Half-year Report

Templeton Emerging Markets Investment Trust PLC (“TEMIT” or “the Company”)
Unaudited Half Yearly Report to 30 September 2021
Legal Entity Identifier 5493002NMTB70RZBXO96


Company Overview

Launched in June 1989, Templeton Emerging Markets Investment Trust PLC (“TEMIT” or the “Company”) is an investment trust
that invests principally in emerging markets companies with the aim of delivering capital growth to shareholders over the long
term. While the majority of the Company’s shareholders are based in the UK, shares are traded on both the London and New
Zealand stock exchanges.
TEMIT has a diversified portfolio of around 70 high quality companies, actively selected for their long-term growth potential and
sustainable earnings, and with due regard to environmental, social and governance (“ESG”) attributes. TEMIT’s research-driven
investment approach and strong long-term performance has helped it to grow to be the largest emerging markets investment trust
in the UK, with assets of £2.4 billion as at 30 September 2021. Since launch to 30 September 2021, TEMIT’s net asset value
(“NAV”) total return was +4,274.7% compared to the benchmark total return of +1,909.9%.
The Company is governed by a Board of Directors who are committed to ensuring that shareholders’ best interests, taking into
account the wider community of stakeholders, are at the forefront of all decisions. Under the guidance of the Chairman, the Board
of Directors is responsible for the overall strategy of the Company and monitoring its performance.

TEMIT at a glance
For the six months to 30 September 2021

Net asset value total return
(cum-income)
(a)

Share price total return
(a)
MSCI Emerging Markets Index
total return
(a)(b)

-7.5%
(2020: 31.3%)
-9.8%
(2020: 28.4%)

-1.0%
(2020: 24.4%)
Interim dividend for the
financial year 2022
Special dividend
1.00p -
(Interim dividend for the
financial year 2021: 1.00p)
(c)

(Special dividend for
the financial year 2021: 2.00p)
(c)


Cumulative total return to 30 September 2021 (%)
6 Months 1 Year 3 Years 5 Years 10 Years
Net asset value (cum-income) -7.5 8.8 31.0 65.4 113.8
Share price -9.8 12.0 36.9 75.0 109.2
MSCI Emerging Markets Index -1.0 13.7 25.1 52.5 116.1

(a)
A glossary of alternative performance measures is included on pages 34 and 35 of the full Half Yearly Report.
(b)
Source: MSCI. The Company's benchmark is the MSCI Emerging markets Index, with net dividends reinvested.
(c)
Comparative figures for the period ended 30 September 2020 and year ended 31 March 2021 have been
retrospectively adjusted following the sub-division of each existing ordinary share of 25 pence into five ordinary
shares of 5 pence each on 26 July 2021.

Chairman’s Statement
(a)

Market overview and investment performance
The six months under review have been a challenging period with news in emerging markets dominated by downward pressure on
shares in technology companies and the Chinese government’s moves to curtail the activities of some listed companies as it seeks
to balance growth, equality and security. This led to emerging markets under performing their developed counterparts. Over the six
months, TEMIT’s NAV per share was impacted, producing a total return of -7.5%, which was below the benchmark index return of
-1.0%. While it is naturally disappointing to report underperformance over the half year, in the most recent Annual Report I noted
that at the March 2021 year-end our Investment Manager had outperformed the benchmark index for a fifth consecutive year and
over the longer term returns remain strong. A detailed explanation of portfolio returns and current portfolio positioning is set out in
the Portfolio Report starting on page 6 of the full Half Yearly Report. Our Investment Manager is alert to the headwinds which some
portfolio companies have faced in the six months under review but, as they set out in their report, their resources on the ground
around the world enable an in-depth local understanding. This helps to challenge and maintain conviction in the exceptional long-
term prospects of our portfolio.

(a)
The share split which was approved by shareholders at the Annual General Meeting took effect on 26 July 2021 and all of
the numbers quoted in this report take account of the fact that each existing share was replaced by five new shares.

Revenue and dividend
Net revenue earnings for the period under review amounted to 2.16 pence per share. As I have noted in the past, the majority of
TEMIT’s earnings are typically received in the first half of the accounting year but it is too early to predict revenues for the full
year. An interim dividend of 1.00 pence per share will be paid on 10 January 2022 to shareholders on the register at 3 December
2021. This is the same level as last year’s interim dividend of 5.00 pence per share after taking account of the share split.

Asset allocation and borrowing
During the period under review, the Investment Manager elected not to borrow under the revolving credit facility but did gradually
reduce the amount of cash in the portfolio as valuations became more attractive and at the end of the period gearing (as a result of
TEMIT’s £100 million fixed borrowing and net of cash in the portfolio) was 2.4%. The Investment Manager’s cautious approach
proved to be the right course of action in difficult markets.

Subsequent to the half year end £50 million was drawn down under the revolving credit facility as the Investment Manager continued
to identify opportunities to invest. Our Investment Manager takes a careful, measured approach to gearing, with the amount deployed
not a result of views on market direction but driven by investment opportunities presented by individual companies.

The discount
We remain active in promoting TEMIT’s shares to a wide variety of existing and potential investors, especially private investors.
It is gratifying, therefore, that for the second consecutive year we won the award in the “Emerging Markets Equity – Active”
category in the prestigious AJ Bell Fund and Investment Trust Awards 2021. This award is made on the basis of voting from
private investors from a short list of open ended funds, ETFs and investment trusts drawn up by investment experts.

I described in the last Annual Report that the discount had been narrower in recent months and that the pace of share buybacks had
reduced. This trend continued in the half year under review and we bought back shares on only one day – 28 September – in the six
month period.

The Board
As set out in the recent Annual Report, Magdalene Miller was appointed as a non-executive Director of the Company with effect
from 10 May 2021.

AIFM fees
The Board has agreed with Franklin Templeton that there will be no change to AIFM fee this year but with effect from 1 July 2022
the AIFM fee will reduce from 1.0% of the first £1 billion of assets and 0.80% of assets above £1 billion to:

• 1.0% of the first £1 billion of net assets;

• 0.75% of net assets between £1 billion and £2 billion; and
• 0.5% of net assets over £2 billion.

Annual General Meeting
The Board had planned to hold this year’s Annual General Meeting (“AGM”) in person but unfortunately it had to be held behind
closed doors due to the UK government’s decision to extend COVID-19 restrictions. We are disappointed that shareholders were
not able to attend but the safety of shareholders and of staff attending the AGM is paramount. We expect to be able to see those of
you who would like to attend the AGM in person next year and in the meantime shareholders are always welcome to contact me
with any questions or comments via either the Company Secretary or our brokers, Winterflood Securities.

All resolutions at the AGM on 8 July were passed by a large majority. In addition to the usual resolutions shareholders passed
resolutions to:

• Modify TEMIT’s formal investment policy and the revised policy which is available on the Company’s website
(www.temit.co.uk); and
• Split each existing ordinary share into five new shares, with the objective of facilitating smaller investments and the
reinvestment of dividends. Following shareholder approval, this was implemented on 26 July 2021.

Outlook
The net asset value and investment performance have improved since the half-year end and at the time of writing the net asset
value had increased by 3.3%, compared with a return of 3.0% by the benchmark index.

Environmental, Social and Governance (“ESG”) issues have increasingly been highlighted for the investment management industry,
and the environment has in recent weeks been in sharp media focus as a result of the COP26 conference. Our Investment Manager
has for many years focused on improving corporate governance as a driver of shareholder returns and ESG considerations are a key
part of the investment process. This encompasses both investments in companies which are part of the green economy and in
companies moving towards a more sustainable future.

The Investment Manager’s report sets out a list of challenges facing investors, including the continuing efforts to emerge from
pandemic lockdowns, supply bottlenecks, increases in inflation and the potential for interest rates to rise. Looking forward over the
next decade, the growing rivalry between the United States and China is also a cause for concern. Listed companies in emerging
markets are generally trading at lower valuations than their developed counterparts and, despite the challenges, the fundamental
drivers of higher rates of economic growth, relatively low debt levels and the potential for earnings growth lead us to believe that
our portfolio is likely to deliver attractive returns to investors over time. Over the medium term, the outlook for our investments is
positive and we remain optimistic.


Paul Manduca
Chairman
24 November 2021

Interim Management Report
Principal risks
The Company predominantly invests directly in the stock markets of emerging markets. The principal categories of risks facing the
Company, as determined by your Board, are:
• Pandemic;
• Cyber;
• Investment and concentration;
• Market and geo-political;
• Sustainability and climate change;
• Foreign currency;
• Portfolio liquidity;
• Counterparty and credit;
• Operations and custody;
• Key personnel; and
• Regulatory.
The Board has provided the Investment Manager with guidelines and limits for the management of principal risks. Further
information on risks is given in the Strategic Report within the Annual Report and Audited Accounts, which is available on the
Company’s website (www.temit.co.uk). Sustainability and climate change risk has been added as an emerging risk. It is the Board’s
view that sustainability and climate change risks are now prevalent risks in multiple areas of the Company’s business, from
investment considerations to reporting and evolving regulation. Besides this addition, there have been no further changes to the
principal and emerging risks reported in the Annual Report and, in the Board’s view, these principal and emerging risks are equally
applicable to the remaining six months of the financial year as they were to the six months under review.

