Launched in June 1989, TEMIT was one of the first emerging markets funds in the UK. The trust seeks long-term capital appreciation through investment in companies operating in emerging markets, or listed on the stock markets of such countries. This may include companies that have a significant amount of their revenues in emerging markets, but which are listed on stock exchanges in developed countries. Performance is benchmarked against the MSCI Emerging Markets Index.
Templeton Emerging Markets Investment Trust (TEMIT) is a very large and well-established fund run by experienced managers, Chetan Sehgal (lead manager) and Andrew Ness. Despite a tough period of performance since Q221 due to macroeconomic developments, the managers are sticking to their long-term strategy of investing in companies with sustainable earnings power that are trading at a discount to their estimated intrinsic values. Sehgal and Ness remain positive on the prospects for emerging markets, which are home to a range of ‘best-in-breed’ companies including semiconductor manufacturers and low-cost commodity producers. The managers are further diversifying the portfolio in response to the new realities of rising interest rates, China’s zero-COVID policy, the war in Ukraine and climate change.