Franklin Templeton: Why we are Buying Brazil

Brazil's economy has disappointed, driven by political instability and weak oil price, but emerging market expert Carlos Hardenberg believes there are other sectors for returns

Karen Kwok 24 May, 2016 | 10:19AM

Brazil has taken a battering. Hurt by negative sentiment over political turmoil and weak oil prices, the country has had a torrid few years. But emerging market specialist Carlos Hardenberg of Franklin Templeton does not believe this is the end for the Latin nation. He thinks Brazil will generate sustainable returns over the long term, and that there are plenty of opportunities to choose from other than oil related stocks.

Hardenberg, manager of the Templeton Emerging Market Investment Trust (TEMIT) said while the recent crisis in Brazil had hurt the country substantially, the pessimism was also a driver to allow the government to push through necessary reforms, which had not done in the past “because everything went so well for a long time”.

“They have to stay competitive; they have to make sure entrepreneurs stay in the country; therefore they have to introduce necessary reforms,” says Hardenberg.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
eBay Inc53.24 USD-0.20
Templeton Emerging Mkts Invmt Tr TEMIT864.00 GBX-0.23

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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