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 29/02/2020

Total Net Assets [further-information] £2,079.36 million
Market Capitalisation [further-information] £1,815.12 million
No of shares in issue 242,987,734
Net Gearing [further-information] 0.0%
Benchmark {{overview.quickFacts.benchmark}}
Ticker {{overview.quickFacts.ticker}}
ISIN {{overview.quickFacts.ISIN}}
SEDOL {{overview.quickFacts.SEDOL}}

ChargesAs of 29/02/2020

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 29/02/2020

SectorPercMSCI Emerging Markets Index (BM0119)
Financials 24.31 23.33
Information Technology 22.52 16.37
Consumer Discretionary 17.93 14.80
Communication Services 16.11 11.86
Energy 6.19 6.63
Consumer Staples 5.50 6.27
Materials 3.86 6.96
Industrials 2.07 5.13
Health Care 1.58 3.20
Real Estate 0.00 2.97
Utilities 0.00 2.48
Cash & Cash Equivalents -0.06 0.00

Country weightings As of 29/02/2020

CountryTEMITBenchmark
Hong Kong / China / Macao 29.54 36.74
South Korea 16.20 11.33
Taiwan 11.38 12.03
Russia 8.53 3.60
Brazil 8.36 6.70
India 7.74 8.76
South Africa 3.07 4.16
United Kingdom 2.77 0.00
United States 2.62 0.00
Thailand 2.54 2.27
Rest of the world 7.32 14.41
Cash & Cash Equivalents -0.06 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 29/02/2020

Market capitalisationAs at 29 February 2020

<2.0 Billion 7.05%
2.0-5.0 Billion 11.06%
5.0-10.0 Billion 7.46%
10.0-25.0 Billion 11.95%
25.0-50.0 Billion 17.40%
>50.0 Billion 45.08%

Market breakdown [further-information] As at 29 February 2020

Emerging 93.1%
Frontier 1.5%
Developed 5.4%
Total 100.1%

Portfolio Characteristics As at 29 February 2020

Number of Holdings 82
Dividend Yield (i) [further-information] 2.80%
Price to Earnings (i) [further-information] 12.85
Price to Cashflow (i) [further-information] 7.25
Price to Book (i) [further-information] 1.65
Weighted Average Market Capitalisation (i) (billion) [further-information] £ 119.43

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 29 February 2020)

Global stock markets declined in February as a widening coronavirus outbreak heightened world economic growth concerns. Emerging market (EM) equities fell but fared better than developed market stocks. Oil prices retreated on a softer outlook for demand.

A surge in coronavirus infections outside China, where the outbreak began, pressured several Asian markets and prompted the rollout of monetary and fiscal stimulus in the region. South Korea reported the second-highest number of coronavirus cases worldwide, behind China. India contended with virus fears, as well as a slower pace of economic growth in the quarter to end-2019. However, China’s stock market showed signs of recovery as the outbreak appeared to be easing in the country.

The contagion’s spread and its impact on commodity prices weighed on Latin American markets. Brazilian equities declined amidst soft economic data and a depreciation in the Brazilian real. Mexico’s stock market retreated.

Markets in the Europe, Middle East and Africa region lost ground as they were affected by a major coronavirus outbreak in Italy. Russian equities were held back by a drop in oil prices and a weaker Russian rouble. Stocks in South Africa declined. The country slipped into a technical recession in the final quarter of 2019, exerting pressure on the South African rand.

Portfolio Changes & Positioning

We increased investments in financials and energy at the sector level, and in Brazil and India at the market level.

Meanwhile, we reduced holdings in information technology, communication services and consumer staples from a sector perspective. By market, we undertook some sales in China, Russia and the United States.

Performance Attribution

By sector, stock selection in both information technology and materials boosted relative returns, as did an overweight to communication services. Analysing returns by market, Taiwan, South Africa and Brazil drove relative strength, all due to stock selection.

In sector terms, stock selection in financials and health care, as well as a lack of exposure to real estate, checked relative performance. By market, an overweight to Russia, an underweight to China and an off-benchmark exposure to the United Kingdom were areas of relative weakness.

Outlook

The global spread of the coronavirus has led EMs and developed markets to fall in tandem. While we have seen a fall in daily new cases in earlier-impacted countries such as China, large outbreaks in countries such as South Korea and Italy have pushed up the global number. Government policies should remain supportive as the authorities act to help affected segments of the economy. However, the scale and duration of global demand destruction resulting from measures to contain the virus remain unknown.

The structural themes which we believe in remain unchanged are technology and consumption. Though weak consumer sentiment in the near term has affected discretionary spending, we have seen an increase in online activities that could benefit certain e-commerce, internet and software companies.

Companies which we favour tend to offer exposure to areas of structural growth, and possess competitive advantages that could help them to gain market share. We are also drawn to companies with sustainable earning streams, strong cash flows and healthy balance sheets. In our view, such businesses could be better positioned to withstand uncertain macroeconomic conditions.

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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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Discount/Premium {{pricing.discount}}%


TEMIT Dividends (Paid or Declared)

Ex dividend datePay dateDividend per share
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