Portfolio And Performance

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Company objective

To provide long term capital appreciation for its shareholders through investment in companies listed in emerging markets or companies which earn a significant amount of their revenues in emerging markets, but are listed on stock exchanges in developed countries.

TEMIT has been helping investors access the dynamic growth potential of emerging markets companies since 1989.

More about TEMIT

Quick factsAs of 31/08/2021

Total Net Assets [further-information] £2,427.67 million
Market Capitalisation [further-information] £2,196.89 million
No of shares in issue 1,181,128,655
Net Gearing [further-information] 3.3%
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ChargesAs of 31/08/2021

Ongoing Charge [further-information] 0.97%

Key dates

Launch Date 12 June 1989
Financial Year End 31 March
Half-Year End 30 September
Annual Report Published June
Half-Yearly Report Published November
AGM July
Potential Interim Dividend Ex-D Date (for 2020 H-Y Report) December 2020
Potential Interim Dividend Record Date (for 2020 H-Y Report) December 2020
Potential Interim Payment Date (for 2020 H-Y Report) January 2021
Potential Final Dividend Ex-D Date (for 2021 Annual Report) June 2021
Potential Final Dividend Record Date (for 2021 Annual Report) June 2021
Potential Final Dividend Payment Date (for 2021 Annual Report) July 2021
Final Dividend Ex-Date 17 June 2021
Final Dividend Record Date 18 June 2021
AGM 8 July 2021
Final Dividend Payment Date 15 July 2021
Share Split Ex-Date 22 July 2021
Share Split Record Date 23 July 2021
Share Split Implementation Date 26 July 2021
Half Year End 30 September 2021
Half Yearly Report Published November 2021
Potential Interim Dividend Record Date December 2021
Stock exchange announcements

Management


Investment strategy

As pioneers in emerging market equity investing, the Templeton Emerging Markets Group use their expertise, experience and local country knowledge to help them uncover emerging market companies with the potential to grow in value over the long-term.

Find out more

Risks

Like all stock market investments, you take the risk that the companies, currencies and markets that TEMIT invests in do not perform as expected. Emerging markets can be subject to significant and rapid changes in value, particularly in the short-term, so the value of your investment can rise and fall accordingly. It could mean you may get back less than you invested. Although you are free to decide at any time when to sell shares in TEMIT, you should consider it a long-term investment.

Past performance is not a guarantee or an indicator of future performance.

The companies in which TEMIT invests are, by reason of the locations in which they operate, exposed to the risk of a lack of established legal, political, business and social frameworks to support a securities markets or the imposition of trade barriers and exchange controls. They may make it difficult to sell investments or result in price changes. It may not always be possible to sell shares in investment companies such as TEMIT.

There is no guarantee that TEMIT will achieve its objective.

TEMIT can borrow money to purchase additional investments (gearing). This can increase the risk to your investment if the cost of the gearing exceeds the investment return from it.

These and other risk considerations are covered in TEMIT's annual report.

We are unable to provide any advice about TEMIT's suitability for your personal circumstances. If you are in any doubt you should speak to a professional financial adviser.

10 largest holdings As of {{portfolio.holdings.asOfDate}}

Security% of portfolio
SAMSUNG ELECTRONICS CO LTD 7.0268%
TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD 6.9485%
NASPERS LTD 6.1070%
ALIBABA GROUP HOLDING LTD 5.5421%
ICICI BANK LTD 3.8199%
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LTD 3.3029%
UNILEVER PLC 3.0693%
TENCENT HOLDINGS LTD 3.0251%
LUKOIL PJSC 2.5616%
NAVER CORP 2.5132%


Portfolio Details

Sector breakdown As of 31/08/2021

SectorPercMSCI Emerging Markets Index (BM2658)
Information Technology 33.37 21.31
Financials 21.20 19.19
Consumer Discretionary 14.10 15.22
Communication Services 15.55 10.62
Materials 7.46 8.91
Consumer Staples 3.95 5.76
Industrials 2.45 4.96
Energy 2.47 5.28
Health Care 1.24 4.74
Real Estate 0.88 1.81
Utilities 0.00 2.20
Cash & Cash Equivalents -2.68 0.00

Country weightings As of 31/08/2021

CountryTEMITBenchmark (BM2658)
China 29.38 33.94
South Korea 23.14 13.00
Taiwan 17.73 14.82
India 7.98 11.66
Russia 7.25 3.57
Brazil 6.98 5.00
South Africa 1.64 3.23
Mexico 1.50 1.97
Thailand 1.45 1.72
United Kingdom 1.41 0.00
Rest of the world 4.22 11.09
Cash & Cash Equivalents -2.68 0.00

GEARING

TEMIT has the ability to borrow money for investment purposes. The Board has agreed that the Company may borrow up to 10% of its net assets.

Net Gearing: 3.3% as at 31/08/2021

Market capitalisation As at 31 August 2021

<2.0 Billion 5.53%
2.0-5.0 Billion 9.54%
5.0-10.0 Billion 6.58%
10.0-25.0 Billion 10.89%
25.0-50.0 Billion 18.16%
>50.0 Billion 49.29%

Portfolio Characteristics As at 31 August 2021

Number of Holdings 79
Dividend Yield (i) [further-information] 1.91%
Price to Earnings (i) [further-information] 15.04
Price to Cashflow (i) [further-information] 8.56
Price to Book (i) [further-information] 2.01
Weighted Average Market Capitalisation (i) (billion) [further-information] £ 163.62

Performance

The prices of shares and income from them can go down as well as up, and investors may not get back the full amount invested. Past performance is not a guarantee or indicator of future performance. Currency fluctuation may affect the value of overseas investments. In emerging markets, the risks can be greater than in developed markets An investment in TEMIT entails risks which are described in the annual report.