Related party transactions
The Directors consider that under the classification of related party transactions outlined in the Statement of Recommended Practice
for Investment Trusts issued by the Association of Investment Companies in April 2021, Franklin Templeton entities are not
classified as related parties under IAS 24.

Accordingly, there were no transactions with related parties, other than the fees paid to the Directors during the six months ended 30
September 2021, which have a material effect on the results or financial position of the Company.

Going concern
The Company’s assets consist of equity shares in companies listed on recognised stock exchanges and in most circumstances are
realisable within a short timescale. Having made suitable enquiries, including considerations of the Company’s objective, the nature
of the portfolio, net current assets, expenditure forecasts, the principal and emerging risks and uncertainties described within the
Annual Report, and with due consideration to the COVID-19 pandemic, the Directors are satisfied that the Company has adequate
resources to continue to operate as a going concern for the period to 31 March 2023, which is at least 12 months from the date of
approval of the Financial Statements, and as such, the going concern basis is appropriate in preparing the Financial Statements.

Statement of Directors’ Responsibilities
The Disclosure and Transparency Rules of the UK Listing Authority require the Directors to confirm their responsibilities in
relation to the preparation and publication of the Interim Management Report and Financial Statements.

Each of the Directors, who are listed on page 32 of the full Half Yearly Report, confirms that to the best of their knowledge:
(a) the condensed set of financial statements, for the period ended 30 September 2021, have been prepared in accordance with the
UK adopted International Accounting Standard (IAS) 34 “Interim Financial Reporting”; and
(b) the Half Yearly Report includes a true and fair view of the assets, liabilities, financial position and profit or loss of the
Company and a review of the information required by:

(i) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during
the first six months of the financial year and their impact on the condensed set of financial statements, and a description of
the principal risks and uncertainties for the remaining six months of the year; and

(ii) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six
months of the current financial year and that have materially affected the financial position or performance of the entity
during that period, and any changes in the related party transactions described in the last annual report that could do so.
The Half Yearly Report was approved by the Board on 24 November 2021 and the above responsibility statement was signed on its
behalf by
Paul Manduca
Chairman
24 November 2021

Portfolio Report
Environmental, Social and Governance (“ESG”) issues have come to the forefront in recent years, and some of the emerging markets
have made significant advances and changes to address any material issues in their territories. Climate change is one of those issues,
that will span multiple decades and its importance will only increase, with the dynamics varying by market and sector. We believe
opportunities lie with companies providing climate solutions and those that are innovating to decarbonise their operations. Many
emerging market companies have set emission targets and there has been an improvement in disclosures. We see green business
models in areas such as solar energy and electric vehicles feature as investment opportunities. We also invest in carbon-intensive
companies that show real commitments and innovation to decarbonise. As such, a company’s preparedness to manage material
climate issues is a critical component of our bottom-up assessment of earnings sustainability. Corporate governance has also come
a long way in emerging markets. A powerful mix of regulatory, accounting and investor-related changes have together lifted
governance standards over the years. While still in progress, we believe that it has become a tailwind for emerging market equities.

Public policy around climate change is shifting quickly. COP26 is being touted as the most significant global meeting since Paris
2015, where countries entered a legally binding international treaty—the Paris Accords—to reduce emissions and limit global
warming to 1.5°C. COP26 is the critical next step and includes a global call to action to raise trillions of dollars in private and
public financing. Emerging market governments will need to adopt growth-enhancing fiscal and structural reforms that promote
low-emission resilient investments, backed by productive and cost-effective climate policies to achieve climate-compatible
development. Against this backdrop, our objective to understand the climate commitments of our investee companies incorporate
both local and global perspectives, recognising that the pace of decarbonisation and the associated strategies will differ globally.

Geopolitical issues have not seen any marked improvement and economies are increasingly focusing on national security. One world,
two systems may prevail, and we are seeing companies adapting to this new reality.

Overview of markets
Emerging markets collectively edged down over the six months under review as market sentiment swung between optimism and
caution. Although progress in vaccination campaigns and businesses reopening, along with ongoing monetary and fiscal stimulus,
aided economic recovery in several parts of the world, others struggled with new COVID-19 variant outbreaks. Many investors were
also pricing in the potential for the US Federal Reserve to begin tapering stimulus sooner than expected. China-related concerns,
including regulatory curbs and major property developer Evergrande’s debt crisis further capped risk appetite. Inflation was another
dominant market theme late in the reporting period as supply chain disruptions and higher commodity prices drove up inflation
around the globe. The MSCI Emerging Markets Index returned -1.0% in the six-month period under review, whilst TEMIT delivered
a net asset value total return of -7.5% (all figures are total return in sterling). Full details of TEMIT’s performance can be found on
page 1 of the full Half Yearly Report.

By region, European, Middle Eastern and African (“EMEA”) equities outpaced their peers in Latin America and Asia, which was
also the only region to end the period in negative territory. Declines in China and South Korea were largely responsible for the
region’s lagging performance, overshadowing solid returns in India and Taiwan. In EMEA, the Russian market was a major driving
force, whilst a marginal gain in Brazil did little to support Latin America.

China was TEMIT’s largest market exposure, although the portfolio remained underweight relative to the benchmark. China was
amongst the weakest emerging markets, losing 14% in sterling terms over the six- month period amidst new COVID-19 outbreaks,
increased regulatory scrutiny, power outages and China Evergrande's cash crunch. The government enacted new regulations in a
number of industries, including internet and education, which caused considerable investor concern. The regulatory changes in China
were announced at a time when the country was seeing a slowdown in its economy and a resurgence in COVID-19 cases, which
further weighed on equity performance. However, we believe that China’s government remains committed to fostering innovation
as an economic growth engine. Whilst the short-term volatility is painful for investors, these cycles have historically not unduly
impeded the long-term structural growth of the broader economy.

Another major development in China was China Evergrande Group, one of China’s leading property developers, coming under
pressure as the company’s ability to service its debt became increasingly unviable. The situation, however, remains fluid and
we continue to monitor the developments closely. More recently, power shortages across parts of the country stemming from a
pickup in industrial activity, tightening emission standards and supply limitations have resulted in factory closures, raising

concerns of falling production output in several industries, possibly placing more strain on global supply chains, as well as a
wider impact on China’s economic recovery. Whilst this will likely have a short-term impact on the economy, we believe that
the focus on energy intensity and decarbonisation is likely to continue as China works towards becoming carbon-neutral by
2060.

TEMIT’s second-largest market position was in South Korea, where the portfolio was overweight versus the benchmark. South
Korea joined China as one of the largest emerging-market declines, losing nearly 7% during the reporting period. The resurgence
of COVID-19 and stricter social distancing measures and weak market sentiment surrounding technology stocks weighed on
equity prices. Economically, South Korea’s second-quarter gross domestic product (“GDP”) jumped to 6% year-on-year growth,
partially on the low base effect whilst trade also contributed. Unemployment remained low, despite edging up to 3.0% in
September, from a record low of 2.8% in August. Inflation, however, was at its highest level since 2017, with the annual inflation
rate at 2.5% in September. During its August meeting, the central bank raised its key interest rate from an historic low of 0.5%
to 0.75%; this was the first increase in almost three years, making South Korea the first major Asian economy to tighten monetary
policy since the COVID-19 pandemic began. The country is an export powerhouse and several South Korean exporters are of
global importance, supplying vital hardware. World-leading semiconductor and battery makers are benefitting from the secular
trends of increased computing power and greener mobility—some of which have accelerated due to the pandemic. South Korea’s
advantages in innovation and intellectual property are evident, whilst the country’s internet sector has also been thriving.

The Taiwanese market outperformed the wider benchmark, ending the reporting period with a close to 8% return. TEMIT’s
overweight allocation to Taiwan was largely attributable to exposure to the island’s semiconductor industry, chief amongst
which was Taiwan Semiconductor Manufacturing (“TSMC”), which was also the portfolio’s largest holding. Technology’s role
as a key economic engine has only strengthened during the pandemic. As technology has advanced, semiconductor chips have
become a growing part of almost all consumer goods with the semiconductor industry experiencing a cyclical and secular boom
as growing digitalisation powers a surge in demand. Historically, many chip designers outsourced manufacturing to key
Taiwanese companies such as TSMC with specialised manufacturing prowess and lower costs. Some of these manufacturers are
now counted among the largest foundries globally and can partner with and produce chips for clients globally. This
collaboration—rather than direct competition— is a key advantage of their business model. Over time their advantage has shifted
from primarily cost to intellectual property, with fewer competitors able to progress to the next level of technology. Although
the sector, in general, fell from its recent peak on concerns around component shortages and the durability of a price and demand
recovery, we maintain a positive long-term view on Taiwan’s semiconductor industry.

