Templeton Emerging Markets Investment Trust PLC (“TEMIT”)

For Professional investor use only. Not for distribution to retail investors.
Emerging Markets
GB0008829292
June 2019
Templeton Emerging Markets
Investment Trust PLC (TEMIT)
Quarterly Report
Performance
Performance over 5 Years in GBP (rebased to 100)
Performance in Share Class Currency (%)
Cumulative Performance to 30.06.2019 (%)
3 Mths1 Yr3 Yrs5 Yrs10 Yrs
Since
Incept
Share Price
4.3714.8964.4453.44145.623235.46^
Benchmark
3.145.4043.9054.74135.481658.47^
NAV
4.8710.1555.8451.89152.473517.40†
Benchmark
3.145.4043.9054.74135.481588.34†
Pastperformanceisnotanindicator
ora guaranteeoffutureperformance.
Thevalueofsharesin TEMITandincome
receivedfromit cangodownaswellas
up,andinvestorsmaynotgetbackthe
fullamountinvested.
PerformancedetailsareinTEMIT’sbasecurrency,
includethereinvesteddividendsnetofbasicrateUKtax
andarenetofmanagementfees. Saleschargesand
othercommissions,othertaxesandrelevantcoststobe
paidbyaninvestorarenotincludedinthecalculations.
Performancemayalsobeaffectedbycurrency
fluctuations. Uptodateperformancefigurescanbefound
onourwebsitewww.temit.co.uk
^ SharePrice-basedandIndexreturnsareshownfrom
9/07/89(firstavailabledate). †NAV-basedandIndex
returnsareshownfrom31/07/89(firstavailabledate).
UK FreefoneTelFaxE-MailWeb
0800 305 306+4420 7073 8690+4420 7073 8701enquiries@franklintempleton.co.ukwww.temit.co.uk
Company Overview
Base CurrencyGBP
Launch Date12.06.1989
BenchmarkMSCI Emerging Markets Index
Total Net Assets£2,172.09 million
Market Capitalisation£1,962.51 million
Net Gearing1.3%
Invested Assets102.0%
Ongoing Charges Ratio1.02%
Number of Shares in Issue249,049,406
ISA StatusYes
Investment Objective and Policy
TheCompanyseekslong-termcapitalappreciationthrough
investmentincompanieslistedinemergingmarketsor
companieswhichhaveasignificantamountoftheir
revenuesinemergingmarkets,butarelistedonstock
exchangesin developedcountries.
ItisintendedthattheCompanywillnormallyinvestin
equityinvestments. However,theInvestmentManager
mayinvestinequity-relatedinvestments(suchas
convertibles)wheretherearebelievedtobeadvantagesto
sodoing. Theportfoliomayfrequentlybeoverweightor
underweightagainsttheMSCIEmergingMarketsIndex
andmaybeconcentratedinamorelimitednumberof
sectors,geographicalareasorcountries. TheCompany
mayalsoinvesta significantportionofitsassetsinthe
securitiesofoneissuer,securitiesdomiciledina particular
country,orsecuritieswithinoneindustry. Nomorethan
10%oftheCompany’sassetswillbeinvestedinthe
securitiesofanyoneissueratthetimeofinvestment.
TheBoardhasagreedthatTEMITmayborrowupto10%
ofitsnetassets.
Fund Management
Chetan Sehgal (Lead Portfolio Manager)
Andrew Ness (Portfolio Manager)
Singapore
Edinburgh
Pricing Information
NAV (Cum-Income)872.15p
Ordinary Share Price788.00p
Discount (Cum-Income)-9.65%
Net Yield (% of NAV)1.72%
Dividends 5.00p per Ordinary Share (paid Jan 2019) and
11.00p per Ordinary Share (paid Jul 2019)
Ratings
Morningstar
TM
Category:Global Emerging Markets
Equity
Morningstar
TM
Overall Rating:
What are the Key Risks?
ThevalueofsharesintheTempletonEmergingMarkets
InvestmentTrust(TEMIT)andanyincomereceivedfromit
cangodownaswellasupandinvestorsmaynotgetback
thefullamountinvested. Thereis noguaranteethatTEMIT
willmeetitsobjective.
TEMITinvestsintheequitysecuritiesofemergingmarkets
companies.Emergingmarketshavehistoricallybeen
subjecttosignificantpricemovements,oftentoagreater
extentthanmoreestablishedequitymarkets. Asaresult,
thesharepriceandnetassetvalueofTEMITcanfluctuate
significantlyoverrelativelyshorttimeperiods.
Othersignificantrisksincludeborrowingriskandshare
pricediscounttoNAVrisk. Formoredetailsofalltherisks
applicabletoTEMIT,pleaserefertotheKeyInformation
Document,InvestorDisclosureDocumentandtherisk
sectioninTEMIT’sAnnualReport,whichcanbe
downloadedfromourwebsite– www.temit.co.uk
Securities – Largest ContributorsSectorCountryTotal Effect (%)
GazpromEnergyRussia0.54
Brilliance China Automotive
Consumer Discretionary
China / Hong Kong
0.38
Sberbank of Russia
FinancialsRussia
0.33
ICICI BankFinancialsIndia0.33
UnileverConsumer StaplesUnited Kingdom0.30
Securities – Largest DetractorsSectorCountryTotal Effect (%)
Glenmark Pharmaceuticals
Health Care
India
-0.28
Cognizant Technology Solutions
Information Technology United States
-0.22
Massmart
Consumer Staples
South Africa
-0.18
MCB Bank
FinancialsPakistan
-0.16
NAVER
Communication ServicesSouth Korea
-0.16
Top10Holdings
LargestContributorsandDetractorstoPerformance(3 monthsto30.06.2019)
SecuritySectorCountry%of Total
Samsung Electronics Information Technology South Korea7.5
Taiwan Semiconductor Manufacturing
Information Technology
Taiwan6.4
Naspers
Consumer Discretionary
South Africa6.0
Alibaba, ADR
Consumer Discretionary
China / Hong Kong5.4
ICICI Bank
FinancialsIndia
3.9
Brilliance China Automotive
Consumer Discretionary
China / Hong Kong 3.3
Unilever
Consumer StaplesUnited Kingdom
3.2
Tencent
Communication Services
China / Hong Kong 2.9
LUKOIL, ADR
EnergyRussia
2.6
Banco Bradesco
FinancialsBrazil
2.6
70
90
110
130
150
Jun-14Jun-15Jun-16Jun-17Jun-18Jun-19
TEMIT NAVTEMIT Share PriceMSCI Emerging Markets
Discrete Annual Performance (%)
Jun-18
to Jun-19
Jun-17
to Jun-18
Jun-16
to Jun-17
Jun-15
to Jun-16
Jun-14
to Jun-15
Share Price
14.896.0834.92-0.08-6.61
NAV
10.155.9033.602.98-5.35
Benchmark
5.406.8427.793.863.53

Templeton Emerging Markets Investment Trust PLC (TEMIT)
30 June 2019
For Professional investor use only. Not for distribution to retail investors.For Professional investor use only. Not for distribution to retail investors.For Professional investor use only. Not for distribution to retail investors.
www.temit.co.uk
SectorTEMITBenchmark+/-
Financials26.325.21.1
Information Technology20.913.87.1
Consumer Discretionary20.913.47.5
Communication Services11.211.7-0.5
Energy8.17.90.2
Consumer Staples7.26.60.6
Materials2.97.6-4.7
Industrials2.85.3-2.5
Health Care1.72.6-0.9
Real Estate0.03.0-3.0
Utilities0.02.7-2.7
Cash & Cash Equivalents-2.00.0-2.0
INVESTMENTAPPROACH
Theinvestmentmanagementteamis ledbyLeadPortfolioManagerChetanSehgalandPortfolioManagerAndrewNess.
Theteamlookscloselyateachpotentialinvestmentandseekstoidentifythelifecycleofeachcompany'sproductsanddeterminetheimpactofgovernmentandregulatorychangesonthat
business,anditsmanagement'sstrategicthinkingoverthelongterm,toconfidentlyestimatewherea companymaybein fiveyears. Theteamseekstopurchasecompanieswithsustainable
earningsthatareavailableata discount,a characteristicoftenoverlookedbya marketthatfocusesintentlyonthenextquarterlyearnings. Stockselectiondrivestheteam’sportfolioinvestment
process,reflectingthemostcompellingopportunitiestheysee.
Shareholdersin TEMITshouldconsiderit asa long-termfinancialcommitment. Pleasereferto thelatestannualreportformoredetailsof therisksassociatedwithaninvestmentin TEMIT.
BOARDOFDIRECTORS
PaulManduca(Chairman)BeatriceHollondSimonJeffreysDavidGraham
Charlie RickettsGregory E Johnson
GLOSSARYOFTERMS
Alpha-Alphameasuresthedifferencebetweena portfolio'sactualreturnsanditsexpectedperformance,givenitslevelofrisk(asmeasuredbybeta). A positivealphameansthattheportfolio
hasoverperformed,a negativealphameanstheportfoliohasunderperformed; forexample,analphaof1.0 meanstheportfoliooutperformedthemarket1.0%.
