Templeton takes on retail Australia

Californian-based funds management giant Franklin Templeton is seeking to take advantage of its overseas markets experience and knowledge to offer more offshore products to enhance the international component of investor portfolios.

The move comes as part of a bid to increase Franklin Templeton’s presence in the Australian retail investment space.

“Over the last two years when we’ve looked at Australia to assess the opportunities that exist in this market, what was interesting to note was that on one side, it’s a fairly mature market, but when you look at the global investing patterns of Australian investors you find it is still a very untapped market, because under 5 per cent of an average investor’s portfolio is invested overseas,” Franklin Templeton managing director, Asia, international retail sales Rajiv Vij said.

“That’s really where we believe we bring in a fair amount of expertise and global knowledge and can add value to a customer’s portfolio in Australia,” Vij added.

The US-based investment management firm, which has over US$45 billion in assets under management (AUM), has had a small operation in the domestic market for around 10 years, but to date it has been more heavily focused on the institutional side of the market.

During this time the fund manager has accumulated just over $1.5 billion AUM and currently offers a global equity fund and a global real estate investment trust fund.

However, Franklin Templeton wants to introduce new offerings into the local market that have already been developed as part of its operations in other regions of the world.

“We have a very wide and comprehensive range of products covering different styles and asset classes, such as global growth, value, fixed income, and emerging markets.

“It’s really a question of understanding the client needs in Australia as to which of those products will help people create a more suitable portfolio,” Vij said.