Annual Report and Accounts to 31 March 2026
Templeton Emerging Markets Investment Trust plc
5 Morrison Street, Edinburgh, EH3 8BH, UK
temitcosec@franklintempleton.com
www.temit.co.uk
Your future is emerging
Cover artwork uses AI enhanced photography.
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 31 March 2026, TEMIT’s net asset
value (‘NAV’) total return was +6,438.0% compared to the
benchmark total return of +2,285.3%.
The Company is governed by a Board of Directors that is
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,
theBoard of Directors is responsible for the overall strategy of
theCompany and monitoring its performance.
2
Winner 2023 and 2024
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TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 3
Your future is emerging
TEMIT offers you easy access to the dynamic growth
potential of emerging markets.
TEMIT offers investors a simple way
to invest in the growth potential of
dynamic economies in Asia, Latin
America, the Middle East, Africa and
Europe. Emerging markets currently
generate 65% of global growth and
that is forecast to increase
(a)
.
Access to
growth markets
TEMIT is the first emerging markets
investment trust and has delivered a
NAV total return of +6,438.0% over
its 36-year life. It is also the largest
with £2.5 billion of net assets.
36-year track
record
TEMIT’s portfolio is diversified across
approximately 90 high quality
companies that include the very best
investment opportunities.
Best
ideas portfolio
With over 100 investment
professionals spread across
17countries our Investment
Managers can identify investment
opportunities beyond the
mainstream, often before they are
recognised by the broader market.
Investment
expertise
Structured analysis of Environmental,
Social and Governance (‘ESG’)
factors is part of the research
process.
ESG
analysis
As a stock market listed investment
trust, this offers additional features
and benefits for shareholders
including dividends, gearing, and
independent board governance.
Shareholder-
friendly features
(a) Source: IMF WEO, April 2025, the latest available.
All other data sourced: Franklin Templeton as at 31 March 2026.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
(a) A glossary of terms and alternative performance measures is included on pages 114 and 115.
(b) Source: MSCI. The Company’s benchmark is the MSCI Emerging Markets (Net Dividends) Index.
(c) An annual ordinary dividend of 5.25 pence per share for the year ended 31 March 2026 has been proposed. This comprises the interim dividend of 2.00 pence per share paid by the Company
on 30 January 2026 and the proposed final dividend of 3.25 pence per share.
(d) 3, 5 and 10 year cumulative dividends include ordinary dividends that shareholders were entitled to in those periods. 10 year cumulative figure excludes the special dividend of 0.52 pence
pershare for the year ended 31 March 2020 and the special dividend of 2.00 pence per share for the year ended 31 March 2021.
(e) Financial years 2016 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.
Financial highlights
2026 2025 3 Years Cumulative 5 Years Cumulative 10 Years Cumulative
Share Price Total
Return
(a)
MSCI Emerging
Markets Index
(a)(b)
Proposed Total
Ordinary Dividend
(c)(d)(e)
41.3% 65.7% 38.2%
220.3%
8.8%
48.6% 76.6% 39.9%
250.4%
13.3%
26.8% 42.0% 25.4% 131.0%
5.8%
5.25p 5.25p
Net Assets Value
Total Return
(cum-income)
(a)
15.25p 23.85p 40.67p
PeruPeru
Contents
01. Strategic Report
Strategic report 6
10 year record 8
Chairman’s statement 9
The investment managers 13
The investment managers’ report 14
The investment managers’ process 31
Business review 38
02. Governance
Directors’ report 51
Directors’ remuneration report 62
Report of the audit and risk committee 67
Statement of directors’ responsibilities 73
04. Investor Information
Notice of meeting 108
Shareholder communications 111
General information 112
Shareholder information 113
Glossary of terms and alternative performance measures 114
03. Financial Review
Independent auditor’s report 75
Statement of comprehensive income 83
Statement of financial position 84
Statement of changes in equity 85
Statement of cash flows 86
Notes to the financial statements 88
AIFMD report on remuneration - unaudited 106
India
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Strategic
Report
01.
Taiwan
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 7
Strategic report
The Directors present the Strategic Report for the year ended 31 March 2026, which incorporates
the Chairman’s Statement, and has been prepared in accordance with the Companies Act 2006.
The aim of the Strategic Report is to provide shareholders with the ability to assess how the
Directors have performed in their duty to promote the success of the Company for shareholders’
collective benefit, and having regard for the interests of all stakeholders, by bringing together in
one place key information about the Company’s strategy, the risks it faces, how it is performing
and the outlook.
