By MARCEL PORCHERON 19/03/2008
Mark Mobius’ involvement with the management of this portfolio on a daily basis is clearly limited and longer term performance has been weak relative to the fund’s benchmark and its peers. Although Templeton’s emerging market funds feed off a large list of stocks approved by Mark Mobius, day to day portfolio construction responsibilities lie elsewhere. The portfolio construction process can also lead to significant divergences between the stocks held in different portfolios and their asset allocation. As a result our degree of confidence in the fund’s ability to outperform in future has deteriorated. We also believe that the fund has also failed to reach a sustainable size and this could present a risk to existing holders.
We have downgrade our rating to 1 star.