Interim Management Statement

RNS Number : 7453L

Templeton Emerging Markets IT PLC

04 August 2011

 

Templeton Emerging Markets Investment Trust PLC ("the Company")

Interim Management Statement

For the three months ended 30 June 2011

This interim management statement relates to the period 1 April 2011 to 30 June 2011 and is the Company's first interim management statement for the financial year ending 31 March 2012, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3.

OBJECTIVE

The Company's investment objective is to provide long term capital appreciation for its investors through investment in companies operating in emerging markets or whose stocks are listed on the stock markets of such countries.

FINANCIAL POSITION

	As at 30 Jun 2011 (unaudited)	As at 31 Mar 2011
Total assets (Cum-income)	£2,311.9m	£2,368.4m
Total assets (Ex-income)	£2,299.8m	£2,348.1m
Net asset value (Cum-income)	701.0p	718.0p
Net asset value (Ex-income)	697.3p	711.9p
Share price	651.0p	660.0p
Discount (Cum-income)	7.1%	8.1%
Discount (Ex-income)	6.6%	7.3%

Share price is at the UK market closing mid price.

Net asset value is at closing bid prices. Assets are priced at local close or adjusted for fair value at US market close.

Further information can be found at www.temit.co.uk.

FINANCIAL PERFORMANCE

Performance to 30 June 2011 Share price Net asset value MSCI Emerging Market Index

3 Months % -0.7 -1.7 -1.2

1 Year % +24.1 +25.9 +19.4

3 Years* % +18.5 +18.4 +12.3

5 Years* % +22.5 +19.9 +15.0

10 Years* % +20.6 +18.5 +15.0

Share price Net asset value MSCI Emerging Market Index

Year to 30 June 2011 % +24.1 +25.9 +19.4

Year to 30 June 2010 % +44.5 +44.5 +35.9

Year to 30 June 2009 % -7.4 -8.7 -12.8

Year to 30 June 2008 % +11.8 +6.1 +5.8

Year to 30 June 2007 % +48.7 +40.4 +34.1

* = Annualised rate of return

All figures are calculated in Sterling on a total return basis i.e. with net dividends reinvested

Source: Franklin Templeton Investments / Copyright - © 2011 Morningstar, Inc.  All rights reserved.

           MARKET VOLATILITY AND OUTLOOK

While growth in some emerging economies eased in 2011, most continued to record relatively strong GDP growth. Markets experienced a period of heightened volatility in the latter part of the quarter as focus shifted to debt restructuring issues in the Eurozone. The postponed disbursement of European Union (EU) funds to Greece coupled with political uncertainty in the country further raised concerns in June. However, the survival of Prime Minister George Papandreou in a vote of confidence, the passing of austerity measures by the Greek Parliament and promises of a second bailout from the EU in July reassured investors. Between 31 March 2011 and 30 June 2011, the net asset value of the Company decreased by 2.4% to 701.0 pence per share. The Investment Manager (Templeton Asset Management Limited), however, continues to see emerging markets benefiting from relatively good growth prospects, attractive valuations and solid fundamentals and will continue to monitor the markets for favourable investment opportunities.

MATERIAL EVENTS AND TRANSACTIONS

There are no material events to report from the period 1 April 2011 to the date of this statement.

SHARE BUY BACKS

During the period, the company bought back and cancelled 50,000 shares (which amount to 0.02% of the issued share capital) for a total consideration of £314,000

DIVIDEND

On 14 June 2011 the Company announced a proposed ordinary dividend of 4.25 pence per Ordinary Share which was approved at the AGM held on 22 July 2010 and paid on 27 July 2011.

AGM

At the Company's AGM on 22 July 2011 all the resolutions were passed and details of voting have been posted on the Company's website.

INVESTMENT PORTFOLIO UPDATES AND OTHER COMPANY NEWS

The Company has continued its efforts to keep shareholders informed about their investments in TEMIT.  The Investment Manager held its quarterly portfolio web conference on 9 May 2011. Recordings and written transcripts of these calls are available from the Company's website - www.temit.co.uk.