Financial Summary
2025–2026
Year Ended
31 March 2026
Year Ended
31 March 2025
Net Asset Value Total Return (Cum-Income)
(a)
41.3% 8.8%
Share Price Total Return
(a)
48.6% 13.3%
MSCI Emerging Markets (Net Dividends) Index Total Return
(a)
26.8% 5.8%
Total Net Assets (£ millions) 2,525.6 1,985.4
Net Asset Value (Pence per Share) 267.3 193.7
Share Price (Pence per Share) 245.5 169.6
Share Price Discount to Net Asset Value at Year End
(a)
8.2% 12.4%
Average Share Price Discount to Net Asset Value Over the Year
(a)
9.7% 13.8%
Ordinary Dividend
(b)
(Pence per Share) 5.25 5.25
Revenue Earnings
(c)
(Pence per Share) 5.39 5.41
Net Gearing
(a)
1.2% 0.2%
Ongoing Charges Ratio
(a)
0.86% 0.95%
Source: Franklin Templeton and FactSet.
(a) A glossary of terms and alternative performance measures is included on pages 114 and 115.
(b) An annual ordinary dividend of 5.25 pence per share for the year ended 31 March 2026 has been proposed. This comprises the interim dividend of 2.00 pence per share (2025: 2.00 pence per
share) paid by the Company on 30 January 2026 and a proposed final dividend of 3.25 pence per share (2025: 3.25 pence per share).
(c) The revenue earnings per share figures are shown in the Statement of Comprehensive Income on page 83 and Note 7 of the Notes to the Financial Statements.
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
10 year record
2016-2026
Year Ended
Total Net
Assets (£m)
Annual
Dividend
(£m)
Buy backs
(£m)
NAV
(a)
(Pence
per Share)
Share Price
(a)
(Pence
per Share)
Year-End
Discount
(b)
(%)
Annual
Dividend
(a)
(Pence
per Share)
Ongoing
Charges
Ratio
(b)
(%)
31 March 2016 1,562.3 24.1 93.6 104.8 90.8 13.4 1.65 1.22
31 March 2017 2,148.1 23.1 89.4 152.6 132.3 13.3 1.65 1.20
31 March 2018 2,300.8 40.0 72.5 169.2 148.6 12.2 3.00 1.12
31 March 2019 2,118.2 40.2 147.5 168.5 153.2 9.1 3.20 1.02
31 March 2020 1,775.7 45.9
(c)
69.9 146.5 131.4 10.3 3.80
(c)
1.02
31 March 2021 2,591.3 44.9
(c)
49.6 219.4 202.4 7.7 3.80
(c)
0.97
31 March 2022 2,100.4 44.8 3.6 178.2 156.4 12.2 3.80 0.97
31 March 2023 2,017.5 57.8 29.2 174.1 152.2 12.6 5.00 0.98
31 March 2024 2,034.9 55.4 65.9 182.5 154.4 15.4 5.00 0.97
31 March 2025 1,985.4 54.0 149.2 193.7 169.6 12.4 5.25 0.95
31 March 2026 2,525.6 49.7
(d)
166.7 267.3 245.5 8.2 5.25
(d)
0.86
Source: Franklin Templeton and FactSet.
(a) Comparative figures for financial years 2016 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.
(b) A glossary of terms and alternative performance measures is included on pages 114 and 115.
(c) Excludes 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) Based on a proposed annual ordinary dividend of 5.25 pence per share for the year ended 31 March 2026. This comprises a proposed final dividend of 3.25 pence per share calculated using
shares in issue as at 21 May 2026 and the interim dividend of 2.00 pence per share paid 30 January 2026.
(e) Rebased to 100 at 31 March 2016.
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10 Year Performance
2016–2026
NAV, Share Price and Benchmark Total Return
(e)
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc 9
Thailand
Chairman’s statement
Performance
(a)
During the year to 31 March 2026 the performance of TEMIT was
unusually strong, with a net asset value (‘NAV’) total return of
+41.3% and a share price total return of +48.6%. These returns
were well ahead of the benchmark’s +26.8% and the Board
would like to congratulate our Investment Managers for another
excellent year.
We have always believed that emerging markets should be
treated as a long-term investment and we caution that not too
much emphasis should be placed on any one year. Over five
and ten years, TEMIT has produced NAV total returns of
+38.2% and +220.3% respectively, in both cases beating the
benchmark returns which were +12.8% and +89.3%. The
Managers long-term track record was recognised in May 2025
when Chetan Sehgal and Andrew Ness were awarded
Citywire’s highest rating of AAA, noting their consistent
performance in managing TEMIT’s portfolio.
