Fund Focus: Emerging Markets

The Templeton Emerging Markets Investment Trust PLC.

The Templeton Emerging Markets Investment Trust (TEMIT) was one of the first dedicated emerging markets funds in the UK. Run from Singapore as a part of the investment house of Franklin Templeton.

[http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?username=&ac=&csi=10319&record_search=1&search_phrase=tem]

A £1,800,000 million (£1.8 Billion Fund), it is one of the largest emerging markets investment companies listed on the London Stock Exchange.

If one had invested £10,000 in (TEMIT) when it opened for business 1989, one’s holding would have grown to over £220,000 today, (the beauty of hindsight). An incredible track record, run by Dr. Mark Mobius based Singapore. He is a bit of an investment guru with numerous accolades and books to his name “Trading with China” “The Investor’s Guide to Emerging Markets” “Mobius on Emerging Markets”  to name just three.

The top 10 holdings:

Brilliance China Automotive Holdings Ltd. (Consumer Discretionary) Hong Kong/China 9.7%
Tata Consultancy Services Ltd. (Information Technology) India 5.0%
Dairy Farm International Holdings Ltd. (Consumer Staples) Hong Kong/China 4.9%
Siam Commercial Bank PCL, fgn. (Financial) Thailand 4.6%
PT Astra International Tbk (Consumer Discretionary) Indonesia 4.4%
VTech Holdings Ltd. (Information Technology) Hong Kong/China 4.1%
Banco Bradesco SA, ADR, pfd. (Financial) Brazil 4.1%
Itau Unibanco Holding SA, ADR (Financial) Brazil 4.0%
Akbank T.A.S. (Financial) Turkey 3.9%
Kasikornbank Public Co. Ltd, fgn (Financial) Thailand 3.4%.

Interesting to see the no Russian companies in the top ten, when one thinks of emerging markets, one immediately thinks of BRICS (Brazil, Russia, India and China), as named by Jim O’Neil of Goldman Sachs Asset Management. One here can see the importance of Thailand and Indonesia now in emerging markets.

Over the past 10 years, TEMIT has delivered a total return of 541%, which represents a compound growth rate of 20% a year. This does including the reinvestment of dividends.

Word of caution, past performance is no guide to the future performance of the fund.

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