Currently available as a sub-fund of Franklin Templeton Investment Funds (FTIF), a Luxembourg-registered Sicav, the firm said a UK-registered would launch shortly subject to FCA approval.
The fund will seek to generate a higher income yield than the benchmark by investing in a portfolio of Asia-related dividend yielding stocks.
Countries it will invest in include: Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Korea, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.
Mobius will follow an unconstrained approach, which puts an emphasis on stocks that offer either attractive dividend yields at the time of purchase of the prospect for attractive dividend yields in the future.
In April last year Franklin Templeton was given the green light for an Africa Fund to be run by Mobius, which was also a sub-fund of the Sicav. Then in March of this year a Shariah-compliant Asian Growth Fund was also given to the manager, who has 40 years’ experience in the Asian markets.
Mobius said: “Asia is still one of the fastest growing regions of the world. As an exporter, it benefits from increasing global demand but is also experiencing a growing domestic market. The growing middle class is demanding more consumer goods and is able and willing to pay higher prices.
“Dividend yields are an important source of income, as investors are finding it increasingly difficult to source meaningful yield in fixed income without higher specific risk. In Asia, the number companies paying dividends has increased which makes it a relatively attractive source of income.”
