Uncovering Trusts – Templeton Emerging Markets Investment Trust: Exceptional returns and a narrowing discount

In this episode, our director of content for investment companies, Milosz Papst, talks about Templeton Emerging Markets Investment Trust (TEMIT), the first and by far the largest UK emerging markets investment trust, which is managed by Chetan Sehgal and Andrew Ness using a bottom-up, high-conviction approach. Milosz covers TEMIT’s results for the financial year to 31 March 2026, including a 41.3% NAV total return and a 48.6% share price total return, compared with 26.8% for the MSCI Emerging Markets Index. He also notes that this strong performance continued after the year end, with a 51.5% NAV total return in the 12 months to September 2026, compared with 31.0% for the index. The largest contributors in FY26 were SK Hynix, TSMC and Hyundai Motor. He discusses how the AI-driven rally in North Asian semiconductor stocks lifted technology to around half of the portfolio, and how the managers have responded by taking profits, adding BYD and gradually reducing the trust’s India underweight. Milosz also touches on the narrowing of the discount to 7.3%, £166.7m of buybacks in FY26, the conditional tender offer, the lower management fee effective from 1 July 2026 and the risks that come with the portfolio’s concentration.

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About Uncovering Trusts: Uncovering Trusts is a podcast run by Edison analysts, which is released every two weeks. Subscribe to hear analyst interviews on how investment trusts maximise returns while managing risks for investors.