Interim Management Statement

RNS Number : 6001Q

Templeton Emerging Markets IT PLC

05 August 2010

 

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

Interim Management Statement

For the three months ended 30 June 2010

This interim management statement relates to the period 1 April 2010 to 30 June 2010 and is the Company's first 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 30 Jun 2010 (unaudited)	As at 31 Mar 2010
Total assets (Cum-income)	£1,847.9m	£2,046.4m
Total assets (Ex-income)	£1,833.7m	£2,036.9m
Net asset value (Cum-income)	560.1p	620.3p
Net asset value (Ex-income)	555.8p	617.4p
Share price	528.0p	577.0p
Discount (Cum-income)	5.7%	7.0%
Discount (Ex-income)	5.0%	6.5%

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 2010 Share price Net asset value MSCI Emerging Market Index

1 Month % +0.1 -1.4 -3.6

3 Months % -7.9 -9.2 -7.0

1 Year % +44.5 +44.5 +35.9

3 Years* % +14.3 +11.8 +7.8

5 Years* % +23.8 +21.0 +17.2

Share price Net asset value MSCI Emerging Market Index

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

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

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

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

Year to 30 Jun   2006 % +30.7 +32.1 +31.7

* = 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 - © 2008 Morningstar, Inc.  All rights reserved.

           MARKET VOLATILITY AND OUTLOOK

Emerging markets experienced some volatility during the three-month period ended 30 June 2010 resulting from several factors including concerns about the strength of the global recovery and weakness in European economies.  The implementation of tightening measures in China, more specifically, in its property market and lower commodity prices also impacted during the quarter.  Between 31 March 2010 and 30 June 2010, the net asset value of the Company decreased by 9.7% to 560.1 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 2010 to the date of this statement.

SHARE BUY BACKS

There were no share buy backs during the three month period to 30 June 2010.

DIVIDEND

On 16 June 2010 the Company announced a proposed ordinary dividend of 3.75 pence per Ordinary Share which was approved at the AGM held on 23 July 2010 and paid on 28 July 2010.

AGM

At the Company's AGM on 23 July 2010 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 28 April 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 results for the eleven month period to 31 March 2010 were released on 15 June 2010 and the quarterly portfolio insight report for the three months to 31 March 2010 was released on 14 May 2010. 

           PORTFOLIO CHANGES

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

Purchases (total value £6.4m)

MCB - Financial

MCB is the fourth largest bank in Pakistan.  The Company increased its exposure in the quarter to 30 June 2010 because of its attractive valuations and relatively high return on equity.

Peninsula Land

Peninsula Land is an Indian real estate developer based in the major city of Mumbai.  Holdings were increased in the quarter to 30 June 2010 as the company's developments are expected to be strong beneficiaries given the scarce supply of commercial space in the Central and Southern Mumbai business districts.

Sales

There were no complete or partial sales from the portfolio during the three month period to 30 June 2010.

Geographic Allocation

	% of net assets as at 30 Jun 2010	% of net assets as at 31 Mar 2010
LATIN AMERICA
Brazil (including US listings)	19.4	21.6
Mexico	2.0	2.0
ASIA
China / Hong Kong	20.9	19.3
India	14.1	14.3
Thailand	9.4	8.9
Indonesia	8.1	6.6
South Korea	4.8	5.3
Pakistan	1.6	1.3
Taiwan	0.3	0.3
EUROPE
Turkey	7.2	6.8
Russia (including US listings)	5.6	6.1
Poland	1.6	1.9
Hungary	1.2	1.3
Austria	0.8	0.9
AFRICA (SUB-SAHARA)
South Africa	2.5	2.8
TEMIT's other current assets	0.5	0.6
	100.0	100.0

Sector Allocation

	% of net assets as at 30 Jun 2010	% of net assets as at 31 Mar 2010
Financial	27.4	26.2
Energy	25.0	25.6
Materials	20.4	23.2
Consumer Discretionary	10.7	9.1
Information Technology	7.7	7.1
Consumer Staples	5.2	4.7
Industrials	3.1	3.5
TEMIT's other current assets	0.5	0.6
	100.0	100.0

Top Ten Holdings

Country	Security	Sector	% of net assets as at  30 Jun 2010	% of net assets as at  31 Mar 2010
India	Sesa Goa Ltd.	Materials	5.6	6.9
Brazil	Vale SA, ADR, pfd, A	Materials	5.6	6.6
Brazil	Itau Unibanco Holding SA, ADR	Financial	5.6	6.1
Turkey	Akbank TAS	Financials	5.2	4.6
Brazil	Banco Bradesco SA, ADR, pfd.	Financial	4.6	4.7
Indonesia	PT Astra International Tbk	Consumer Discretionary	3.7	2.8
Brazil	Petroleo Brasileiro SA, ADR, pfd.	Energy	3.6	4.3
India	Tata Consultancy Services Ltd.	Information Technology	3.5	3.4
China	Brilliance China Automotive Holdings Ltd.	Consumer Discretionary	3.4	2.6
China	PetroChina Co. Ltd., H	Energy	3.2	2.9

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 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: 5^th August 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 [phone] for overseas investors.

 

END

 

 

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