InvestmentsMay 24 2013

Mark Mobius Frontier Markets funds to stem inflows

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ByEleanor Lawrie

Mark Mobius’s Templeton Frontier Markets funds will close to new investment next month after a recent swell in assets.

The group said yesterday on its website that it was closing its $1.8bn (£1.2bn) Luxembourg-based version of the Frontier Markets fund as well as the $1.1bn US version as well as the Canadian strategies.

“The decision to soft close the Templeton Frontier Markets funds follows a recent surge in flows into those dedicated strategies,” a spokesperson from Franklin Templeton said.

“While the Templeton Emerging Markets group does not see any capacity issues within the frontier markets universe, the soft close is a way to best manage the flows coming in to the dedicated frontier market portfolios.”

The company said it “remains optimistic on the long term growth trajectory of the frontier market asset class”.

Effective at the close of market June 28, 2013, the Templeton Frontier Markets funds will be closed to new investors. Existing shareholders may continue to add money to their accounts.

The Luxembourg-domiciled version of the fund has delivered 109.2 per cent in the past five years compared to the 6.7 per cent return by the benchmark MSCI Frontier Markets index, according to FE Analytics.