Portfolio And Performance

{{overview.ticker.sharePrice}}

Share Price

{{overview.ticker.NAV}}

NAV

{{overview.ticker.discount}}

Discount (% of NAV)

{{overview.ticker.asOfDate}}

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 31/08/2020

Total Net Assets [further-information] £2, 242.70 million
Market Capitalisation [further-information] £1,971.87 million
No of shares in issue 238,149,713
Net Gearing [further-information] 0.0%
Benchmark {{overview.quickFacts.benchmark}}
Ticker {{overview.quickFacts.ticker}}
ISIN {{overview.quickFacts.ISIN}}
SEDOL {{overview.quickFacts.SEDOL}}

ChargesAs of 31/08/2020

Ongoing Charge [further-information] 0.99%

Key dates

Launch Date {{overview.keyDates.launchDate}}
Financial Year End 31 March
Next AGM July 2020
Final Dividend Ex-Date 11 June 2020
Final Dividend Record Date 12 June 2020
AGM 9 July 2020
Final Dividend Payment Date 17 July 2020
Half Year End 30 September 2020
Half Yearly Report Published November 2020
Interim Dividend Record Date December 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 31/08/2020

SectorPercMSCI Emerging Markets Index (BM2658)
Information Technology 23.60 17.52
Consumer Discretionary 21.05 19.77
Communication Services 20.75 12.95
Financials 16.56 17.75
Consumer Staples 4.97 6.25
Energy 3.66 5.60
Materials 3.39 7.08
Cash & Cash Equivalents 2.79 0.00
Industrials 2.26 4.47
Health Care 0.98 4.20
Real Estate 0.00 2.39
Utilities 0.00 2.03

Country weightings As of 31/08/2020

CountryTEMITBenchmark (BM2658)
Hong Kong / China / Macao 33.26 42.53
South Korea 17.62 11.47
Taiwan 12.61 12.45
Russia 7.56 2.93
Brazil 6.20 4.84
India 5.18 8.30
South Africa 3.27 3.54
United Kingdom 2.79 0.00
United States 2.02 0.00
Thailand 1.65 1.94
Rest of the world 5.36 12.00
Cash & Cash Equivalents 2.79 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: 0.0% as at 31/08/2020

Market capitalisation As at 31 August 2020

<2.0 Billion 5.52%
2.0-5.0 Billion 8.50%
5.0-10.0 Billion 8.95%
10.0-25.0 Billion 8.38%
25.0-50.0 Billion 19.36%
>50.0 Billion 49.29%

Portfolio Characteristics As at 31 August 2020

Number of Holdings 82
Dividend Yield (i) [further-information] 3.17%
Price to Earnings (i) [further-information] 15.90
Price to Cashflow (i) [further-information] 5.41
Price to Book (i) [further-information] 1.66
Weighted Average Market Capitalisation (i) (billion) [further-information] £ 177.39

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

12 months to{{performance.tables.discreteAnnual.headers.[0]}}{{performance.tables.discreteAnnual.headers.[1]}}{{performance.tables.discreteAnnual.headers.[2]}}{{performance.tables.discreteAnnual.headers.[3]}}{{performance.tables.discreteAnnual.headers.[4]}}
Share price {{performance.tables.discreteAnnual.marketPrice.[0]}}% {{performance.tables.discreteAnnual.marketPrice.[1]}}% {{performance.tables.discreteAnnual.marketPrice.[2]}}% {{performance.tables.discreteAnnual.marketPrice.[3]}}% {{performance.tables.discreteAnnual.marketPrice.[4]}}%
NAV {{performance.tables.discreteAnnual.nav.[0]}}% {{performance.tables.discreteAnnual.nav.[1]}}% {{performance.tables.discreteAnnual.nav.[2]}}% {{performance.tables.discreteAnnual.nav.[3]}}% {{performance.tables.discreteAnnual.nav.[4]}}%
{{overview.quickFacts.benchmark}} {{performance.tables.discreteAnnual.benchmark.[0]}}% {{performance.tables.discreteAnnual.benchmark.[1]}}% {{performance.tables.discreteAnnual.benchmark.[2]}}% {{performance.tables.discreteAnnual.benchmark.[3]}}% {{performance.tables.discreteAnnual.benchmark.[4]}}%

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

 1 month3 monthsYear to date1 year3 years5 years10 years
Share price {{performance.tables.cumulative.marketPrice.[0]}}% {{performance.tables.cumulative.marketPrice.[1]}}% {{performance.tables.cumulative.marketPrice.[2]}}% {{performance.tables.cumulative.marketPrice.[3]}}% {{performance.tables.cumulative.marketPrice.[4]}}% {{performance.tables.cumulative.marketPrice.[5]}}% {{performance.tables.cumulative.marketPrice.[6]}}%
NAV {{performance.tables.cumulative.nav.[0]}}% {{performance.tables.cumulative.nav.[1]}}% {{performance.tables.cumulative.nav.[2]}}% {{performance.tables.cumulative.nav.[3]}}% {{performance.tables.cumulative.nav.[4]}}% {{performance.tables.cumulative.nav.[5]}}% {{performance.tables.cumulative.nav.[6]}}%
{{overview.quickFacts.benchmark}} {{performance.tables.cumulative.benchmark.[0]}}% {{performance.tables.cumulative.benchmark.[1]}}% {{performance.tables.cumulative.benchmark.[2]}}% {{performance.tables.cumulative.benchmark.[3]}}% {{performance.tables.cumulative.benchmark.[4]}}% {{performance.tables.cumulative.benchmark.[5]}}% {{performance.tables.cumulative.benchmark.[6]}}%

QUARTERLY COMMENTARY(AS OF 30 SEPTEMBER 2020)

