The Russian equity market currently offers the “deal of the century”, said the Chairman of Templeton Emerging Markets Group, one of the world’s most famous investors in emerging markets mark Mobius in an interview with CBNC.
“Russia is very cheap,” said Mobius. But the sanctions against Russia create a problem, he said. “Because of sanctions, many of us are not able to invest. Once sanctions are removed, the market situation will be very good,” said Mobius.
In 2015, the Fund Templeton Russia and East European Fund (TREEF), created by mark Mobius in 1995 and specialized in investments in Russia, Ukraine, Kazakhstan and other countries of the former USSR and Eastern Europe, was liquidated. Reasons for the elimination of the Fund was a decrease in the size of its assets and the declining interest of investors.
In an interview with mark Mobius then expressed the hope that sanctions against Russia will not work long. He noted that in the long term, believes in the Russian market and has no plans to exit from its investment in Russia. “Yes, I have investments in Russia, and I’ll keep them. We manage the funds, and I own shares in them. I can’t buy shares of individual companies, you need to obtain a special permit, and it is a superfluous headache. But I own shares in funds that invest in Russia,” — said the investor.
To call the amount of their losses in Russia because of falling markets, Mobius refused, noting that “it is unlikely that any significant amounts.” “It is impossible to count accurately, we all the time something sold, bought something. Sometimes we bought at the bottom and out of investments at a profit. I don’t think we lost a lot of money,” he said.
The Russian stock market index MSCI Russia, part of a group of indexes of emerging markets MSCI Emerging Markets, in 2016, rose by 20%, but compared with the beginning of 2014 the value below 36%.