National Investment Fund of Uzbekistan, Tashkent, has hired Templeton Global Investments, a division of asset manager Franklin Templeton, to oversee its $1.5 billion in assets, according to a news release.
The sovereign wealth fund currently holds minority stakes in 18 state-owned enterprises. The partnership with Franklin Templeton is seen as a significant step in Uzbekistan's ongoing economic reform program, which is focused on building stronger capabilities in key SOEs, attracting international investments, and strengthening its capital markets.
A key priority of the mandate will be to help list UzNIF on both the Tashkent Stock Exchange as well as a leading international stock exchange. In addition, Templeton Global Investments will work closely with the Government on value-enhancing strategic projects, focusing on increasing the effectiveness of the SOEs within the portfolio.
“Emerging markets are at the vanguard of an incredible period of growth and UzNIF represents a unique initiative which will showcase Uzbekistan on the global stage and provide international investors access to the attractive opportunities benefitting from the rapid modernization of the country’s economy,” said Manraj Sekhon, chief investment officer of Templeton Global Investments, in the news release.
UzNIF was established Aug. 27, following a decree by President Shavkat Mirziyoyev. It owns strategic stakes, ranging from 20% to 40%, in some of the country's most important SOEs.
UzNIF objectives include the implementation of Organization for Economic Cooperation and Development corporate governance standards, the transition to international financial reporting standards, and participation in the implementation of ESG standards in the organization’s investment assets.
Franklin Templeton reported record assets under management of $1.68 trillion as of Sept. 30.
