Emerging market resource co’s go public
Mark Mobius
A new “model of capitalism” is appearing in natural resource companies in emerging markets, with increasing numbers of government-owned businesses becoming private enterprises, and an increasing number of private enterprises being publicly listed.
According to Dr Mark Mobius, portfolio manager of the Franklin Templeton Investments emerging markets fund, this privatisation and listing trend has a long way to go.
“Going forward, we believe there could be a lot more room for this type of privatisation in emerging markets,” Mobius said.
On commodity prices in emerging markets, Mobius believes that while “prices may come down from their peaks, we do not foresee prices returning to extremely low levels in the near future”.
Meanwhile, the fund manager is predicting an increasing rate of “convergence” in the commodities sector.
“We believe that convergence in the global energy industry is inevitable and likely to accelerate because a certain critical — and financial — mass is needed to continue oil exploration and make refining operations viable,” Mobius said.
AUTHOR
Internal
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
