Franklin Templeton has launched the Franklin Sealand China A-shares fund as a registered scheme for sale in Singapore.
The new fund will invest primarily in China A-shares and equity securities of mainland Chinese companies listed on the local bourse, as part of its objective of long-term capital appreciation.
Examples of investments it will make include China A-shares available through the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, the Qualified Foreign Investor channel, Undertakings for Collective Investment and/or any permissible means available to the fund under prevailing laws and regulations, Franklin Templeton announced on 28 June.
It added that the fund may also invest up to 20% of its portfolio in equity securities of Chinese companies listed on the Hong Kong Stock Exchange (including H-shares, red-chips and p-chips).
The fund’s portfolio will consist of around 35 to 55 stocks across industries, sectors and market capitalisation. Its focus will be on mid and large-cap stocks, with the fund’s top 10 holdings expected to account for around 45% to 55% of its portfolio.
The new Franklin Sealand China A-Shares Fund is a sub-fund of the Luxembourg-domiciled Franklin Templeton Investment Funds range. It will be managed by Franklin Templeton’s Shanghai-based joint venture partner, Franklin Templeton Sealand Fund Management.