Stock exchange announcements, quarterly Manager's reports, factsheets and Investment Manager's commentaries are sent to subscribers to the email service on the Company website.  The website is also updated daily with the latest prices and Company news.

The results for the year to 31 March 2011 were released on 14 June 2011 and mailed to the shareholders on 17 June 2011. The quarterly portfolio insight report for the three months to 31 March 2011 was released on 4 May 2011 with the latest report for the three months to 30 June 2011 released on 25 July 2011.

           PORTFOLIO CHANGES

The Investment Manager reports the following principal changes in the portfolio:

Purchases (total value £8.2m)

Impala Platinum holdings Ltd (Existing holding)

Impala Platinum is one of the leading platinum producers in the world and is responsible for approximately a quarter of the global platinum production. As one of the most efficient and lowest cost producers in the world, it is well positioned to benefit from the longer-term up trend in commodity prices.

Univanich Palm Oil Plc (New addition)

Univanich is one of the leading producers of crude palm oil in Thailand and is a beneficiary of strong demand growth for crude palm oil and expectations of higher product prices.

Sale (total value £34.2m)

Lukoil holdings

The Company divested its holdings in Lukoil, one of Russia's largest oil companies.

Geographic Allocation

	% of net assets as at 30 Jun 2011	% of net assets as at 31 Mar 2011
LATIN AMERICA
Brazil	18.8	19.0
Mexico	2.0	1.9
ASIA
Hong Kong/China	24.1	23.1
India	11.0	11.2
Thailand	10.0	9.8
Indonesia	8.4	7.7
South Korea	5.1	5.2
Pakistan	1.6	1.6
Taiwan	0.3	0.3
EUROPE
Turkey	5.7	6.1
Russia	4.7	6.6
Poland	1.9	1.9
Hungary	1.2	1.3
Austria	0.9	0.9
AFRICA
South Africa	2.8	2.8
TEMIT's other current assets	1.5	0.6
	100.0	100.0

Sector Allocation

	% of net assets as at 30 Jun 2011	% of net assets as at 31 Mar 2011
Financials	25.9	26.0
Energy	22.8	25.5
Materials	18.5	18.7
Consumer Discretionary	15.6	13.9
Information Technology	7.8	7.5
Consumer Staples	5.1	4.7
Industrials	2.8	3.1
TEMIT's other current assets	1.5	0.6
	100.0	100.0

Top Ten Holdings

Country	Security	Sector	% of net assets as at  30 Jun 2011	% of net assets as at  31 Mar 2011
Hong Kong / China	Brilliance China Automotive Holdings Ltd.	Consumer Discretionary	8.7	7.6
Brazil	Vale SA, ADR, pfd., A	Materials	5.7	5.7
Brazil	Itau Unibanco Holding SA, ADR	Financials	5.4	5.4
Brazil	Banco Bradesco SA, ADR, pfd	Financials	4.8	4.7
India	Tata Consultancy Services Ltd.	Information Technology	4.3	4.1
Indonesia	PT Astra International Tbk	Consumer Discretionary	3.8	3.3
Turkey	Akbank T.A.S	Financials	3.7	3.9
India	Sesa Goa Ltd	Materials	3.6	3.7
South Korea	SK Innovation Co. Ltd	Energy	3.2	3.2
Hong Kong / China	PetroChina Co. Ltd	Energy	3.1	3.2

The securities used to calculate the above NAV and industry percentages have been valued on a bid basis: the valuation of the assets is as at each local market close or, where appropriate, adjusted for changes in the fair value of these assets at US close.

This Interim Management Statement has been produced solely to provide additional information to shareholders of the Company to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purposes. In addition, the views, information and data in this publication should not be deemed as a financial promotion or recommendation.

Other than described above, the Board is not aware of any events during the period from 1 April 2011 to the date of this statement which would have had a material impact on the financial position of the Company.

 
Issued on behalf of the Board
Sara A MacIntosh
for and behalf of Franklin Templeton Investment Management Limited
Secretary

Date: 04 ^th August 2011

End of interim management statement

For further information please contact Client Dealer Services at Franklin Templeton Investment Management Limited on UK freephone 0800 305 306 or [phone] for overseas investors.

 

END

 

 

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