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» JINS.N0000 ( Janashakthi Insurance PLC)
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» ජීවිතය පටන් ගන්නේ 60න්
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» මිලියන 4,000 ක අකිලගේ ටැබ් කොන්ත්‍රාත්තුව අබාන්ස්ට
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» Dhananath Fernando wins $ 10,000 for Sri Lanka in Think Tank Shark Tank in Asia
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» උදයංග වීරතුංග රැගෙන ඒමට පොලිස් නිලධාරීහු ඩුබායි වෙත
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» ආර්ථික අර්බුදය ඉක්මවා ගිය දේශපාලන අර්බුදය හමුවේ 'රුපියල'
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» SAMP.N0000 (SAMPATH BANK PLC)
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» APLA.N0000 (ACL PLASTICS PLC)
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» විගණකාධිපතිගේ 2016 වාර්තාව මෙන්න
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» Boost for foreign investment in Govt. securities
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» අනිලානා පුද්ගලික නිකුතුවට කොටස්කරුවන්ගේ සහාය පතයි
Thu Feb 08, 2018 9:28 am by The Invisible

» CCS.N0000 ( Ceylon Cold Stores)
Wed Feb 07, 2018 7:39 pm by Ethical Trader

» ලෝක ආර්ථිකය කඩා වැටෙද්දී එහි බලපෑම කොළඹට දැනුන හැටි
Tue Feb 06, 2018 11:13 pm by nihal123

» තෙල් මිලේ වැඩිවීමෙන් ගුවන් ටිකට් මිල නගී
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» ජනාධිපති පරීක්ෂණ කොමිෂන් සභාවෙන් ලද, සිංහල භාෂාමය වාර්තා තිස් හතර (34)
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» බැඳුම්කරය: ඇලෝසියස් සහ පළිසේන අත්අඩංගුවට
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» TPL.N0000 (TALAWAKALE PLANTATIONS )
Sat Feb 03, 2018 1:02 pm by bear

» ජනශක්ති ගනුදෙනුව තීන්දුයි. වටිනාකම රුපියල් බිලියන 16 යි
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» කොළඹ කොටස් අසාමූහිකරණ පනත පාර්ලිමේන්තුවට
Fri Feb 02, 2018 5:42 pm by Ethical Trader

» BBC කණ්ඩායමක් තාලිබාන් පාලන කලාපයකට ඇතුල් වෙති
Thu Feb 01, 2018 5:05 pm by Ethical Trader

» වර්ෂ 152 කට පසු දර්ශනය වන 'සුපිරි නීල රුහිරු සඳ'
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» ලංකා බැංකුවට අයත් ජනශක්ති හිමිකම විකුණයි
Thu Feb 01, 2018 4:54 pm by Ethical Trader

» අයවැය ක්‍රියාත්මක කිරීමේ දී පාර්ලිමේන්තුවේ අධීක්ෂණය දුර්වලයි
Thu Feb 01, 2018 4:52 pm by Ethical Trader

» ජනපති හා ADB අධ්‍යක්ෂ මණ්ඩල සාමාජිකයින් අතර හමුවක්
Thu Feb 01, 2018 4:51 pm by Ethical Trader

» තවත් කොටස් තැරැව්කාර සමාගමක් වසා දමයි
Thu Feb 01, 2018 4:50 pm by Ethical Trader

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Wed Jan 31, 2018 6:59 pm by soileconomy

» Bank of Ceylon divests stake in Janashakthi Insurance
Tue Jan 30, 2018 3:58 pm by TraderCSE

» වෛද්‍ය වර්ජනය: රජයේ වෛද්‍ය නිලධාරීන්ගේ සංගමයේ ඉල්ලීම් මොනවාද?
Mon Jan 29, 2018 6:36 pm by Ethical Trader

» නිවුන් අලි උපත්: මේ කරුණු දැන සිටියාද?
Mon Jan 29, 2018 12:14 pm by Ethical Trader

» Perpetual Treasuries
Mon Jan 29, 2018 7:43 am by Danidu

» කලා කෘතියක් ඉල්ලූ ජනාධිපති ට්‍රම්ප් වෙත 'රන් වැසිකිලියක්' - වාර්තා
Sat Jan 27, 2018 6:37 pm by Ethical Trader

» TJL.N0000 (Textured Jersey Lanka PLC.)
Fri Jan 26, 2018 6:32 pm by Ethical Trader

» සේවා ස්ථානයේ අරියාදු සහ අඩන්තේට්ටම් : 'බුලි' වුණොත් මොකද කරන්නේ?
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» RULES ON ALL OR NONE (AON) BLOCKS
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» Time is of essence in dealing with dengue:Expert, Recent deaths could be due to patients "coming in late" for treatment
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» නියම බුදු දහම
Thu Jan 25, 2018 12:42 pm by Ethical Trader

» "දූෂණය" ගැන මහින්ද රාජපක්ෂට නඩු පවරන්න - ජනාධිපති කොමිසම
Wed Jan 24, 2018 7:04 pm by Ethical Trader

» හිඟයක් වැළැක්වීමට ලේ දන් දෙන්න: ජනතාව වෙත ඉල්ලීමක්
Tue Jan 23, 2018 7:12 pm by Ethical Trader

