This may be the best moment to invest in emerging markets in 16 years, according to Mark Mobius.
The emerging markets stalwart said many of the fundamentals compared favourably to 2002, which was the last "standout entry point" for these markets.
Mr Mobius made the comments in the inaugural manager's report for his new investment trust, the Mobius Investment Trust (MMIT), which listed last month.
He said: "The typical warning signs for emerging and frontier markets are an unbalanced GDP composition, high levels of debt, limited FX reserves and growing current account deficits. Comparing the current data to the last standout entry point for these markets in 2002 makes valuations look attractive."
Mr Mobius pointed to the fact emerging market share of global GDP had grown from 44 per cent to 59 per cent between 2002 and 2017, and emerging market government debt as a percentage of GDP was lower now than in 2002 at 49 per cent.
He also highlighted that emerging market foreign exchange reserved had increased almost five times from $1.72trn to $8.56trn between 2002 and 2017.
The trust's report also revealed it had allocated capital to six companies located in Brazil, China, Hong Kong, Poland, Russia and Turkey but there was no disclosure of the amount invested.
When MMIT listed last month it raised £100m, just half of its £200m target. Since then it has since traded at a discount and at close of business yesterday (6 November), its shares were trading at 94.25p.
Mr Mobius, the former executive chairman of Templeton Emerging Markets Group, said the trust remained on schedule and expect to be fully invested by the last quarter of 2018.
He said: "While we continue to closely assess the valuation of stocks in our model portfolio, we also spend a substantial amount of time understanding whether we have the opportunity to 'actively engage' with management and stakeholders. This engagement forms a vital pillar to our investment strategy, and in time, can catalyse a re-rating and produce significant valuation upside.
"In the pursuit of target companies over the last three months we estimate having coordinated over 600 meetings and calls with companies in 19 countries and nine different sectors."
Mr Mobius quit Franklin Templeton in January after more than 30 years with the firm. The 82-year-old set up his investment trust soon after, hiring several of his former colleagues including Carlos Hardenberg.
