Global investment management firm Franklin Templeton announced on Monday that it is launching seven feeder funds in the UAE aimed at retail investors through its two Dubai International Financial Centre–based fund ranges: Franklin Templeton Investments Feeder Funds and Franklin Templeton Shariah Feeder Funds.
“The evolving regulatory environment in the UAE presents Franklin Templeton with an excellent opportunity to better serve our clients,” stated Jaspal Sagger, head of Global Product Strategy at Franklin Templeton.
“These new funds allow UAE retail investors to leverage one of the firm’s key advantages: access to a strong global platform combined with our extensive knowledge and expertise in the local market.”
UAE retail investors can only access the feeder funds by investing in Franklin Templeton’s UCIT funds domiciled in Luxembourg and Ireland.
The feeder funds will be distributed in the UAE by locally licensed promoters, including both conventional and Shariah-compliant consumer banks.
Franklin Templeton noted that these promoters will provide access to a variety of asset classes, sectors, and regions, including global and regional fixed income, technology, and Shariah-compliant strategies.
In the meantime, the UAE markets regulator, the Securities and Commodities Authority, recently announced that foreign funds can no longer be promoted to retail investors within the country.
This regulation aims to enhance the country’s asset management industry and align its practices with those of other GCC nations such as Saudi Arabia.
Franklin Templeton is joining other asset managers, including Allianz Global Investors, in adapting its product offerings to the new regulations in the UAE.
