Portfolio And Performance

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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 31/12/2019

Total Net Assets [further-information] £2,260.93 million
Market Capitalisation [further-information] £2,046.52 million
No of shares in issue 243,633,013
Net Gearing [further-information] -0.2%
Benchmark {{overview.quickFacts.benchmark}}
Ticker {{overview.quickFacts.ticker}}
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SEDOL {{overview.quickFacts.SEDOL}}

ChargesAs of 31/12/2019

Ongoing Charge [further-information] 1.02%

Key dates

Launch Date {{overview.keyDates.launchDate}}
Financial Year End 31 March
Next AGM July 2020
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 31/12/2019

SectorPercMSCI Emerging Markets Index (BM0119)
Financials 24.78 24.24
Information Technology 22.04 15.67
Consumer Discretionary 17.80 14.18
Communication Services 15.14 11.03
Energy 7.25 7.39
Consumer Staples 5.43 6.30
Materials 3.95 7.40
Industrials 2.28 5.30
Health Care 1.60 2.84
Real Estate 0.00 3.01
Utilities 0.00 2.63
Cash & Cash Equivalents -0.27 0.00

Country weightings As of 31/12/2019

CountryTEMITBenchmark
Hong Kong / China / Macao 28.44 34.28
South Korea 15.84 11.72
Taiwan 10.99 11.70
Brazil 9.44 7.47
Russia 9.19 3.92
India 7.35 8.63
South Africa 3.04 4.74
Thailand 2.84 2.58
United States 2.83 0.00
United Kingdom 2.69 0.00
Rest of the world 7.63 14.96
Cash & Cash Equivalents -0.27 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: -0.2% as at 31/12/2019

Market capitalisationAs at 31 December 2019

<2.0 Billion 7.05%
2.0-5.0 Billion 10.82%
5.0-10.0 Billion 7.73%
10.0-25.0 Billion 10.09%
25.0-50.0 Billion 15.45%
>50.0 Billion 48.86%

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

Emerging 92.4%
Frontier 1.7%
Developed 5.5%
Total 99.6%

Portfolio Characteristics As at 31 December 2019

Number of Holdings 86
Dividend Yield (i) [further-information] 2.47%
Price to Earnings (i) [further-information] 14.03
Price to Cashflow (i) [further-information] 8.02
Price to Book (i) [further-information] 1.80
Weighted Average Market Capitalisation (i) (billion) [further-information] £ 113.85

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 2020)

Stock markets worldwide fell in January, with emerging market (EM) equities slipping more than their developed market counterparts. EMs surrendered initial gains driven by the signing of a partial US-China trade deal, as the spread of a new virus in China and other countries clouded the global economic outlook.

Most Asian markets retreated as the virus outbreak in China dominated investor sentiment. Chinese equities ended lower as investors assessed potential drags on domestic manufacturing and consumption. Stocks in South Korea and Taiwan, both of which count China as a major trading partner, pulled back.

Latin American equities were broadly lower amidst virus fears and softer commodity prices. The Brazilian real’s weakness contributed to Brazil’s stock market decline. Mexican equities bucked the downtrend, aided by the US approval of a US-Mexico-Canada trade treaty.

Markets in Europe, the Middle East and Africa lost ground. US-Iranian tension, which raised fears of a military conflict in the Middle East, was a source of uncertainty. Stocks in South Africa and Russia retreated amidst weakness in both countries’ currencies.

Portfolio Changes & Positioning

We added to holdings in financials and consumer discretionary from a sector perspective, and in South Korea and India from a market perspective.

By sector, we conducted some sales in energy, industrials and information technology. Markets in which we reduced investments included Brazil, China and Kenya.

Performance Attribution

In sector terms, stock selection in information technology, consumer discretionary and health care held back relative returns. By market, stock selection in both Taiwan and South Korea capped relative performance, as did stock selection and an overweight position in Brazil.

By sector, stock selection in both consumer staples and energy, coupled with a lack of exposure to real estate, provided relative support. From a market perspective, stock selection in South Africa, an overweight position and stock selection in Russia, as well as an off-benchmark exposure to the United Kingdom drove relative strength.

Outlook

Investor optimism following the US-China phase-one trade agreement was overshadowed by fears over the China-centred virus outbreak in late January. The resulting EM equity market decline has occurred after a year of strong returns. This suggests that a further correction could happen as concerns persist in the coming weeks and markets continue to consolidate.

From our bottom-up perspective, we continue to see plenty of EM companies capturing secular growth opportunities across diverse industries. Such businesses could show more resilience in the face of economic hiccups. Amongst our portfolio’s top holdings are technology and consumer-related companies exposed to fast-growing areas such as high-performance computing and e-commerce. Many are industry leaders that have proven themselves with sustained innovation or skills in fulfilling unmet consumer demand.

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QUARTERLY PERFORMANCE ATTRIBUTION

Largest Contributors to Performance [further-information] (3 months to 31.12.2019)

Securities - Largest ContributorsSectorCountryTotal Effect (%)
Taiwan Semiconductor Manufacturing Information Technology Taiwan 0.52
ICICI Bank Financials India 0.37
Naver Information Technology South Korea 0.25
Lojas Americana Consumer Discretionary Brazil 0.24
Lukoil Energy Russia 0.22

Largest Detractors to Performance [further-information] (3 months to 31.12.2019)

Securities - Largest DetractorsSectorCountryTotal Effect (%)
Unilever Consumer Staples United Kingdom -0.46
Brilliance China Automotive Consumer Discretionary Hong Kong / China -0.44
Cognizant Technology Solutions Information Technology United States -0.19
Imax Corp Communication Services Canada -0.16
Bajaj Holdings & Investment Ltd Financials India -0.15

Largest Contributors to Performance [further-information] (3 months to 31.12.2019)

Sector

Total Effect (%)
Financials 0.68
Communication Services 0.58
Energy 0.35
Information Technology 0.28
Utilities 0.2
Materials 0.19
Health Care 0.12
Industrials 0.1
Cash & Other Net Assets 0.09
Consumer Staples -0.01
Real Estate -0.15

Country - Largest Contributors

Total Effect (%)
India 0.56
Russia 0.4
Taiwan 0.38
Brazil 0.31
South Korea 0.25

Country - Largest Detractors

Total Effect (%)
Hong Kong / China -0.72
United Kingdom -0.46
United States -0.3
South Africa -0.09
Peru -0.02

Risks

Risk Statistics (As of 31.12.2019)

1 year3 years
Alpha [further-information] 5.98 2.56
Beta [further-information] 1.20 1.07
Annualised Downside Risk [further-information] 0.87 1.93
Information Ratio (Relative) [further-information] 2.68 0.95
R2 [further-information] 95.47 92.32
Sharpe Ratio [further-information] 1.72 0.98
Annualised Tracking Error [further-information] 3.67 3.58
Annualised Volatility [further-information] 13.62 12.57
Positive Months [further-information] 8 20
Negative Months [further-information] 4 16

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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