Mobius trust continues short term underperformance
Franklin Templeton’s veteran emerging markets investor sees Temit share price drop further but keeps positive long term view.
Mark Mobius’s £1.9bn Templeton Emerging Markets investment trust (Temit) suffered an 8.4 per cent fall in its share price in Q2 as it continues to underperform in 2012.
According to its interim management statement, the trust’s net asset value (NAV) also underperformed the MSCI Emerging Markets index, losing 8.5 per cent compared with the benchmark’s 7.1 per cent fall.
Since the start of the year, Temit’s share price has fallen 2 per cent compared with the index’s 3.5 per cent gain - the trust’s worst six-month period since the second half of 2008.
However, Mr Mobius shrugged off the poor short term performance in his commentary, saying larger emerging markets companies were still well placed to increase their exposure to developed markets.
“We may see some emerging market companies shopping for assets in Europe at bargain prices and growing their global presence,” he said. “The worries and uncertainty are likely to create continued volatility in the global market, which could spill over into emerging markets, but experience has shown that uncertainty often presents opportunities.”
During the second quarter Mr Mobius - who also runs more than £15bn across seven other Franklin Templeton open-ended funds - topped up holdings in South African mining company Impala Platinum and Polish real estate developer Polnord.
The manager also opened a new holding in Arab Potash Company, based in Jordan, citing “world class assets and interesting expansion initiatives” as making the company particularly attractive, as well as its exposure to the agriculture sector.
The only sale during the period was the unwinding of a £7m holding in technology company Taiwan Semiconductor, which was sold after meeting Temit analysts’ target share price.