The year has not been without its geopolitical challenges.
USPresident Trump’s “Liberation Day” was declared on the
second day of the financial year. The announcement of the
intention to impose widespread tariffs on imports into the United
States from most countries was expected but both the levels and
number of countries affected were much higher than predicted,
leading to considerable investor anxiety and market volatility. By a
year later, most of the tariffs have been struck down by the US
Supreme Court but the situation, and the USgovernment’s next
steps, remain far from clear. China was clearly the key target of the
US President but arguably it is too integrated into the global
economy for economic sanctions to profit any party and, as
seems increasingly apparent, it has the ability to play the long
game whilst becoming less dependent on the US both as a
supplier of technology and as a market for its products. As a result
of the geopolitical tensions, both the NAV of the Company and its
share price initially fell sharply but subsequently increased
substantially over the summer, leading to a strong overall return
for the first half of our accounting year, to the end of September.
Performance over the second half of our accounting year was,
again, largely strong but towards the end of the period
geopolitics again played a major part. The US and Israeli
military attacks on Iran precipitated a sell-off in markets as it
became apparent that Iran would continue to be able to impair
the flow of oil from the region. Asia is particularly dependent
on oil from the Middle East. As a result, over the month of
March our NAV declined, tempering returns but still leaving us
well ahead for the year.
Share price rating
Shareholders will also be pleased that the discount has again
narrowed over the year, adding to the total return achieved.
Ashas been stated previously the Board finds the persistence
and scale of the discount at which the Company’s shares have
traded to their underlying NAV in recent years to be
(a) See glossary of terms and alternative performance measures on pages 114 and 115.
‘The Board would like to congratulate our
Investment Managers for another excellent year.’
Angus Macpherson
Chairman
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Turkey
I have stated in recent reports that the Board does not believe
that share buybacks alone will eliminate the discount, but they
will enhance liquidity and earnings to the benefit of all
shareholders. For the discount to narrow, we believe that there
are three important factors: renewed investor enthusiasm for
emerging market equities; a company structure with
investment performance that makes it attractive relative to
other investment vehicles; and an enhanced profile through
marketing that increases awareness amongst new investors.
There is some evidence that investors’ attention is moving
towards emerging markets and away from the US. Valuations in
the US market, particularly of the so-called ‘magnificent 7’
technology stocks, have become stretched and there is
recognition that USisolationism may ultimately lead to the
country being a less attractive place to invest. Meanwhile, it
remains the case that the ‘magnificent 7’ have a market
capitalisation that is more than double that of the entire MSCI
Emerging Markets Index. Not only is this a stark illustration of
relative valuation levels but given the prevalence of ‘passive’
investment strategies tracking such indices, it also suggests a
mismatch between investment flows and world GDP and growth.
Should these apparent valuation and weightings anomalies
re-balance, renewed interest in emerging markets may be the
driver of the strong absolute returns that TEMIT enjoyed over the
last year and the further improvement in the share price rating.
TEMIT has for many years committed a sizeable budget to
marketing the Company’s shares, which is matched by a
contribution from Franklin Templeton. TEMIT has a first-class
website and regular updates and Franklin Templeton
continues to develop effective new ways to communicate with
existing and potential investors, including broadcast channels,
digital media, print, press and social media, as well as direct
communications. We were pleased TEMIT was again awarded
“Best Marketing Campaign” by the Association of Investment
Companies this year, with the citation: “The judges were
impressed with the winning entry’s imaginative and
meaningful multi-channel campaign. The scientific approach
and measurable results showed the effectiveness of the
campaign and the impact on shareholders.”
unsatisfactory. As previously noted, the Board’s premise is that,
whilst there are significant benefits to a closed ended vehicle,
the fact that we are not required to return capital to
shareholders does not mean that we should not do so,
provided that this does not compromise the ability of the
Company to meet its objectives such that, two years ago, we
announced a series of measures with the intention of
improving liquidity and returns for holders of TEMIT’s shares
and we have subsequently maintained this approach which is,
in summary, commitments to:
•
At least maintain the level of annual dividend of 5.00 pence
per share;
•
Repurchase up to £200 million of shares over the following
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 AIFM fees, which will result in fees of
1% on the first £1billion and 0.5% of any assets above that
level with effect from 1 July 2026. Based on the NAV at the
year end, the blended fee rate from 1 July would then be
just under 0.7%.
