short-dated sukuk, supranational instruments and Shariah-compliant deposits, with a focus on capital stability and income preservation.
Franklin Templeton said the strategy is designed to meet the increasing demand for Shariah-compliant liquidity solutions among institutional investors, wealth managers and workplace pension schemes.
The duration fund is managed by a team of portfolio managers including chief investment officer for global sukuk Mohieddine (Dino) Kronfol; head of Middle East fixed income and portfolio manager Amit Jain; and portfolio manager Hardeep Dogra.
The FTSF Franklin Shariah Systematic Global Equity Fund aims to deliver long term capital appreciation through a highly liquid, actively managed global equity strategy, consistent with Shariah principles.
This fund employs a multi-factor quantitative model to identify securities with favourable exposure to factors such as quality, value, sentiment and alternative data signals.
The investment universe is screened to ensure compliance with Shariah principles, including exclusions and financial ratio filters aligned with Islamic investing standards.
The fund will be managed by portfolio manager Chris Floyd; and head of quantitative equity portfolio management Brett Risser.
