Franklin Templeton launches global convertibles fund

Franklin Templeton has launched a global convertible securities fund to be managed by Alan Muschott.

Structured as a Luxembourg-domiciled Sicav, the fund aims to maximize total return through both capital appreciation and income by investing primarily in the convertible securities of corporate issuers globally.

The fund, which launched on 24th February, may also invest in other securities, such as common or preferred stocks and non-convertible debt securities (including low-rated, non-investment grade securities and securities in default), across countries, industry sectors and market capitalizations.

Franklin Global Convertible Securities employs a similar strategy similar to the US-domiciled Franklin Convertible Securities fund, which launched in 1987.

Manager Muschott has been lead portfolio manager of the Franklin Convertible Securities fund since 2002.

The minimum investment in the fund is $5,000 or other currency equivalent.

Ian Wilkins, Franklin Templeton UK country head, says: “There are many international banks in London who need capital gains tax efficiency for clients whose reference currency is not sterling, so the fund perfectly fits the needs of the cross-border market.

“We routinely register Sicav sub funds for public sale in the UK, and also routinely apply for reporting funds status.”

He adds: “Our primary focus in the UK is currently RDR, and we are considering what share classes we need across the Oeic and Sicav umbrellas in that light.”