In the year to 31 March 2026, TEMIT spent £166.7 million on
share buybacks. Shares were bought back at an average
discount of 10.2%, resulting in an aggregate increase in the
NAVper share for remaining shareholders of 0.8%.
It is the Board’s intention to repurchase up to £300 million of
shares in the next twelve to twenty four months. This increased
commitment reflects the increased market capitalisation of
theCompany.
In last year’s Annual Report we noted that the discount had
closed from 15.4% at the end of financial year 2024 to 12.4% at
the end of March 2025. I am pleased to report that at the
31March 2026 year-end the discount had further closed to
8.2%, despite the pressure on share prices and ratings in
March resulting from the war in Iran.
01. Strategic Report
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 11
tenure. David’s wide-ranging experience in international
investment management has proven invaluable to the Board
and, on behalf of myself and my colleagues, I would like to
thank him for his many thoughtful insights, his incisive
questioning and the enthusiasm that he has brought to his
role over the last nine years.
At the time of writing, we are in the process of recruiting a new
Non-Executive Director and an announcement will be made
in due course.
Annual General Meeting (‘AGM’)
I am pleased to extend an invitation to all shareholders to join
us for our Annual General Meeting on 9 July 2026 at The
Minster Building, 21 Mincing Lane, London EC3R 7AG.
The AGM is the central component of the governance of your
Company where you have the opportunity of holding the
Directors and Managers to account. The Board values any and
all interactions with investors and it is disappointing that the
AGM is attended by so few people.
This year we have taken some steps to make the AGM more
accessible and to enhance the content with the objective of
encouraging more people to attend. If these prove successful,
we shall build on this in future years.
Firstly, as well as a presentation on emerging markets and our
portfolio by the Investment Managers, this year we have also
arranged a guest speaker, the highly respected financial
journalist, Jeff Prestridge. Until recently, Jeff was the Money
Editor-at-Large at the Daily Mail and Mail on Sunday, a
position that he held since 2023. He previously served as
Personal Finance Editor, having first joined the publication in
1994. His published articles have covered a broad range of
personal finance topics including investments and investment
strategy, pensions, tax and savings, mortgages, protection
insurance and investment trusts. In addition to his work at the
Mail titles, Jeff is a columnist and contributor to This is Money,
Interactive Investor and FT Adviser.
Secondly, this year, for the first time, the AGM will be available
live via an online streaming service. The Notice of AGM can
be found on page 108. Shareholders will be able to follow
proceedings and also to ask questions online. We will also
make a recording available on our website for those
shareholders who are not available at the time of the meeting.
Lastly, in common with many other listed companies, voting at
the AGM will be by means of a poll. This will make the formal
part of the meeting much more speedy and efficient than the
traditional show of hands for each vote, giving us more time
for presentations from our Portfolio Managers and guest
speaker. Whether or not you intend to attend the meeting in
person, you are strongly encouraged to submit your votes on
the AGM resolutions in advance of the meeting. Submitting
votes by proxy does not preclude you attending the meeting
or changing your vote if you do subsequently decide to attend
Revenue and dividends
Revenue earnings for the year under review were 5.39 pence
per share. At the half-year stage we paid an unchanged interim
dividend of 2.00 pence per share and we are also proposing
an unchanged final dividend of 3.25 pence per share which
will be subject to shareholder approval at the Annual General
Meeting (‘AGM’). The total dividend for the year will then be
5.25 pence per share and so again above the minimum
commitment set out above and fully covered by revenue
earned during the year.
Gearing
In January 2026 TEMIT renewed its £122 million multi-currency
revolving credit facility with The Bank of Nova Scotia, London
branch. The new loan facility is a rolling agreement and
commercial terms will be reviewed every three years. It
provides flexible debt which can be drawn in sterling,
USdollars (‘USD’) and offshore renminbi (Chinese Yuan,
‘CNH’). As at the end of March 2026, drawings were
£40million, USD 50 million (equivalent to £38 million) and
CNH 300 million (equivalent to £33 million).
In mid-September 2025, the Board announced that it had
authorised the Investment Managers to invest in equity
options and equity Contracts for Difference. These
investments will enable more flexibility and potentially lower
costs in managing the portfolio’s geared exposure to equities.
