`Total Templeton India Exposure To Grow'
Templeton Asset Management (India), which currently has an exposure of $800 million at the Indian capital markets, will, notwithstanding the prevailing volatility, continue with its 'bottoms-up' philosophy of investment.
The AMC, which has been active at the markets this week, will focus on at least 200 Indian corporates listed on the stock exchanges, without specific sectors in mind.
Franklin Templeton chairman and director Charles B Johnson, who is currently in the country, said local markets continue to show attractive valuations at these levels. "Emotions could, however, pull the markets lower at this stage. We would not predict the markets..but Templeton analysts have found value in certain commodity-based stocks. We are confident of the economy's long term growth and are also hopeful that necessary changes will be made in laws relating to the securities markets,'' he said.
Johnson's visit coincided with the Templeton AMC launching its third product, the Templeton India Liquid Fund. This open-ended fund will invest in money market securities like treasury bills, commercial paper of PSUs and inter back call and term money. The fund offers strong liquidity, with selling and redemption of units on a continuous basis from the second day of the opening of the scheme.
Templeton officials said that none of its emerging market India funds would face redemption pressures in the coming months. Officials said that the Asian crisis had in fact provided a good opportunity to buy value stocks across some Asian markets.
Templeton India AMC president & ceo Vijay Advani said despite the volatility at the markets, Templeton's total exposure to India would continue to grow in coming years. "Theoretically it would, as long as we find value,'' Advani said. He reiterated that Templeton's philosophy would remain an early entry and exit at the markets. The Franklin Templeton group, amongst the largest of its type, manages assets worth $243 billion worldwide. The Templeton emerging markets fund currently has an exposure of 2.3 per cent for the Indian markets, managing $550 million out of the total emerging markets funds of $14 billion.
Templeton officials held a meeting with the Securities and Exchange Board of India chairman D R Mehta(SEBI) later during the day. The AMC's other two schemes are the Templeton India Growth Fund, with a 3-5 year investment focus and the Templeton India Income fund, which is a debt fund. Assets under management in this scheme stand at Rs 91.9 crore.