TEMIT maintained an overweight exposure to Russia relative to the benchmark. Equity prices remained on an upward trend over
the six-month period, returning 29%, making it one of the top three markets in the MSCI Emerging Markets Index. Despite its strong
market performance, however, Russia remains one of the most undervalued markets in Europe as well as globally. As of 30
September 2021, the MSCI Russia Index traded at a forward price-to-earnings ratio of 7x, compared to MSCI Emerging Market’s
13x and the MSCI World’s 19x. Rising oil prices, appreciation in the rouble and a faster-than-expected economic recovery buoyed
the stock market. The Russian economy expanded by 10.5% year-on-year in the second quarter of 2021, ending four quarters of
contraction. Consumption, supported by the government’s stimulus measures, was a key driver of growth, with solid investment
growth also supporting the economy. The Ministry of Economic Development raised its 2021 GDP growth forecast to 4.2%, from
3.8%, in late-September, whilst the World Bank upgraded its 2021 forecast to 4.3%, from an earlier estimate of 3.2%. Rising
inflationary pressures, however, led the central bank to shift to a monetary tightening policy with interest rates increasing by 2.25%
over the six-month period. However, we are of the opinion that’s Russia’s internally-focused economy and policy flexibility (given
twin surpluses in its fiscal and current accounts) continues to provide a conducive environment for companies operating
domestically. It has little sovereign debt and considerable foreign exchange reserves, allowing it to withstand most financial shocks.
In addition to being one of the best-positioned oil producers globally, the country’s new economy is also thriving.

Although underweight relative to the benchmark, India was TEMIT’s fifth largest exposure at the end of September 2021. With
a return of 23%, the Indian market outperformed most of its peers. India started the reporting period with a second wave of
COVID-19 infections, which led to the implementation of new mobility restrictions. However, a receding pandemic, continued
policy support and a pickup in vaccinations lifted hopes for the economy's recovery, driving India’s equity market performance.
Strong earnings reports from some companies further boosted investor confidence. Over the longer-term, we expect to see
continued growth in Indian earnings due to positive demographics creating long runways for consumer penetration and upgrading,

continued private sector penetration in segments like finance and health care, digitalisation from a low base, and supply-chain
diversification supported by government policy. Our interactions with the management of Indian companies indicate confidence
in the ability to grow their businesses based on industry consolidation leading to improved profitability, a fresh investment cycle,
government initiatives seeding new investments in higher value-add areas, and the trend of global supply chain diversification.
We remained focused on being selective and identifying bottom-up opportunities based on our assessment of a company’s growth,
quality and earnings sustainability.

A weak third quarter erased Brazil’s double-digit second-quarter gains leading the market to end the six- month period virtually
unchanged. Appreciation in the Brazilian real, improving vaccination trends, higher commodity prices and better-than-expected
first-quarter GDP growth boosted Brazilian equities in the second quarter. In the third quarter, however, fiscal uncertainties,
depreciation in the real, increased political noise, rising inflation and pockets of commodity weakness pressured the market. Brazil’s
monetary policy has been amongst the most aggressive in emerging markets. To curb inflationary pressures, the central bank raised
its key interest rate by 4.25% to 6.25%, from a record low of 2.0% in March. Extended lockdown measures, following a third
COVID-19 wave, and improving momentum in the vaccine rollout led to a drop in the daily numbers of new cases and deaths in
Brazil, allowing regional governments to ease restrictions later in the reporting period. We consider Brazil to be the most dynamic
economy in Latin America. The government maintained a bullish economic outlook, raising its 2021 economic growth forecast to
5.3% from 3.5%, supported by expectations of growth in key economic indicators including manufacturing, investment and
domestic consumption, and continued vaccination efforts. Moreover, we expect its continued pursuit of structural reforms to
contribute to the sustainability of the recovery. Even though the central bank’s interest-rate hikes have pressured the equity market,
the pipeline of initial public offerings has remained strong. Meanwhile, rising rates could create the potential for Brazilian banks’
margins to expand.

Investment strategy, portfolio changes and performance
The following sections show how different investment factors (stocks, sectors and geographies) accounted for the Company’s
performance over the period. We continue to emphasise our investment process that selects companies based on their individual
attributes and ability to generate risk-adjusted returns for investors, rather than taking a high-level view of sectors, countries or
geographic regions to determine our investment allocations.

Our investment style is centred on finding companies with sustainable earnings power and whose shares trade at a discount relative
to their intrinsic worth and to other investment opportunities in the market. We also pay close attention to risks.

We continue to utilise our research-based, active approach to help us to find companies which have high standards of corporate
governance, respect their shareholder base and understand the local intricacies that may determine consumer trends and habits.
Utilising our large team of analysts, we aim to maintain close contact with the board and senior management of existing and potential
investments and believe in engaging constructively with our investee companies.

All of these factors require us to conduct detailed analysis of potential returns versus risks with a time horizon of typically five
years or more.

As active investors, we continue to engage with companies to understand both the long-term impact of COVID-19 and the
subsequent behavioural changes on companies and ensure that our portfolios are positioned accordingly. We continue to
stress the importance of being selective and undertaking due diligence in making investment decisions.

Our well-resourced, locally-based team remains a key competitive advantage and it has certainly been helpful having a team on the
ground in Hong Kong and Shanghai for example, to help us better understand what is happening in China.

In the portfolio, we remain positioned in long-term themes including consumption premiumisation, digitalisation, health care and
technology. We focus on companies reflecting our philosophy of owning good quality businesses, with long term sustainable
earnings power and share prices at a discount to intrinsic worth. We see high levels of leverage as a risk and continue to avoid
companies with weak balance sheets.

Whilst the immediate outlook is uncertain, this approach should help us best navigate the ongoing pandemic. Over time, we expect

the long-term fundamentals of our holdings to remain intact.

The Company's investments do not take into account the EU criteria for environmentally sustainable economic activities, including
enabling or transitional activities, within the meaning of the Taxonomy Regulation.


Performance attribution analysis %

Six months to 30 September 2021 2020 2019 2018 2017
Net asset value total return
(a)
(7.5) 31.3 6.3 (1.5) 11.4
Expenses incurred 0.5 0.5 0.5 0.6 0.6
Gross total return
(a)
(7.0) 31.8 6.8 (0.9) 12.0
Benchmark total return
(a)
(1.0) 24.4 2.2 (1.8) 7.1
Excess return
(a)
(6.0) 7.4 4.6 0.9 4.9
Stock selection (4.3) 2.5 2.6 (0.2) 1.8
Sector allocation (1.4) 4.0 1.6 (0.5) 2.7
Currency (0.5) 0.5 0.4 1.1 0.1
Share buyback impact
(b)
0.0 0.3 0.2 0.7 0.2
Residual return
(a)
0.2 0.1 (0.2) (0.2) 0.1
Total Investment Manager contribution (6.0) 7.4 4.6 0.9 4.9
Source: FactSet and Franklin Templeton.
(a)
A glossary of alternative performance measures is included on pages 34 and 35 of the full Half Yearly Report.
(b)
The share buyback impact has been presented separately from the residual figure.


Top contributors to relative performance by security (%)
(a)


Top contributors

Country

Sector
Share price
total return
Contribution
to portfolio
relative to
MSCI
Emerging
Markets Index
Guangzhou Tinci Materials Technology China/Hong Kong Materials 145.8 1.2
ICICI Bank India Financials 20.7 0.6
Sberbank of Russia Russia Financials 31.6 0.4
Yandex Russia Communication Services 27.3 0.4
Bajaj Holdings & Investments
(b)
India Financials 50.9 0.4
LUKOIL Russia Energy 24.1 0.4
Longshine Technology
(b)
China/Hong Kong Information Technology 71.8 0.3
TAL Education
(c)
China/Hong Kong Consumer Discretionary (90.8) 0.2
Meituan
(c)
China/Hong Kong Consumer Discretionary (15.5) 0.2
China Merchants Bank China/Hong Kong Financials 10.6 0.2

(a)
For the period 31 March 2021 to 30 September 2021.
(b)
Security not included in the MSCI Emerging Markets Index as at 30 September 2021.
(c)
Security not held by TEMIT as at 30 September 2021.

