Global investors have overlooked the top innovators in emerging markets

Emerging markets are full of opportunities – not just the mega-caps that dominate headlines, but also the lesser-known innovators quietly shaping the future. At the Mobius Investment Trust, we think these “under-the-radar” firms offer some of the most exciting potential for long-term investors.

Our forward-looking, quality-driven approach is built on proprietary research, which should allow us to access promising opportunities overlooked by the mainstream.

In Asia in particular, the opportunities are compelling. India is benefiting from very rapid digitisation, momentum behind government reforms and a young, middle-class population. Taiwan sits at the heart of supply chains for global technology ranging from semiconductors to next-generation AI infrastructure.

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South Korea, meanwhile, combines world-class innovation with ongoing improvements in corporate governance. Together, these markets provide fertile ground for finding companies with sustainable earnings, competitive advantages, and the resilience to navigate changing market dynamics.

With an active share of more than 98%, our portfolio looks very different from the benchmark. This differentiation should allow us to capture growth stories others may miss, while our active-ownership approach means we work hand-in-hand with companies’ managers to help drive improvements in operations, governance and sustainability.

To illustrate our approach, here are three examples of the kinds of companies we aim to invest in: innovative businesses with distinct market positions and exposure to long-term growth trends.

Three emerging market stocks to watch

E Ink (Taipei: 8069) is best known as the company behind the e-paper screens in e-readers such as the Kindle. The group has a near-monopoly in this niche technology. Beyond e-books, it is powering a wave of electronic shelf-labels in retailers, helping stores reduce labour costs and enable dynamic pricing. With only a fraction of the potential market penetrated and thousands of patents protecting its technology, the potential for long-term growth is significant.

CarTrade (Mumbai: CARTRADE) is a leading asset-light online platform for buying and selling vehicles in India, covering everything from cars to two-wheelers. With car ownership still low but rising quickly, and the demand for used cars accelerating, CarTrade benefits from powerful long-term trends. Its move towards high-margin online classified advertisements, including OLX, a global platform, has boosted profitability. Furthermore, the business is debt-free with a strong record of growth.

Park Systems (Seoul: 140860) is a pioneer in atomic-force microscopes, tools that allow semiconductor companies to inspect surfaces at the nanoscale. As chips become smaller and more complex, such precision is essential. Founder-led with deep academic roots, Park Systems has carved out a first-mover advantage and is well-positioned to expand alongside rising global demand for advanced semiconductors.

These are just three examples of the kinds of businesses we focus on: innovative, high-quality companies in dynamic markets, often overlooked by the mainstream, but with the potential to deliver sustainable growth over the long term.

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