SINGAPORE (July 30): Mark Mobius has spent the last 30 years criss-crossing the emerging world to meet company CEOs and understand their operations. The former executive chairman of the Templeton Emerging Markets Group was hired by John Templeton in 1987 to launch one of the first mutual funds dedicated to emerging economies, and is widely regarded as a pioneer of the emerging asset class. Today, he is pushing into yet another new field.

In May, Mobius announced the launch of Mobius Capital Partners with two other founding partners: Carlos Hardenberg and Greg Konieczny, both former colleagues at Templeton. They will run an open-ended fund with an emphasis on improving governance standards in emerging and frontier market companies. The fund will begin with seed capital of US$30 million ($41 million), with a target to grow to US$1 billion over one to two years.

“Our approach is going to be [picking] companies that don’t necessarily have high scores yet, but have the potential to improve,” Mobius says. “It is going to be more of an activist impact fund.” He points to studies that have found that companies on the cusp of improving their governance will do better in the market. “We hope we can push them over the edge, so to speak, and move them into better corporate governance. And that will mean their stock prices will be better.”

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook