Investment manager Franklin Templeton, which manages US$3 billion in assets under its Shariah portfolio, has debuted the Franklin Shariah Technology Fund, dubbed as the first of its kind in the UCITS [Undertakings for the Collective Investment in Transferable Securities] category.
Launched on the 24th February 2022, the fund aims to invest in a wide array of Shariah compliant technology-related equity companies and other Shariah compliant eligible assets globally while seeking to minimize investment risk exposure through diversification.
“This new fund brings a distinct investment strategy to the Shariah compliant space. Our investment process leverages a robust, proprietary screening system and fundamental bottom-up research to identify Shariah compliant technology companies that match our quality, valuation and growth potential criteria,” said Jonathan Curtis, the lead portfolio manager of the fund.
Among sectors of focus include fintech and digital payments, artificial intelligence, machine learning and data analytics, software-as-a-service and cloud computing, cyber security, digital customer engagement, internet of things and 5G, digital media transformation and the metaverse, future of work, as well as electrification and autonomy.
A sub-fund of the Luxembourg-domiciled Franklin Templeton Shariah Funds, the new technology fund pursues an actively managed investment strategy and invests mainly in Shariah compliant equity securities issued by technology companies globally.
The fund will also invest to a lesser extent in Shariah compliant debt securities of corporate issuers comprising Chinese A-Shares (equity securities of Chinese companies listed in mainland China) and China B-Shares (limited to 15% of assets).
In addition to typical risks linked to emerging markets, investments in China are subject to economic, political, tax and operational risks specific to the Chinese market.
Franklin has appointed Amanie International to monitor the Shariah compliance of its fund.
The opinions and viewpoints expressed in article do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.
| Table 1: Fund fact sheet | |
| Name of the fund | Franklin Shariah Technology Fund |
| Launch date | 24th February 2022 |
| Fund manager | Franklin Templeton |
| Fund category | Equity (Shariah compliant) |
| Fund domicile | Luxembourg |
| Targeted size | N/A |
| Investment objective | The fund aims to increase the value of its investments from Shariah compliant securities over the medium to long term. |
| Asset allocation | The fund will invest mainly in Shariah compliant equity securities issued by technology companies globally. |
| Geographical exposure | Global |
| Targeted yield | N/A |
| Investor type | All investors |
| Base currency | US dollar |
| Risk level | High risk |
| Benchmark | S&P Global 1200 Shariah Information Technology (Sector) Index |