Templeton Emerging Markets Investment Trust (TEMIT) manager Carlos Hardenberg (pictured) is to leave asset manager Franklin Templeton at the end of March, just over two years since taking over the fund from veteran investor Mark Mobius. 
Chetan Sehgal has been appointed as lead portfolio manager of TEMIT and its open-ended sister fund Templeton Global Emerging Markets Fund and was previously portfolio manager and analyst on the strategy.
Hardenberg took over as lead manager of the £2.2bn investment trust from Mobius in October 2015 and will continue as a portfolio manager until his departure.
Since taking over the trust, it has delivered a total return of 109.9 per cent, compared with a gain of 76.14 per cent for the MSCI Emerging Markets index and a 58.76 per cent return for the average AIC Global Emerging Markets Equities trust, as the below chart shows.
Performance of trust vs benchmark & sector since October 2015
Source: FE Analytics
Paul Manduca, chairman of TEMIT, said: “We believe that the appointment of Chetan Sehgal as lead portfolio manager will continue the strong Templeton legacy and will position the company well for the future, particularly as he has been directing Templeton’s global emerging markets strategy since October 2015.
“The company’s performance continues to be strong over the last two years and the board looks forward to working with Chetan and his team.
“On behalf of the board, I would like to thank Carlos Hardenberg for his contribution to the company over the past few years.”
The departure comes as the firm announced the appointment of Manraj Sekhon as chief investment officer of emerging market equity, reporting to head of equities Stephen Dover.
Sekhon joins from Singapore-based Fullerton Fund Management where he was chief executive and chief investment officer. He was previously head of international equities at Henderson Global Investors.
Jenny Johnson, president and COO of Franklin Templeton Investments, said: “As one of the first emerging markets investment managers, Franklin Templeton has a long history of investing in emerging and later frontier markets.
“Throughout the past 30 years, we have built a global team of true local experts in these countries, where on-the-ground research is paramount.
She added: “We remain committed to bringing high quality emerging markets investment options to our retail and institutional clients under Manraj’s capable leadership.”
In January the firm announced that Mobius would retire at the end of the month after more than 30 years at the firm, although he has increasingly stepped back from management duties during the past two years.
As well as being the largest, TEMIT is also one of the oldest emerging markets strategies in the investment trust space.
Prior to Hardenberg’s appointment as lead manager in 2015, over five years the trust had delivered a loss of 31.66 per cent compared with a 13.28 per cent loss for the benchmark.
However, as well as a turnaround in performance – aided by a strong run for emerging market equities – Hardenberg’s appointment has also seen a tightening of the discount, as the below chart shows.
According to the Association of Investment Companies, the trust is trading at a discount of 9.2 per cent.
Discount/Premium over 5yrs
Source: FE Analytics
Commenting on Hardenberg’s resignation, Jason Hollands, managing director of Bestinvest said: “Mobius’s departure was a yellow flag, although it was a retirement. But the news is quite disappointing and I’m sure it’s going to be surprising for shareholders.
“Carlos’ departure will put pressure on the discount. Although Templeton has appointed a manager with considerable experience, a number of investors will be putting in review what’s going on.”