Statement of Half-Yearly Results

Stock Exchange Announcement
Templeton Emerging Markets Investment Trust PLC (“TEMIT” or “the Company”)
Half Yearly Results to 30 September 2024
Legal Entity Identifier 5493002NMTB70RZBXO96



Introducing TEMIT

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. From its launch to 30 September 2024, TEMIT’s net asset value (‘NAV’) total return was +4,462.1%
compared to the benchmark total return of +1,891.1%.

The Company is governed by a Board of Directors who are committed to ensuring that shareholders’ best interests, considering
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.

Financial highlights

For the six months to 30 September 2024


2024 2023 3 Years Cumulative 5 Years Cumulative 10 Years Cumulative
Net Assets Value
Total Return
(cum-income)
(a)

7.2% (0.3)% 4.3% 24.4% 87.8%
Share Price Total
Return
(a)

12.0% (1.6)% 3.3% 25.0% 84.9%
MSCI Emerging
Markets Index
(a)(b)

7.5% (0.5)% 1.7% 21.5% 79.3%
Interim dividend for
the financial year
(c)(d)

2.00p 2.00p 13.80p 23.92p 35.07p

(a) A glossary of terms and alternative performance measures is included in the full Half Yearly Report.
(b) Source: MSCI. The Company’s benchmark is the MSCI Emerging Markets (Net Dividends) Index.
(c) 3, 5 and 10 year cumulative dividends include ordinary dividends that shareholders were entitled to in those periods. 5 and 10
year cumulative figures exclude the special dividend of 0.52 pence per share for the year ended 31 March 2020 and the
special dividend of 2.00 pence per share for the year ended 31 March 2021.
(d) Financial years 2015 to 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

“There are many reasons to be optimistic about emerging markets.”

Angus Macpherson
Chairman

Performance

TEMIT’s net asset value (‘NAV’) Total Return
(a)
over the six months to 30 September 2024 was +7.2%, slightly less than that of
our benchmark index which produced a total return
(a)
of +7.5%. I said in the most recent Annual Report that one of the three major
factors which would lead to an improvement in the rating of TEMIT’s shares would be a return to favour for emerging markets
and it is notable that over the six months under review the return of the MSCI World Index Net total return, which measures the
performance of developed markets, was only +2.8%
(a)
. The return over the whole period naturally only tells part of the story and,
as is often the case, we experienced patches of volatility, driven by a variety of events including continued geopolitical instability,
fears of a US recession and, on a more positive note, moves to reduce interest rates and stimulate economic growth.

The Chinese equity market is a key component of our comparator benchmark, as indeed the Chinese economy is an important
force in the world. There has been much concern about the pace of growth of China and towards the end of the period under
review the Chinese government initiated steps to kick start the country’s moribund real estate sector and more generally to
reinvigorate growth. Even if successful, these efforts will take time to bear fruit but at the very least a start has been made. As well
as efforts to reinvigorate domestic activity, the other key concern is China’s relationship with the United States, particularly
following the election of Donald Trump in the United States.

(a) A glossary of terms and alternative performance measures is included in the full Half Yearly Report.


Share price rating

In June we announced a series of measures with the intention of improving liquidity and returns for holders of TEMIT’s shares. In
summary, these were commitments to:

• At least maintain the current level of annual dividend;

• Repurchase up to £200m of shares over the next 12 to 24 months;

• A conditional tender offer, under which TEMIT will tender for up to 25% of its shares if it underperforms its benchmark index
over five years to March 2029; and

• A phased reduction in management fees.

Following this announcement, we stepped up the rate of share buybacks and over the six months under review 46.2 million shares
were bought back, returning £74.3 million to shareholders. These buybacks represented 4.1% of shares in issue on 31 March 2024
and, as all buybacks were at a discount to the prevailing NAV, resulted in an uplift of 0.57% of NAV per share for remaining
shareholders.

The Board do not believe that buybacks alone cause discounts to narrow; their more measurable impact is to improve liquidity and
to enhance earnings per share.

The Board and Manager also remain fully committed to promoting TEMIT’s shares using a wide variety of channels, including an
increasing presence in social media. The Board was very pleased to be awarded ‘Best Social Media’ at the AIC Shareholder
Communications Awards 2024, the third year in a row that we have been awarded by the AIC for our marketing and
communications.

Unlisted investment

The ability to invest in illiquid assets is a key advantage of the investment trust structure. In July, we made our first foray into
unlisted investments, with the purchase of shares in leading Indian food delivery company Swiggy. This was a ‘pre-IPO’
investment and I am pleased to report that the shares were successfully listed on the National Stock Exchange of India on 13
November. The Board is very pleased with the outcome of this investment and has encouraged our Manager to seek further
opportunities.

Income and dividend

Revenue earnings for the six months under review were 3.60 pence per share. The majority of TEMIT’s revenues are usually
earned during the first six months of its financial year and the Board has resolved to pay an unchanged interim dividend of 2.00

pence per share. As set out above, it is our intention at least to maintain the total dividend each year and, while it is too early to
predict earnings for the second half of the year, the final dividend will be at least 3.00 pence per share.

Annual General Meeting and Continuation Vote

The resolutions at the Annual General Meeting held on 11 July, importantly including a vote on the continuation of TEMIT for the
next five years, were each passed by a very large majority. The Board would like to thank shareholders for their continuing
support.

Outlook

Emerging markets continue to be less expensive than their developed counterparts. This must, at least to an extent, reflect a higher
level of risk in an unstable world but does make the markets in which our managers invest on our behalf appear attractive.

There are many reasons to be optimistic about emerging markets, from the shifting dynamics of supply chains, with ‘nearshoring’
and ‘friendshoring’ having become established elements of the lexicon in Asia and Latin America, the continuing demand for ever
greater computing power with the excitement over artificial intelligence only the most recent manifestation of this, and the
potential for leadership in clean energy being just some examples. In the near term we are encouraged by moves to reduce interest
rates and remain optimistic that this will be beneficial for economies and companies.

Angus Macpherson
Chairman

9 December 2024

Management report

Principal risks

The Company invests predominantly in the stock markets of emerging markets. The principal categories of risks facing the
Company, determined by the Board and described in detail in the Strategic Report within the Annual Report and Audited
Accounts, are:

• Market and geopolitical;

• Technology;

• Concentration;

• Sustainability and climate change;

• Foreign currency;

• Discount;

• Operational and custody;

• Key personnel; and

• Regulatory.

The Board has provided the Investment Manager with guidelines and limits for the management of principal risks. The Board and
Investment Manager are aware that the economic challenges continue to be the key issue affecting investment markets around the
world, as well as the tensions between the United States and China over trade and the Taiwan Strait. The ongoing Israel-Hamas
conflict also adds to existing geopolitical uncertainties, as do the continuing ramifications of the Russian invasion of Ukraine.
There have been no further changes to the principal and emerging risks reported in the Annual Report and, in the Board’s view,
these 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

There were no transactions with related parties during the period other than the fees paid to the Directors and the AIFM.

Going concern

The Company’s assets consist primarily 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 consideration 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, the Directors are satisfied that the Company has adequate resources to continue to operate as
a going concern for the period to 31 March 2026, which is at least 12 months from the date of approval of these Financial
Statements, and are satisfied that the going concern basis is appropriate in preparing the Financial Statements.

Statement of Directors’ Responsibilities

The Disclosure Guidance 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 in the full Half Yearly Report, confirms that to the best of their knowledge:

• The condensed set of Financial Statements, for the period ended 30 September 2024, have been prepared in accordance with the
UK adopted International Accounting Standard (IAS) 34 ‘Interim Financial Reporting’; and

• 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 fair review of the information required by:

(i) DTR 4.2.7R of the Disclosure Guidance 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 Guidance 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 9 December 2024 and the above Statement of Directors’
Responsibilities was signed on its behalf by

Angus Macpherson
Chairman

9 December 2024

Investment manager’s report

Outlook for emerging markets

In the last Annual Report, we wrote that it is an interesting time to look at EMs. We believed that despite the volatility
experienced in the recent quarters, the investment backdrop still remained conducive on the grounds of potential interest-rate cuts
and better earnings growth.

