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 30/04/2021

Total Net Assets [further-information] £2,621.66 million
Market Capitalisation [further-information] £2,447.51 million
No of shares in issue 236,245,731
Net Gearing [further-information] 0.2%
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ChargesAs of 30/04/2021

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
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 30/04/2021

SectorPercMSCI Emerging Markets Index (BM2658)
Information Technology 31.24 21.18
Financials 18.29 17.94
Consumer Discretionary 18.07 17.37
Communication Services 17.06 11.71
Materials 4.28 8.56
Consumer Staples 4.24 5.51
Industrials 3.35 4.39
Energy 2.26 4.70
Health Care 1.19 4.68
Real Estate 0.45 2.02
Utilities 0.00 1.93
Cash & Cash Equivalents -0.44 0.00

Country weightings As of 30/04/2021

CountryTEMITBenchmark (BM2658)
Hong Kong / China 30.46 37.54
South Korea 22.81 13.41
Taiwan 16.70 14.56
India 6.18 9.36
Russia 6.05 3.04
Brazil 6.05 4.61
South Africa 4.20 3.70
United Kingdom 1.96 0.00
Thailand 1.40 1.81
Mexico 1.33 1.74
Rest of the world 3.35 10.23
Cash & Cash Equivalents -0.44 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 30/04/2021

Market capitalisation As at 30 April 2021

<2.0 Billion 4.12%
2.0-5.0 Billion 8.92%
5.0-10.0 Billion 4.77%
10.0-25.0 Billion 11.41%
25.0-50.0 Billion 16.00%
>50.0 Billion 54.77%

Portfolio Characteristics As at 30 April 2021

Number of Holdings 80
Dividend Yield (i) [further-information] 1.70%
Price to Earnings (i) [further-information] 15.71
Price to Cashflow (i) [further-information] 7.48
Price to Book (i) [further-information] 2.45
Weighted Average Market Capitalisation (i) (billion) [further-information] £ 200.05

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 30 April 2021)

Overview

Emerging market (EM) equities rebounded in April but trailed their developed market counterparts. Easing US Treasury yields and a weaker US dollar supported demand for EM stocks. The MSCI Emerging Markets Index gained 2.1%, whilst the MSCI World Index returned 4.3%, both in sterling terms.
Emerging Asian equities rose. Finishing higher were markets in Taiwan, South Korea and China. Strong exports from Taiwan and South Korea were bright spots. Meanwhile, markets in Thailand and India were some of the weakest performers.
Latin American markets gained, aided by Brazilian equities’ advance. In Mexico, the stock market rose, supported by a US-led recovery in manufacturing and exports.
In Europe, the Middle East and Africa, Russia’s market fell modestly. Fresh US sanctions on the country overshadowed a rise in crude oil prices. South African equities edged lower amidst political uncertainty and a slow inoculation pace in the country.

Portfolio Changes & Positioning

We added to some existing holdings and initiated positions in the portfolio. Overall, we increased investments in materials, communication services, and health care by sector, and in China, Russia, and Brazil by market.
As a whole, we pared holdings in consumer staples, industrials, and information technology at the sector level. At the market level, we undertook sales in Thailand, the United States, and the United Kingdom.

Performance Attribution

Key stock detractors from TEMIT’s performance relative to the benchmark MSCI Emerging Markets Index included chip producer Taiwan Semiconductor Manufacturing Company (TSMC), South Korean internet company Naver, and car maker Brilliance China Automotive.
In sector terms, communication services, information technology, and consumer discretionary held back relative returns, all due to stock selection. From a market perspective, stock selection across Taiwan, China, and South Africa drove relative weakness.
Conversely, major stock contributors to TEMIT’s relative performance were South Korean conglomerate LG Corp, Taiwan-based chip designer MediaTek, and China-based polysilicon manufacturer Daqo New Energy.
At the sector level, stock selection in both industrials and financials, as well as an underweight in real estate, added to relative returns.

Outlook

Prior to the pandemic, EM fundamentals appeared generally attractive to us, and we still believe that to be the case.
Our conviction in the structural investment opportunities within EMs has remained. We have seen a rapid proliferation of internet-driven companies in many markets—a development that appears nascent and could gain further traction. We believe that COVID-19 concerns could create a window for long-term investors to enter the asset class.
We are watching government policies as a possible source of market headwinds and tailwinds ahead.
We believe in the strength of an all-weather investment approach that can potentially perform well regardless of market conditions. In our view, a long-term, stock-driven, and valuation-aware focus is central to such an approach.

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QUARTERLY PERFORMANCE ATTRIBUTION

Largest Contributors to Performance [further-information] (3 months to 31.03.2021)

Securities - Largest ContributorsSectorCountryTotal Effect (%)
Naver Corp Communication Services South Korea 0.76
Taiwan Semiconductor Manufacturing Co ltd Information Technology Taiwan 0.70
Mediatek Inc Information Technology Taiwan 0.43
Tencent Holdings Ltd Communication Services China 0.42
Kuaishou Technology Communication Services China 0.41

Largest Detractors to Performance [further-information] (3 months to 31.03.2021)

Securities - Largest DetractorsSectorCountryTotal Effect (%)
Al Rajhi Bank Financials Saudi Arabia -0.10
China Construction Bank Financials China -0.07
Country Garden Services Holdings Co ltd Industrials China -0.06
Kakao Corp Communication Services South Korea -0.05
Impala Platinum Holdings ltd Materials South Africa -0.05

Largest Contributors to Performance [further-information] (3 months to 31.03.2021)

Information Technology1.23

Sector

Total Effect (%)
Communication Services 1.56
Information Technology 1.31
Consumer Discretionary 0.51
Health Care 0.43
Energy 0.31
Consumer Staples 0.31
Financials 0.08
Real Estate 0.04
Utilities 0.01
Industrials -0.02
Cash & Other Net Assets -0.21
Materials -0.31
Taiwan1.01

Country - Largest Contributors

Total Effect (%)
China 2.16
South Korea 0.67
South Africa 0.24
Thailand 0.19

Country - Largest Detractors

Total Effect (%)
Saudi Arabia -0.32
United Kingdom -0.17
Brazil -0.13
United States -0.09
Chile -0.07

Risks

Risk Statistics (As of 31.03.2021)

1 year3 years
Alpha [further-information] 10.51 3.25
Beta [further-information] 0.95 1.14
Annualised Downside Risk [further-information] 0.60 11.40
Information Ratio (Relative) [further-information] 2.68 0.99
R2 [further-information] 80.94 94.51
Sharpe Ratio [further-information] 5.56 0.68
Annualised Tracking Error [further-information] 4.30 4.33
Annualised Volatility [further-information] 9.78 16.56
Positive Months [further-information] 11 22
Negative Months [further-information] 1 14

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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