Shares of China-based Guangzhou Tinci Materials Technology (“GTMT”), a world-leading battery electrolyte producer, soared.
The company posted better-than-expected first-half 2021 earnings and projected strong growth ahead. The announcement of a supply
agreement with a major electric vehicle battery maker in China was also viewed positively by investors. An improving outlook for
electric vehicle adoption also buoyed the stock. We believe that GTMT’s competitive advantages should position it to benefit from
robust demand for batteries needed for electric vehicles and energy storage.

ICICI Bank is one of the largest private-sector banks in India. Hopes of economic normalisation drove a share-price recovery, as
the country’s second COVID-19 wave receded and vaccination efforts continued. ICICI Bank continued to report solid operating
results, exceeding market expectations. The bank’s commitment to digitalisation further supported sentiment in the stock. We
believe that the bank’s healthy capital buffer and strong deposit franchise have contributed to its resilience during the pandemic.
We expect rising credit penetration in India to create longer-term growth opportunities for the bank.

Shares of Sberbank of Russia, one of the biggest banks in the country, remained on an upward trend on the back of solid quarterly
corporate results and economic normalisation in the country. Shares extended their rally in the latter part of the reporting period after
the company reported better-than-expected second-quarter earnings and lifted its return-on-equity guidance. Rising interest rates in
Russia also lifted the market’s outlook for its margins. We believe that Sberbank’s industry leadership positions it for further growth
in an underpenetrated market, and the lender’s fast-growing digital ecosystem could entrench its dominance.


Top detractors to relative performance by security (%)
(a)


Top detractors

Country

Sector
Share price
total return
Contribution
to portfolio
relative to MSCI
Emerging
Markets Index
Alibaba China/Hong Kong Consumer Discretionary (33.3) (1.2)
Brilliance China Automotive
(b)
China/Hong Kong Consumer Discretionary (47.8) (0.9)
Samsung Electronics South Korea Information Technology (11.8) (0.8)
Naspers South Africa Consumer Discretionary (29.4) (0.7)
Tencent China/Hong Kong Communication Services (21.9) (0.6)
Tencent Music Entertainment China/Hong Kong Communication Services (63.8) (0.6)
New Oriental Education & Technology China/Hong Kong Consumer Discretionary (80.7) (0.4)
Americanas Brazil Consumer Discretionary (46.2) (0.3)
Reliance Industries
(c)
India Energy 27.2 (0.3)
Soulbrain
(b)
South Korea Materials (25.3) (0.2)

(a)
For the period 31 March 2021 to 30 September 2021.
(b)
Security not included in the MSCI Emerging Markets Index as at 30 September 2021.
(c)
Security not held by TEMIT as at 30 September 2021.

Alibaba is the leading e-commerce company in China. It provides cloud computing services and is also involved in payment,
financing and logistics services. Shares fell as regulators stepped up their monitoring of the internet industry through a series of
actions, including scrutiny of monopolistic practices, algorithm usage and financial technology (fintech). Regulators also fined
Alibaba for antitrust violations, whilst its financial technology arm Ant Group began a restructuring. Operationally, Alibaba
continued to report solid quarterly revenue growth. Signalling continued confidence, the company maintained its fiscal year 2022
revenue guidance and raised its share buyback programme size to US$15 billion from US$10 billion, making it the largest buyback
programme in the company’s history. Whilst Alibaba could face near-term pressure on its earnings power, we think that its e-
commerce ecosystem remains one of the best in China and should continue to generate strong cash flows. It is also a leader in the
country’s fast-growing cloud computing industry.

Brilliance China Automotive is a Chinese car maker noted for its joint venture with German luxury car maker BMW. The
company’s stock has been suspended from trading since 31 March 2021. The impact on performance from a fair value adjustment,
which is at a discount to its last traded price, contributed to negative relative performance. However, there has been no further news
on the company, and we continue to monitor the position.

A leading global semiconductor manufacturer, Samsung Electronics is also one of the world’s largest smartphone producers as well
as a key supplier of organic light-emitting diode (“OLED”) displays. Although the company reported strong quarterly earnings,
concerns around component shortages and the durability of a price recovery for memory chips checked investor sentiment.

Nevertheless, we still see favourable demand and supply trends in the memory chip market that should benefit Samsung. Moreover,
we continue to see Samsung’s foundry, consumer electronics, and display businesses fare well, in a robust environment for
technology exports driven by increased consumer demand for computers, game consoles, smartphones and tablets during the
pandemic. Potential consolidation in the flash memory (NAND) segment could also improve earnings visibility and sustainability in
the longer term.


Top contributors and detractors to relative performance by sector (%)
(a)




Top contributors

MSCI
Emerging
Markets Index
sector total
return

Contribution
to portfolio
relative to
MSCI
Emerging
Markets Index



Top detractors

MSCI
Emerging
Markets Index
sector total
return

Contribution
to portfolio
relative to
MSCI
Emerging
Markets Index
Real Estate (17.7) 0.5 Consumer Discretionary (18.1) (2.9)
Materials 5.7 0.2 Communication Services (11.4) (1.0)
Industrials 10.0 (0.6)
Information Technology 0.2 (0.6)
Energy 26.0 (0.6)

(a)
For the period 31 March 2021 to 30 September 2021.

An underweight position and favourable stock selection in the real estate sector added to TEMIT’s performance relative to the
benchmark index in the review period. The materials sector, where positive stock selection exceeded the detraction from an
underweight exposure, was another contributor to relative returns. Material stocks did well over the reporting period on higher
commodity prices and rising demand amidst a global economic recovery. However, concerns of peaking demand and prices in the
near-term and the costs of improving ESG practices may impact profitability, leading us to be more selective across the sector.

In contrast, stock selection in the consumer discretionary sector was the leading detractor from relative performance, largely due
to the two stocks, Alibaba and Brilliance China Automotive, which are discussed above. The communication services sector, where
both stock selection and an overweight position detracted, also had a negative impact. Two stocks, Tencent and Tencent Music
Entertainment, were the key detractors in the sector. In addition to new rules in China’s internet sector, regulators ordered Tencent,
one of the largest internet services companies in China, and its affiliate Tencent Music Entertainment, to end exclusive music
licensing agreements and rectify other anti-competitive arrangements. Whilst we continue to hold a sizeable position, we reduced
exposure to Tencent to increase diversification and better manage our risk profile. Stock selection and an underweight position in
industrials, the third-best performing sector in the benchmark, hindered performance relative to the benchmark.


Top contributors and detractors to relative performance by country (%)
(a)




Top contributors

MSCI
Emerging
Markets Index
country total
return

Contribution
to portfolio
relative to
MSCI Emerging
Markets Index



Top detractors

MSCI
Emerging
Markets Index
country total
return

Contribution
to portfolio
relative to
MSCI Emerging
Markets Index
Russia 28.6 0.8 China/Hong Kong (14.0) (1.6)
Chile
(b)
(18.5) 0.1 South Korea (6.8) (1.1)
United Kingdom
(c)
– 0.1 South Africa (4.8) (0.9)
Taiwan 7.4 (0.8)
Brazil (0.0) (0.6)

(a)
For the period 31 March 2021 to 30 September 2021.
(b)
No companies held by TEMIT in this country as at 30 September 2021.
(c)
No companies included in the MSCI Emerging Markets Index in this country as at 30 September 2021.

Russia was the major contributor to relative performance. An overweight exposure and favourable stock selection had a positive
impact. Overweight positions in outperforming stocks, like Sberbank, Yandex (Russia’s largest search engine) and Lukoil (one of
the largest oil and gas companies in the world), drove the contribution from Russia.
Our stock selection in China overshadowed the contribution from an underweight exposure to the underperforming Chinese market.
Key detractors included the four stocks in the consumer discretionary and communication services sectors discussed above. Our
selection of stocks and overweight position in South Korea was another key detractor from TEMIT’s returns relative to the
benchmark index. An overweight exposure to Samsung Electronics, which is discussed above, was the main detractor in South Korea.
An overweight exposure to Naspers, which has a sizeable interest in Tencent, was largely responsible for South Africa’s inclusion
in the list of top market detractors from relative performance. We reduced our holdings in Naspers and its affiliate Prosus during the
reporting period.


