Mark Mobius is one of the best-known emerging-markets fund managers. He's spent most of his 40-year career at American fund manager Franklin Templeton, where he oversees around $40bn in assets as chairman of Templeton Emerging Markets Group.
Templeton's funds have had a tough few years: the flagship Templeton Emerging Markets Investment Trust (LSE: TEM) is down by around 25% in terms of net asset value over the past five years, compared to a 10% fall in the MSCI Emerging Markets index. However, Mobius remains upbeat.
There is "maximum pessimism" around Asia and emerging markets at present, which isn't justified by the fundamentals. Growth is decelerating in China, but the country is still an "enormous growth story" as the focus shifts from manufacturing to services. Meanwhile, India's economy continues to expand strongly and commodities prices are bottoming out.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Yet global fund managers remain underweight emerging markets; as they start to return, markets could jump sharply. Many emerging-market currencies are also undervalued, suggesting that overseas investors should benefit from currency appreciation. This makes Brazil, Malaysia and Vietnam attractive options.
-
Side hustle tax changes: HMRC reforms could save thousands from filing self-assessment tax returnsThe government plans to raise the tax-free threshold for trading income – here is how it could help your side hustle
-
Return to the office: is working from home coming to an end?More and more employers want their staff to return to the office. Is it a good idea?