As we head into the final quarter of 2024, we retain that optimism. We have emerged from a volatile period in which worries
about economic recession dominated investor sentiment. We have also seen a change in the investment environment, where,
although structural growth themes remain, we have had to make tweaks to the portfolio to potentially capture what we deem to be
the best opportunities in the market. An example would be the Electric Vehicle (‘EV’) segment. While we remain aligned with the
longer-term growth outlook for EVs, we have lowered our exposure to the EV supply chain as many consumers and governments
have yet to fully embrace the advantages of EV deployment.

Tailwinds within EMs remain; interest-rate cuts, strong demand for semiconductors due to AI applications, and what we consider
reasonable valuations in most EMs. These may negate some key risks such as geopolitical tensions, a meaningful economic
slowdown in the United States and continued weakness in China’s demand.

Interest-rate cuts, in our view, are catalysts for growth, supporting both consumption and corporate earnings. Brazil’s central bank
raised its key interest rate in September, in contrast with the policy decisions of other countries’ central banks; however, we
believe that it will eventually follow the global trajectory. While Mexico’s judicial reforms have affected investor sentiment
recently, in our view corporate earnings should remain intact.

Sustained demand growth from AI applications, in our assessment, should be beneficial for South Korea and Taiwan, which are
home to several large semiconductor companies. While this is potentially beneficial for the earnings growth of these corporations,
we believe that this growth opportunity has not been reflected in the valuations of some of the beneficiary companies. Conversely,
while India has continued to see good economic growth and remains a bright spot, equity valuations remain a key concern for us.
Although end demand in China could remain weak for a longer period, a low starting point could potentially prove helpful for
earnings growth in 2025. China’s equity market rallied in the last few weeks of the quarter, supported by stimulus measures
announced by the government. However, the weaker economic growth outlook in China has led to our selective approach; our key
holdings in China are in internet companies that have given us comfort with their cash flows and improving shareholder returns.

As ever, we remain focused on bottom-up investing. We continue to retain our investment approach and seek opportunities across
markets, focusing on companies that, in our analysis, have long-term earnings power. We have built considerable expertise in the
EM equity asset class, which we believe gives us the ability to identify investment opportunities before many of our peers.

Review of performance

Emerging markets (‘EMs’) advanced over the six months under review. However, it was not all plain sailing and a bout of
volatility marked the period, making it a challenging environment for equities. Nevertheless, our investment approach, which is
anchored in a bottom-up process to finding companies that our analysis indicates have sustainable earnings power and whose
shares trade at a discount relative to their intrinsic worth and to other investment opportunities in the market, has managed to steer
the performance of TEMIT to generate returns that were on par with the benchmark. While we note that this is a mere six-month
period, contrasting with our longer-term investment horizon, it provides some validation for holding course in the face of an
uncertain, ever-changing investment environment.

Elections in key EM countries (where the extent of the winning parties’ victories led to some surprises), a change in investor
sentiment towards artificial intelligence (‘AI’) and an intensification of geopolitical tensions added onto concerns of a recession in
the United States. The latter was tempered by optimism about the US Federal Reserve’s potential interest-rate cut, which
eventually came to fruition.

The MSCI EM Index returned +7.5% in the six-month period under review, while TEMIT delivered a net asset value total return
of +7.2% (all figures are net total return in sterling terms). Full details of TEMIT’s performance can be found in the full Half
Yearly Report.

By region as measured by the MSCI EM Index, Asia advanced the most ahead of peers in Europe, Middle East and Africa
(‘EMEA’) which also rose. Latin America was the sole region that declined. Asian equities had several catalysts for their positive
performance, these included a technology rally that helped the technology-heavy market of Taiwan, positive economic data and
the victory of the incumbent prime minister in India, and the release of policy support in China. The EMEA region received
support from South Africa’s equity market, helped by a rally which followed the country’s elections where President Cyril
Ramaphosa secured sufficient votes to form a coalition government. While geopolitical conflict continued to plague the Middle
East with the sparking of tensions between Israel and Iran, the interest-rate easing cycle in the United States helped to overcome
some of the negative investor sentiment caused by geopolitical uncertainties. Monetary policy in many of the Gulf Cooperation
Council countries follows the US central bank due to currencies being pegged to the US dollar. In Latin America, the Mexican
equity market declined following the country’s elections, where the ruling MORENA party’s strong majority win caught investors

by surprise. Concerns regarding anti-market reforms and the signing of a controversial judicial reform into law pressured Mexican
equities further. In Brazil, the central bank raised interest rates, which contrasted with expectations that most central banks would
continue to cut rates.

China/Hong Kong

China/Hong Kong was TEMIT’s largest market exposure, although the portfolio remained underweight relative to the benchmark.
Chinese equities rose by over 24% in net sterling terms over the six-month period. This outperformance was supported by the
government’s stimulative policies to boost the country’s economic growth and equity market. China’s property market was a key
focal point in the government’s support measures, with a rescue package that included an easing of mortgage rules and a reduction
in mortgage rates. Semiconductor stocks in China benefitted from a new investment fund to boost the domestic chip industry. The
government also announced equity market-related measures that encompassed a programme for share buybacks and a swap
facility to shore up the equity market. While these resulted in a return of investor confidence, we are uncertain whether these
measures will lead to a recovery in longer-term growth. We have not observed any meaningful change in demand just yet. We
believe that the government will also have to resolve structural challenges that the country faces, such as a declining and ageing
population and youth unemployment. This has led to our selective approach in China, where our key holdings are in internet
companies where we gain comfort from their strong cash flows and increasing shareholder focus.

South Korea

TEMIT’s second-largest market exposure was South Korea, where the portfolio was overweight versus the benchmark. South
Korean equities lost slightly over 12% in net sterling terms during the reporting period, as the technology-heavy market struggled
with oversupply in the memory market. Investor concerns about weaker demand and oversupply in dynamic random access
memory (‘DRAM’) overtook earlier expectations of a strong recovery and demand tightness. In our assessment, we still expect a
strong cycle for memory chips into 2025. We think that concerns about slower demand in DRAM could linger for the next half
year, but it should nevertheless be a short-lived phenomenon as capacity shifts to high-bandwidth memory (‘HBM’), thus
resulting in a tightness in conventional DRAM supply as well.

Taiwan

Taiwan was TEMIT’s third-largest market exposure. While the Taiwanese equity market performed well overall and ended the
six-month period with a gain of nearly 9% in net UK-sterling terms, although this hid several hiccups during the period. Investor
sentiment ebbed and flowed. Expectations of higher earnings growth bolstered by AI, which uplifted performance earlier into the
period, gave way to concerns about the impact of delays and monetisation of AI investments. The portfolio’s exposure to the
country is largely focussed in the island’s semiconductor industry and TEMIT’s largest portfolio holding, which is in Taiwan
Semiconductor Manufacturing Company (‘TSMC’). We remain positive on the semiconductor industry and believe that AI will
continue to experience strong growth, which should benefit semiconductor companies as they make up a key component of the AI
supply chain. Beyond AI, semiconductors are an essential component of electronics used in a myriad of industries. We maintain a
positive long-term view on both Taiwan’s semiconductor industry and TSMC.

India

India was TEMIT’s fourth-largest market exposure at the end of September 2024. Indian equities rose by more than 11% (in net
sterling terms) over the six-month period, benefitting from positive economic data. While there was a short-lived period of
volatility during the country’s elections—in which the incumbent prime minister Narendra Modi’s party won a smaller number of
seats compared to the 2019 election and led to some investor disappointment, expectations of policy continuity drove the market
and reversed short-lived concerns of policy uncertainty. A reduction in US interest rates in September was also supportive for the
Indian equity market’s performance as this could lead to foreign inflows into the country’s equities. While investors have flocked
to India on the basis of strong growth, valuations remain a concern to us. Our investment approach hinges on finding companies
whose shares, according to our analysis, trade at a discount relative to their intrinsic worth and to other investment opportunities in
the market. We do, however, concede that India remains a bright spot. This guides our allocation in India, while the country is one
of TEMIT’s largest absolute weighting allocations, it is still underweight relative to the benchmark.

