AI and fintech will be key investment areas for Franklin Shariah Technology Fund
Dubai: Mix Sharia-linked investments with high-tech? The US fund manager Franklin Templeton believes it can, launching its first Sharia-based technology fund. Holdings for the newly launched fund will become public next month, and will spread tech businesses in AI and ‘new commerce, as well as digital media transformation and the metaverse.
Fintech and digital payment entities will also be part of the fund’s coverage. “Companies must initially pass a business activities screen and an interest income screen, which limits income from prohibited activities to 5 per cent or less,” said Jonathan Curtis, Lead Portfolio Manager for the Franklin Shariah Technology Fund.
In the tech space, the Sharia-prohibited activities include the production/distribution of music, the production/distribution/screening of movies and television shows, defense and weapons manufacturers, and owning/operating casino and gaming facilities. Even with these off-limit activities, “Our investment universe consists of approximately 1,000 technology-related listed securities across the market capitalization spectrum,” said Curtis.
“We anticipate that the fund’s largest exposure will be within the large cap segment of the market followed by the mid-cap segment. By investing across the spectrum, we aim to provide investors access to a diverse range of companies across technology and related sectors with compelling long-term...
Read Full Story: https://gulfnews.com/business/us-fund-manager-franklin-templeton-launches-its-first-sharia-fund-focused-on-tech-1.86003588
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