Interim Management Statement
Templeton Emerging Markets Investment Trust PLC ("the Company")
Interim Management Statement
For the three months ended 31 December 2010
This interim management statement relates to the period 1 October 2010 to 31 December 2010 and is the Company's second interim management statement for the financial year ending 31 March 2011, 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 31 Dec 2010 (unaudited) |
As at 30 Sep 2010 (unaudited) |
|
Total assets (Cum-income) |
£2,343.4m |
£2,200.1m |
|
Total assets (Ex-income) |
£2,325.7m |
£2,181.7m |
|
Net asset value (Cum-income) |
710.3p |
666.9p |
|
Net asset value (Ex-income) |
705.0p |
661.3p |
|
Share price |
673.5p |
619.5p |
|
Discount (Cum-income) |
5.2% |
7.1% |
|
Discount (Ex-income) |
4.5% |
6.3% |
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 31 December 2010
Share price Net asset value MSCI Emerging Market Index |
3 Months %
+8.7 +6.5 +8.1
|
1 Year %
+29.4 +28.2 +22.9
|
3 Years* %
+14.7 +11.2 +8.3
|
5 Years* %
+22.5 +20.0 +15.2
|
10 Years* %
+21.5 +19.2 +15.7
|
|
Share price Net asset value MSCI Emerging Market Index
|
Year to 31 Dec 2010 % +29.4 +28.2 +22.9
|
Year to 31 Dec 2009 % +96.0 +88.1 +59.4
|
Year to 31 Dec 2008 % -40.6 -42.9 -35.2
|
Year to 31 Dec 2007 % +51.8 +55.8 +37.5
|
Year to 31 Dec 2006 % +20.6 +15.9 +16.3
|
* = 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
Emerging economies continued to report strong economic growth in the period from 1 October 2010 to 31 December 2010. However, markets experienced a temporary period of heightened volatility in November as concerns of a wider debt crisis in the Euro zone resurfaced and North Korea and South Korea engaged in border skirmishes, sparking off a fresh round of tensions on the Korean Peninsula. The falls in equity prices were short-lived as investors focused on the long-term opportunities and prospects. Between 30 September 2010 and 31 December 2010, the net asset value of the Company increased by 6.5% to 710.3 pence. Templeton Asset Management Limited, the Investment Manager of the company's portfolio, 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 October 2010 to the date of this statement.
SHARE BUY BACKS
There were no share buy backs during the three month period to 31 December 2010.
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 8 November 2010. 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 half-year results for the six months to 30 September 2010 were released on 29 November 2010 and the quarterly portfolio insight report for the three months to 30 September 2010 was released on 1 November 2010. The latest quarterly insight report to 31 December 2010 was released on 24 January 2011.
In November TEMIT won the Investment Weekly award for Best Emerging Markets Investment Trust for the third consecutive year.
PORTFOLIO CHANGES
There were no purchases or sales from the portfolio during the three month period to 31 December 2010.
Geographic Allocation
|
|
% of net assets as at 31 Dec 2010 |
% of net assets as at 30 Sep 2010 |
|
LATIN AMERICA |
|
|
|
Brazil (including US listings) |
19.7 |
20.2 |
|
Mexico |
1.9 |
1.8 |
|
|
|
|
|
ASIA |
|
|
|
China / Hong Kong |
22.5 |
22.6 |
|
India |
12.2 |
12.1 |
|
Thailand |
9.8 |
10.1 |
|
Indonesia |
6.8 |
7.5 |
|
South Korea |
6.0 |
5.1 |
|
Pakistan |
1.7 |
1.4 |
|
Taiwan |
0.3 |
0.2 |
|
|
|
|
|
EUROPE |
|
|
|
Turkey |
6.6 |
7.6 |
|
Russia (including US listings) |
5.8 |
5.1 |
|
Poland |
1.7 |
1.7 |
|
Hungary |
1.1 |
1.2 |
|
Austria |
0.8 |
0.8 |
|
|
|
|
|
|
|
|
|
AFRICA (SUB-SAHARA) |
|
|
|
South Africa |
2.9 |
2.4 |
|
|
|
|
|
TEMIT's other current assets |
0.2 |
0.2 |
|
|
|
|
|
|
100.0 |
100.0 |
Sector Allocation
|
|
% of net assets as at 31 Dec 2010 |
% of net assets as at 30 Sep 2010 |
|
|
|
|
|
Financial |
26.4 |
28.3 |
|
Energy |
24.6 |
23.8 |
|
Materials |
19.6 |
18.9 |
|
Consumer Discretionary |
12.9 |
14.3 |
|
Information Technology |
7.9 |
6.9 |
|
Consumer Staples |
5.1 |
4.6 |
|
Industrials |
3.3 |
3.0 |
|
|
|
|
|
TEMIT's other current assets |
0.2 |
0.2 |
|
|
|
|
|
|
100.0 |
100.0 |
Top Ten Holdings
|
Country |
Security |
Sector |
% of net assets as at 31 Dec 2010 |
% of net assets as at 30 Sep 2010 |
|
China
|
Brilliance China Automotive Holdings Ltd. |
Consumer Discretionary
|
6.1 |
6.2 |
|
Brazil |
Vale SA, ADR, pfd, A |
Materials |
6.1 |
5.9 |
|
Brazil |
Itau Unibanco Holding SA, ADR |
Financial |
5.6 |
6.0 |
|
Brazil |
Banco Bradesco SA, ADR, pfd. |
Financial |
4.8 |
5.1 |
|
Turkey |
Akbank TAS |
Financials |
4.6 |
5.3 |
|
India |
Tata Consultancy Services Ltd. |
Information Technology |
4.3 |
3.6 |
|
India |
Sesa Goa Ltd. |
Materials |
4.1 |
4.4 |
|
South Korea |
SK Innovation Co. Ltd.* |
Energy |
3.8 |
3.0 |
|
Hong Kong |
Dairy Farm International Holdings Ltd. |
Consumer Staples |
3.2 |
2.8
|
|
Indonesia |
PT Astra International Tbk |
Consumer Discretionary |
3.2 |
3.5 |
* Formerly SK Energy Co. Ltd. - on 17 January 2011 SK Energy was renamed as SK Innovation
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 October 2010 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: 15th February 2010
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 +44 (0) 20 7073 8690 for overseas investors.
This information is provided by RNS