Overview

Emerging market (EM) equities rose over a volatile quarter and pulled ahead of developed market stocks. Post-lockdown economic upturns, continued policy dovishness, and progress in coronavirus vaccine trials drove investor optimism, though fresh COVID-19 outbreaks and heightened US-China tensions ahead of the US presidential election fuelled bouts of uncertainty. The MSCI Emerging Markets Index gained 4.8%, while the MSCI World Index returned 3.3%, both in sterling terms. Emerging Asian equities rallied, outpacing broader EMs. Markets in Taiwan, South Korea, and China soared on the back of strong investor interest in technology-driven heavyweights. China's economic recovery broadened, though escalating US restrictions against Chinese technology companies sparked caution. Meanwhile, stocks in Thailand fell. Cabinet resignations and anti-government protests in Thailand fed political uncertainty. Latin American equities declined, with Brazil faring worse than the region in general. Conversely, Mexican stocks edged higher. The central bank pared its key interest rate, bringing the cost of borrowing to its lowest level in four years. Emerging European markets confronted a COVID-19 resurgence and tightening social distancing measures in parts of Europe. Russian equities fell in sterling terms as a depreciation in the ruble offset gains in local currency terms. In the Middle East and Africa region, South Africa’s market declined. The economy recorded a sharp contraction in the second quarter.

Portfolio Changes & Positioning

We added to some existing holdings during the quarter and initiated a position in Taiwan-based semiconductor company Mediatek. As a whole, we increased investments in information technology, consumer discretionary, and consumer staples at the sector level, and in Taiwan, South Africa, and China at the market level. Repurchases of TEMIT’s own shares also occurred. We trimmed some positions and divested Taiwan-based electronics component maker FIT Hon Teng and India-based drug maker Glenmark Pharmaceuticals. Overall, we reduced investments in communication services, financials, and health care by sector, and in Russia, Hong Kong, and Hungary by market.

Performance Attribution

Major stock contributors to TEMIT’s third-quarter performance relative to the benchmark MSCI Emerging Markets Index included chip maker Taiwan Semiconductor Manufacturing Company (TSMC), Russian internet company Yandex, and Chinese e-commerce giant Alibaba Group. By sector, an overweight and stock selection in information technology buoyed relative returns, as did stock selection in both communication services and financials. By market, stock selection in Taiwan and China, plus an overweight and stock selection in South Korea, boosted relative strength. Conversely, key relative stock detractors included Russian integrated energy company Lukoil, Brazilian lender Itau Unibanco, and South Africa-based internet group Naspers. In sector terms, stock selection in consumer discretionary and energy drove relative weakness. Across markets, Brazil, India, and South Africa capped relative performance, all due to stock selection.

Outlook

Markets had expected greater economic normalisation globally as we head into the fourth quarter. However, rising COVID-19 cases in various parts of the world have shown that the pandemic is likely to persist, and policymaking has largely remained reactive. Against this backdrop, technology-driven stocks have been resilient, with several EM companies faring well amidst the pandemic. US-China relations have been deteriorating, and political jostling in the lead-up to the US presidential election could generate greater noise. Our investment focus remains on companies that demonstrate sustainable earnings power, trading at discounts to our perception of their intrinsic worth. Amongst the portfolio’s key holdings are EM companies that have shown leadership in various technology-related areas such as semiconductors and internet services.

pdf

QUARTERLY PERFORMANCE ATTRIBUTION

Largest Contributors to Performance [further-information] (3 months to 30.06.2020)

Securities - Largest ContributorsSectorCountryTotal Effect (%)
Naver Communication Services South Korea 1.35
Yandex Communication Services Russia 0.40
Tencent Communication Services China 0.37
Lojas Americanas Consumer Discretionary Brazil 0.36
Glenmark Pharmaceuticals Health Care India 0.33

Largest Detractors to Performance [further-information] (3 months to 30.06.2020)

Securities - Largest DetractorsSectorCountryTotal Effect (%)
ICICI Bank Financials India -0.34
Unilever Consumer Staples United Kingdom -0.27
Brilliance China Automotive Consumer Discretionary China -0.23
Samsung Electronics Information Technology South Korea -0.22
China Resources Cement Materials China -0.21

Largest Contributors to Performance [further-information] (3 months to 30.06.2020)

Sector

Total Effect (%)
Communication Services 2.37
Cash & Other Net Assets 1.33
Financials 0.7
Real Estate 0.33
Utilities 0.17
Industrials 0.16
Consumer Discretionary 0.12
Energy -0.03
Consumer Staples -0.06
Information Technology -0.08
Health Care -0.33
Materials -0.53

Country - Largest Contributors

Total Effect (%)
South Korea 1.07
Russia 0.96
China 0.58
United States 0.21
Brazil 0.19

Country - Largest Detractors

Total Effect (%)
United Kingdom -0.31
South Africa -0.12
Thailand -0.12
Kenya -0.07
Philippines -0.07

Risks

Risk Statistics (As of 30.06.2020)

1 year3 years
Alpha [further-information] 4.79 2.38
Beta [further-information] 1.18 1.13
Annualised Downside Risk [further-information] 3.19 2.54
Information Ratio (Relative) [further-information] 0.88 0.64
R2 [further-information] 98.00 95.28
Sharpe Ratio [further-information] 0.15 0.36
Annualised Tracking Error [further-information] 4.71 4.14
Annualised Volatility [further-information] 22.57 17.05
Positive Months [further-information] 7 19
Negative Months [further-information] 5 17

Pricing overview As of {{pricing.asOfDate}}

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


TEMIT Dividends (Paid or Declared)

Ex dividend datePay dateDividend per share
- - -