Beta-Betais a measureofa portfolio'ssensitivitytomarketmovements. It measurestherelationshipbetweena portfolio'sexcessreturnoveraninvestmentin a risk-freeinvestmentsuchas
cashandtheexcessreturnofthebenchmarkindex. ForTEMIT,thisis theMSCIEmergingMarketsIndex. Bydefinition,thebetaofthebenchmark(inthiscase,anindex)is 1.00.Accordingly,
aportfoliowitha 1.10betahasperformed10%better(afterdeductingthecashrate)thantheindexin upmarketsand10%worsein downmarkets,assumingallotherfactorsremainconstant.
Aportfoliowitha highbetawilltendtomovemorethanthebenchmark,a portfoliowitha lowbetawilltendto moveless.
Contributor-Theamountanindividualstock,countryorsectorhasaddedto theperformanceof theentireportfoliofora givenperiod.
CumulativePerformance-Thepercentageincreaseordecreaseof a portfolio'ssharepriceorNAVovera giventimeperiod,withnetincome(dividends)reinvested.Thefund'sperformanceis
usuallybenchmarkedagainsteithera relevantindexorsector.
Detractor-Theamountanindividualstock,countryorsectorhassubtractedfromtheperformanceoftheentireportfoliofora givenperiod.
DiscreteAnnualPerformance-Thepercentageincreaseordecreaseofa portfolio'ssharepriceorNAVovera complete12monthperiod,withnetincome(dividends)reinvested.Thefund's
performanceis usuallybenchmarkedagainsteithera relevantindexorsector.
CountryTEMITBenchmark+/-
China / Hong Kong25.731.6-5.9
South Korea14.112.41.7
Brazil9.77.62.1
Russia9.64.05.6
Taiwan9.110.8-1.7
India7.89.0-1.2
South Africa7.15.91.2
Thailand3.63.00.6
United States3.10.03.1
United Kingdom3.10.03.1
SectorTotal Effect (%)
Financials1.09
Energy0.48
Information Technology0.24
Consumer Discretionary0.22
Cash & Other Net Assets0.20
Materials0.14
Real Estate0.06
Communication Services-0.05
Consumer Staples-0.06
Utilities-0.07
Industrials-0.13
Health Care-0.13
Country – Largest ContributorsTotal Effect (%)
China / Hong Kong1.39
Russia0.74
United Kingdom0.29
Brazil0.23
Mexico0.21
Country – Largest DetractorsTotal Effect (%)
South Africa-0.16
Pakistan-0.16
Indonesia-0.17
Taiwan-0.24
United States-0.36
TEMITBenchmark
Price / Earnings12.0313.46
Price / Book1.661.61
Price / Cash Flow7.618.36
Dividend Yield2.71%2.75%
Weighted Average Market Capitalisation (millions)£85,472£56,630
1 Year3 Years
Alpha
4.022.41
Beta
1.141.03
Annualised Downside Risk
1.112.27
Information Ratio (Relative)
1.310.78
R
2
95.7791.50
Sharpe Ratio
0.621.16
Annualised Tracking Error
3.613.90
Annualised Volatility
15.0713.31
Positive Months
621
Negative Months
615
LargestContributors/Detractorsto Performance(3 monthsto 30.06.2019)LargestContributors/Detractorsto Performance(3 monthsto 30.06.2019)
SectorWeightingsv Benchmark(%)TenLargestCountryWeightingsv Benchmark(%)
RiskStatistics(asat30.06.2019)Fundamental Portfolio Characteristics (as at 30.06.2019)
Market Capitalisation Breakdown (%)
>25 Billion59.9
10-25 Billion9.0
2-10 Billion20.9
<2 Billion9.3
Not Classified0.9
Weightings as percent of total including cash. Percentages may not total 100% due to rounding.
Weightings as percent of total including cash. Percentages may not total 100% due to rounding.

Templeton Emerging Markets Investment Trust PLC (TEMIT)
30 June 2019
For Professional investor use only. Not for distribution to retail investors.For Professional investor use only. Not for distribution to retail investors.
GLOSSARYOFTERMS(continued)
DividendYield-Theyielda companypaysouttoitsshareholdersin theformofdividends. It is calculatedbythedividendspaidpershareovera yeardividedbythestock'sprice. Foravehicle
likeTEMIT,whichinvestsin a numberofcompanies,thisfigurerepresentstheweightedaverageannualdividendpaidbyallofthecompaniesin whichit invests.Becauseofsharetypes,fees
andotherconsiderations,thedividendyieldquotedhereshouldnotbeusedasanindicationof theincometo bereceivedfromthisportfolio.
