AFC Uzbekistan Fund valuations as of 28th February 2025:
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Estimated Weighted harmonic average trailing P/E (only companies with profit):
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3.92x |
| Estimated Weighted harmonic average P/B: |
0.64x |
| Estimated Weighted portfolio dividend yield: |
3.13% |
Market performance during February was impacted by the typical selling we have seen around the start of the Ramadan holiday (which started on 28th February 2025), and other big holidays for that matter, when local investors raise capital for holiday expenses as workloads downshift and more time is spent with family, especially during the nightly iftar meals. However, we look at this month as a temporary blip as, broadly speaking, the market appears to be going through a bottoming process as indicated over the past few months.
Franklin Templeton Advances SOE holding company
On 3rd February 2025, the National Investment Fund of the Republic of Uzbekistan and Franklin Templeton Asset Management announced the signing of an investment agreement on asset management for the Uzbek state’s holdings in 18 state-owned enterprises (SOEs) in order to increase their investment attractiveness through enhancing operational efficiency, corporate governance, and transparency. The ultimate plan is a dual listing of this vehicle targeted for sometime in 2026 on both the Tashkent Stock Exchange and the London Stock Exchange, mirroring what Franklin Templeton did with the Fondul Proprietatea Fund with the Romanian government last decade.
In our discussions with contacts in Tashkent, it seems that the government is eager to give Franklin Templeton significant freedom and flexibility in managing the vehicle that oversees the government's equity holdings in various SOEs. The government recognizes that many SOEs are not operating efficiently, which presents an opportunity to involve a third party to enhance their efficiency and profitability. There are also potential plans for future spinoff IPOs of individual SOEs, similar to what occurred in Romania in July 2023. During that time, the Romanian electricity provider Hidroelectrica made history by launching the largest IPO in the history of the Bucharest Stock Exchange, raising €1.9 billion.
New Share Classes for Investors
In January 2025, we introduced new share classes to offer flexibility for both existing and new investors. Class G USD, which has lower fees: a 1.7% management fee and a 17% performance fee with a high watermark, while it requires a longer redemption notice of 180 days compared with the F USD shares of 90 days. The minimum investment is the same at USD 10,000 for non-US investors and USD 50,000 for US investors.
Further, we launched two institutional share classes, each with a minimum investment of USD 5 million. The Class FI USD will have a 1.5% management fee, a 20% performance fee with a high watermark, and 90 days redemption notice. The Class GI USD will have a a 1.3% management fee, a 17% performance fee with high watermark, and 180 days redemption notice.
Interested investors should contact Peter de Vries at This email address is being protected from spambots. You need JavaScript enabled to view it. for more information, or if existing investors wish to switch into the new share class to benefit from lower fees.
AFC Uzbekistan Tour 2025
AFC is planning to host its 4th AFC Uzbekistan tour, bringing existing and prospective investors to experience the reality of Uzbekistan from the ground. We have revised the tour concept and will be hosting a day tour on 27th May 2025. This will include a half-day tour of Tashkent, a visit to one of the fund’s portfolio companies, followed by dinner. If you are interested in attending, please write us at This email address is being protected from spambots. You need JavaScript enabled to view it. to express your interest, and we will follow up with you.
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