The Luxembourg-registered SICAV has a Sterling-denominated share class and is actively managed. It aims to deliver long-term capital growth by investing mainly in smaller companies located in emerging market countries or companies that derive significant revenue or profits from emerging market countries.
The fund will be managed by Templeton Asset Management executive chairman Dr. Mark Mobius, who heads the Templeton emerging markets team. He has over 30 years of experience managing emerging markets portfolios and will be supported by 34 emerging market investment professionals, based in 13 offices around the world.
Mobius says a dedicated emerging market small-cap fund offers investors new and exciting opportunities to gain more concentrated exposure to this asset class.
He says: “We believe this greatly untapped asset class provides a substantial opportunity for us to apply our vast global research capabilities. In fact, we are seeing tremendous possibilities to invest in small-cap companies at some very attractive prices in all emerging market regions – Eastern Europe, Africa and Central and South America, as well as the Asia Pacific region.
“Many of those emerging markets have robust GDP growth, trade surpluses, high foreign reserves, low inflation, strong investment and domestic demand, an environment where well-run small-cap companies can flourish.”