Mobius views developing markets as world's ‘safe harbours'

Developing markets are now the world's safe harbours and have tackled fiscal challenges in a way Washington "can only dream about", according to Franklin Templeton.

Mark Mobius, executive chairman of Templeton Asset Management, dismisses concerns emerging markets are in bubble territory. He says emerging market IPOs are predicted to hit $144bn (£98bn) this year - their best since $180bn in 2007 - giving "a powerful signal of continuing market strength". They now account for about 70% of global flotations, against just 20% in 2000. "We have seen a high correlation between stock prices and the amount of IPOs," Mobius says. However, investors still allocate just 3% to 8% of their assets to EMs, versus 32% in the MSCI World index, he says. The ...