Brazil

Brazil was TEMIT’s fifth-largest market exposure with equities in Brazil finishing the reporting period with losses of more than
11%. As mentioned earlier, Brazil’s central bank started to raise interest rates to control the country’s level of inflation caused by
stronger-than-expected economic activity. We believe that the interest rate hikes should be a short-term phenomenon and that
Brazil’s central bank could converge with the global interest rate cycle eventually.

Investment strategy, portfolio changes and performance attribution

The following sections show how different investment factors (stocks, sectors and geographies) accounted for TEMIT’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 that, in our analysis, have 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 and Environmental, Social and Governance factors.

We continue to utilise our research-based and active approach to help us to find companies that have high standards of corporate
governance, respect their shareholders and also allow us to 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 analyses of potential returns versus risks with a time horizon of typically five
years or more.

Our well-resourced, locally based teams remain a key competitive advantage and it has certainly been helpful having teams on the
ground—for example, in the benchmark-heavyweight countries of China, India and Brazil—to help us better understand what is
happening locally. This local presence allows us to understand business models, competitive dynamics and supply-chain issues.
We have also managed to get insights into regulatory conversations and management capabilities, which are factored into our
analysis. We view our locally based teams, which are armed with vast knowledge of the respective countries’ macroeconomic
issues and views on the ground as vital sources of input into the investment process. This complements our global presence, which
allows us to analyse short-term uncertainties and determine if these are reflective of cyclical or structural trends.

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.

Performance Attribution Analysis %

Six months to 30 September


2024 2023 2022 2021 2020
Net Asset Value Total Return
(a)
7.2 (0.3) (8.3) (7.5) 31.3
Expenses Incurred
(b)
0.5 0.5 0.5 0.5 0.5
Gross Total Return
(a)
7.7 0.2 (7.8) (7.0) 31.8
Benchmark Total Return
(a)
7.5 (0.5) (7.4) (1.0) 24.4
Excess return
(a)
0.2 0.7 (0.4) (6.0) 7.4
Stock Selection (0.2) 0.1 2.9 (4.3) 2.5
Sector Allocation 0.5 0.4 (2.2) (1.4) 4.0
Currency 0.0 (0.1) (1.1) (0.5) 0.5
Share Buyback Impact 0.6 0.3 0.1 0.0 0.3
Residual Return
(a)
(0.7) 0.0 (0.1) 0.2 0.1
Total Contribution 0.2 0.7 (0.4) (6.0) 7.4

This table sets out the results of a detailed analysis of the returns produced by the TEMIT portfolio, how this compares with the
theoretical returns available from the benchmark index and factors affecting the comparison with the returns of the benchmark
index.

Source: FactSet and Franklin Templeton.
(a) A glossary of terms and alternative performance measures is included in the full Half Yearly Report.
(b) Represents expenses incurred. Details of the annualised ongoing charges ratio are included in the glossary of terms and
alternative performance measures in the full Half Yearly Report.

Top 10 Contributors and Detractors to Relative Performance by Security %
(a)


Top Contributor
Contribution to
portfolio relative
to MSCI Emerging
Markets Index Top Detractor
Contribution to
portfolio relative to
MSCI Emerging
Markets Index
Overweight
(TEMIT holds more
than the index weight)
Alibaba 0.8 Grupo Financiero Banorte (0.8)
Prosus 0.8 Samsung Electronics (0.6)
TSMC 0.5 NAVER (0.5)
Discovery 0.4 Samsung SDI (0.5)
Brilliance China Automotive 0.4 LG (0.4)
Kasikornbank 0.3
Oncoclinicas do Brasil
Servicos Medicos
(0.4)
China Merchants Bank 0.3 Doosan Bobcat (0.3)
Hon Hai Precision Industry 0.2 Soulbrain (0.3)
Netcare 0.2 Itaú Unibanco (0.3)
Underweight Reliance Industries 0.2 Meituan (0.4)
(TEMIT has a zero holding or
holding smaller than the index weight)



(a) For the period 31 March 2024 to 30 September 2024.

Our high conviction, larger-weight holdings have led performance for the period under review. Finishing higher over the six-
month period were shares of Chinese e-commerce company Alibaba. Its share price received support from investor expectations
that the company could be included in the Hong Kong Stock Connect (which allows investors in Hong Kong to invest in Mainland
Chinese stocks and vice-versa) later this year and that the company’s new strategy to charge merchant service fees could
potentially increase its revenue. Furthermore, China’s stimulus measures to boost the country’s economy and equity market
provided a strong lift to Alibaba’s share performance near the end of September 2024. Alibaba remains a key holding in TEMIT’s
China exposure. The company continues to generate strong cash flows, in our assessment, and we expect share-price appreciation
to be supported by corporate actions, including share buybacks.

An off-benchmark holding in Prosus served the portfolio well. Prosus is a leading global investment company and the largest
shareholder of Tencent (also held directly by TEMIT), a Chinese technology company. The company has ownership in multiple
food delivery platforms, including Swiggy, which TEMIT recently took a direct investment in. Its share price tracked Tencent’s
stock, which initially rose following the company’s release of its second-quarter 2024 earnings results and subsequently amid a
slew of stimulus measures in China.

TSMC is the world’s largest semiconductor foundry company. Its chips are used in a wide variety of solutions, including personal
computers, automotive and industrial equipment, and phones. The company is a key beneficiary of the growth in demand for AI
chips, and its share price rose along with other companies in the AI supply chain in the earlier part of the period. However,
cautious investor sentiment surrounding AI-related stocks due to uncertainty around the monetisation of AI investments for end
clients limited further rises in the share price towards the end of the period.

Grupo Financiero Banorte is a leading financial institution in Mexico, was a notable detractor. Its share price fell alongside the
general Mexican equity market as investors feared adverse constitutional reforms and regulatory changes in the country. We
continue to monitor the country’s government policies and reforms and their potential impact on corporate earnings. However, we
do remain optimistic on Mexico’s banking sector growth prospects, given large percentage of unbanked population.

Samsung Electronics is one of the largest memory semiconductor manufacturers in the world, saw its share price fall over the
six-month period. The company also manufactures a wide range of consumer and industrial electronics and equipment. Its share
price was volatile during the period due to investor concerns about a weaker memory cycle in the near term, as well as the
company’s loss of leadership in advanced memory products. However, we expect the weakness in the memory cycle to be short
lived, as demand for HBM should remain strong and conventional DRAM products should see supply tightness as capacity shifts
to HBM.

NAVER is a South Korean internet search and advertising company. It also has business interests in e-commerce, financial
services and entertainment content. Its share price weakened due to a combination of factors, including weaker growth for its
market, competition for both its advertisement and e-commerce business, underwhelming response to its generative AI
technology, and uncertainty about the benefits from its AI investments. The company had an issue with a data leak with the
messaging application Line in Japan and potential implications of this on its business interest, along with NAVER’s shareholding
in Line, also pressured the share price. We remain positive on NAVER’s business execution and expect the company to continue
to deliver steady growth over the medium term. Its leadership position in AI solutions in South Korea, in our view, should provide
the company with additional cost efficiencies and revenue opportunities.

