In this class, we introduce the course by considering the opportunities and challenges of investing in emerging markets from the perspective of a fund manager.

Assignment Sheet
Emerging Markets Finance

Class #13, Thursday, December 1, 2005

Topic: Mutual Funds

Case: Mark Mobius and the Templeton Development Markets Trust, CD-ROM, UVA-BAT-1005
Case: Characteristics of Emerging Markets, UVA-F-1453.

Assignment Questions:

1. What are the challenges of investing in Emerging Markets Equities? Please prepare to discuss the specific kinds of risk a money manager faces in Emerging Markets, and present evidence from the case illustrating those risks.

2. What is Mark Mobius' investment style and philosophy of investing? How does he implement that style and philosophy?

3. How well has Mark Mobius' fund performed? In absolute terms? Relative to a benchmark? Which benchmark?
(To get updated performance measures of the fund, browse Morningstar.com's description and ranking of Templeton Emerging Markets A (TEDMX). To compare it with competitor funds, check out the GMO Emerging Markets III (GMOEX), an actively managed fund, and the Vanguard Emerging Markets Stock Index (VEIEX), an index fund.)

4. Would you invest in Mark Mobius' fund? Prepare to discuss the pros and cons that you see.