Portfolio And Performance

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NAV

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As of

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 31/01/2019

Total Net Assets [further-information] £2,105.46 million
Market Capitalisation [further-information] £1,897.16 million
No of shares in issue 253,971,188
Net Gearing [further-information] 0.9%
Benchmark {{overview.quickFacts.benchmark}}
Ticker {{overview.quickFacts.ticker}}
ISIN {{overview.quickFacts.ISIN}}
SEDOL {{overview.quickFacts.SEDOL}}

ChargesAs of 31/01/2019

Ongoing Charge [further-information] 0.98%

Key dates

Launch Date {{overview.keyDates.launchDate}}
Financial Year End 31 March
Next AGM July 2019
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
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Portfolio Details

Sector breakdown As of 31/01/2019

SectorPercMSCI Emerging Markets Index (BM0119)
Financials 27.06 24.84
Information Technology 18.49 14.28
Communication Services 17.36 14.16
Consumer Discretionary 15.28 10.87
Energy 7.59 8.09
Consumer Staples 6.41 6.54
Materials 3.52 7.34
Industrials 2.46 5.45
Health Care 2.07 2.73
Real Estate 0.40 3.08
Utilities 0.00 2.62
Cash & Cash Equivalents -0.64 0.00

Country weightings As of 31/01/2019

CountryTEMITBenchmark
Hong Kong / China 22.73 31.08
South Korea 14.86 13.98
Brazil 9.83 8.04
Taiwan 9.14 10.66
Russia 8.51 3.87
South Africa 7.24 6.44
India 6.56 8.47
Thailand 4.26 2.45
Indonesia 3.70 2.31
United Kingdom 2.87 0.00
Rest of the world 10.95 12.69
Cash & Cash Equivalents -0.64 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: 0.9% as at 31/01/2019

Market capitalisationAs at {{portfolio.marketCap.asOfDate}}

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Market breakdown [further-information] As at 31 January 2019

Emerging 94.0%
Frontier 2.3%
Developed 4.4%
Total 100.6%

Portfolio Characteristics As at 31 January 2019

Number of Holdings 96
Dividend Yield (i) [further-information] 2.54%
Price to Earnings (i) [further-information] 11.13
Price to Cashflow (i) [further-information] 5.91
Price to Book (i) [further-information] 1.63
Weighted Average Market Capitalisation (i) (billion) [further-information] £ 78.64

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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Cumulative performance as at {{performance.tables.cumulative.asof}}

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Monthly Commentary (as of 31 January 2019)

Global stock markets began 2019 on a strong note, driven by optimism around US-China trade negotiations and hopes for a prolonged pause in US interest rate hikes. Emerging-market (EM) equities benefitted from local currency strength and robust asset-class inflows to finish January ahead of their developed-market counterparts.

Asian equities rebounded. China's stock market rallied on signs of progress in US-China trade talks and fresh policies to counter slower economic growth. South Korea's index rose as technology heavyweights surged. Conversely, stocks in India declined.

In Latin America, Brazil was a leading performer as it gained on the back of higher commodity prices. Mexico and Peru, while recording gains, lagged their regional peers. Emerging European equities gained ground. Russia posted strong returns amidst higher oil prices and an appreciation in the rouble. Meanwhile, South African equities advanced on the back of a stronger rand.

Portfolio Changes & Positioning

In sector terms, we added to holdings in financials, materials and consumer staples. By market, we conducted some purchases in China, the US and India. Meanwhile, we undertook some sales in communication services, consumer discretionary and information technology from a sector perspective, and South Korea, Brazil and Peru from a market perspective.

Performance Attribution

Across sectors, financials, consumer discretionary and communication services boosted relative returns, all due to stock selection. By market, stock selection across China, South Korea and Brazil contributed to relative strength. Conversely, by sector, stock selection in both health care and consumer staples held back relative performance. The UK and Peru drove relative weakness from a market perspective, as did a lack of exposure to Turkey.

Outlook

Investor sentiment in EMs improved in January, supported by a dovish US Federal Reserve and hopes for the US and China to reach a trade deal by March, when higher US tariffs on Chinese goods are poised to set in.

We believe that confidence in EMs could strengthen further on several factors: economic growth differentials between EMs and developed markets are widening in the former’s favour, EM currencies appear undervalued despite balance of payment surpluses in many markets, the EM earnings outlook remains robust, and EM equities continue to trade at valuations below developed-market stocks.

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QUARTERLY PERFORMANCE ATTRIBUTION

Largest Contributors to Performance [further-information] (3 months to 31.12.2018)

Securities - Largest ContributorsSectorCountryTotal Effect (%)
ICICI Bank LTD Financials India 0.80
Buenaventura, ADR Materials Peru 0.70
Banco Bradesco SA Financials Brazil 0.51
CIA Hering Consumer Discretionary Brazil 0.45
Itau Unibanco Financials Brazil 0.41

Largest Detractors to Performance [further-information] (3 months to 31.12.2018)

Securities - Largest DetractorsSectorCountryTotal Effect (%)
Brilliance China Automotive Holdings Ltd Consumer Discretionary Hong Kong / China -2.33
Samsung Information Technology South Korea -0.37
Banco Santander Mexico Financials Hong Kong / China -0.27
Catcher Technology Industrials Taiwan -0.25
Sinopec Energy Hong Kong / China -0.20

Largest Contributors to Performance [further-information] (3 months to 31.12.2018)

Sector

Total Effect (%)
Materials 1.02
Health Care 0.59
Financials 0.40
Industrials 0.04
Consumer Staples -0.03
Utilities -0.28
Real Estate -0.29
Communication Services -0.34
Energy -0.43
Information Technology -0.58
Consumer Discretionary -0.89

Country - Largest Contributors

Total Effect (%)
Brazil 1.60
Peru 0.75
Indonesia 0.34
India 0.28
United Kingdom 0.12

Country - Largest Detractors

Total Effect (%)
United States -0.19
Thailand -0.25
Russia -0.27
Taiwan -0.44
Hong Kong/China -2.56

Risks

Risk Statistics (As of 31.12.2018)

1 year3 years
Alpha [further-information] -3.46 4.26
Beta [further-information] 0.93 1.00
Annualised Downside Risk [further-information] 2.68 2.24
Information Ratio (Relative) [further-information] -0.89 1.25
R2 [further-information] 92.41 93.66
Sharpe Ratio [further-information] -1.17 1.28
Annualised Tracking Error [further-information] 2.95 3.84
Annualised Volatility [further-information] 10.39 15.26
Positive Months [further-information] 4 21
Negative Months [further-information] 8 15

Pricing overview As of {{pricing.asOfDate}}

Share Price {{overview.ticker.sharePrice}}
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Discount/Premium {{pricing.discount}}%


TEMIT Dividends (Paid or Declared)

Ex dividend datePay dateDividend per share
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