Top Contributors and Detractors to Relative Performance by Sector %
(a)


Top Contributor
Contribution to
portfolio relative
to MSCI Emerging
Markets Index Top Detractor
Contribution to
portfolio relative to
MSCI Emerging
Markets Index
Overweight
(TEMIT holds more than the index
weight)
Financials 0.3
Information
Technology
(0.6)

Industrials (0.5)

Communication
Services
(0.5)

Health Care (0.1)
Underweight
(TEMIT has a zero holding or
a holding smaller than the index weight)
Consumer
Discretionary
1.0 Utilities (0.1)
Consumer Staples 0.6

Materials 0.2

Energy 0.2

Real Estate 0.0


(a) For the period 31 March 2024 to 30 September 2024.

Stock selection in the consumer discretionary, consumer staples and financials sectors added to TEMIT’s performance relative
to the benchmark index during the six-month period under review. An underweight allocation in the consumer staples sector
provided additional support. Within the consumer discretionary sector, Alibaba and Prosus (both described above) are examples of
companies that aided relative returns. Contribution in the financials sector was led by Discovery, South Africa’s biggest health
insurance provider. This company also offers banking and investment services. Additionally, the company has international
insurance operations in the United Kingdom and partners with other insurance companies through its shared-value insurance
model called Vitality.

In contrast, stock selection in the information technology, industrials and communication services sectors caused relative
detraction. The information technology sector was driven lower by holdings in MediaTek (a Taiwan-based designer of chips for
smartphones and other technology devices), Samsung Electronics (described above) and Samsung SDI (a leading manufacturer of
lithium-ion batteries for electric vehicles (‘EVs’) energy storage, power tools and information technology products). Samsung
SDI’s share price suffered from investor concerns about weaker-than-expected growth in end-market demand for its products. The
weakness in the communication services sector was driven by NAVER (described earlier), in which TEMIT has an overweight
position. In the industrials sector, South Korean holding company LG led detraction, due to weak earnings for its key holdings.
LG owns stakes in several companies across various industries such as electronics, chemicals, EV batteries and household
products. The company has been buying back its shares, which should help narrow the discount to its net asset value (‘NAV’).

Top Contributors and Detractors to Relative Performance by Country %
(a)


Top Contributor
Contribution to
portfolio relative
to MSCI Emerging
Markets Index Top Detractor
Contribution to
portfolio relative to
MSCI Emerging
Markets Index
Overweight
(TEMIT holds more than the index weight)
Taiwan 1.2 South Korea (2.4)
South Africa 0.2 Brazil (0.7)
Indonesia 0.2 Mexico (0.2)

Philippines (0.0)
Underweight
(TEMIT has a zero holding or
a holding smaller than the index weight)
China/Hong Kong 0.8 Malaysia (0.2)
Saudi Arabia 0.7


(a) For the period 31 March 2024 to 30 September 2024.

By markets, stock selection in Taiwan and China/Hong Kong added onto positive contribution from a lack of exposure to Saudi
Arabia. Once again, TSMC aided relative returns in Taiwan. Another Taiwan-based holding that was supportive of the portfolio’s
performance was Hon Hai Precision Industry, a provider of electronic manufacturing services for consumer electronics, cloud and
networking products, and computing products and components. In China, Alibaba was a leading contributor.

Conversely, overweight allocations and stock selection in both South Korea and Brazil led these markets to be top detractors
from relative returns. Stock selection in Mexico also pressured the portfolio’s relative performance. Samsung Electronics,
NAVER and Samsung SDI were key drivers of the portfolio’s lacklustre performance in South Korea. In Brazil, Oncoclinicas, a
cancer-care provider, experienced volatility in its share price due to investor concerns about the company’s excessive debt. While
we remain optimistic on Oncoclinicas’ growth prospects, we are keeping a close watch on the pace of the company’s debt
reduction. Mexico’s relative detraction was largely driven by Grupo Financiero Banorte (described above).

Top 10 Holdings
As at 30 September 2024

Portfolio
Benchmark
%
Over/(Under)
Weight % Holding £’000 %
Taiwan Semiconductor Manufacturing Company (‘TSMC’)
The world’s largest semiconductor foundry company, which is based in
Taiwan. The emergence of AI and investor expectations of a recovery in the
demand for technology products contributed to a turnaround in TSMC’s stock
price. Driven by structural growth in demand for computing and the company’s
technology leadership, we remain confident in the resilience of the TSMC
business model.
254,022 12.4 9.0 3.4
ICICI Bank
A leading India-based private sector bank and the portfolio’s second-largest
holding. Its share price has seen sustained appreciation over the past years and
the bank has been a key contributor to overall fund performance. This
highlights the value of our longer-term, fundamentally driven investment
process, which we continue to employ. We believe that the bank, with its
strong franchise, remains well positioned to benefit from the India growth
story.
106,449 5.2 1.0 4.2
Alibaba
The leading e-commerce company in China. While intensified competition and
a weak economy have impacted the growth outlook for its e-commerce
business, its other businesses such as cloud, fintech, local commerce and
international e-commerce have significant potential, in our view. We believe
that these could offer either growth opportunities or the possibility for
improvements in profitability. While the share price has experienced a
significant derating over the past couple of years, the company continues to
generate significant cash flows. The company has a strong share buyback
policy and we expect returns from here to be supported by such corporate
actions.
100,612 4.9 2.6 2.3
Tencent
The largest gaming, communication and social entertainment platform in
China. It has a major presence in online games, digital advertising, video,
music and live-streaming, fintech, and other businesses such as cloud
computing. We believe that the company should be a key beneficiary of AI
across its business segments. Tencent also has significant public and private
investments in China and globally. Trading at attractive valuations, based on
our analysis, the company has been proactively undertaking share buybacks,
which further enhance its earnings per share.
87,820 4.3 4.5 (0.2)
Samsung Electronics
One of the largest memory semiconductor manufacturers in the world based in
South Korea. It also manufactures a wide range of consumer and industrial
electronics and equipment. Its share price was volatile during the six-month
period due to investor concerns about a weaker memory cycle in the near term,
as well as the company’s loss of leadership in advanced memory products. We
expect the weakness in the memory cycle to be short lived, as demand for
HBM should remain strong and conventional DRAM products should see
supply tightness as capacity shifts to HBM.
86,543 4.2 3.1 1.1
Prosus
A leading global investment company and the largest shareholder of Tencent
Holdings, a Chinese technology company. We see Prosus as a good proxy for
Tencent exposure and its shares are available at a discount to its NAV. The
company also has holdings in leading food delivery platforms globally.
Management’s effort to narrow the discount to NAV via share buybacks should
also support returns.
84,151 4.1 – 4.1
SK Hynix
A South Korean semiconductor company and a maker of memory chips used
globally across a wide range of solutions. The company is the industry leader
in HBM chips, which are expected to see strong demand growth for AI
applications.
56,483 2.7 0.9 1.8

NAVER
A South Korean internet search and advertising company. It also has business
interests in e-commerce, financial services and entertainment content. We
believe that NAVER is in a good position to build a thriving ecosystem
integrating e-commerce, payments and digital content based on its solid
foundation in search and advertising. Its leadership position in AI solutions in
South Korea should also provide the company with additional cost efficiencies
and growth opportunities.
55,374 2.7 0.2 2.5
HDFC Bank
India’s leading private sector bank. It offers a wide range of banking services
across retail banking, home loans and mortgages, and wholesale/corporate
banking. HDFC Bank is a leader among Indian private sector banks with a
strong liability franchise, market leadership across multiple retail asset
categories and a comprehensive approach to digitalisation, which leads to a
combination of industry-leading growth while maintaining superior asset
quality and best-in-class profitability.
54,669 2.7 1.1 1.6
Samsung Life Insurance
The largest life insurance company in South Korea and is growing in the field
of health insurance. With the increase in interest rates in the recent past and the
steady move towards more health-related products, the company has been able
to improve its profitability. Most notably, it has a significant stake in Samsung
Electronics. It also owns a majority stake in the credit card business of the
Samsung group and has smaller stakes in the securities and the fire and marine
insurance businesses. The Corporate Value-Up programme initiated by the
South Korean government should also provide the company with incentives to
improve distributions to shareholders. Therefore, we expect the company to
take more meaningful measures to improve distributions to shareholders.
50,460 2.5 0.1 2.4

