Franklin Templeton Asset Management has begun its role as Fund Manager and Trustee of the newly created National Investment Fund of the Republic of Uzbekistan (UzNIF), aiming to drive economic reform, improve the performance of state-owned enterprises (SOEs), and attract international capital to Uzbekistan.
The announcement follows a presidential decree signed on August 27, 2024, which established UzNIF as a joint-stock company fully owned by the Government of Uzbekistan. With an initial net asset value of $1.68bn, the Fund holds minority stakes of 20% to 40% in 18 major SOEs, spanning strategic sectors of the Uzbek economy.
As part of its strategic objectives, UzNIF plans to list on both the Tashkent Stock Exchange and a leading international stock exchange, increasing transparency and global investor engagement.
“We are honoured to be entrusted with the management of the UzNIF,” said Manraj Sekhon, Chief Investment Officer at Templeton Global Investments. “This partnership with the Ministry of Economy and Finance marks a key milestone in supporting Uzbekistan’s reform agenda and long-term growth.”
To demonstrate its commitment, Franklin Templeton opened a new office in Tashkent this month, housing experts in investment, compliance, legal, and investor relations. The local team will operate within the broader Templeton Global Investments network, which includes over 100 investment professionals across 17 countries.
Marius Dan, CEO for Central Asia at Templeton Global Investments and newly appointed General Director of the local entity, emphasized the importance of building local capacity:
“We are confident that our expertise, global reach, and partnership with the Government will allow us to deliver long-term value through UzNIF. To support the Fund’s operations and deepen its local engagement, Franklin Templeton has formally opened an office in Tashkent with key positions in investment management, legal, compliance, operations, investor relations and administration. The local investment team will be part of and supported by Templeton Global Investments’ wider team, which includes over 100 investment professionals located across 17 countries.”
Franklin Templeton brings extensive experience managing strategic funds in frontier and emerging markets, including the Fondul Proprietatea in Romania, which focused on privatization and capital market growth and once reached a market capitalization of over $3bn.
The next phase for UzNIF will involve preparing SOEs for public offerings and conducting international roadshows to attract global institutional investors. The overarching goal is to ensure sustainable growth, enhance governance, and create value for the people of Uzbekistan.
