Franklin Templeton Investments launches new Middle East and North Africa fund

The Fund will invest in companies across the Middle East and North Africa region, as well as companies positioned to benefit from growth in these economies. Algebra Capital Limited, a leading Dubai based asset manager, has been mandated as the Investment Advisor to the Franklin MENA Fund.

The objective of the Fund is long-term capital appreciation by investing primarily in equity and fixed income securities of companies located in, but not limited to the Kingdom of Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain, Oman, Egypt, Jordan, Morocco, and in companies expected to benefit from developments in the economies of these regions. Using a blend of growth and value investment styles, the Fund will be diversified across all market capitalization ranges.

"The launch of the Franklin MENA Fund aimed at Canadian investors signifies that despite the recent global market turmoil and perhaps as a result of it, investors continue to view the MENA region as an attractive investment destination," says Ziad Makkawi, Founder & CEO, Algebra Capital.

"The launch of this Fund further strengthens Algebra's strategic relationship with Franklin Templeton Investments in the region," continues Makkawi.

"The MENA region is expected to grow at a strong pace in the coming years due to the rise in massive infrastructure spending and the emergence of business sectors, such as logistics, banking, construction, petrochemicals and fertilizers," said Joe Kawkabani, head of equity asset management, Algebra Capital.

"Even if crude oil sinks below $50 per barrel, this should not deter government spending on roads, hospitals and schools. We expect that companies across the region stand to gain from this growth," adds Kawkabani.

The new fund will be managed by Franklin Templeton Investments Corp., with Dubai-based asset manager Algebra Capital acting as sub-advisor. Franklin Templeton Investments acquired a 25% stake in Algebra Capital in August 2007.

"Algebra Capital has one of the most experienced equity investment teams in the MENA region. They have on-the-ground presence, conduct regular onsite company visits, speak the local language and understand the culture,"

said Don Reed, president and chief executive officer, Franklin Templeton Investments Corp.

"The new MENA fund will provide investors with access to markets that they do not currently hold in their portfolio and provide further diversification," he added.