London, UK, 13 December 2023

Edison issues Update on Templeton Emerging Markets IT (TEMIT) – Under-owned, undervalued & under-appreciated.

Templeton Emerging Markets Investment Trust’s (TEMIT’s) co-managers Chetan Sehgal (lead manager) and Andrew Ness consider that the case for emerging markets is not well understood. Hence, they believe that the regions remain under-owned, undervalued and under-appreciated, which provides an interesting opportunity for global investors. There are several powerful trends supporting the superior economic growth prospects of emerging markets versus those in developed regions, including demographics, urbanisation, higher consumption and technological innovation. Emerging markets also remain relatively attractively valued. TEMIT’s performance versus the MSCI Emerging Markets Index troughed in April 2022 and is in a steadily improving trend. The trust’s results tend to be better when investors focus on company fundamentals, which drive equity returns over the long term, rather than considering near-term macroeconomic events.

As a result of economic uncertainty and macroeconomic events in recent years, investor risk aversion is elevated. This is reflected in TEMIT’s double-digit 13.3% discount, which is wider than the trust’s historical averages. There is significant scope for TEMIT to be afforded a higher valuation if investors become more interested in the positive growth and valuation attributes of emerging markets and/or the trust’s relative performance continues to improve.

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