Portfolio changes by sector

Total return in sterling
Sector
31 March
2021
market value
£m
Purchases
£m
Sales
£m
Market
movement
£m
30 September
2021
market value
£m
TEMIT
%
MSCI Emerging
Markets Index
%
Information Technology 810 81 (77) (27) 787 (2.3) 0.2
Financials 486 76 (63) 19 518 5.7 8.0
Communication Services 433 53 (60) (68) 358 (14.2) (11.4)
Consumer Discretionary 491 33 (67) (148) 309 (32.5) (18.1)
Materials 91 84 – 13 188 16.5 5.7
Consumer Staples 115 9 (23) (6) 95 (4.8) 2.4
Energy 62 2 (7) 14 71 30.2 26.0
Industrials 67 – (9) – 58 (7.8) 10.0
Real Estate 12 19 (3) 1 29 (7.5) (17.7)
Health Care 32 3 (5) (2) 28 (4.6) 1.6
Utilities – – – – – – 12.8
Total Investments 2,599 360 (314) (204) 2,441


Sector asset allocation
As at 30 September 2021
Sector weightings vs benchmark (%)
TEMIT MSCI Emerging Markets
Index
Information Technology 32.2 20.9
Financials 21.2 19.4
Communication Services 14.7 10.3
Consumer Discretionary 12.7 14.7
Materials 7.7 8.7
Consumer Staples 3.9 5.9
Energy 2.9 5.9
Industrials 2.4 4.9
Real Estate 1.2 2.1
Health Care 1.1 4.9
Utilities – 2.3

Portfolio changes by country

Total return in sterling
Country
31 March
2021
market value
£m
Purchases
£m
Transfer
£m
Sales
£m
Market
movement
£m
30 September
2021
market value
£m
TEMIT
%
MSCI
Emerging
Markets
Index
%
China/Hong Kong 770 205 36 (129) (170) 712 (21.5) (14.0)
South Korea 575 42 – (36) (50) 531 (8.6) (6.8)
Taiwan 430 11 – (29) (3) 409 0.3 7.4
Russia 154 7 – (4) 37 194 27.1 28.6
India 162 31 – (42) 43 194 28.8 23.4
Brazil 151 24 – (4) (22) 149 (8.8) (0.0)
Other 357 40 (36) (70) (39) 252 –
Total Investments 2,599 360 – (314) (204) 2,441

Geographic asset allocation
As at 30 September 2021
Country weightings vs benchmark (%)
(a)

TEMIT MSCI Emerging Markets
Index
China/Hong Kong 29.2 34.1
South Korea 21.8 12.6
Taiwan 16.7 14.5
Russia 8.0 3.9
India 7.9 12.2
Brazil 6.1 4.4
South Africa 1.6 3.1
Thailand 1.5 1.6
United States
(b)
1.5 –
Mexico 1.4 2.0
United Kingdom
(b)
1.4 –
Hungary 0.8 0.3
Indonesia 0.7 1.4
Cambodia
(b)
0.4 –
Pakistan 0.3 –
Peru 0.3 0.1
Philippines 0.2 0.6
Kenya
(b)
0.2 –

(a)
Other countries included in the benchmark are Argentina, Chile, Colombia, Czech Republic, Egypt, Greece, Kuwait,
Luxembourg, Malaysia, Poland, Qatar, Romania, Saudi Arabia, Singapore, Turkey and the United Arab Emirates.
(b)
Countries not included in the MSCI Emerging Markets Index.

Portfolio investments by fair value
As at 30 September 2021
Holding Country Sector Trading
(a)

Fair value
£’000
% of net
Assets
Taiwan Semiconductor Manufacturing Taiwan Information Technology PS 295,106 12.5
Samsung Electronics South Korea Information Technology NT 252,382 10.7
Tencent China/Hong Kong Communication Services PS 151,335 6.4
Alibaba China/Hong Kong Consumer Discretionary PS 146,324 6.2
ICICI Bank India Financials NT 109,527 4.6
NAVER South Korea Communication Services PS 93,233 3.9
MediaTek Taiwan Information Technology IH 75,172 3.2
LUKOIL, ADR
(b)
Russia Energy IH 62,559 2.6
Sberbank of Russia, ADR
(b)
Russia Financials NT 60,270 2.6
China Merchants Bank China/Hong Kong Financials IH 57,584 2.4
TOP 10 LARGEST INVESTMENTS 1,303,492 55.1
LG South Korea Industrials PS 54,793 2.3
Yandex Russia Communication Services PS 53,798 2.3
Guangzhou Tinci Materials Technology China/Hong Kong Materials NH 49,342 2.1
Itaú Unibanco, ADR
(b)(c)
Brazil Financials IH 43,625 1.9
Samsung Life Insurance South Korea Financials IH 38,878 1.6
Banco Bradesco, ADR
(b)(c)
Brazil Financials IH 37,363 1.6
Cognizant Technology Solutions
(d)
United States Information Technology IH 36,441 1.5
Prosus
(e)
China/Hong Kong Consumer Discretionary PS 34,986 1.5
Tata Consultancy Services India Information Technology NH 34,243 1.5
Unilever
(d)
United Kingdom Consumer Staples PS 33,916 1.4
TOP 20 LARGEST INVESTMENTS 1,720,877 72.8
Banco Santander Mexico, ADR
(b)
Mexico Financials NT 31,129 1.3
Hon Hai Precision Industry Taiwan Information Technology PS 30,964 1.3
Bajaj Holdings & Investments India Financials NT 30,180 1.3
POSCO South Korea Materials IH 29,977 1.3
Vale Brazil Materials NT 27,525 1.1
Daqo New Energy, ADR
(b)
China/Hong Kong Information Technology IH 27,245 1.1
Brilliance China Automotive China/Hong Kong Consumer Discretionary NT 26,576 1.1
Soulbrain South Korea Materials NH 26,506 1.1
China Resources Land China/Hong Kong Real Estate IH 24,856 1.0
China Resources Cement China/Hong Kong Materials IH 24,341 1.0
TOP 30 LARGEST INVESTMENTS 2,000,176 84.4
Keshun Waterproof Technologies China/Hong Kong Materials NH 24,320 1.0
Naspers South Africa Consumer Discretionary PS 24,076 1.0
B3 Brazil Financials IH 21,955 0.9
Kasikornbank Thailand Financials IH 21,611 0.9
Ping An Insurance
(f)
China/Hong Kong Financials IH 21,276 0.9
Fila South Korea Consumer Discretionary NT 19,979 0.8
Tencent Music Entertainment, ADR
(b)
China/Hong Kong Communication Services IH 19,557 0.8
Gedeon Richter Hungary Health Care PS 19,167 0.8
Uni-President China China/Hong Kong Consumer Staples IH 17,555 0.8
Ping An Bank China/Hong Kong Financials NT 17,010 0.7
TOP 40 LARGEST INVESTMENTS 2,206,682 93.0

Holding Country Sector Trading
(a)

Fair value
£’000
% of net
Assets
Astra International Indonesia Consumer Discretionary IH 16,705 0.7
Massmart South Africa Consumer Staples NT 15,907 0.7
Longshine Technology Group China/Hong Kong Information Technology IH 15,788 0.7
Infosys Technologies India Information Technology PS 14,519 0.6
NetEase, ADR
(b)
China/Hong Kong Communication Services IH 14,429 0.6
Baidu, ADR
(b)
China/Hong Kong Communication Services NT 14,014 0.6
Americanas
(g)
Brazil Consumer Discretionary IH 10,954 0.5
H&H Group China/Hong Kong Consumer Staples IH 10,034 0.4
Mail.Ru, GDR
(h)
Russia Communication Services IH 9,035 0.4
NagaCorp Cambodia Consumer Discretionary NT 8,793 0.4
TOP 50 LARGEST INVESTMENTS 2,336,860 98.6
Gazprom, ADR
(b)
Russia Energy NT 8,681 0.4
LegoChem Biosciences South Korea Health Care IH 8,650 0.4
Intercorp Financial Services Peru Financials IH 7,466 0.3
Thai Beverage Thailand Consumer Staples NT 7,222 0.3
MCB Bank Pakistan Financials NT 7,092 0.3
Kiatnakin Phatra Bank Thailand Financials PS 6,636 0.3
BDO Unibank Philippines Financials NT 5,563 0.3
ACC India Materials NT 5,474 0.2
East African Breweries Kenya Consumer Staples NT 5,463 0.2
PChome Online Taiwan Consumer Discretionary PS 4,924 0.2
TOP 60 LARGEST INVESTMENTS 2,404,031 101.5
M. Dias Branco Brazil Consumer Staples NT 4,741 0.2
Greentown Service Group China/Hong Kong Real Estate NH 4,358 0.2
Nemak Mexico Consumer Discretionary NT 4,253 0.2
Hankook Tire South Korea Consumer Discretionary NT 4,095 0.2
COSCO SHIPPING Ports China/Hong Kong Industrials IH 3,356 0.2
KT Skylife South Korea Communication Services NT 2,703 0.1
BAIC Motor China/Hong Kong Consumer Discretionary NT 2,608 0.1
Largan Precision Taiwan Information Technology NT 2,575 0.1
TOTVS Brazil Information Technology NT 2,411 0.1
New Oriental Education & Technology
Group, ADR
(b)

China/Hong Kong Consumer Discretionary NH 2,371 0.1
TOP 70 LARGEST INVESTMENTS 2,437,502 103.0
Weifu High-Technology China/Hong Kong Consumer Discretionary NT 2,284 0.1
United Bank Pakistan Financials NT 983 0.1
TOTAL INVESTMENTS 2,440,769 103.2
NET LIABILITIES (74,720) (3.2)
TOTAL NET ASSETS 2,366,049 100.0

(a)
Trading activity during the year: (NH) New Holdings, (IH) Increased Holdings, (PS) Partial Sale and (NT) No Trading.
(b)
US listed American Depository Receipt.
(c)
Preferred Shares.
(d)
This company, listed on a stock exchange in a developed market, has significant exposure to operations in emerging markets.
(e)
This company is listed in the Netherlands. The classification of China/Hong Kong is due to most of its revenue coming from its
holding in Tencent.
(f)
Company is listed on the Hong Kong and Shanghai stock exchanges.
(g)
Holding name has been changed from B2W as the result of a merger between B2W and Americanas.
(h)
UK listed Global Depositary Receipt.

