Templeton Global Investments, a leading investment manager under Franklin Templeton, has been appointed as the Trustee and Manager of the National Investment Fund of Uzbekistan (UzNIF). This appointment follows the signing of an Investment Management Agreement (IMA) with the Ministry of Economy and Finance of Uzbekistan, marking a step in the country’s economic reform program.
Under the agreement, Franklin Templeton Asset Management Foreign Enterprise Limited Liability Company, a subsidiary of Franklin Resources Inc., will manage UzNIF, which is expected to oversee minority stakes in 18 state-owned enterprises (SOEs) in Uzbekistan. These SOEs are valued at approximately $1.5bn, according to Templeton Global Investments.
This strategic partnership is aimed at strengthening Uzbekistan's economy by modernizing key SOEs, enhancing capital markets, and attracting international investments. Manraj Sekhon, Chief Investment Officer of Templeton Global Investments, emphasized the importance of the initiative, noting that it will not only showcase Uzbekistan's economic transformation but also provide global investors with access to attractive opportunities resulting from the country’s rapid modernization.
Sekhon added, “Emerging markets are at the forefront of incredible growth, and UzNIF represents a unique initiative that will demonstrate Uzbekistan’s economic progress and open the door for international investors.”
The creation of UzNIF, established through a Presidential Decree in August 2024, will involve strategic stakes ranging from 20% to 40% in some of Uzbekistan's key SOEs. Initially, the Government of Uzbekistan will retain full ownership of UzNIF. A key priority will be to list the fund on both the Tashkent Stock Exchange (TSE) and an international stock exchange, enhancing its global profile.
Marius Dan, Director of Market Development Strategies at Templeton Global Investments, also shared that the firm’s deep expertise in emerging markets and its global network of professionals will play a key role in managing the fund’s portfolio and attracting institutional investors. The firm plans to open an office in Tashkent later this year to build a strong local team to support the fund's operations.
The partnership between Templeton Global Investments and the Ministry of Economy and Finance aims to accelerate the transformation of Uzbekistan’s SOEs, focusing on increasing their efficiency and profitability. The fund’s launch is scheduled for April 2025, with the goal of supporting long-term sustainable economic growth for the benefit of Uzbekistan’s citizens.
Templeton Global Investments brings decades of experience in managing emerging market funds, having successfully managed similar mandates, such as Fondul Proprietatea, a Romanian fund listed in London and Bucharest. With over $70bn in assets under management, Templeton is well-positioned to lead UzNIF in its role as a key player in Uzbekistan's economic future.
Franklin Templeton was established by Franklin Templeton Capital Holdings Private Limited in Singapore. It operates as a subsidiary of Franklin Templeton Investments, Inc., a global leader in asset management founded in the United States in 1947. Today, Franklin Templeton manages assets in over 30 countries worldwide.
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