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.
Total Net Assets [further-information] | £2,384.02 million |
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Market Capitalisation [further-information] | £2,154.24 million |
No of shares in issue | 236,470,286 |
Net Gearing [further-information] | 0.0% |
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SEDOL | {{overview.quickFacts.SEDOL}} |
Ongoing Charge [further-information] | 0.99% |
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Launch Date | 12 June 1989 |
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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 |
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 moreLike 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.
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% |
These securities do not represent all of the securities purchased, sold or recommended for clients, and the reader should not assume that investment in the securities listed was or will be profitable. The portfolio manager for the Fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the top holdings list.
Sector | Perc | MSCI Emerging Markets Index (BM2658) |
---|---|---|
Information Technology | 28.76 | 19.06 |
Consumer Discretionary | 19.32 | 19.43 |
Financials | 18.77 | 18.10 |
Communication Services | 18.72 | 12.27 |
Consumer Staples | 4.65 | 5.83 |
Materials | 3.66 | 7.26 |
Energy | 3.19 | 5.23 |
Industrials | 2.26 | 4.39 |
Health Care | 0.86 | 4.16 |
Real Estate | 0.00 | 2.30 |
Utilities | 0.00 | 1.97 |
Cash & Cash Equivalents | -0.20 | 0.00 |
Country | TEMIT | Benchmark (BM2658) |
---|---|---|
Hong Kong / China / Macao | 31.51 | 40.72 |
South Korea | 20.16 | 12.83 |
Taiwan | 14.87 | 12.76 |
Russia | 6.56 | 2.96 |
Brazil | 6.35 | 4.97 |
India | 5.78 | 8.09 |
South Africa | 3.51 | 3.53 |
United Kingdom | 2.43 | 0.00 |
Thailand | 1.84 | 1.93 |
United States | 1.44 | 0.00 |
Rest of the world | 5.75 | 12.22 |
Cash & Cash Equivalents | -0.20 | 0.00 |
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: 0.0% as at 30/11/2020
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Values are shown as a percentage of total including cash. Totals may not equal 100% due to rounding and/or gearing. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a portfolio’s holding at any one time. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
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.
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Overview
Emerging market (EM) equities climbed in November but trailed their developed market peers. Positive COVID-19 vaccine development data and increased clarity on US election results fuelled investors’ risk appetite globally, notwithstanding a jump in coronavirus cases in several parts of the world. Hopes for economic normalisation supported a surge in cyclical stocks. The MSCI Emerging Markets Index rose by 5.8%, while the MSCI World Index returned 9.3%, both in sterling terms.
Emerging Asian equities advanced. Thailand and Indonesia were amongst the top gainers as upbeat global cues sent investors into markets that had lagged the region’s year-to-date rally. South Korea’s market soared. Chinese equities dipped in sterling terms as the pound’s strength erased yuan-denominated gains. A risk-on backdrop and higher commodity prices buoyed Latin American equities and currencies. Brazil outperformed the broader region. Solid economic indicators reflected a continued recovery in Brazil. Stocks in Mexico rallied. Its economy rebounded in the third quarter. Emerging European stocks logged stellar gains even as COVID-19 cases continued to rise in some European countries. Russia’s market benefitted from a jump in crude oil prices as progress in vaccine developments lifted prospects for global oil demand. In the Middle East and Africa region, South African stocks finished higher as investors looked past cuts to South Africa’s sovereign credit ratings.
We added to some existing holdings and initiated a position in China-based solar glass maker Flat Glass. As a whole, we undertook purchases in consumer discretionary and information technology at the sector level, and in South Korea, China, and India at the market level. Overall, we reduced investments in communication services, consumer staples, and financials by sector. By market, we trimmed holdings in the United States and United Kingdom (both represented by companies that have significant exposures to EMs), as well as Indonesia.
Key stock detractors from TEMIT’s performance relative to the benchmark MSCI Emerging Markets Index included Chinese e-commerce giant Alibaba Group, and internet companies Naver in South Korea and Tencent in China.
In sector terms, stock selection in consumer discretionary, an overweight in communication services, and an underweight in materials held back relative returns. By market, China, South Korea, and South Africa contributed to relative weakness, all due to stock selection.
From a sector perspective, stock selection in both financials and health care helped relative performance, as did an overweight in information technology. In market terms, stock selection in India and overweights in both Russia and Brazil supported relative returns.
Recent COVID-19 vaccine news has signalled a return to economic normalcy for most EMs sooner than initially anticipated, despite the resurgence of COVID-19 cases in many developed markets.
A stronger economic outlook has led to some sector rotation and a significantly larger number of stocks improving in performance. From a longer-term perspective, however, of greater importance to us is the concept of resilience versus vulnerability.
We have also found resilience in leading EMs at the macroeconomic level. We think that China, Taiwan and South Korea have handled the pandemic effectively, and we view this as a testament to the quality of their institutions, governance, and health care systems. We believe that long-term investment opportunities in India remain intact despite its cyclical slowdown, and the consumption story remains compelling to us.
The US election results could have wide-ranging implications for EMs. We expect reduced trade uncertainty and a less disruptive foreign policy under a potential Biden administration. Nonetheless, our bottom-up investment approach means that our focus stays on individual companies, and how each has prepared for the risks and opportunities that arise from a changing world.
