Templeton Emerging Markets Investment Trust TEMIT

Emerging Markets

Rated Fund 2013-15 and 2018-20. A broad portfolio of stocks for domestic growth

Templeton Emerging Markets, launched in 1989 as the first global emerging markets trust, has grown into the giant of its sector with assets of £2.1 billion. It was named Money Observer’s Best Emerging Markets Trust in 2017. It has undergone a number of management changes since.

Singapore-based Chetan Sehgal was promoted to lead manager in February 2018. He took over from Carlos Hardenberg. For two years prior, Sehgal had worked alongside Hardenberg and the latter’s predecessor – the emerging markets veteran Mark Mobius, who took a backseat at the end of 2015 and retired in January 2018. Andrew Ness joined Sehgal as portfolio manager in September 2018. Previously, he was part of Martin Currie’s emerging markets team. Ness supports the trust from Edinburgh.

Charles Stanley analyst Rob Morgan says: “The team continues to have an abundance of experience, despite a number of changes. Historically, the trust is value-orientated. However, it’s now more well-rounded and a creditable option for broad emerging market exposure.”

The managers favour firms that have robust balance sheets and generate plenty of cash. Environmental, social and governance analysis is an essential element in their due diligence. An increase in the number of stocks held in the portfolio, from 50 to about 90, has lifted its exposure to lesser-known smaller firms and less-accessible frontier markets. Shifting expectations on the prospect of a durable US-China trade deal continue to drive emerging market sentiment, but the trust’s managers point to a continuing decline in emerging markets’ dependence on developed economies. Technology, innovation, consumerism and rising wealth will drive growth for years to come, they say. Shares in the trust have typically traded at an 8%-15% discount to net asset value in recent years.

Narrative and ratings content all as of January 2020.

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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
1.04 %
Risk Rating
5
3 Year Sharpe
0.29
3 Year Alpha
3.01
Yield
2.4 %
Benchmark
MSCI EM GR USD
Fund Size
£ 1.76 billion
NAV
824
Gearing
101
Discount Premium
-13
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 %
Taiwan Semiconductor Manufacturing Co Ltd 8.93 %
Tencent Holdings Ltd 8.83 %
Samsung Electronics Co Ltd 8.26 %
Alibaba Group Holding Ltd ADR 7.32 %
NAVER Corp 4.01 %
ICICI Bank Ltd 3.38 %
Brilliance China Automotive Holdings Ltd 2.97 %
Unilever PLC 2.86 %
Naspers Ltd Class N 2.66 %
PJSC Lukoil ADR 2.21 %
Region %
Asia - Emerging 42.16 %
Asia - Developed 30.60 %
Europe - Emerging 8.67 %
Latin America 8.36 %
Sector %
Technology 25.99 %
Communication Services 23.36 %
Financial Services 18.83 %
Consumer Cyclical 15.71 %
Consumer Defensive 5.06 %
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

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