I am a long-term owner of closed-end companies invested in emerging markets. I will try to start a page in Wiki about this little known and seldom mentioned investing Niche. Please anyone who can contribute please come on board. Normal company reports put me to sleep. ---o0o---
Closed-end investment company’s like the Templeton Emerging Markets Fund, Inc. do not continuously offer shares to the public. Growth results from market appreciation, which benefits its shareholders. Wide dispersion that results from global diversification, reduces volatility, which gives the shareholder greater safety. The fund is managed by Dr Mark Mobius, who is the spokesman for the fund, and investing in emerging markets in general. The fund gives management the freedom to buy anything, anywhere that comes up.
The Fund seeks long-term capital appreciation by investing primarily in emerging country equity securities. The fund is a value-oriented, long-term, buy-and-hold vehicle in line with the Templeton investment philosophy. Management can influence the net asset value, but this is not of great concern to investors. Wealth is shifting from the developed countries to the emerging, and frontier economies, in which EMF invests. These companies tend to be under-researched, and not so readily available to normal investors.
EMF employs a bottom-up, approach looking at the company’s potential for earnings and growth over a five-year horizon. And considering the company’s position in its sector, the economic framework, and political environment. EMF’s low portfolio turnover, is an indication of the confidence management has in its investments.
By providing capital, and encouraging capitalism in emerging economies, EMF impacts countries in ways similar to the World Bank. The only similar company is the Morgan Stanley Emerging Markets Fund (NYSE: MSF), which trades around the MSCI Emerging Markets Free Index, which Morgan Stanley also manages. http://www.morganstanley.com
Shares of Templeton Emerging Markets Fund are traded on the New York Stock Exchange under the symbol “EMF.”
Templeton Emerging Markets Fund, Inc. 7 Temasek Boulevard 38-03 Suntec Tower One Singapore, 38987 Singapore - Map Phone: 65 6338 7177 Fax: 65 6338 7677 Website: http://www.franklintempleton.com
Mark Mobius Presentation "World Outlook 2010," http://www.craigsip.com/research-public/mark-mobius-presents.html