Discrete Performance to the end of the last month

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MONTHLY COMMENTARY (AS OF 31 July 2021)

Overview

Stocks worldwide rose in August.
Emerging market (EM) equities slightly outpaced their developed market peers in sterling terms.
Emerging Asian equities advanced. Southeast Asia staged a strong market rebound as COVID-19 restrictions began to ease in countries such as Thailand and Indonesia. China’s market rose modestly to trail the region.
Latin American stocks lagged broader EMs on the upside, largely due to the Brazilian market’s decline amidst weaker commodity prices and fiscal and interest rate concerns. In Mexico, equities rose.
Markets across the Europe, Middle East and Africa region achieved broad-based gains.

Portfolio Changes & Positioning

We added to some existing holdings in the portfolio. Amongst new positions was Tata Consultancy Services, an India-based technology services provider. We increased investments in materials, financials, and consumer staples at the sector level, and in China, South Korea, and Brazil at the market level.
We pared some positions and divested India-based food delivery company Zomato.

Performance Attribution

Key stock detractors from TEMIT’s performance relative to the benchmark MSCI Emerging Markets Index included Chinese e-commerce company Alibaba Group, South Africa-based internet company Naspers, and South Korean semiconductor and consumer electronics company Samsung Electronics.
In sector terms, stock selection across consumer discretionary, financials, and consumer staples capped relative returns. From a market perspective, an overweight and stock selection in South Korea, an underweight and stock selection in India, and stock selection in South Africa were areas of relative weakness.
Conversely, major stock contributors to TEMIT’s relative returns included China-based Guangzhou Tinci Materials Technology, Russia-based Yandex, and Thailand-based Kasikornbank.
At the sector level, health care and materials boosted relative returns.

Outlook

Outbreaks triggered by the COVID-19 Delta variant have resulted in new lockdowns and hindered economic normalisation in some EMs in the short term. However, we have seen countries accelerate vaccination efforts and vaccine manufacturers increase their capacities, leading us to believe that most economies are on the path to normalisation.
Amongst investor concerns is a potential increase in US interest rates. This could be negative for EMs with macro vulnerabilities.
In China, tighter regulations have coincided with a slowdown in economic momentum and a resurgence in COVID-19 cases. We see value in diversifying our exposure across sectors within China, and we are seeking investment opportunities where companies display sustainable earnings power.
Overall, we believe that EMs are likely to remain resilient in the face of various challenges, supported by a largely healthier debt profile compared with developed markets, as well as banking systems that have mostly withstood stress from the pandemic. We expect further progress in the technology and consumption trends that have become the new economic drivers for many EMs.

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QUARTERLY PERFORMANCE ATTRIBUTION

Largest Contributors to Performance [further-information] (3 months to 30.06.2021)

Securities - Largest ContributorsSectorCountryTotal Effect (%)
Guangzhou Tinci Materials Technology Co Ltd Materials China 0.48
Fila Korea Consumer Discretionary South Korea 0.21
Naver Corp Communication Services South Korea 0.20
Itau Unibanco Holding S/A Financials Brazil 0.19
Banco Bradesco SA Financials Brazil 0.17

Largest Detractors to Performance [further-information] (3 months to 30.06.2021)

Securities - Largest DetractorsSectorCountryTotal Effect (%)
Brilliance China Automotive Holdings Ltd Consumer Discretionary China -0.70
Samsung Electronics Co Ltd Information Technology South Korea -0.51
Naspers Ltd Consumer Discretionary South Africa -0.43
Taiwan Semiconductor Manufacturing Co Ltd Information Technology Taiwan -0.29
Tencent Holdings Ltd Communication Services China -0.28

Largest Contributors to Performance [further-information] (3 months to 30.06.2021)

Sector

Total Effect (%)
Financials 0.46
Materials 0.36
Real Estate 0.16
Consumer Staples 0.10
Utilities 0.06
Cash & Other Net Assets -0.00
Energy -0.08
Communication Services -0.32
Industrials -0.39
Health Care -0.51
Information Technology -1.25

Country - Largest Contributors

Total Effect (%)
Russia 0.19
Brazil 0.19
Chile 0.10
Mexico 0.10
Malaysia 0.10

Country - Largest Detractors

Total Effect (%)
China -1.49
Taiwan -0.88
South Korea -0.40
South Africa -0.34
Saudi Arabia -0.13

Risks

Risk Statistics (As of 30.06.2021)

1 year3 years
Alpha [further-information] 1.75 2.17
Beta [further-information] 0.98 1.14
Annualised Downside Risk [further-information] 2.91 2.58
Information Ratio (Relative) [further-information] 0.33 0.82
R2 [further-information] 67.53 94.41
Sharpe Ratio [further-information] 3.40 0.80
Annualised Tracking Error [further-information] 4.69 4.39
Annualised Volatility [further-information] 8.23 16.54
Positive Months [further-information] 10.00 23.00
Negative Months [further-information] 2.00 13.00

Pricing overview As of {{pricing.asOfDate}}

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TEMIT Dividends (Paid or Declared)

Ex dividend datePay dateDividend per share
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