Edison reviews Templeton Emerging Markets (TEM)

RNS Number : 9428V

Templeton Emerging Markets IT PLC

08 November 2017

 

London, UK, 8 November 2017

Edison issues review on Templeton Emerging Markets Inv. Trust (TEM)

Templeton Emerging Markets Investment Trust (TEMIT) aims to generate long-term capital growth from a portfolio of emerging market equities that is diversified by geography and sector. Carlos Hardenberg took over as lead manager on 1 October 2015, since when there has been a noticeable improvement in performance. TEMIT has outperformed its MSCI Emerging Markets Index benchmark by c 11pp over the last 12 months and has the best performance versus its peers by a considerable margin. Due to its substantial revenue reserves, the trust was able to maintain its FY17 annual dividend at 8.25p per share and a change in expense allocation will boost revenue returns from FY18; its current yield is 1.1%.

TEMIT's board actively addresses the discount via regular share repurchases. The trust's current 12.4% share price discount to cum-income NAV is narrower than the 13.2% average of the last 12 months and has been narrowing since mid-July 2017. The current discount compares with the 9.4% to 12.6% range of averages of the last three, five and 10 years. While TEMIT aims to generate capital growth, it pays regular annual dividends, which have been maintained at 8.25p for the last three years; the current dividend yield is 1.1%. A change in expense allocation will boost revenue income and the prospective dividend payment from FY18.

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