Portfolio Changes by Country

Total Return in Sterling
Country
31 March 2024
Market Value £m
Purchase
£m
Sales
£m
Market
Movement £m
30 September 2024
Market Value £m
TEMIT
%
MSCI Emerging
Markets Index %
China/Hong Kong 490 59 (103) 114 560 28.8 24.4
South Korea 426 43 (36) (68) 365 (15.5) (12.1)
Taiwan 358 8 (51) 50 365 14.8 9.0
India 247 48 (45) 33 283 13.7 11.4
Brazil 186 7 – (30) 163 (11.1) (11.5)
United States 62 3 – 5 70 7.0 –
Thailand 49 9 – 5 63 14.0 15.6
South Africa 20 13 – 15 48 44.3 23.5
Mexico 48 11 – (19) 40 (34.2) (22.4)
Hungary 30 1 – (1) 30 7.7 9.3
Other 79 10 (23) 2 68 – –
Total investments 1,995 212 (258) 106 2,055



Portfolio by Fair Value

Holding Sector Fair Value £’000 % of Portfolio
Brazil

Petrobras
(a)
Energy 49,517 2.4
Itaú Unibanco
(a)(b)
Financials 40,458 2.0
Banco Bradesco
(a)(b)
Financials 30,399 1.5
Vale Materials 23,483 1.1
TOTVS Information Technology 8,183 0.4
Hypera Health Care 6,058 0.3
Oncoclinicas do Brasil Servicos Medicos Health Care 5,377 0.3
163,475 8.0
Cambodia
NagaCorp Consumer Discretionary 3,888 0.2
3,888 0.2
Chile
Banco Santander Chile
(b)
Financials 17,898 0.9
17,898 0.9
China/Hong Kong

Alibaba
(c)
Consumer Discretionary 100,612 4.9
Tencent Communication Services 87,820 4.3
Prosus Consumer Discretionary 84,151 4.1
Techtronic Industries Industrials 41,666 2.0
China Merchants Bank Financials 34,490 1.7
Budweiser Brewing Company APAC Consumer Staples 31,465 1.5
Baidu Communication Services 27,418 1.3
Ping An Insurance Financials 23,676 1.1
Kuaishou Technology Communication Services 22,197 1.1
Uni-President China Consumer Staples 18,768 0.9
NetEase Communication Services 17,102 0.8
Wuxi Biologics Health Care 13,069 0.6
Haier Smart Home Consumer Discretionary 12,343 0.6
Daqo New Energy
(b)
Information Technology 8,156 0.4
H&H Group Consumer Staples 7,192 0.4
Guangzhou Tinci Materials Technology Materials 6,754 0.3
Beijing Oriental Yuhong Waterproof Technology Materials 5,678 0.3
China Resources Building Materials Technology Materials 5,123 0.3
COSCO SHIPPING Ports Industrials 4,708 0.2
Greentown Service Group Real Estate 3,524 0.2
Weifu High-Technology Consumer Discretionary 1,967 0.1
JD.com Consumer Discretionary 1,849 0.1
Weichai Power Industrials 146 0.0
559,874 27.2
Hungary
Gedeon Richter Health Care 25,672 1.2
Wizz Air Holdings Industrials 4,688 0.2
30,360 1.4
India
ICICI Bank Financials 106,449 5.2
HDFC Bank Financials 54,669 2.7
Swiggy
(d)
Consumer Discretionary 35,697 1.7
Infosys Technologies Information Technology 23,221 1.1
Bajaj Holdings & Investment Financials 16,282 0.8
Zomato Consumer Discretionary 16,215 0.8
Federal Bank Financials 15,844 0.8
ACC Materials 11,629 0.6
Ola Electric Mobility Consumer Discretionary 2,716 0.1
282,722 13.8
Indonesia
Astra International Industrials 11,147 0.5
11,147 0.5
Mexico
Grupo Financiero Banorte Financials 38,621 1.9
Nemak Consumer Discretionary 1,698 0.1
40,319 2.0
Peru
Intercorp Financial Services Financials 8,427 0.4
8,427 0.4
Philippines
BDO Unibank Financials 9,922 0.5
9,922 0.5
Russia
LUKOIL
(e)
Energy 0 0.0
Sberbank of Russia
(e)
Financials 0 0.0
0 0.0
South Africa
Discovery Financials 30,157 1.4
Netcare Health Care 17,816 0.9
47,973 2.3
South Korea
Samsung Electronics Information Technology 86,543 4.2
SK Hynix Information Technology 56,483 2.7

NAVER Communication Services 55,374 2.7
Samsung Life Insurance Financials 50,460 2.5
LG Industrials 35,950 1.7
Samsung SDI Information Technology 31,919 1.6
Doosan Bobcat Industrials 16,345 0.8
Fila Consumer Discretionary 11,854 0.6
Soulbrain Materials 10,431 0.5
LegoChem Biosciences Health Care 4,626 0.2
Hankook Tire Consumer Discretionary 3,584 0.2
KT Skylife Communication Services 1,225 0.1
364,794 17.8
Taiwan
TSMC Information Technology 254,022 12.4
MediaTek Information Technology 48,616 2.4
Hon Hai Precision Industry Information Technology 47,365 2.3
Yageo Information Technology 8,271 0.4
Lite-On Technology Information Technology 6,483 0.3
364,757 17.8
Thailand
Kasikornbank Financials 31,646 1.5
Minor International Consumer Discretionary 11,388 0.5
Thai Beverage Consumer Staples 8,136 0.4
Kiatnakin Phatra Bank Financials 6,467 0.3
Star Petroleum Refining Energy 5,255 0.3
62,892 3.0
United Arab Emirates
Emirates Central Cooling Systems Utilities 10,351 0.5
Spinneys Consumer Staples 6,329 0.3
16,680 0.8
United States
Genpact
(f)
Industrials 39,153 1.9
Cognizant Technology Solutions
(f)
Information Technology 30,858 1.5
70,011 3.4
Total Investments 2,055,139 100.0

(a) Preference shares: Shareholders are entitled to dividends before ordinary shareholders.
(b) US listed American Depository Receipt.
(c) TEMIT holds shares in this company listed on the Hong Kong stock exchange and American Depository Receipts listed on the
New York stock exchange.
(d) This company is unlisted.
(e) This company is fair valued at zero as a result of its trading being suspended on international stock exchanges.
(f) This company, listed on a stock exchange in a developed market, has significant exposure to operations from emerging
markets.

Market Capitalisation Breakdown %
Less than
£1.5bn
£1.5bn to
£5bn
£5bn to
£25bn
Greater than
£25bn
30 September 2024
(a)
4.9 8.0 26.5 58.9
31 March 2024 4.6 12.6 23.3 59.5

Split Between Markets %
(b)
30 September 2024 31 March 2024
Emerging Markets 96.4 95.8
Developed Markets
(c)
3.4 4.0
Frontier Markets 0.2 0.2

Source: FactSet Research System, Inc.
(a) Swiggy is unlisted at 30 September 2024 and is not included in the breakdown.
(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 the United States which have significant exposure to operations
from emerging markets.

Stewardship

Templeton Emerging Markets Investment Trust (‘TEMIT’) seeks to capture the growth potential of emerging markets companies
by employing a bottom-up security selection process with a long-term perspective. We aim to be a responsible steward of our

clients’ capital—that is why we integrate Environmental, Social and Governance (‘ESG’) factors into our investment research
process to understand the financial risks and opportunities that stem from governance and sustainability issues.

Whilst governance and sustainability issues are analysed in our research, the findings are not binding on the stock selection
process. TEMIT does not pursue any sustainable targets (for example, carbon reduction) or objectives.

We provide some examples from the last six months which illustrate our process.

