Emerging Market Opportunities from Mark Mobius

The executive chairman of the Templeton Emerging Markets Group, Mark Mobius, discusses promising regions and sectors

Franklin Templeton Investments 16 January, 2013 | 6:00AM
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This is part of Morningstar's 'Perspectives' series, which features contributions from third parties such as asset managers, academics and investment professionals. This article is written by the executive chairman of the Templeton Emerging Markets Group, Mark Mobius, Ph.D.

Optimistic Outlook for Emerging Markets

We are generally positive on the long-term prospects for emerging and frontier market equities. In our opinion, the economic background for many emerging and frontier markets is stronger than that prevailing in many developed markets. Although estimates for emerging-market economic growth in 2012 have fallen in recent months, they generally remain well in excess of those for developed markets. Moreover, unlike developed markets, many emerging and frontier markets still have ample room for fiscal and monetary stimulus. Although weak growth in developed markets could be transmitted to emerging markets, notably through declines in world trade, this influence could continue to be offset in emerging markets by higher investment spending and increased domestic demand.

Changes in China

We would expect the key Chinese economy to likely show somewhat stronger growth in 2013 than was seen in 2012 as stimulus measures work through the system. Following the leadership transition in late 2012, we anticipate the authorities will continue to reposition the Chinese economy to depend less on export and investment spending and more on domestic demand. Efforts to tilt activity away from low value-added and labour-intensive industries toward higher-technology activities will likely continue as wage levels move up and as the labor force in China becomes ever more educated.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Franklin Templeton Investments  is one of the world's largest asset management groups, offering UK investors a range of over 80 funds across different market sectors.