TEMIT: Improving Relative Performance
Edison | Apr 03, 2017 09:22AM ET
Templeton Emerg Mark Investm Trust (LON:TEM, TEMIT) aims to generate long-term capital growth from a diversified portfolio of emerging market equities. Since the change in manager in October 2015, there has been a notable improvement in TEMIT’s relative performance – over the last 12 months, its NAV total return has outperformed its MSCI Emerging Markets index benchmark by 10.2%. TEMIT has historically run a small cash balance, but in January 2017 announced it had entered into a new £150m credit facility; if fully drawn down, it would take gross gearing to c 7.0% of net assets.
Market outlook: EM valuations relatively attractive
Despite outperforming world equities in 2016 (a period of outsized returns for shareholders across the globe), emerging market equities remain at relatively attractive valuations. The MSCI Emerging Markets index has c 30% lower forward earnings and price-to-book multiples and a modestly higher dividend yield than the MSCI World index.
In addition, relative economic growth forecasts favour emerging markets. For investors seeking exposure to emerging market equities, a fund with a disciplined, long-term, value-orientated approach may hold some appeal.
To read the entire report Please click on the pdf File Below
Templeton Emerging Markets Investment Trust - Improving Relative Per
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.