» බලාගෙනයි, 'ගුවනින් අසූචි'!
Tue Jan 23, 2018 7:10 pm by Ethical Trader

» සිව් හෙලයේ ඉතිහාසය නිවැරදි කිරීම
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» ප්‍රගීත් එක්නැලිගොඩ: "ෆයිල් අතුරුදහන්වීම" ගැන සන්ධ්‍යා හමුදාපතිට කිවූ දේ
Thu Jan 18, 2018 12:13 pm by Ethical Trader

» China offers best chance for SL development: CB
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The End of Mark Mobius’s Reign as King of Emerging-Market Stocks

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The End of Mark Mobius’s Reign as King of Emerging-Market Stocks

Post by RPPA on Fri May 08, 2015 7:46 am

Have a look at the following article if you all have time.Very Interesting Neutral

The pioneering advocate for small, growing economies suffers a dry spell

For a quarter of a century the name Mark Mobius has been synonymous with investing in developing markets. A bald, energetic, New York native who often dresses in white suits, Mobius is constantly tweeting and appearing on television from St. Petersburg to São Paulo encouraging investors to put money into fast-growing developing economies. A Mark Mobius comic book published in Asia in 2007 chronicled his globe-trotting exploits. (Really.) In the U.S. he was voted by his peers onto a list of the top 10 investors of the 20th century, putting him alongside Warren Buffett, Julian Robertson, and George Soros. What Bill Gross was to bonds, Mobius was to emerging markets: the King.

His reign may be coming to an end. Like Gross, Mobius, 78, has posted mediocre numbers in recent years and seen investors depart. While they still make money, 11 of the 13 largest funds that Mobius oversees at Franklin Templeton Investments have underperformed their benchmarks over the past five years. At their zenith, those funds held $39 billion in 2011. Today that figure is down to $26 billion. And in December, his flagship Asian Growth Fund lost its long-held position as the region’s largest to First State Investments’ Asia Pacific Leaders Fund. “He’s one of the few well-known managers in emerging markets,” says Todd Rosenbluth, director of mutual fund and ETF research at S&P Capital IQ. “Unfortunately, the track record is below average. Investors are more frustrated.”

In an e-mail, Mobius said his strategy of investing in undervalued stocks can falter in “sentiment-driven” environments, where investors focus more on the overall economic picture than on company fundamentals. “As value investors, we have to have the patience and conviction to weather sometimes long periods of volatility,” Mobius wrote. “We go into markets when others are fleeing, and while some of our fund performance has struggled at certain points in time, we believe that with our contrarian approach, our shareholders will be rewarded in the long term.”

Many emerging-markets fund managers have floundered as China’s expansion slows and former standouts such as Brazil and Russia post disappointing growth. Seventeen of the 33 U.S.-based developing-nation stock funds with more than $1 billion in assets have trailed their benchmarks over the past five years, according to data compiled by Bloomberg. “It hasn’t been a great period for any emerging-markets manager,” says Peter Walls, a money manager at Unicorn Asset Management who invests in Mobius’s funds. “He’s going to make a comeback.”

Born in Hempstead, N.Y., to a German father and a Puerto Rican mother, Mobius got his Ph.D. from the Massachusetts Institute of Technology. He joined Templeton, Galbraith & Hansberger in 1987, when investing in developing countries was still a novel idea. After being tapped by firm founder John Templeton to manage the Templeton Emerging Markets Fund, the company’s first foray into that territory, Mobius developed a reputation for sniffing out stocks that are undervalued relative to their growth potential.

He still crisscrosses continents 250 days a year, feeding on-the-ground research to his team of 50 money managers, analysts, and researchers in 18 offices worldwide handling day-to-day operations of the more than 30 funds he oversees.

The last half-decade has been a struggle for the group, which has made ill-timed bets on energy and mining companies while underinvesting in technology stocks. As of March 31, Templeton Asian Growth held 33 percent of its assets in energy and material stocks, which account for only 9 percent of the fund’s benchmark, the MSCI AC Asia ex Japan index. The fund has gained 4.3 percent annually over the past five years, compared with 8.1 percent for the index. It’s trailed 44 of 46 similar funds with assets of at least $500 million over that same time span, while charging investors 2.2 percent annually, the second most in the group. The MSCI AC Asia ex Japan index slipped 1.5 percent on May 7.

One of the fund’s largest holdings, the stock of Sesa Sterlite, India’s top aluminum producer, has tumbled 51 percent over the past five years as slowing growth in China cut short a global commodities boom. Another, Yanzhou Coal Mining, a Chinese company, has fallen 66 percent since the end of April 2010, while the Chinese market surged. “They have a big team, but it’s not generating performance,” says Germaine Share, an analyst at Morningstar in Hong Kong.

Even with the recent under-performance, an initial investment of $100,000 in the Templeton Emerging Markets Fund 28 years ago would be worth about $3.3 million today, according to data compiled by Bloomberg. Mobius has yet to announce any plans to retire or scale back his workload. In the last days of April, he wrote a blog on foreign reserves, talked about Greece’s finances on CNBC, and celebrated the debut of Templeton’s new Romanian fund on the London Stock Exchange. Countries such as Romania and Mongolia could be the next frontier that enriches investors, he said.

“It’s clearly worrying when you have a period of three, four years that hasn’t been particularly good,” says Charles Cade, head of investment companies research at Numis Securities in London. “The track record isn’t as good as it used to be. Emerging markets is more of a mainstream play now. Adding value is a lot tougher, and it’s much harder to maintain performance.”

RPPA
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