Kepler expert review

Kepler View

We think that TEM (Templeton Emerging Markets Investment Trust) is an attractive core emerging markets investment, which could suit investors looking to take long-term exposure to a diverse investment universe with multiple exciting growth drivers.

Despite the volatility seen in the last year or so, high GDP growth and strong technology clusters offer obvious sources of high earnings growth to the companies that can take advantage. Chetan and Andrew’s long-term  approach should allow them to look through short-term noise and take advantage of long-term secular growth trends, such as the explosion in the power of semiconductors, which seems likely to gain extra impetus from the development of AI.

The large-cap focus, limit on individual active positions and valuation discipline all contribute to what we think is an attractively broad exposure to the emerging markets universe. This affords the managers enough freedom to add material levels of alpha* via stock selection.

In the short term, the discount adds to the attractions. In our view, it is hard to predict which way these things will go in the short term and, clearly, there are still challenges for the global economy which could see discounts widen. However, for those who are able and willing to take a long-term view, we think the discount could add an extra kicker to shareholder returns once sentiment decisively improves towards emerging market equities.

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This research note has been commissioned by Templeton Emerging Markets Investment Trust from Kepler Partners. The research note does not constitute independent research for the purpose of legal and regulatory requirements and is therefore not subject to the regulatory protections afforded to independent research. In particular, the research note is not subject to any prohibition on dealing and both Kepler Partners and Franklin Templeton, and their respective staff, may have dealt in the securities discussed in the research note.

Footnote: *Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index.

Meet the Team

Unparalleled Emerging Markets Experience

Chetan Sehgal is the lead portfolio manager of Templeton Emerging Markets Investment Trust (TEMIT). He has been a portfolio manager and senior research analyst for TEMIT since 2015. He is also a senior managing director and the director of portfolio management for Franklin Templeton’s Emerging Markets Equity Team.

Chetan was joined by portfolio manager Andrew Ness on 17 September 2018. Andrew is a seasoned investor with over two decades of experience as an emerging markets equity portfolio manager, and a strong alignment with the investment approach and philosophy utilised in the management of TEMIT’s portfolio.

The TEMIT portfolio management team are supported by an experienced team of over 80 dedicated emerging markets investment professionals located across 20 offices around the world.

How to Invest with Us

Shares in TEMIT qualify as an investment which can be held through an ISA. TEMIT is available through a stocks and shares ISA from a number of different companies. Your financial adviser will be able to give you full details of the options available to you.

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