View the article online at http://citywire.co.uk/money/article/a894639
Mobius steps back as Templeton Emerging revives
Mark Mobius relinquishes control of Templeton Emerging Markets Group amid signs of recovery in its flagship investment trust.
Emerging markets pioneer Mark Mobius has taken another step back from investment management amid early signs of a recovery in the flagship Templeton Emerging Markets (TEM ) investment trust he ran for 26 years until last summer.
Having relinquished the lead manager role for Templeton Emerging Markets last July, Mobius (pictured above) has now handed over day-to-day responsibility for its management company, the Templeton Emerging Markets Group (TEMG), which he established nearly 30 years ago.
Although Mobius is not retiring and will remain executive chairman of TEMG, control of the division within the Franklin Templeton Investments group will pass to Stephen Dover in a new role as chief investment officer (CIO) from 15 April.
Dover is currently CIO of Franklin Local Asset Management, a separate unit that oversees the strategic stakes Franklin Templeton has bought in investment firms around the world and which has its own emerging markets team.
Dover (pictured) will use his dual CEO role to increase collaboration between the emerging markets teams, taking overall responsibility for investment strategy and individual fund managers, such as Carlos Hardenberg, who succeeded Mobius as lead manager on the £1.3 billion Templeton Emerging Markets trust.
The changes come amid a rebound in emerging markets that has seen shares in Templeton Emerging Markets advance 14% in the past six months, ahead of its benchmark, the MSCI Emerging Markets index, which is up 12.3%.
Although some analysts have been impressed with Hardenberg’s efforts to overhaul the portfolio and improve stock selection, the trust remains out of favour with investors following a 28% decline in the share price over five years.
The shares trade nearly 15% below net asset value, their widest discount since the 2008 financial crisis enabling Lazard Asset Management, a leading investor in undervalued trusts, to build a 10% stake.
Mobius, who founded TEMG in 1987 and launched Templeton Emerging Markets two years later, will now largely act in an advisory role and expand his activities as a company spokesman, the group said.
Although the veteran fund manager retains a role on many funds and remains a portfolio manager on the investment trust alongside Hardenberg and Chetan Sehgal, following a reshuffle in January he now has deputies and co-managers on all his other funds, such as the $5.4 billion Templeton Asian Growth fund in Luxembourg, which he now jointly runs with Allan Lam.
Dover joined Franklin Templeton in 1997 and is also the Citywire A-rated manager of its Franklin World Perspectives fund.
News sponsored by:
After Boris announced he was backing Brexit, sterling suffered its biggest slump in six years. Our Market Mavens discuss. Follow the Market Mavens LinkedIn page for weekly videos, in which our panel of industry experts share their views on financial news
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
More about this:
Look up the funds
Look up the investment trusts
Look up the fund managers
More from us
- Investment Trust Watch: is Templeton a buy?
- Mobius’ successor overhauls Templeton Emerging Markets
- Mark Mobius steps down from Templeton Emerging Markets trust
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.