Neptune has confirmed it is losing its India fund manager to a start-up emerging markets fund, the same week its hire of a high-profile fixed income veteran indicated its raft of staff exits might be coming to an end.
Emerging market debt has been attracting robust inflows but as the US dollar strengthens, monetary policy tightens and volatility rises can the asset class retain its appeal?
Mark Mobius’s planned responsible emerging markets fund will not seek companies that score high on environmental, social and governance (ESG) metrics, instead looking for companies with relatively poor ESG practices and work directly with the management on improving them.
Mark Mobius has formally confirmed former Franklin Templeton colleagues Carlos Hardenberg and Greg Konieczny as founding partners in his eponymous boutique firm, as details of the planned emerging and frontier markets fund are revealed.
Emerging markets guru Mark Mobius has nabbed former Franklin Templeton colleagues Carlos Hardenberg, who recently exited as lead portfolio manager on the Templeton Emerging Markets Investment Trust, and Greg Konieczny to help launch his asset management boutique.
Blackrock fund managers Sam Vecht and Emily Fletcher are already in the process of introducing emerging market stocks into the Frontiers Investment Trust following an expansion of its investment universe less than a week ago, as they seek opportunities in the “forgotten” countries of both indices, which show reduced correlation with mainstream markets.
Saudi Arabia’s promotion from frontier to emerging market in FTSE Russell indices is an opportunity for short-term investors to take profits, while longer-term investors can take the announcement as confirmation the market is moving in the right direction.
Government policies have boosted the appeal of Indian equities and the country’s interdependence from global trade risks makes it an attractive long-term bet, according to Blackrock.
Templeton Emerging Markets Investment Trust’s incoming lead manager has described Mark Mobius as his mentor and said he will never view him as a competitor, despite the legendary emerging markets investor establishing a rival fund following his retirement from Franklin Templeton.
While ESG has become an inherent part of risk management, SRI (socially responsible investment) products are, by comparison, designed to meet the demand of specific investors, according to Aberdeen Standard emerging markets investment manager William Scholes.
As cumulative flows into emerging market passive funds surpass active alternatives investors should seek opportunities further down the market-cap scale, Aviva Investors head of emerging markets and Asia Pacific Will Ballard argues.
Emerging market bond funds are the “sweet spot” when it comes to the search for fixed income yield, according to Blackrock.
