Templeton Emerging Markets Investment Trust Plc Analysis

Overview

Templeton Emerging Markets Plc aims to provide long-term capital appreciation for its investors, through investment in companies operating in emerging markets.

Performance

The following has been extracted from Templeton Emerging Markets PLC's half year results, released 09 December 2025:

Performance

In the six months under review, the performance of the TEMIT portfolio was, once again, strong. The net asset value (‘NAV’) total return over the 6 months to 30 September 2025 was +25.3%, while the share price total return was +30.8%. By contrast, the benchmark’s total return was +18.8%.

The Board was pleased to note that in May 2025 the portfolio managers at our Investment Managers, Chetan Sehgal and Andrew Ness, were awarded Citywire’s highest rating of AAA, recognising their consistent performance in managing TEMIT’s portfolio.

As I noted in June in our most recent Annual Report, US President Trump’s “Liberation Day” was declared on the second day of our current financial year. The announcement of the intention to impose widespread tariffs on imports into the United States from most countries was an unwelcome event creating considerable investor anxiety as a wider range of countries were affected by the proposed tariffs than had been expected, particularly in Asia. Subsequently, there has been a flurry of activity as countries and regional blocs have sought an accommodation with the US administration but the situation remains far from settled, particularly with regard to China. The Board and Investment Managers continue to believe both that China is too integrated into the global economy for economic sanctions to profit any party and that it seems increasingly apparent that China has the ability to play the long game.

As a result of the geopolitical tensions, both the NAV of the Company and its share price initially fell sharply but subsequently increased substantially over the summer.