Portfolio And Performance

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Share Price

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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 30/11/2018

Total Net Assets [further-information] £2,027.74 million
Market Capitalisation [further-information] £1,797.00 million
No of shares in issue 255,618,650
Net Gearing [further-information] 1.6%
Benchmark {{overview.quickFacts.benchmark}}
Ticker {{overview.quickFacts.ticker}}
ISIN {{overview.quickFacts.ISIN}}
SEDOL {{overview.quickFacts.SEDOL}}

ChargesAs of 30/11/2018

Ongoing Charge [further-information] 0.98%

Key dates

Launch Date {{overview.keyDates.launchDate}}
Financial Year End 31 March
Next AGM July 2018
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 30/11/2018

SectorPercMSCI Emerging Markets Index (BM0119)
Financials 26.02 24.65
Information Technology 18.40 14.59
Communication Services 17.04 14.03
Consumer Discretionary 15.68 10.47
Energy 8.32 8.22
Consumer Staples 6.77 6.56
Materials 4.49 7.45
Industrials 2.42 5.51
Health Care 2.14 2.91
Real Estate 0.38 2.98
Utilities 0.00 2.61
Cash & Cash Equivalents -1.67 0.00

Country weightings As of 30/11/2018

CountryTEMITBenchmark
Hong Kong / China 22.32 30.99
South Korea 14.70 13.87
Taiwan 10.13 11.31
Brazil 9.64 7.51
Russia 8.56 3.75
South Africa 7.06 6.16
India 6.99 9.19
Thailand 4.35 2.41
Indonesia 3.53 2.23
United Kingdom 3.17 0.00
Rest of the world 11.24 12.58
Cash & Cash Equivalents -1.67 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: 1.6% as at 30/11/2018

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

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Market breakdown [further-information] As at 30 November 2018

Emerging 95.6%
Frontier 2.3%
Developed 3.9%
Total 101.8%

Portfolio Characteristics As at 30 November 2018

Number of Holdings 97
Dividend Yield [further-information] 2.64%
Price to Earnings [further-information] 10.34
Price to Cashflow [further-information] 5.59
Price to Book [further-information] 1.53
Weighted Average Market Capitalisation (billion) [further-information] £ 74.67

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: 1.6% as at 30/11/2018

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

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Market breakdown [further-information] As at 30 November 2018

Emerging 95.6%
Frontier 2.3%
Developed 3.9%
Total 101.8%

Portfolio Characteristics As at 30 November 2018

Number of Holdings 97
Dividend Yield [further-information] 2.64%
Price to Earnings [further-information] 10.34
Price to Cashflow [further-information] 5.59
Price to Book [further-information] 1.53
Weighted Average Market Capitalisation (billion) [further-information] £ 74.67

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 November 2018)

Emerging-market (EM) equities rebounded in November and outpaced developed-market (DM) stocks. Hopes for a slower pace of US interest rate hikes in 2019 lifted global markets and buoyed EM currencies against the US dollar. Tentative signs of a respite in US-China trade tensions also supported EMs. Asian equities rose with Indonesia’s stock market driving the advance. Taiwan and Thailand were amongst regional markets that fell. Latin American markets fell, led by Mexico, Peru and Brazil. Emerging European markets gained. Hungary was amongst markets recording strong returns. However, lower oil prices and increased geopolitical risk weighed on Russian shares. Elsewhere, South Africa’s market rose, helped by an appreciation in the rand.

Portfolio Changes & Positioning

In November, we initiated a position in Bharat Petroleum, a leading oil refinery in India. Overall, we increased investments in the industrials and communication services sectors. Across markets, we added to holdings in South Korea, India and Mexico. Meanwhile, we sold out of Inner Mongolia Yitai Coal. By sector, we reduced holdings in energy, information technology (IT) and consumer discretionary. We also conducted some sales in Taiwan, Peru and Brazil.

Performance Attribution

Stock selection and an overweight position in IT weighed on performance relative to the benchmark MSCI Emerging Markets Index, as did stock selection across financials and real estate. However, stock selection and overweight positions in consumer discretionary and communication services, as well as stock selection and an underweight position in materials, provided relative strength.

By market, stock selection and an underweight position in China, together with stock selection across India and Taiwan, drove relative weakness. Conversely, relative returns were cushioned by stock selection across Brazil and South Africa, plus an off-benchmark exposure to Cambodia.

Outlook

Investor sentiment towards EMs improved recently as dovish comments from US Federal Reserve Chairman Jerome Powell raised expectations of a pause in interest rate increases in 2019 and led to a more bearish view on the US dollar.

EM equities have become more attractively valued, in our view, as a result of low investor confidence earlier in the year, while cash flows improve and dividend pay outs continue. Although EM earnings growth lagged DMs in 2018, we expect a resumption of momentum in 2019; fundamentals remain strong and many EM currencies have adjusted significantly in 2018.

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QUARTERLY PERFORMANCE ATTRIBUTION

Largest Contributors to Performance [further-information] (3 months to 30.09.2018)

Securities - Largest ContributorsSectorCountryTotal Effect (%)
Taiwan Semiconductor Manufacturing Information Technology Hong Kong / China 0.39
Tencent Holdings Ltd Communication Services Hong Kong / China 0.31
Banco Santander Mexico Financials Mexico 0.31
Lukoil Holdings Energy Russia 0.30
Ping An Bank Financials Hong Kong / China 0.21

Largest Detractors to Performance [further-information] (3 months to 30.09.2018)

Securities - Largest DetractorsSectorCountryTotal Effect (%)
Naspers Ltd Communication Services South Africa -0.70
Brilliance China Automotive Holdings Ltd Consumer Discretionary Hong Kong / China -0.45
MGM China Holdings Ltd Consumer Discretionary Hong Kong / China -0.19
Sberbank of Russia Financials Russia -0.15
Reliance Industries Ltd Energy India -0.14

Largest Contributors to Performance [further-information] (3 months to 30.09.2018)

Sector

Total Effect (%)
Financials 1.04
Information Technology 0.65
Consumer Discretionary 0.30
Health Care 0.28
Real Estate 0.16
Energy 0.08
Utilities 0.01
Industrials -0.10
Consumer Staples -0.16
Communication Services -0.24
Materials -0.56

Country - Largest Contributors

Total Effect (%)
China/Hong Kong 1.28
India 0.30
Indonesia 0.26
Thailand 0.20
Taiwan 0.20

Country - Largest Detractors

Total Effect (%)
Qatar -0.11
Poland -0.13
South Korea -0.14
Brazil -0.17
South Africa -0.65

Risks

Risk Statistics (As of 30.09.2018)

1 year3 years
Alpha [further-information] -2.58 4.35
Beta [further-information] 0.84 1.00
Annualised Downside Risk [further-information] 2.84 2.32
Information Ratio (Relative) [further-information] -0.97 1.27
R2 [further-information] 89.36 92.70
Sharpe Ratio [further-information] -0.12 1.60
Annualised Tracking Error [further-information] 3.09 3.91
Annualised Volatility [further-information] 8.31 14.45
Positive Months [further-information] 5 21
Negative Months [further-information] 7 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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