Templeton Emerging Markets Investment Trust in 60 seconds

Templeton Emerging Markets Investment Trust in 60 seconds

Templeton Emerging Markets Investment Trust — 1 video in collection

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Edison’s investment companies team recently published a review of Templeton Emerging Markets Investment Trust (known as TEMIT). Its managers Chetan Sehgal and Andrew Ness believe that emerging markets offer an attractive opportunity for investors as they consider they are under-owned, underestimated and undervalued. TEMIT’s board does not believe that the trust’s persistently wide discount reflects its strong long-term outperformance of the MSCI Emerging Markets Index, so has increased the scale of returns to investors via a combination of share repurchases, dividends and a conditional tender offer, along with a reduction in management fees. Sehgal and Ness seek companies with sustainable earnings power that are trading at a discount to their intrinsic worth. They are not constrained by benchmark allocations, which is evidenced by an overweight exposure to South Korea and underweight positions in India and China.


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