Portfolio summary

As at 30 September 2021
All figures are in a % of the net assets



Communication

Services


Consumer

Discretionary

Consumer Staples


Energy

Financials


Health Care


Industrials


Information

Technology


Materials



Real Estate


T
otal Equities

Net

liabilities
(
a)


30 September 20
21

Total


31 March 20
21


Total


Brazil – 0.5 0.2 – 4.4 – – 0.1 1.1 - 6.3 – 6.3 5.9
Cambodia – 0.4 – – – – – – – 0.4 – 0.4 0.5
China/Hong Kong 8.4 9.1 1.2 – 4.0 – 0.2 1.8 4.1 1.2 30.0 – 30.0 29.5
Czech Republic – – – – – – – – – – – – – 0.3
Hungary – – – – – 0.8 – – – – 0.8 – 0.8 0.9
India – – – – 5.9 – – 2.1 0.2 – 8.2 – 8.2 6.3
Indonesia – 0.7 – – – – – – – – 0.7 – 0.7 0.6
Kenya – – 0.2 – – – – – – – 0.2 – 0.2 0.3
Mexico – 0.2 – – 1.3 – – – – – 1.5 – 1.5 1.3
Pakistan – – – – 0.4 – – – – – 0.4 – 0.4 0.3
Peru – – – – 0.3 – – – – – 0.3 – 0.3 0.2
Philippines – – – – 0.3 – – – – – 0.3 – 0.3 0.2
Russia 2.7 – – 3.0 2.6 – – – – – 8.3 – 8.3 6.0
South Africa – 1.0 0.7 – – – – – – – 1.7 – 1.7 4.4
South Korea 4.0 1.0 – – 1.6 0.4 2.3 10.7 2.4 – 22.4 – 22.4 22.1
Taiwan – 0.2 – – – – – 17.1 – – 17.3 – 17.3 16.7
Thailand – – 0.3 – 1.2 – – – – – 1.5 – 1.5 1.7
United Kingdom – – 1.4 – – – – – – – 1.4 – 1.4 2.1
United States – – – – – – – 1.5 – – 1.5 – 1.5 1.0
Net liabilities
(a)
– – – – – – – – – – – (3.2) (3.2) (0.3)
30 September 2021 Total 15.1 13.1 4.0 3.0 22.0 1.2 2.5 33.3 7.8 1.2 103.2 (3.2) 100.0 -
31 March 2021 Total 16.7 19.0 4.4 2.4 18.7 1.2 2.6 31.3 3.5 0.5 100.3 (0.3) - 100.0
(a)
The Company's net liabilities are the total of net current assets plus non-current liabilities per the Statement of Financial Position
on page 23 of the full Half Yearly Report.



Market capitalisation breakdown (%)
Less than
£1.5bn
£1.5bn to
£5bn
£5bn to
£25bn
Greater than
£25bn
Net
liabilities
(a)

30 September 2021 5.1 9.2 17.2 71.7 (3.2)
31 March 2021 11.8 8.5 12.9 67.1 (0.3)

Split between markets
(b)
(%) 30 September 2021 31 March 2021
Emerging Markets 99.7 96.4
Developed Markets
(c)
2.9 3.1
Frontier Markets 0.6 0.8
Net liabilities
(a)
(3.2) (0.3)
Source: FactSet Research System, Inc.
(a)
The Company's net liabilities are the total of net current assets plus non-current liabilities per the Statement of Financial Position
on page 23 of the full Half Yearly Report.
(b)
Geographic split between "Emerging Markets", "Frontier Markets", "Developed Markets" are as per MSCI index classifications.
(c)
Developed market exposure represented by companies listed in United Kingdom and United States which have significant
exposure to operations in emerging markets.

Market outlook
Emerging markets have seen progress in vaccination rollouts, but the Chinese regulatory crackdown and further virus outbreaks
have caused equities to generally underperform relative to developed markets in the six-month period ended September. Whilst
we do see reasons to be optimistic over the longer term, we should mention the near-term risks to our outlook.

Regulatory changes in China have had ramifications for several industries, particularly those in the internet sector. This is impacting
earnings power in the near term and, potentially, in the future. Whilst this has elevated market volatility and investor fears of policy
risks in China, we would like to stress that the policies do not have a uniform effect on all companies within a given sector. Therefore,
it is crucial to assess the impact of regulatory changes on the long-term earnings power and intrinsic value of companies individually.

COVID-19 and its more infectious variants are another area of concern. We had expected mobility to resume with rising vaccination
rates, however that has not necessarily been the case in some countries. Also, whilst commodity prices have been very strong this
year, they seem to be topping because of certain policy measures in China, as well as COVID-19’s global resurgence. In addition,
a rise in freight rates has weighed on margins for many export-oriented companies.

Inflation has also elevated around the world as supply bottlenecks, shipping disruptions and recovering demand have been driving
up prices. Higher commodity prices and base effects have also been lifting headline inflation and led some emerging market central
banks to act. South Korea, Brazil, Mexico, Russia and parts of Central and Eastern Europe have already started tightening. We
believe that investors should not be too worried about the upward move in inflation across much of emerging markets, but rather
view it as an expected part of economic normalisation post the COVID-19 crisis.

Expectations of US Federal Reserve (Fed) tapering have also heightened market volatility. Higher US interest rates could also trigger
a strengthening of the US dollar–this would be potentially negative for emerging markets with macro vulnerabilities, though there
are much fewer significant emerging economies in this situation today than in past cycles. Indeed, a pickup in US interest rates has
not necessarily been negative for emerging market equities in the past, as rising rates are generally associated with a better growth
outlook rather than concerns over inflation, which should broadly support equities.
Nonetheless, we believe that the long-term fundamentals for emerging markets remain attractive despite near term headwinds, and
that equities offer good potential for investors. As a whole, debt levels in emerging markets remain much lower than in developed
markets. Emerging market equity valuations also appear less demanding relative to those in the developed world. Moreover,
emerging market companies have been generating more free cash flows, which could potentially contribute to upward re-ratings for
emerging market stocks.

A progressive return to normalisation is also supportive of the technology and consumption themes that have become the new drivers
of economic growth for many emerging markets, with all of that also leading to an earnings rebound that can be expected from a
lower base last year.

As a whole, emerging market economic fundamentals have improved in the past decade, and we believe that they are in a stronger
position today to cope with any market volatility. Our overall outlook for emerging markets remains positive, with long-term
investment opportunities underpinned by emerging markets’ structural strengths and the competitiveness of their companies.

Chetan Sehgal
Lead Portfolio Manager
24 November 2021

Independent Review Report
to the members of Templeton Emerging Markets Investment Trust Plc

Conclusion
We have been engaged by Templeton Emerging Markets Investment Trust PLC (‘the Company’) to review the set of financial
statements in the half-yearly financial report for the six months ended 30 September 2021, which comprise the Statement of
Comprehensive Income, the Statement of Changes in Equity, the Statement of Financial Position, the Statement of Cash Flows, and
the related explanatory notes 1 to 8. We have read the other information contained in the half yearly financial report and considered
whether it contains any apparent misstatements or material inconsistencies with the information in the set of financial statements.
Based on our review, nothing has come to our attention that causes us to believe that the set of financial statements in the half-yearly
financial report for the six months ended 30 September 2021 is not prepared, in all material respects, in accordance with UK adopted
International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom’s Financial
Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review Engagements 2410 (UK and Ireland) "Review of
Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. A review
of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the Company will be prepared in accordance with UK adopted international
accounting standards. The set of financial statements included in this half-yearly financial report has been prepared in accordance
with UK adopted International Accounting Standard 34, “Interim Financial Reporting”.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Auditor’s Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the set of financial statements
in the half-yearly financial report. Our conclusion is based on procedures that are less extensive than audit procedures, as described
in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements
2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company, for our work, for this report, or for the conclusions we have formed.


