The entry of Franklin Templeton, the more the merrier

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Mar 31 2008
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Franklin Templeton Investments is probably one of the best global investment management organizations with over $650 billion in assets management. In a nut shell the organization can be segregated into three main management groups – Franklin Funds, Templeton Funds and Mutual Series Funds. Its coverage includes 54 offices across 6 continents – North America, Europe, Asia, South America, Africa and Australia.

Heck, if you’ve been in the investing world for a while you should know who Sir John Templeton is. Just like Warren Buffett, Templeton rejected the teaching of technical analysis and worship fundamental analysis and he made great number of billions as a stock investor, not to mention he’s a great philanthropist. The company was listed under the name Franklin Resources, Inc. (NYSE: BEN, stock).

Before Malaysia awards Franklin Templeton Investment a license to operate in the nation’s $53 billion asset-management market, the nearest office was in Singapore. Malaysia has awarded the same license to other four foreign fund managers namely Credit Agricole, Aberdeen Asset Management, BNP Paribas Asset Management and Nomura Asset Management. The listed company (Franklin) registered annual sales of $6.5 billion and annual income of $1.9 billion.

So, is this good news to the local stock market? Yes, if the company has already identified a substantial amount of money to be parked here immediately. No, if the company is just setting up the office while waiting for the right investment climate change for the better. There’s no commitment by these foreign fund managers to pour in “X” amount of dollars within “Y” time-frame. What they’re doing now is to secure a license and probably adopts a wait-and-see approach especially with the latest political landscape changes. Nevertheless it’s a recognition that there’re money to be made in Malaysia.

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Can these foreign fund managers introduce more funds to Malaysia fund investors?

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