Franklin Templeton has launched a Brazilian multi-asset fund in order to capitalise on attractive equity, fixed income and currency prospects in the Latin American country.
The Franklin Brazil Opportunities fund will be run by the company’s international CIO Stephen Dover, which he will co-manage alongside Sao Paulo-based duo Marco Freire and Frederico Sampaio, who form a core part of the company’s Brazilian asset management business.
The Luxembourg-domiciled fund will be run with a top-down economic and sector analysis combined with bottom-up stock research.
Franklin Templeton said the timing of the fund launch coincided with a strong period of growth in domestic consumption and infrastructure-related names in the equity market, as well as a period of attractive yields in Brazilian government debt.
Commenting on the fund launch, Stephen Dover said: ‘The Franklin Brazil Opportunities fund, we believe, offers investors a new approach to investing in Brazil, providing a flexible multi-asset class strategy that seeks high, sustainable returns and minimal volatility in all market environments.’
‘The fund also seeks to generate a large portion of its total return from income – an important feature in a world that is increasingly hungry for yield and low correlations to traditional asset classes.’
Dover, who will oversee the fund's management from the firm's headquarters in San Mateo, California, currently runs four emerging market portfolios. These are the Franklin India, Franklin Asian Flex Cap, Franklin MENA and Franklin World Perspectives fund.
Meanwhile, Freire, CIO for fixed income in Brazil, is co-manager alongside Michael Hasenstab and Laura Burakreis on the $6.3 billion Templeton Emerging Markets Bond fund. Sampaio is Franklin Templeton’s CIO for equities in Brazil.
The fund launch follows hot-on-the-heels of Franklin Templeton launching another co-managed fund last week, which brought together some of its largest high yield bond managers to oversee the launch of the Franklin Global High Income fund.