DownsideRisk- Downsideriskis a measurementwhichonlyconsidersnegativereturns. It is calculatedasa downsidedeviationofreturnsbelowtheRiskFreeRate(thisis theamounta
managercouldexpecttoreceivebyinvestingin a “riskfree”asset,suchaswitha cashdeposit).
InformationRatio-ThisratiodividestheannualisedaveragereturnfortheportfoliobytheTrackingError(Relative). Thehighertheratio,thebetter,asit reflectstheextenttowhichaportfolio
hasoutperformedthebenchmark.
MarketCapitalisation-Thetotalmarketvalueofa company’sshares. Fora vehiclelikeTEMIT,whichinvestsin a numberof companies,thisis calculatedbythesharepriceona certaindate
multipliedbythenumberofsharesin issue.
MarketCap(average)-Theweightedaverageofallthecompaniesin whichit invests.
NAV-NetAssetValue,orthetotalvalueoftheportfolioat anyonetime,includingallsharesandcash,dividedbythenumberof sharesin issue.
NetGearing(sometimesdescribedasleverage)- a termusedtodescribetheprocessofborrowingmoneyforinvestmentpurposesintheexpectationthatthereturnsontheinvestments
purchasedusingtheborrowingsexceedsthecostsofthoseborrowings. Forexample,a figureof5%meansthattheshareholderfundsare5%gearedandindicatestheextraamountbywhich
theshareholderfundswouldriseorfallif thetotalassetswereto riseorfall. A figureof 0%meansthereis nogearing.NetGearingis thegearinglevellessthelevelofcashin theportfolio.
OngoingChargesRatio(“OCR”)-Fromtheyearending31March2012, theOngoingChargesRatio(“OCR”)replacestheTotalExpenseRatio. Prioryearnumbershavenotbeenrestatedas
theratiosarenotmateriallydifferent. TheOCRrepresentstheannualisedongoingchargesoftheCompanydividedbytheaveragedailynetassetvaluesoftheCompanyfortheyear,andhas
beenpreparedin accordancewiththeAIC’srecommendedmethodology.
Positive& NegativePeriods-Thisshowshowmanypositive/negativemonthsreturnsthata portfolioexperiencesacrossa period.
PricetoBook(P/B)-Thepricepershareofa stockdividedbyitsbookvalue(i.e. networth)pershare. Fora portfolio,theratiois theweightedharmonicaverageprice/bookratioofthestocks
itholds.
PricetoCashFlow(P/CF)-Supplementsprice/earningsratioasa measureof relativevalue;it representsa weightedharmonicaverageof theprice/cashflowratiosfortheunderlyingportfolio
holdings.
PricetoEarnings(P/E)-Thesharepriceofa stock,dividedbyitsper-shareearningsoverthepastyear. Fora portfolio,it is theweightedharmonicaverageP/Eratioofthestocksinthe
portfolio. P/Eis a goodindicatorof marketexpectationsabouta company'sprospects; thehighertheP/E,thegreatertheexpectationsfora company'sfuturegrowthin earnings.
R
2
-R
2
orR squared,is anindicationofhowcloselyalignedtheportfolioandthebenchmarkindexare. R
2
rangesbetween0 and100, with0 indicatinga lotofdifferenceand100indicatinga
perfectmatch. A valueof70andupwardsgenerallysuggeststhata portfolio’sperformanceis verycloselylinkedtotheperformanceofthebenchmarkindex.
SharePrice- Thecostof a unitofownershipin a companyaspurchasedthroughthestockexchange.
SharpeRatio-SharpeRatiojudgeswhethertherelationshipbetweena portfolio'sriskanditsreturnis goodorbad. Theunderlyingassumptionis thata portfoliomanagercouldinvestina
risklessasset(suchascash),thereforethereturnoftheriskfreeassetis deductedfromtheannualisedaveragereturn. Thisnetreturnis thendividedbythetotalrisk(annualisedvolatility).The
highertheratiothebetterthereturnforinvestorsfortherisktaken.
TotalNetAssets-Thetotalvalueofa company’sshares. Fora vehiclelikeTEMIT,whichinvestsin a numberofcompanies,thisis calculatedbytheNetAssetValue(NAV)ona certaindate
multipliedbythenumberofsharesin issue.
TrackingError(Relative)-TrackingError(Relative)measureshowmuchthereturnoftheportfoliodeviatesfromthebenchmarkindex. Thelowerthetrackingerroroftheportfolio,themoreit
resemblesthebenchmarkin termsofriskandreturncharacteristics.