Business Thesis and ESG Research

TEMIT’s research process includes a structured analysis of governance and sustainability issues to understand the financial risk
and opportunities of investing in a stock. A case study example considering ESG factors is Budweiser Brewing Company
APAC, whose shares were purchased during the six months under review.

Budweiser Brewing Company APAC, part of AB InBev Group (‘ABI’), is a leading beer company in Asia. The company has two
major markets in Asia: China and South Korea. Unlike other local brewers, Budweiser has a large market leading brand portfolio
with more than 50 beer brands, including more than 25 brands licensed from ABI.

Turning to our ESG research, Budweiser Brewing Company APAC has set key 2025 goals across multiple sustainability areas
such as climate action, water stewardship, circular packaging and sustainable agriculture. The company has an ambitious
programme to achieve net zero by 2040. Near term goals include: achieving 100% electricity from renewable sources, 25% carbon
emissions reduction across its value chain and 35% reduction in absolute scope 1 and 2 emissions.

Its water usage continues to decrease, and the company has set a goal to ensure average brewing water usage reaches 2.00 hl/hl by
2025, from 2.03 hl/hl as at end 2023. 64.8% of the company’s total beer volume was in the form of returnable packaging or made
from a majority of recycled content. The company has set a goal to increase this to 100%. The company also works with its supply
chain to ensure adequate monitoring, ranging from responsible sourcing, to ensuring compliance with UN Global Compact
Principles covering human rights, which further empowers value chain partners to deliver on sustainability objectives.

The company continues to innovate with a strong research & development capability. It is aiming for no-alcohol (by which it
means the Alcohol by Volume (‘ABV’) 0.0%-0.5%) and low-alcohol (ABV 0.51%-3.5%) beer products to represent at least 20%
of its total beer volume by the end of 2025. This is consistent with consumer trends and should enhance its growth trajectory.

The company generally exhibits strong corporate governance practices. Although the board lacks an independent majority (an
engagement topic for us), the skillset is strong, made up of industry and financial experts, with gender diversity demonstrated. The
management team is strong, and we believe incentives through compensation and ESOP (employee stock ownership plan) are well
aligned to minority shareholders. Finally, we note no material concerns in other areas such as ownership structure, accounting or
historical controversies.

Market share gains in the premium and super premium segment in China will be the key revenue and EBITDA growth driver in
the next few years. Based on our research, we have confidence in management’s ability to execute the overall business strategy
ensuring key ESG risk considerations are being managed. These considerations are central to cost efficiency, productivity, and
continuity of operations, to deliver on its long-term outlook and as such we have attributed a lower discount rate to the company
in our financial model.

Active ownership

Our significant presence in emerging markets allows our investment team to pursue active ownership, which is a key part of the
overall approach to stewardship. Over the six-month period, we have engaged with select investee companies on governance
issues, as well as executing our proxy voting policy on behalf of our shareholders.

For example, over the period under review, we reached out to the management of Baidu to encourage them to undertake a more
favourable set of shareholder return actions and policies. Baidu has continued to generate strong cash flows, despite the changing
competition landscape and slower industry growth. However, we think that the current share price has not reflected the intrinsic
value of the business and various assets on the balance sheet. There has been no dividend payout, and the multi-year buyback was
not enough to offset the dilution from share-based compensation. We have made specific requests of the company, including
asking the company to formulate a long-term shareholder return policy in the form of dividends and/or buybacks at the
management’s discretion. We await their response and monitor this issue.

One recent example of our proxy voting was our votes against proposals to approve two Director elections at COSCO
SHIPPING Ports on the grounds that one director failed to attend at least 75% of board meetings in the most recent fiscal year,
without a satisfactory explanation, while another director was serving on more than six public company boards. Strong and
engaged board oversight is important for value creation at a company. We continue to use our voting power as a signal to
management on important issues raised through voting ballots.

We will be sharing a more detailed account of our stewardship practices in the next Annual Report and dedicated Stewardship
Report.

Chetan Sehgal
Lead Portfolio Manager

9 December 2024

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 condensed set of
Financial Statements in the Half Yearly Report for the six months ended 30 September 2024 which comprises the Statement of
Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and related
notes 1-9. We have read the other information contained in the Half Yearly Report and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the condensed set of Financial Statements.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of Financial Statements in
the Half Yearly Report for the six months ended 30 September 2024 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) ‘Review of Interim
Financial Information Performed by the Independent Auditor of the Entity’ (ISRE) issued by the Financial Reporting Council. 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 are prepared in accordance with UK adopted international
accounting standards. The condensed set of Financial Statements included in this Half Yearly Report has been prepared in
accordance with UK adopted International Accounting Standard 34, ‘Interim Financial Reporting’.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for
Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the
going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not
appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions
may cause the entity to cease to continue as a going concern.

Responsibilities of the Directors

The Directors are responsible for preparing the Half Yearly Report in accordance with the Disclosure Guidance and Transparency
Rules of the United Kingdom’s Financial Conduct Authority.

In preparing the Half Yearly Report, the Directors are responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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 condensed set of
Financial Statements in the Half Yearly Report. Our conclusion, including our Conclusions relating to going concern, are 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) ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’ issued by
the Financial Reporting Council. 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
London

9 December 2024

Financial statements

Statement of comprehensive income

For the six months to 30 September 2024


For the Six Months to
30 September 2024
(unaudited)
For the Six Months to
30 September 2023
(unaudited)
Year Ended
31 March 2024 (audited)

Note
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Net Gains/(Losses) on
Investments and Foreign
Exchange


Net Gains/(Losses) on
Investments at Fair Value

– 106,120 106,120 – (44,956) (44,956) – 94,636 94,636
Net Losses on Foreign
Exchange

– (286) (286) – (649) (649) – (817) (817)
Income


Dividends 2 42,859 3,720 46,579 42,180 6,560 48,740 65,350 6,560 71,910
Other Income

3,046 – 3,046 3,278 – 3,278 6,536 – 6,536


45,905 109,554 155,459 45,458 (39,045) 6,413 71,886 100,379 172,265
Expenses


AIFM Fee
(a)


(2,606) (6,081) (8,687) (2,580) (6,019) (8,599) (5,130) (11,970) (17,100)
Other Expenses

(981) – (981) (821) – (821) (1,774) – (1,774)


(3,587) (6,081) (9,668) (3,401) (6,019) (9,420) (6,904) (11,970) (18,874)
Profit/(Loss) Before Finance
Costs and Taxation

42,318 103,473 145,791 42,057 (45,064) (3,007) 64,982 88,409 153,391
Finance Costs
(a)


(316) (733) (1,049) (389) (909) (1,298) (751) (1,747) (2,498)
Profit/(Loss) Before
Taxation

42,002 102,740 144,742 41,668 (45,973) (4,305) 64,231 86,662 150,893
Tax Expense 6 (2,701) (9,044) (11,745) (3,338) (4,291) (7,629) (5,366) (5,201) (10,567)
Profit/(Loss) for the Year

39,301 93,696 132,997 38,330 (50,264) (11,934) 58,865 81,461 140,326
Profit/(Loss) Attributable to
Equity Holders of the
Company

39,301 93,696 132,997 38,330 (50,264) (11,934) 58,865 81,461 140,326
Earnings per Share 3 3.60p 8.57p 12.17p 3.34p (4.37)p (1.03)p 5.18p 7.17p 12.35p

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. The accompanying notes are an integral part of the Financial Statements.

(a) 70% of the annual Alternative Investment Fund Manager (‘AIFM’) fee and 70% of the finance costs, except for interest and
fees on overdrafts, have been allocated to the capital account.