Ernst & Young LLP
Edinburgh
24 November 2021

Statement of Comprehensive Income
For the six months to 30 September 2021

For the six months to
30 September 2021 (unaudited)


Note
Revenue
£’000


Capital
£’000



Total
£’000

(Losses)/gains on investments and foreign exchange
(Losses)/gains on investments at fair value – (204,001) (204,001)
(Losses)/gains on foreign exchange – (25) (25)
Income
Dividends 32,203 – 32,203
Other income 127 – 127
32,330 (204,026) (171,696)
Expenses
AIFM fee (3,312) (7,727) (11,039)
Other expenses (1,144) – (1,144)
(4,456) (7,727) (12,183)
Profit/(loss) before finance costs and taxation 27,874 (211,753) (183,879)
Finance costs (388) (904) (1,292)
Profit/(loss) before taxation 27,486 (212,657) (185,171)
Tax (expense)/income 5 (1,984) (4,695) (6,679)
Profit/(loss) for the period 25,502 (217,352) (191,850)
Profit/(loss) attributable to equity holders of the
Company
25,502 (217,352) (191.850)
Earnings per share
(a)
2 2.16p (18.40)p (16.24)p
Ongoing charges ratio
(b)
0.97%

(a)
Comparative figures for the period ended 30 September 2020 and year ended 31 March 2021 have been retrospectively adjusted
following the sub-division of each existing ordinary share of 25 pence into five ordinary shares of 5 pence each on 26 July
2021.
(b)
A glossary of alternative performance measures is included on pages 34 and 35 of the full Half Yearly Report.

Under the Company’s Articles of Association the capital element of return is not distributable. The total column of this statement
represents the profit and loss account of the Company.

70% of the annual Alternative Investment Fund Manager (“AIFM”) fee and 70% of the finance costs have been allocated to the
capital account.

For the six months to
30 September 2020 (unaudited)
Year ended
31 March 2021 (audited)

Revenue
£'000
Capital
£'000
Total
£'000

Revenue
£'000
Capital
£'000
Total
£'000

– 498,128 498,128
– 888,402 888,402

– 2,104 2,104
– (594) (594)

31,595 – 31,595
56,964 – 56,964

2,910 – 2,910
2,965 – 2,965

34,505 500,232 534,737
59,929 887,808 947,737

(2,871) (6,700) (9,571)
(6,142) (14,331) (20,473)

(1,012) – (1,012)
(2,094) – (2,094)

(3,883) (6,700) (10,583)
(8,236) (14,331) (22,597)

30,622 493,532 524,154
51,693 873,477 925,170

(388) (905) (1,293)
(773) (1,802) (2,575)

30,234 492,627 522,861
50,920 871,675 922,595

21,180 (403) 20,777
17,303 (5,469) 11,834

51,414 492,224 543,638
68,223 866,206 934,429

51,414 492,224 543,638
68,223 866,206 934,429

4.29p 41.02p 45.31p
5.73p 72.73p 78.46p

0.99%
0.97%

(b)
Comparative figures for the period ended 30 September 2020 and year ended 31 March 2021 have been retrospectively adjusted
following the sub-division of each existing ordinary share of 25 pence into five ordinary shares of 5 pence each on 26 July 2021.
(b)
A glossary of alternative performance measures is included on pages 34 and 35 of the full Half Yearly Report.

Statement of Financial Position
As at 30 September 2021


As at
30 September
2021
£'000

As at
30 September
2020
£'000

As at
31 March
2021
£'000
(unaudited) (unaudited) (audited)
Non-current assets
Investments at fair value through profit or loss 2,440,769 2,238,459 2,599,075
Current assets
Trade and other receivables 7,852 7,570 15,323
Cash and cash equivalents 40,748 97,827 85,212
Total current assets 48,600 105,397 100,535
Current liabilities
Other payables (14,506) (3,548) (3,362)
Total current liabilities (14,506) (3,548) (3,362)
Net current assets 34,094 101,849 97,173
Non-current liabilities
Capital gains tax provision (8,814) – (4,961)
Other payable falling due after more than one year (100,000) (100,000) (100,000)
Total assets less liabilities 2,366,049 2,240,308 2,591,287
Share capital and reserves
Equity Share Capital 64,244 64,367 64,253
Capital Redemption Reserve 18,425 18,302 18,416
Capital Reserve 1,735,220 1,583,246 1,952,886
Special Distributable Reserve 433,546 433,546 433,546
Revenue Reserve 114,614 140,847 122,186
Equity Shareholders' Funds 2,366,049 2,240,308 2,591,287
Net Asset Value pence per share
(a) (b)
200.3 189.3 219.4
(a)
Based on shares in issue excluding shares held in treasury.
(b)
Comparative figures for the period ended 30 September 2020 and year ended 31 March 2021 have been retrospectively adjusted
following the sub-division of each existing ordinary share of 25 pence into five ordinary shares of 5 pence each on 26 July 2021.

Statement of Changes in Equity
For the six months to 30 September 2021 (unaudited)

Note
Equity Share
Capital
£'000
Capital
Redemption
Reserve
£'000
Capital
Reserve
£'000
Special
Distributable
Reserve
£'000
Revenue
reserve
£'000
Total
£'000
Balance at 31 March 2020 65,812 16,857 1,136,322 433,546 123,113 1,775,650
Profit for the period – – 492,224 – 51,414 543,638
Equity dividends 4 – – – – (33,680) (33,680)
Purchase and cancellation of own
shares

(1,445) 1,445 (45,300) – – (45,300)
Balance at 30 September 2020 64,367 18,302 1,583,246 433,546 140,847 2,240,308
Profit for the period – – 373,982 – 16,809 390,791
Equity dividends 4 – – – – (35,470) (35,470)
Purchase and cancellation of own
shares

(114) 114 (4,342) – – (4,342)
Balance at 31 March 2021 64,253 18,416 1,952,886 433,546 122,186 2,591,287
(Loss)/profit for the period – – (217,352) – 25,502 (191,850)
Equity dividends 4 – – – – (33,074) (33,074)
Purchase and cancellation of own
shares

(9) 9 (314) – – (314)
Balance at 30 September 2021 64,244 18,425 1,735,220 433,546 114,614 2,366,049

Statement of Cash Flows
For the six months to 30 September 2021


For the
six months to
30 September
2021
£'000
(unaudited)
For the
six months to
30 September
2020
£'000
(unaudited)
For the
year to
31 March
2021
£'000
(audited)
Cash flows from operating activities
(Loss)/profit before finance costs and taxation (183,879) 524,154 925,170
Adjustment for:
Bank and deposit interest (14) (2,910) 26
Dividend income (32,203) (31,595) (56,964)
Net losses/(gains) on investment at fair value 204,001 (498,128) (888,402)
Net (gains)/losses on foreign exchange - (2,104) 594
Stock dividends received in period - (494) (674)
(Increase)/decrease in receivables (684) 589 1,551
Increase in payables 3,668 255 5,942
Cash generated from operations (9,111) (10,233) (12,809)
Bank and deposit interest received 14 2,910 26
Dividends received 39,129 34,139 52,442
Tax paid (6,679) (2,976) (11,919)
Tax recovered - 23,753 23,753
Net cash inflow from operating activities 23,353 47,593 51,493
Cash flows from investing activities
Purchases of non-current financial assets (349,022) (172,222) (415,127)
Sales of non-current financial assets 315,873 214,775 483,182
Net cash (outflow)/inflow from investing activities (33,149) 42,553 68,055
Cash flows from financing activities
Equity dividends paid (33,074) (33,680) (69,150)
Purchase and cancellation of own shares (314) (45,191) (50,455)
Bank loans interest and fees paid (1,280) (1,278) (2,561)
Net cash outflow from financing activities (34,668) (80,149) (122,166)
Net (decrease)/increase in cash (44,464) 9,997 (2,618)
Cash at the start of the period 85,212 87,830 87,830
Cash at the end of the period 40,748 97,827 85,212

Reconciliation of liabilities arising from bank loans

Liability as at
31 March
2021
£000
Cash flows
£000
Profit & Loss
£000
Liability as at
30 September
2021
£000
Revolving credit facility – – – –
Interest and fees payable 120 (239) 243 124
Fixed term loan 100,000 – – 100,000
Interest and fees payable 355 (1,041) 1,049 363
Total liabilities from bank loans 100,475 (1,280) 1,292 100,487

Notes to the Financial Statements
For the six months 30 September 2021

1 Basis of preparation

The Half Yearly Report for the period ended 30 September 2021 has been prepared in accordance with the UK adopted International
Accounting Standard (“IAS”) 34, “Interim Financial Reporting”.

