On 8 September, Carlos Hardenberg, manager of Mobius Investment Trust, presented an investor update on the outlook for emerging markets, highlighting attractive valuations, improving company fundamentals and accelerating opportunities across artificial intelligence, semiconductors and technology.
The highly active portfolio remains differentiated from the MSCI Emerging Markets Index, focusing on 25–30 quality, largely under-discovered companies with robust balance sheets, strong margins, high returns on capital and limited leverage.
Asia remains central to the investment strategy, with India representing close to 30% of the portfolio, alongside significant exposure to Taiwan and South Korea, while direct China exposure remains deliberately low at 2.9% due to governance, regulatory and political risks.
AI-related investments account for approximately 40% of the portfolio across areas including IC design, intellectual property, components, substrates and semiconductor testing, reflecting management’s conviction in Asia’s growing leadership across the global AI supply chain.
Carlos also highlighted improving emerging-market governance, shareholder returns and capital allocation, alongside compelling growth opportunities in India, Korea and Southeast Asia. Looking ahead, portfolio companies are seeing stronger order books, gaining market share and attracting talent while remaining well capitalised, yet management believes current valuations do not fully reflect this improving outlook.
Mobius therefore sees the current environment as an attractive entry point and potentially the beginning of a multi-year recovery in emerging-market equities.
Watch the full recording here.
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