Statement of financial position

As at 30 September 2024


Note
As at 30 September 2024
(unaudited)
£’000
As at 30 September 2023
(unaudited)
£’000
As at 31 March 2024
(audited)
£’000
Non-Current Assets
Investments at Fair Value Through
Profit or Loss 2,055,139 1,910,022 1,995,232
Current Assets
Trade and Other Receivables 22,349 10,622 10,759
Cash and Cash Equivalents 105,830 130,722 145,736
Total Current Assets 128,179 141,344 156,495
Current Liabilities
Bank Loan (100,000) – (100,000)
Other Payables (4,460) (3,902) (6,401)
Total Current Liabilities (104,460) (3,902) (106,401)
Net Current Assets 23,719 137,442 50,094
Non-Current Liabilities
Capital Gains Tax Provision (18,241) (11,898) (10,463)
Bank Loan – (100,000) –
Total Assets Less Liabilities 2,060,617 1,935,566 2,034,863
Share Capital and Reserves
Equity Share Capital 4 58,622 61,955 60,932
Capital Redemption Reserve 24,047 20,714 21,737
Capital Reserve 1,407,545 1,286,949 1,388,186
Special Distributable Reserve 433,546 433,546 433,546
Revenue Reserve 136,857 132,402 130,462
Equity Shareholders’ Funds 2,060,617 1,935,566 2,034,863
Net Asset Value Pence per Share
(a)
192.8 170.5 182.5

(a) Based on shares in issue excluding shares held in treasury.

Statement of changes in equity

For the six months to 30 September 2024 (unaudited)

Note
Equity Share
Capital
£’000
Capital
Redemption
Reserve
£’000
Capital
Reserve
£’000
Special
Distributable
Revenue
£’000
Revenue
Reserve
£’000
Total
£’000
Balance at 31 March 2023 63,148 19,521 1,372,654 433,546 128,634 2,017,503
(Loss)/Profit for the Period – – (50,264) – 38,330 (11,934)
Equity Dividends 5 – – – – (34,562) (34,562)
Purchase and Cancellation of Own
Shares 4 (1,193) 1,193 (35,441) – – (35,441)
Balance at 30 September 2023 61,955 20,714 1,286,949 433,546 132,402 1,935,566
Profit for the Period – – 131,725 – 20,535 152,260
Equity Dividends 5 – – – – (22,475) (22,475)
Purchase and Cancellation of Own
Shares 4 (1,023) 1,023 (30,488) – – (30,488)
Balance at 31 March 2024 60,932 21,737 1,388,186 433,546 130,462 2,034,863
Profit for the Period – – 93,696 – 39,301 132,997
Equity Dividends 5 – – – – (32,906) (32,906)
Purchase and Cancellation of Own
Shares 4 (2,310) 2,310 (74,337) – – (74,337)
Balance at 30 September 2024 58,622 24,047 1,407,545 433,546 136,857 2,060,617

Statement of cash flows

For the six months to 30 September 2024


For the six months to
30 September 2024
(unaudited)
£’000
For the six months to
30 September 2023
(unaudited)
£’000
For the year to
31 March 2024
(audited)
£’000
Cash Flows From Operating Activities
Profit/(Loss) Before Taxation 144,742 (4,305) 150,893
Adjustments to Reconcile Profit/(Loss) Before
Taxation to Cash Used in Operations:
Bank and Deposit Interest Income Recognised (3,023) (3,266) (6,518)
Dividend Income Recognised (46,579) (48,740) (71,910)
Finance Costs 1,047 1,298 2,498
Net (Gains)/Losses on Investments at Fair Value (106,120) 44,956 (94,636)
Net Losses on Foreign Exchange 286 649 817
(Increase)/Decrease in Debtors (18) 13 (23)
Increase/(Decrease) in Creditors 159 (4) (29)
Cash Used in Operations (9,506) (9,399) (18,908)
Bank and Deposit Interest Received 3,094 3,266 6,434
Dividends Received 50,017 49,274 71,024
Bank Overdraft Interest Paid (2) – (2)
Tax Paid (3,574) (5,457) (9,945)
Net Realised Gains/(Losses) on Foreign Currency
Cash and Cash Equivalents 647 (355) (435)
Net Cash Inflow From Operating Activities 40,676 37,329 48,168
Cash Flows From Investing Activities
Purchases of Non-Current Financial Assets (213,890) (271,085) (463,750)
Sales of Non-Current Financial Assets 241,804 302,151 553,641
Net Cash Inflow From Investing Activities 27,914 31,066 89,891
Cash Flows From Financing Activities
Equity Dividends Paid (32,906) (34,562) (57,037)
Purchase and Cancellation of Own Shares (74,549) (34,831) (65,784)
Interest and Fees Paid on Bank Loans (1,041) (1,276) (2,490)
Net Cash (Outflow)/Inflow From Financing
Activities (108,496) (70,669) (125,311)
Net Increase/(Decrease) in Cash (39,906) (2,274) 12,748
Cash at the Start of the Period 145,736 132,988 132,988
Net Unrealised Gains/(Losses) on Foreign
Currency Cash and Cash Equivalents 0 8 0
Cash at the End of the Period 105,830 130,722 145,736

Reconciliation of Liabilities Arising From Bank Loans


Liabilities as
at 31 March 2024
£’000
Cash Flows
£’000
Profit & Loss
£’000
Liabilities as
at 30 September 2024
£’000
Fixed term loan 100,000 – – 100,000
- Interest and Fees Payable 349 (1,041) 1,047 355
Total Liabilities From Bank Loans 100,349 (1,041) 1,047 100,355



Liabilities as
at 31 March 2023
£’000
Cash Flows
£’000
Profit & Loss
£’000
Liabilities as
at 30 September 2023
£’000
Revolving Credit Facility – – – –
- Interest and Fees Payable – (241) 241 –
Fixed Term Loan 100,000 – – 100,000
- Interest and Fees Payable 343 (1,035) 1,057 365
Total Liabilities From Bank Loans 100,343 (1,276) 1,298 100,365



Liabilities as
at 31 March 2023
£’000
Cash Flows
£’000
Profit & Loss
£’000
Liabilities as
at 31 March 2024
£’000
Revolving Credit Facility – – – –
- Interest and Fees Payable – (401) 401 –
Fixed Term Loan 100,000 – – 100,000
- Interest and Fees Payable 343 (2,089) 2,095 349
Total Liabilities From Bank Loans 100,343 (2,490) 2,496 100,349

Notes to the financial statements

For the six months to 30 September 2024

1 Basis of preparation

The Half Yearly Report for the six months to 30 September 2024 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
lnvestment Companies (‘AIC’) and updated in July 2022 insofar as the SORP is compatible with UK adopted International
Accounting Standards. The accounting policies applied in these half yearly Financial Statements are consistent with those applied
in the Company’s Financial Statements for the year ended 31 March 2024 and have been applied consistently to all periods
presented in these interim Financial Statements.

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 2024 and 30 September 2023 has not
been audited. The figures and financial information for the year ended 31 March 2024 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 2024, the Company had net current assets of £23,719,000 (31 March 2024: net current assets £50,094,000).
The Directors have a reasonable expectation that the Company has sufficient resources to continue in operational existence for the
period to 31 March 2026, which is at least 12 months from the date of approval of these Financial Statements. Accordingly, the
Financial Statements have been prepared on a going concern basis.

2 Income

The Company received special dividends amounting to £8.5 million (30 September 2023: £7.7 million) of which £3.7 million was
classified as capital and £4.8 million was classified as revenue (30 September 2023: £6.6 million and £1.1 million respectively).

