HONG KONG - Franklin Templeton is weighing expansion in Thailand, seeking to lure local investors of offshore products as the asset manager strengthens its Asia operations.
The US$1.5 trillion global investment manager is looking to distribute its fund products in the Southeast Asian country, though it does not have a specific time line, Asia-Pacific head Tariq Ahmad said during an interview in Hong Kong.
The company is growing its alternatives business among Asian high-net-worth individuals, and planning to hire more distribution staff in Hong Kong or Singapore. Franklin Templeton is among a raft of companies increasing alternative investments with funds under management reaching $255 billion for the asset class, according to its 2023 annual report. Its products include private credit, real estate and private equity.
The company currently has more than 200 staff on distributions across Asia, including China, where people are increasingly turning to offshore assets amid a domestic market downturn.
"Investors are looking at options," said Ahmad. "We are seeing flows coming out of China into global investments" through the company's multi-asset solutions, Singapore-based Ahmad said in a separate interview with Bloomberg TV.
Ahmad reiterated that Franklin Templeton is still positive on China's long-term growth, including in fixed income and equities. In November, the firm's Chief Executive Jenny Johnson said it was time to revisit "cheap" China assets despite issues about the property market and other problems. The company’s emerging markets team is interested in China again, she said.
The company continues to explore options with its China joint venture partner Sealand Securities Co and the companies are "in discussions," Ahmad said in the interview, when asked if Sealand would be open to selling. Any potential deal would extend Franklin Templeton’s buying spree after its acquisition of Boston-based Putnam Investments.
In Japan, there is an "opportunity in wealth" with the institutional market growing quickly, said Ahmad. The firm will sell offshore products including global fixed income and alternatives, he said.
Japan markets are in focus, with funds turning bullish on the yen and officials trying to boost its financial industry. In September, Prime Minister Fumio Kishida set out plans to attract more asset managers. The government also overhauled its tax-exempt retirement savings account, which is expected to help start a new wave of investing from younger generations.