Franklin Templeton Investments has made its emerging markets smaller companies fund, a Luxembourg-registered SICAV with a sterling-denominated share class, available to UK investors. The actively managed fund aims to deliver long-term capital growth by investing mainly in smaller companies located in emerging market countries or companies that derive significant revenue or profits from emerging market countries. Smaller companies are defined as having a market cap of $1 billion or less at the time of purchase. The Franklin Templeton emerging markets team currently manages approximately £4 billion ($8.3 billion) in the asset class through its global funds. The fund will be managed by Dr Mark Mobius, executive chairman of Templeton Asset Management. He said: “We believe this greatly untapped asset class provides a substantial opportunity for us to apply our vast global research capabilities. In fact, we are seeing tremendous possibilities to invest in small-cap companies at some very attractive prices in all emerging market regions - Eastern Europe, Africa and Central and South America, as well as the Asia Pacific region. Many of those emerging markets have robust GDP growth, trade surpluses, high foreign reserves, low inflation, strong investment and domestic demand – an environment where well-run small-cap companies can flourish."