3 Earnings per share


For the Six Months to
30 September 2024
£’000
For the Six Months to
30 September 2023
£’000
For the Year to
31 March 2024
£’000
Revenue Profit 39,301 38,330 58,865
Capital Profit/(Loss) 93,696 (50,264) 81,461
Total 132,997 (11,934) 140,326
Weighted Average Number of Shares in Issue 1,092,655,677 1,149,158,447 1,136,517,365
Revenue Profit per Share 3.60p 3.34p 5.18p
Capital Profit/(Loss) per Share 8.57p (4.37)p 7.17p
Total 12.17p (1.03)p 12.35p

4 Equity Share Capital


For the Six Months to
30 September 2024
For the Six Months to
30 September 2023
For the Year to
31 March 2024
Ordinary Shares In Issue £’000 Number £’000 Number £’000 Number
Opening Ordinary Shares of 5 Pence 55,741 1,114,818,617 57,957 1,159,138,372 57,957 1,159,138,372
Purchase and Cancellation of Own Shares (2,310) (46,214,019) (1,193) (23,862,295) (2,216) (44,319,755)
Closing Ordinary Shares of 5 Pence 53,431 1,068,604,598 56,764 1,135,276,077 55,741 1,114,818,617


For the Six Months to
30 September 2024
For the Six Months to
30 September 2023
For the Year to
31 March 2024
Ordinary Shares Held in Treasury £’000 Number £’000 Number £’000 Number
Opening Ordinary Shares of 5 Pence 5,191 103,825,895 5,191 103,825,895 5,191 103,825,895
Closing Ordinary Shares of 5 Pence 5,191 103,825,895 5,191 103,825,895 5,191 103,825,895
Total ordinary shares in issue and held in
treasury at the end of the period
58,622 1,172,430,493 61,955 1,239,101,972 60,932 1,218,644,512

In the six months to 30 September 2024, 46,214,019 shares were bought back for cancellation for a total consideration of
£74,337,000 (30 September 2023: 23,862,295 shares were bought back for cancellation for a total consideration of £35,441,000).
All shares bought back in the period were cancelled, with none being placed in treasury (30 September 2023: no shares were
placed into treasury).

5 Dividends


For the Six Months to
30 September 2024
For the Six Months to
30 September 2023
For the Year to
31 March 2024
Rate (Pence) £’000 Rate (Pence) £’000 Rate (Pence) £’000
Declared and Paid During the Period:
Dividend on Shares:
Final dividends for the years ended 31
March 2024 and 31 March 2023
3.00 32,906 3.00 34,562 3.00 34,562
Interim dividend for the six months ended
30 September 2023
– – – – 2.00 22,475
Total 3.00 32,906 3.00 34,562 5.00 57,037

On 9 December 2024 the Board declared an interim dividend of 2.00 pence per share for the financial year 2025 (financial year
2024: 2.00 pence per share interim dividend). This dividend has not been accrued in the Financial Statements for the six months
ended 30 September 2024 as dividends are recognised when the shareholders’ right to receive the payment is established. For the
2025 interim dividend this would be the ex-dividend date of 19 December 2024.

6 Taxation

The total tax expense of £11.74 million (30 September 2023: £7.63 million) consists of a revenue tax expense of £2.70 million (30
September 2023: £3.34 million) and a capital tax expense of £9.04 million (30 September 2023: £4.29 million). The revenue tax
expense relates to irrecoverable overseas tax on dividends. The capital tax expense consists of £7.77 million (30 September 2023:
£2.22 million) expense arising from an increase in the provision for deferred tax on unrealised gains on holdings in India and a
£1.27 million expense (30 September 2023: £2.07 million) arising from tax on realised gains on holdings in India.

7 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 2024
£’000
For the Six Months to
30 September 2023
£’000
For the Year to
31 March 2024
£’000
Purchase Expenses 226 320 546
Sales Expenses 531 657 1,210
Total 757 977 1,756

8 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;

• Investments held by the Company on the basis set out in the annual accounting policies;

• Cash at the denominated currency of the account; and

• Other financial assets and liabilities at the carrying value which is a reasonable approximation of the fair value.

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 investments through profit and loss are shown below:


30 September 2024
£’000
30 September 2023
£’000
31 March 2024
£’000
Level 1 2,019,442 1,910,022 1,995,232
Level 2 – – –
Level 3 35,697 – –
Total 2,055,139 1,910,022 1,995,232

The Company held three Level 3 securities as at 30 September 2024 (31 March 2024: two).

The investments in Russian securities, LUKOIL and Sberbank of Russia, continue to be fair valued at £nil (31 March 2024: £nil)
and are classified as Level 3 due to the inability of the Company to access the local Moscow equity markets and the very limited
access to the over-the-counter market. The fair value of these investments is based on a liquidity discount of 100% to the last
traded price for an exit price of zero.

The investment in Swiggy was acquired during the current period and was fair valued at £35.70 million as of 30 September 2024.
It has been classified as Level 3 due to its unlisted status and has been fair valued based on a pricing model that is 75% discounted
cash flows and 25% on a comparable peer group. The unobservable inputs as of 30 September 2024 are below.

Description
Fair value
£’000 Unobservable input
Weighted
average
input
Reasonable
possible
shift +/-
Reasonable
possible
shift +
£’000
Reasonable
possible
shift -
£’000
Equities 35,697
CY25 Enterprise Value and Revenue Multiple of
Comparable Group 1
x8.5 x1.5 503 (503)

CY25 Enterprise Value and Revenue Multiple of
Comparable Group 2
x6.7 x1.5 1,508 (1,508)
Comparable Group 1 Weighting 25.0% 10.0% 235 (235)
Discount for Lack of Marketability 5.7% 1.5% (568) 568
Forecasted Cashflows 100.0% 20.0% 5,123 (5,123)
Weighted Average Cost of Capital 11.1% 1.0% (4,344) 6,107
Long Term Growth Rate 5.0% 0.5% 1,980 (1,681)
Discounted Cash Flow Weighting 75.0% 10.0% (605) 605

The following table presents the movement in Level 3 investments for the period:


30 September 2024
£’000
30 September 2023
£’000
31 March 2024
£’000
Opening Balance – – –
Additions at Cost - Purchase of Level 3 Assets 37,952 – –
Disposal Proceeds – Sale of Level 3 Assets – (7,766)
(a)
(7,766)
(a)

Net Gains/(Losses) on Foreign Exchange (2,255) – –
Net Gains/(Losses) on Investments at Fair Value – 7,766 7,766
Level 3 Closing Balance 35,697 – –

The fixed term loan is shown at amortised cost within the Statement of Financial Position. If the fixed term loan was shown at fair
value the impact would be:


30 September 2024
£’000
30 September 2023
£’000
31 March 2024
£’000
Fixed Term Loan at Amortised Cost 100,000 100,000 100,000
Fixed Term Loan at Fair Value 98,980 94,800 96,770
Increase in Net Assets 1,020 5,200 3,230

The fair value of the fixed term loan included in the table above is calculated by aggregating the expected future cash flows which
are discounted at a rate comprising the sum of SONIA rate plus a spread. The fixed term loan at fair value is classed as Level 2.

9 Events after the reporting period

On 1 October 2024, the allocation of annual AIFM fee and finance costs was updated from 70% to 75% being allocated to the
capital account, with the remainder being allocated to revenue. The Board believes that this is more reflective of the expected
long-term split of returns between capital and revenue.

(a) Represents the sale of the holding in Yandex on 23 May 2023 for £7,766,000.

On 13 November 2024, Swiggy was successfully listed on the National Stock Exchange of India and at 20 November, which is
the latest available date, Swiggy was trading 23.3% higher which represents an uplift of £10.91 million for TEMIT since
purchase. TEMIT has a lock in period of 6 months from the listing date.

On 9 December 2024 the Board declared an interim dividend of 2.00 pence per share for the financial year 2025 (financial year
2024: 2.00 pence per share interim dividend). Please see Note 5 in the full Half Yearly Report for more information.

The Half Yearly Report for the six months to 30 September 2024 was approved by the Board on 9 December 2024. A copy of the
report is available on our website www.temit.co.uk.

The PDF of the Half Yearly Report will be uploaded and available for viewing on the National Storage Mechanism, posted to the
website www.temit.co.uk/resources/literature and may also be requested during normal business hours from Client Dealer
Services at Franklin Templeton Investment Management Limited on freephone 0800 305 306.

For further information please e-mail temitcosec@franklintempleton.com.

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States
of America, any member state of the European Economic Area, Canada, Australia, Japan or the Republic of South Africa.