Emerging markets veteran Mark Mobius leaves investment trust

Emerging market (EM) investment pioneer Mark Mobius will leave fund management in the coming months, resulting in Carlos Hardenberg managing the Mobius Investment Trust on his own.

Mobius, aged 87, made his name at Franklin Templeton, where he managed the Templeton Emerging Markets Trust. He began investing in emerging markets in the 1980s, just as investors began to see potential in the emerging world.

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The octogenarian was born in New York in the late 1930s to German and Puerto Rican parents. Bloomberg notes that his multi-cultural upbringing was key to his ability to spot investment opportunities outside of the United States.

When he set up Mobius Capital Partners in 2018, he took former Franklin Templeton colleague Carlos Hardenberg with him to continue running emerging markets money.

Hardenberg has been investing in emerging markets and working closely with Mobius for over 23 years and will continue to manage the £141 million trust.

Since launch, the shares have delivered a 27% return compared with a 21% gain for the typical EM trust, and 10% gain for the MSCI Emerging Markets index.

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The shares trade on a 10% discount, meaning that net asset value returns have been greater than share prices returns, at 43.5% over the five-year life of the trust.

The trust currently shuns larger EM companies, particularly Chinese shares, preferring technology stocks (61% of the portfolio), in market such as Taiwan (23% of assets), India (20% of assets) and South Korea (15% of assets).

Mobius said: "I am proud of the investment team's strong performance during the last five years which proves that a concentrated and differentiated portfolio of high-quality stocks can generate exceptional returns. As a shareholder of the Mobius Investment Trust, I will be following the company's progress closely and will continue to be available to the team and the board."

Hardenberg adds: “Mobius’ dedication has been instrumental to our success. As we look forward to the future, I intend to promote our most talented employees to the role of partners. This is to acknowledge their strong performance and commitment to Mobius Capital Partners."