Templeton Emerging Markets Investment Trust TEMIT

Emerging Markets

Rated Fund 2013-15, 2018-19. A broad portfolio of domestic growth stocks

Templeton Emerging Markets was named Money Observer’s Best Emerging Markets Trust in 2017. Launched in 1989 as the first global emerging markets trust, it has grown into the giant of its sector with assets of £2 billion.

Singapore-based Chetan Sehgal was promoted to lead manager in February 2018, taking over from Carlos Hardenberg who left the company the following month. For two years prior Sehgal worked alongside Hardenberg and his predecessor, the emerging markets veteran Mark Mobius, who took a backseat at the end of 2015 and retired in January 2018.

During that period, Franklin Templeton says Sehgal was a key contributor in driving a near 30% outperformance through in-depth research and investment selection.

Andrew Ness joined Sehgal as portfolio manager in September 2018. Previously part of Martin Currie’s emerging markets team, he supports the trust from Edinburgh.

Its investment philosophy and value-oriented approach remain the same. The pair looks for capital growth from companies with strong corporate governance and robust balance sheets that are generating plenty of cash.

By expanding the number of holdings from 50 under Mobius to 90 under Hardenberg and 100 today, the portfolio has increased exposure to lesser-known smaller companies and less accessible frontier markets.

Sehgal believes fundamental attractions do not warrant the declines seen in emerging markets during 2018, and that valuations provide a reasonably large margin for performance potential.

He retains confidence in the sustainable earnings power of technology-orientated companies, despite some sharp share price corrections last year, as emerging market economies increasingly evolve away from dependence on exports, commodities and state-owned enterprises and toward more resilient sources of growth.

Shares in the trust have typically traded at a 10-15% discount to net asset value in recent years.

Narrative and ratings content all as of January 2019.

See all Money Observer rated funds
Name
Templeton Emerging Markets Investment Trust TEMIT
Manager
Franklin Templeton
Type
Closed Ended Investment Company
ISIN
GB0008829292
Sector
Global Emerging Markets
Launched
12/06/1989
OCF
1.04 %
Risk Rating
5
3 Year Sharpe
0.64
3 Year Alpha
3.47
Yield
1.9 %
Benchmark
MSCI EM GR USD
Fund Size
£ 1.91 billion
NAV
894
Gearing
100
Discount Premium
-12
To provide long-term capital appreciation for its investors through investment in companies operating in emerging markets or whose shares are listed on the stock markets of such countries. Investment will generally be made directly in the stock markets of emerging countries and the funds of Company will normally be invested in equity investments.
Holding %
Samsung Electronics Co Ltd 7.06 %
Taiwan Semiconductor Manufacturing Co Ltd 6.07 %
Naspers Ltd Class N 5.73 %
Alibaba Group Holding Ltd ADR 5.12 %
ICICI Bank Ltd 3.70 %
Brilliance China Automotive Holdings Ltd 3.16 %
Unilever PLC 2.99 %
Tencent Holdings Ltd 2.74 %
PJSC Lukoil ADR 2.48 %
Bank Bradesco SA ADR 2.46 %
Region %
Asia - Emerging 38.35 %
Asia - Developed 23.99 %
Latin America 13.57 %
Europe - Emerging 9.84 %
Africa 7.80 %
Sector %
Technology 36.59 %
Financial Services 25.80 %
Consumer Cyclical 15.93 %
Energy 7.32 %
Consumer Defensive 6.33 %
Name
Franklin Templeton
Address
33394-3091, Ft. Lauderdale, United States
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Andrew Ness
Joined 09/17/2018

Prior to joining Franklin Templeton in September 2018, Andrew was as a Portfolio Manager at Martin Currie, an Edinburgh based asset manager. He began his career at Murray Johnstone in 1994 and also worked with Deutsche Asset Management in both London and New York before joining Scottish Widows Investment Partnership in 2007. Mr Ness holds a B.A. (Hons) in Economics and an MSc in Business Economics from the University of Strathclyde in the UK. He is an Associate Member of the UK Society of Investment Professionals and a member of the CFA Institute.

Chetan Sehgal
Joined 02/01/2018

Data provided by Morningstar.

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