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.

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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
1.09 %
Risk Rating
5
3 Year Sharpe
1.25
3 Year Alpha
5.57
Yield
2.4 %
Benchmark
MSCI EM GR USD
Fund Size
£ 1.98 billion
NAV
883
Gearing
102
Discount Premium
-10
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 7.78 %
Naspers Ltd Class N 5.96 %
Taiwan Semiconductor Manufacturing Co Ltd 5.87 %
Brilliance China Automotive Holdings Ltd 4.41 %
Alibaba Group Holding Ltd ADR 4.32 %
Buenaventura Mining Co Inc ADR 2.94 %
Unilever PLC 2.84 %
Tencent Holdings Ltd 2.83 %
PJSC Lukoil ADR 2.60 %
ICICI Bank Ltd 2.45 %
Region %
Asia - Emerging 38.92 %
Asia - Developed 26.20 %
Latin America 14.36 %
Europe - Emerging 9.11 %
Africa 7.62 %
Sector %
Technology 33.12 %
Financial Services 23.35 %
Consumer Cyclical 17.44 %
Energy 8.34 %
Consumer Defensive 5.72 %
Basic materials 5.59 %
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

Andrew is an Investment Director on the Global Emerging Markets Equity desk. He manages GEM mandated portfolios and is the research analyst for the financial sector. He joined SWIP in April 2007, from Deutsche Asset Management in New York. Previously he was at Deutsche Morgan Grenfell (since 2001) and Murray Johnstone. Andrew has a BA (Hons) in Economics and an MSc in Business Economics from the University of Strathclyde. He is an Associate of the Society of Investment Professionals.

Chetan Sehgal
Joined 02/01/2018

Data provided by Morningstar.

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