Franklin Templeton launches the National Investment Fund of the Republic of Uzbekistan

• UzNIF’s objective is to drive greater economic growth, international investment and capital market development in Uzbekistan
• Trustee and Fund Manager of the $1.68 billion fund opens new office in Tashkent

Tashkent, Uzbekistan, 1 May 2025 – Franklin Templeton Asset Management Foreign Enterprise Limited Liability Company, a subsidiary of Franklin Templeton¹, is pleased to announce the commencement of its appointment as Fund Manager and Trustee of the National Investment Fund of the Republic of Uzbekistan (“UzNIF”, or “the Fund”).

The Fund’s objectives are to promote economic growth and attract international investors by focusing on improving the efficiency, profitability and governance of the State-Owned Enterprises (“SOEs”) within the portfolio. In addition, a key priority for the mandate will be to list UzNIF on both the Tashkent Stock Exchange (“TSE”) and a leading international stock exchange.

UzNIF was established as a joint-stock company through the Decree of the President of the Republic of Uzbekistan on 27 August 2024. The Fund owns minority stakes ranging from 20% to 40% in 18 of the country's key SOEs, with an initial net asset value of US$ 1.68 billion2. The Government of Uzbekistan holds 100% ownership of UzNIF.

Manraj Sekhon, Chief Investment Officer of Templeton Global Investments (“TGI”), commented:

"We are honoured to be entrusted with the management of the UzNIF. The formal commencement of our partnership with the Ministry of Economy and Finance marks a significant milestone in our commitment to drive long-term economic growth in Uzbekistan and support the country’s reform agenda; one that promises lasting growth and prosperity for the nation. We recognise the responsibility that comes with managing a portfolio of SOEs carries both significant economic value and social importance. These are key national assets that Franklin Templeton will steward with care, diligence and strategic vision.”

Franklin Templeton has opened a new office in Tashkent this month, demonstrating its long-term commitment to Uzbekistan, its reform program and the development of the local capital markets.

Mr. Sekhon added: “Franklin Templeton brings decades of experience managing similar funds in emerging and frontier markets. 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.”

In addition to his role as CEO, Central Asia at Templeton Global Investments, Marius Dan has been appointed General Director, Franklin Templeton Asset Management Foreign Enterprise Limited Liability Company. He said: "We are delighted to establish our footprint in Tashkent. Building a strong local team is essential to unlocking UzNIF’s full potential. Franklin Templeton is excited about the opportunity to channel global capital into Uzbekistan and showcase the country’s successful growth story to investors worldwide. We think investors will be very interested in the attractive and diversified investment access that UzNIF will have to offer on the world stage."

Franklin Templeton has a proven track record in managing strategic investment mandates in frontier and emerging markets. Notably, it has led the management of Fondul Proprietatea – a Bucharest and London-listed fund focused on Romania’s privatisation and capital market development – which reached a market capitalisation of over US $3 billion 3 at its peak.

The next phase of the UzNIF’s development will focus on preparing for initial public offerings and engaging international investors through roadshows and targeted outreach, with the goal of ensuring long-term, sustainable growth for the benefit of the people of Uzbekistan.

For more information, please visit our website http://www.uznif.com

-ENDS-

Contacts:

Hudson Sandler Charlie Jack, Oliver Aplin, Francis Kerrigan Tel: +44 20 7796 4133 Email: [email protected]

Elena Birjovanu Senior Corporate Communications Manager Franklin Templeton Tel: + 40 725 301 189 Email: [email protected]

Notes to Editors: About Franklin Templeton

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialisation on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over US $1.6 trillion in assets under management as of 31 December 2024. For more information, please visit www.franklinresources.com
2. Source: As of April 2025, based on independent valuation reports performed by KPMG and Deloitte, which is based on the stakes in the 18 companies that should be transferred to the UzNIF.
3. Source: Franklin Templeton. Total shareholder return of 632.4% in US $ terms and 983.2% in local currency since the listing on 25 January 2011 until 31 March 2024. The Net Asset Value of the Fund as of 30 June 2023, pre-Hidroelectrica IPO, was US $ 2.84 billion. Franklin Templeton distributed over US $ 7.0 billion via dividends and share buybacks to the shareholders of Fondul Proprietatea.

 

About UzNIF

UzNIF was established as a joint-stock company through the Decree of the President of the Republic of Uzbekistan on 27 August 2024.

Franklin Templeton Asset Management Foreign Enterprise Limited Liability Company, a wholly-owned indirect subsidiary of Franklin Resources Inc, based in Tashkent, Uzbekistan, has been appointed as Trustee of UzNIF, following the signing of an Investment Management Agreement (IMA) on 26 January 2025 with the Ministry of Economy and Finance of Uzbekistan. The Fund became fully operational on 1 May 2025.

UzNIF owns strategic stakes ranging from 20% to 40%, in some of the country's most important SOEs. The initial UzNIF portfolio comprises minority stakes in the following 18 SOEs.:

1. Joint Stock "Navoiazot"
2. Joint Stock "Regional Electric Grids"
3. Joint Stock "Thermal Power Plants"
4. Joint Stock "Uzbekistan Airports"
5. Joint Stock Commercial "People’s Bank"
6. Joint Stock "Uzbekhydroenergo"
7. Joint Stock Commercial Bank "Microcreditbank"
8. Joint Stock "Uzbektelecom"
9. Joint Stock Commercial Bank "Business Development Bank"
10. Joint Stock "Uzbekistan Airways"
11. Joint Stock "Temiryulinfratuzilma"
12. Joint Stock "Khududgaztaminot"
13. Joint Stock "Toshshahartranskhizmat"
14. Joint Stock "Uzbekistan Post"
15. Joint Stock "Uzbekistan National Electric Grids"
16. Joint Stock "Uzbekistan Republican Commodity and Raw Materials Exchange"
17. Joint Stock "Uzbekinvest"
18. Joint Stock "Uzsuvtaminot"

This document is intended to be of general interest only and does not constitute professional advice. Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this document. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

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