Trust-A Trust,orInvestmentTrust,is a closedendedvehicleinvestingin a widevarietyof underlyinginvestments. InvestmentTrustsaretradedin exactlythesamewayasanyotherequityon
theLondonStockExchange. Thepriceatwhichtheyaretraded(shareprice)dependsonthedemandforthesharesintheinvestmenttrustandis oftenata variancewiththevalueoftheir
underlyingholdings(orNAV).
Volatility-Thisis a statisticalmeasureof theamountofmovementin thepriceofa shareorportfolioovera givenperiodoftime. If a portfolio’ssharepricehardlymovesovertime,it is saidto
havea lowvolatility. Volatilityis a simplemeasureof theconsistencyofreturns.
IMPORTANTINFORMATION
ThepriceofsharesinTEMITandincomefromthemcangodownaswellasupandyoumaynotgetbackthefullamountthatyouinvested.Past
performanceisnotanindicatorora guaranteeoffutureperformance.
Currencyfluctuationswillaffectthevalueofoverseasinvestments. Investmentsinfundsdenominatedina currencyotherthansterling,yourperformancemayalsobeaffectedbycurrency
fluctuations. Inemergingmarkets,theriskscanbegreaterthanin developedmarkets.
Thisdocumentdoesnotconstituteorformpartofanofferforsharesoraninvitationtoapplyforshares. AninvestmentinTEMITentailsriskswhicharedescribedintheKeyInformation
Document,InvestorDisclosureDocumentandtherisksectioninTEMIT’sAnnualReport,whichcanbedownloadedfromourwebsite– www.temit.co.ukPleaseconsultyourprofessional
adviserbeforedecidingtoinvest.
Performancefiguresarenotbasedonauditedfinancialstatementsand,unlessindicatedotherwise,assumereinvestmentofinterestanddividends.
Datafromthirdpartysourcesmayhavebeenusedin itspreparationandFranklinTempletonInvestmentshasnotindependentlyverified,validatedorauditedsuchdata.
Referencesto particularindustries,sectorsorcompaniesareforgeneralinformationandarenotnecessarilyindicativeof a portfolio’sholdingat anyonetime.
Opinionsexpressedaretheauthor’satpublicationdateandtheyaresubjecttochangewithoutpriornotice. Giventherapidlychangingmarketenvironment,wedisclaimresponsibilityfor
updatingthismaterial.
Attribution-relateddataprovidedbyFactSetasat 30/06/2019. RelativeattributionreferstotheMSCIEmergingMarketsIndexin sterlingterms.
Referencestoindicesaremadeforcomparativepurposesonlyandareprovidedtorepresenttheinvestmentenvironmentexistingduringthetimeperiodsshown. Anindexis unmanagedand
onecannotinvestdirectlyin anindex. Theperformanceoftheindexdoesnotincludethedeductionof expensesanddoesnotrepresenttheperformanceof anyFranklinTempletonfund.
MSCImakesnoexpressorimpliedwarrantiesorrepresentationsandshallhavenoliabilitywhatsoeverwithrespecttoanyMSCIdatacontainedherein. TheMSCIdatamaynotbefurther
redistributedorusedasa basisforotherindicesoranysecuritiesorfinancialproducts. Thisreportis notapproved,reviewedorproducedbyMSCI.
©2019Morningstar,Inc. Allrightsreserved. Theinformationcontainedherein:(1) is proprietarytoMorningstar; (2) maynotbecopiedordistributed; and(3) is notwarrantedtobeaccurate,
completeortimely. NeitherMorningstarnoritscontentprovidersareresponsibleforanydamagesorlossesarisingfromanyuseof thisinformation.
Acopyofthelatestannualreportandhalf-yearlyreport,if publishedthereaftercanbefound,onourwebsite: www.temit.co.ukorcanbeobtained,freeofcharge,fromtheaddressbelow.For
moreinformation,UKinvestorsshouldcontact: FranklinTempletonInvestments,CannonPlace,78CannonStreet,LondonEC4N6HL. Telephone: 0800305306, Email:
enquiries@franklintempleton.co.uk.
IssuedbyFranklinTempletonInvestmentManagementLimited(FTIML). FTIMLis authorisedandregulatedbytheFinancialConductAuthority.
Franklin Templeton Investment Management Limited
Cannon Place, 78 Cannon Street,
London EC4N 6HL
0800 305 306
enquiries@franklintempleton.co.uk
www.temit.co.uk
Copyright © 2019Franklin Templeton Investments. All rights reserved.