Securities - Largest Contributors | Sector | Country | Total Effect (%) |
---|---|---|---|
Taiwan Semiconductor manufacturing co ltd | Information Technology | Taiwan | 1.32 |
Alibaba Group holding ltd | Consumer Discretionary | China | 0.53 |
Yandex NV | Communication Services | Russia | 0.44 |
Samsung Life Insurance co ltd | Consumer Discretionary | South Korea | 0.34 |
Cognizant Technology Solutions Corp | Information Technology | United Sates | 0.16 |
Securities - Largest Detractors | Sector | Country | Total Effect (%) |
---|---|---|---|
Lukoil Pjsc | Energy | Russia | -0.44 |
Itau Unibanco Holding s/a | Financials | Brazil | -0.31 |
Naspers Ltd | Consumer Discretionary | South Africa | -0.23 |
Banco Bradesco SA | Financials | Brazil | -0.21 |
Banco Santander Mexico SA IN | Financials | Mexico | -0.20 |
Sector | Total Effect (%) |
---|---|
Information Technology | 1.46 |
Communication Services | 1.08 |
Financials | 0.45 |
Utilities | 0.30 |
Health Care | 0.28 |
Industrials | 0.24 |
Consumer Staples | 0.23 |
Real Estate | 0.21 |
Materials | -0.01 |
Cash & Other Net Assets | -0.04 |
Energy | -0.38 |
Consumer Discretionary | -1.51 |
Country - Largest Contributors | Total Effect (%) |
---|---|
Taiwan | 1.61 |
South Korea | 0.46 |
China | 0.28 |
United States | 0.17 |
Russia | 0.17 |
Country - Largest Detractors | Total Effect (%) |
---|---|
Brazil | -0.55 |
India | -0.39 |
South Africa | -0.11 |
Mexico | -0.06 |
Cambodia | -0.04 |
1 year | 3 years | |
---|---|---|
Alpha [further-information] | 3.21 | 1.74 |
Beta [further-information] | 1.17 | 1.13 |
Annualised Downside |
3.55 | 2.70 |
Information Ratio |
0.74 | 0.49 |
R2 [further-information] | 96.35 | 94.55 |
Sharpe Ratio [further-information] | 0.42 | 0.34 |
Annualised Tracking |
5.24 | 4.29 |
Annualised |
21.89 | 16.53 |
Positive Months [further-information] | 8 | 20 |
Negative Months [further-information] | 4 | 16 |
Source: Franklin Templeton Investments. Performance details are in sterling, include reinvested dividends net of basic rate UK tax and are net of management fees. Sales charges and other commissions, other taxes and relevant costs to be paid by an investor are not included in the calculations. Performance figures are not based on audited financial statements and, unless indicated otherwise, assume reinvestment of interest and dividends. References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. An index is unmanaged and one cannot invest directly in an index. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund.
Data from third party sources may have been used in its preparation and Franklin Templeton Investments has not independently verified, validated or audited such data.
Attribution-related data provided by FactSet as at 30/09/2020. Relative attribution refers to the MSCI Emerging Markets Index in sterling terms.
Pricing data provided by Financial Express Limited.
© 2020 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Prices shown are the closing price on the date shown and will vary throughout the day. Please check with your broker/financial adviser for details of all charges and the current price.
Past performance is not an indicator of future performance. The value of investments may go down as well as up and you could get back less than invested. Source: Financial Express.
Ex dividend date | Pay date | Dividend per share |
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- | - | - |
Dividends are not guaranteed. From 1 April 2017, 70% of the annual Alternative Investment Fund Manager (AIFM) fee and 70% of the costs of borrowing will be allocated to the capital account. While this will boost TEMIT’s revenue it will reduce capital returns.
This website is intended to be of general interest only and does not constitute legal or tax advice nor is it an offer for shares or invitation to apply for shares of the Templeton Emerging Markets Investment Trust (TEMIT). Nothing in this website should be construed as investment advice. Opinions expressed are the author's at publication date and they are subject to change without prior notice. Subscriptions to TEMIT can only be made on the basis of the latest available audited TEMIT annual report and TEMIT half-yearly report if published thereafter.
The value of shares in TEMIT and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. An investment in TEMIT entails risks which are described in the TEMIT annual report. In emerging markets, the risks can be greater than in developed markets. Investments in derivative instruments entail specific risks more fully described in the TEMIT annual report.
US Persons are not eligible to invest in TEMIT. Shares of the TEMIT are available for sale and distribution in the UK. Any research and analysis contained in this website has been procured by Franklin Templeton Investments for its own purposes and is provided to you only incidentally. References to particular industries, sectors or companies are for general information and are not necessarily indicative of TEMIT's holding at any one time.
References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. An index is unmanaged and one cannot invest directly in an index. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.
There is no guarantee that TEMIT will achieve its objective. Please consult your financial adviser before deciding to invest. You can download a copy of the latest TEMIT annual report and TEMIT half-yearly report, or request one, free of charge, from Franklin Templeton Investment Management Limited, Cannon Place, 78 Cannon Street, London EC4N 6HL. Authorised and regulated by the Financial Conduct Authority. Telephone: 0800 305 306, Email: enquiries@franklintempleton.co.uk.
Chetan Sehgal,
Singapore (Lead Portfolio Manager)
Andrew Ness,
Edinburgh (Portfolio Manager)