The Company has adopted the Statement of Recommended Practice (“SORP”) for investment trusts issued by the Association of
Investment Companies (“AIC”) issued in April 2021 insofar as the SORP is compatible with UK adopted International Accounting
Standards. The accounting policies applied in these half yearly accounts are consistent with those that will be applied in the accounts
to the twelve months ended 31 March 2022.

The financial information contained in this interim statement does not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. The financial information for the half years ended 30 September 2021 and 30 September 2020 has not been
audited. The figures and financial information for the year ended 31 March 2021 are extracted from the published accounts and do
not constitute the statutory accounts for that period. Those accounts have been delivered to the Registrar of Companies and included
the Report of the Independent Auditors, which was unqualified and did not include a statement under sections 498(2) or 498(3) of
the Companies Act 2006.

As at 30 September 2021, the Company had net current assets of £34,094,000 (31 March 2021: net current assets £97,173,000). The
Directors have a reasonable expectation that the Company has sufficient resources to continue in operational existence for the
foreseeable future. Accordingly the financial statements have been prepared on a going concern basis.

2 Earnings per share

For the six
months to
30 September
2021
£'000

For the six
months to
30 September
2020
£'000

For the year
31 March
2021
£'000

Revenue profit 25,502 51,414 68,223
Capital (loss)/profit (217,352) 492,224 866,206
Total (191,850) 543,638 934,429
Weighted average number of shares in issue
(a)
1,181,225,786 1,199,881,660 1,190,975,420
Revenue profit per share
(a)
2.16p 4.29p 5.73p
Capital (loss)/profit per share
(a)
(18.40)p 41.02p 72.73p
Total (loss)/profit per share
(a)
(16.24)p 45.31p 78.46p

(a)
Comparative figures for the period ended 30 September 2020 and year ended 31 March 2021 have been retrospectively adjusted
following the sub-division of each existing ordinary share of 25 pence into five ordinary shares of 5 pence each on 26 July 2021.


3 Equity share capital

For the six
months to
30 September
2021

For the six
months to
30 September
2020

For the year
31 March
2021
Opening shares in issue 236,245,731 242,484,139 242,484,139
Purchase and cancellation of own shares (175,000) (5,781,760) (6,238,408)
Shares created as a result of the sub-division of shares 944,982,924 - -
Closing shares in issue 1,181,053,655 236,702,379 236,245,731
Retrospectively adjusted closing shares in issue
(a)
1,181,053,655 1,183,511,895 1,181,228,655

(a)
Comparative figures for the period ended 30 September 2020 and year ended 31 March 2021 have been retrospectively adjusted
following the sub-division of each existing ordinary share of 25 pence into five ordinary shares of 5 pence each on 26 July 2021.

In the six months to 30 September 2021, the Company bought back 175,000 shares for cancellation for a total consideration of
£314,000.

In the six months to 30 September 2020, the Company bought back 5,781,760 shares for cancellation for a total consideration of
£45,300,000. Please note this was prior to the sub-division of shares that occurred on 26 July 2021.

As at 30 September 2021, in addition to the allotted and issued shares above the Company held 103,825,895 shares in treasury (31
March 2021: prior to the sub-division of shares 20,765,179 shares in treasury).

4 Dividends


For the six
months to
30 September
2021
For the six
months to
30 September
2020

For the year
31 March
2021

Rate
(pence)
(a)

£'000

Rate
(pence)
(a)

£'000

Rate
(pence)
(a)

£'000

Declared and paid during the
period:
Dividend on shares:

Final dividends for the years
ended 31 March 2021 and 31
March 2020
2.80 33,074 2.80 33,680 2.80 33,680
Interim dividends for the six-
month period ended 30
September 2020
- - - - 1.00 11,823
Special dividend for the year
ended 31 March 2021 - - - - 2.00 23,647
Total
2.80 33,074 2.80 33,680 5.80 69,150

(a)
Comparative figures for the period ended 30 September 2020 and year ended 31 March 2021 have been retrospectively adjusted
following the sub-division of each existing ordinary share of 25 pence into five ordinary shares of 5 pence each on 26 July 2021.

On 24 November 2021 the Board declared an interim dividend of 1.00 pence per share for the financial year 2022 (financial year
2021: 1.00 pence per share interim dividend and a special dividend of 2.00 pence per share)
(a)
. This dividend has not been accrued
in the financial statements for the six months ended 30 September 2021 as dividends are recognised when the shareholder's right to
receive the payment is established. For the 2022 interim dividend this would be the ex-dividend date of 2 December 2021.

5 Taxation

The total tax expense of £6.68 million consists of a revenue tax expense of £1.98 million and a capital tax income of £4.70 million.
The revenue tax expense relates to irrecoverable overseas tax on dividends. The capital tax income consists of £3.86 million arising
from an increase in the provision for deferred tax on unrealised gains on Indian holdings and a £0.84 million expense arising from
tax on realised gains on Indian and Indonesian holdings.

6 Costs of investment transactions

During the period, expenses were incurred in acquiring or disposing of investments. The following costs of transactions are included
in the gains/(losses) on investments at fair value:

For the six
months to
30 September 2021
£'000

For the six
months to
30 September 2020
£'000

For the year to
31 March
2021
£'000
(a)

Purchase expenses 452 233 612
Sales expenses 534 449 875

For the six
months to
30 September 2021
£'000

For the six
months to
30 September 2020
£'000

For the year to
31 March
2021
£'000
(a)

Total 986 682 1,487

(a)
Comparative figures for the year ended 31 March 2021 have been retrospectively adjusted to incorporate some additional
expenses identified as transaction costs.

7 Fair value

Fair values are derived as follows:

• Where assets are denominated in a foreign currency, they are converted into the sterling amount using period end rates of
exchange;
• Non-current financial assets on the basis set out in the annual accounting policies; and
• Cash at the denominated currency of the account.

The tables below analyse financial instruments carried at fair value by valuation method. The different levels have been defined as
follows:

Level 1 Quoted prices (unadjusted) in active markets for identical assets and liabilities;
Level 2 Inputs other than quoted prices included with level 1 that are observable for the asset or liability, either directly (prices)
or indirectly (derived from prices); and
Level 3 Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The hierarchy valuation of listed investments through profit and loss are shown below:


30 September 2021
£'000
30 September 2020
£'000
31 March 2021
£'000
Level 1 2,414,193 2,238,459 2,548,121
Level 2 - - 50,954
(a)

Level 3 26,576
(a)
- -
Total 2,440,769 2,238,459 2,599,075

(a)
On 31 March 2021 the company listing for Brilliance China Automotive was suspended from the Hong Kong stock exchange.
For the 31 March 2021 Annual report, given the suspension the previous published market price was not deemed representative of
fair value and was subsequently reduced by 10% based on facts and circumstances known at this date, as a result the fair value of
the Company’s holding at 31 March 2021 was £50,594,000 and the stock disclosed as Level 2. As the stock remains suspended at
30 September 2021 the stock has been transferred from Level 2 to Level 3. The closing value of the Company’s holding as at 30
September 2021 was £26,576,000. This valuation was based on a beta model with the unobservable inputs shown below.


Description
Fair value
£'000
Unobservable
input
Weighted
average input
Reasonable
possible shift
+/-
Reasonable
possible shift +
£'000
Reasonable
possible shift -
£'000
Equities 26,576 Discount factor 45% 5% (2,416) 2,416
Index movement -14% 4% 1,497 (1,497)
Unleveraged beta 1.18 0.5 (2,228) 2,228

8 Events after the period

On 1 October 2021 Franklin Templeton Investment Trust Management Limited was appointed as the Company’s AIFM and company
secretary.

On the 18 October 2021, the Company drew down £50.0 million on the revolving credit facility provided by The Bank of Nova
Scotia, London Branch. No further drawdowns have been made on the revolving facility.

The Half Yearly Report for the six months to 30 September 2021 was approved by the Board on 24 November 2021. A copy of the
report is available on our website www.temit.co.uk.

Copies will be uploaded and available for viewing on the National Storage Mechanism, copies will also be posted to the website
www.temit.co.uk and may also be requested during normal business hours from Client Dealer Services at Franklin Templeton
Investment Management Limited on freephone 0800 305 306. A pdf version of the full Half Yearly Report to 30
th
September 2021
will be available by accessing the following hyperlink http://www.temit.co.uk/content-common/semi-annual-report/en_GB/local-
GB/TEMIT-semi-annual-report.pdf
For further information please e-mail temitcosec@franklintempleton.com or contact Client Dealer Services at Franklin Templeton
on free phone 0800 305 306, +44 (0) 20 7073 8690 for overseas investors, or e-mail enquiries@franklintempleton.co.uk.