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.
Recommended for you
A strong demand for core fixed income solutions has seen the Betashares Australian Composite Bond ETF surpass $1 billion in funds under management, driven by both advisers and investors.
As the end of the year approaches, two listed advice licensees have seen significant year-on-year improvement in their share price with only one firm reporting a loss since the start of 2025.
Having departed Magellan after more than 18 years, its former head of investment Gerald Stack has been appointed as chief executive of MFF Group.
With scalability becoming increasingly important for advice firms, a specialist consultant says organisational structure and strategic planning can be the biggest hurdles for those chasing growth.
