Bloomberg News

Franklin’s Kim Says ‘No Plan to Reduce Korean Debt Holding’

September 28, 2011

Sept. 28 (Bloomberg) -- Franklin Resource Inc. has no plan to cut Korean debt holdings in its flagship bond fund, said Kim Dong Il, who oversees 7 trillion won ($6 billion) of global debt as chief investment officer for fixed income at Franklin Templeton Investment Trust Management Co. in Seoul.

“Our view is that emerging markets are currently undervalued, and that European banks are pulling out of the market because of banks’ liquidity problems and not the countries’ economic fundamentals,” Kim said by phone today.

Kim said that he can’t confirm comments from the Financial Supervisory Service that Franklin Templeton sold about 200 billion won of government bonds yesterday, and added that some funds may be selling Korean bonds as investors ask for redemptions “but we are not actively reducing holdings.”

The company’s flagship bond fund, Templeton Global Bond Fund had 15.6 percent of its portfolio in South Korean debt as of June 30, Bloomberg data shows.

To contact the reporter on this story: Jiyeun Lee in Seoul at jlee1029@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net


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