Emerging-markets exposure in mature markets

Templeton's Peter Moeschter cites bargains among expansion-minded global giants.

Sonita Horvitch 9 February, 2011 | 7:00PM

Peter Moeschter, executive vice-president of Templeton Global Equity Group in Edinburgh, says that a number of large-cap established companies in the developed world are successfully expanding into high-growth emerging markets, yet are trading at bargain valuations.

"It's a way of getting the best of both worlds," he says. "You can invest in companies with strong franchises in mature markets that are leveraging this to expand into the robust emerging markets, and you are not paying a premium for this growth."

Also, he notes, large-caps globally have tended to underperform small-caps in the rebound in the equity market since March of 2009, so there are opportunities. Within the developed world, European companies continue to offer good value, says Moeschter, who moved to Scotland in July 2008 from the Toronto office of Franklin Templeton Investments, and is scheduled to return to Toronto this summer.

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Sonita Horvitch

Sonita Horvitch