Franklin Templeton eyeing expansion into Thailand’s offshore market
Franklin Templeton, an American multinational holding company with a portfolio worth US$1.5 trillion, is contemplating an expansion into Thailand to tap into the local market for offshore products. The Asia-Pacific head, Tariq Ahmad, revealed this in an interview in Hong Kong, however, he did not specify a timeline for the expansion.
The firm is also planning to bolster its alternative business among wealthy Asian investors and is considering hiring additional distribution staff in Singapore or Hong Kong. Franklin Templeton is part of an increasing number of companies that are bolstering their alternative investments. According to its 2023 annual report, the company has managed to accumulate US$255 billion under management for this particular asset class, which includes private equity, private credit, and real estate.
Currently, the company employs over 200 distribution staff across Asia, including China. Amid a slump in the domestic market, Chinese investors are increasingly exploring offshore assets. Investors are examining options, Tariq said, revealing that there has been an increase in capital outflows from China into global investments via the company’s multi-asset solutions.
Despite the current market downturn, Tariq expressed Franklin Templeton’s long-term positivity about China’s growth potential, particularly in fixed income and equities. This sentiment was echoed by the firm’s Chief Executive, Jenny Johnson, who in November suggested the time was ripe to re-examine cheap China assets, despite concerns surrounding the property market and other challenges.
Franklin Templeton is also discussing future strategies with its Chinese joint venture partner, Sealand Securities Co. Tariq did not confirm if Sealand was open to selling but a potential deal could further extend Franklin Templeton’s acquisition streak, following its recent purchase of Boston-based Putnam Investments.
In Japan, Tariq acknowledged the rapidly growing institutional market and the opportunity for wealth. The firm plans to sell offshore products, including global fixed-income and alternatives. This comes as Japan’s financial industry is receiving a boost, with fund managers showing increased bullishness on the yen.
In September, Prime Minister Fumio Kishida announced plans to attract more asset managers, and the government has revamped its tax-exempt retirement savings account, which is anticipated to stimulate further investment from younger generations, reported Bangkok Post.