To accommodate this, minor changes were made to the
Company’s investment policy which did not require approval
by shareholders. The revised investment policy can be found
in this report on page 38 or on TEMIT’s website at
www.temit.co.uk/resources/literature. As at the end of March,
the Portfolio Manager had made three investments in covered
call options and these are described on page 40.
Stewardship
Since TEMIT was launched over 36 years ago, our Investment
Managers have always focused on the corporate governance
of investee companies, which we believe has helped many
companies to understand and attract international investors.
Over the years, the level of investor attention on sustainability
has grown and investment managers’ broader approach to the
stewardship of investors’ capital and the companies in which
they invest has come under increasing scrutiny. Our report on
this subject starts on page 33. For those interested in
exploring the subject in more depth, our Investment Managers
have in recent years produced a comprehensive, dedicated
Stewardship Report for TEMIT. This year’s report is published
simultaneously with this Annual Report and is available to
download at www.temit.co.uk.
The Board
David Graham will retire at this year’s AGM, having served as a
Director for nine years and in line with our policy on Directors’
01. Strategic Report
12
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
In memoriam
In April 2026 we were deeply saddened to learn of the passing
of Dr. Mark Mobius, a pioneer of emerging markets investing
and the founder of TEMIT.
Mark’s vision and leadership were instrumental in shaping the
Company from its launch in 1989, helping to establish it as the
UK’s leading emerging markets investment trust. Over many
years, his disciplined, on-the-ground approach to investing
and unwavering belief in the long-term potential of developing
economies defined the Company’s philosophy and success.
Widely regarded as “the father of emerging markets investing”,
Mark built not only a remarkable investment legacy, but also a
global perspective that continues to guide the Company
today. His commitment to deep research, local insight and
long-term value creation remains embedded in our approach.
Beyond his professional achievements, Mark was deeply
respected for his intellectual curiosity, cultural openness and
generosity of spirit. He inspired colleagues, investors and the
broader investment community alike.
We were also saddened to hear of the passing of two former
Directors of TEMIT. Sir Ronnie Hampel was a former Chairman
of TEMIT, leading the Company following a reconstruction in
2003 to December 2007. He will be more widely remembered
as a leading light in British Industry, having chaired ICI and
leading a report which was widely acknowledged as bringing a
pragmatic approach to modernising the function of company
boards of directors.
Hamish Buchan will be remembered as a major figure in the
investment trust industry. Having started work as an analyst in
the sector in 1969, he dedicated his career not only to
developing a deep understanding but also doing much to
improve investment trusts, in particular the information
available to investors. It is no surprise that later in his career he
was in high demand as a non-executive director and TEMIT
was fortunate to be able to secure his services.
Angus Macpherson
Chairman
2 June 2026
(a) See glossary of terms and alternative performance measures on pages 114 and 115.
(b) Source: IMF World Economic Outlook, April 2025.
the AGM. If you have any questions, please send these by
email to temitcosec@franklintempleton.com or via
www.temit.co.uk/investor/contact-us in advance of the
meeting. You are also welcome to use these contact details
should you have a question at any other time. Any questions
that we receive will be considered and, if appropriate,
responses will be provided on our website www.temit.co.uk.
Outlook
The Board and our Investment Managers believe that
emerging markets should form a larger part of both market
indices and investors’ portfolios. According to the World
Economic Forum, the markets in which TEMIT invest represent
around half of the world’s GDP
(a)
and provide 65% of total
economic growth
(b)
.
Sir John Templeton wrote “When I first started the Templeton
Growth Fund in 1954, I already instinctively knew that
international investing was the way to find the best bargain
stocks with the most appreciation potential, and to protect
myself from losses by being diversified”. The rebalancing of
economic power from the traditionally developed economies
appears, in the long term, to be inexorable. Against this
background an investment in emerging markets may well
move from being viewed as a useful diversifier of risk to a key
element of an investor’s portfolio, with the risk being missing a
multi-generational opportunity.
Whilst we acknowledge that there will be setbacks and returns
will certainly not be linear, the renewed interest in emerging
markets that I mention above could well be an early indicator
of the opportunities presented by emerging markets
beginning to bear fruit.
01. Strategic Report
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 13
The investment managers
TEMIT’s investment management is delegated
to Franklin Templeton Investment
Management Limited (‘FTIML’) and Templeton
Asset Management Ltd (‘TAML’) (together, the
‘Investment Managers’). Portfolio Managers
from FTIML and TAML form part of the wider
Templeton Global Investments (‘TGI’)
(a)
. TGI
have managed the portfolio since TEMIT’s
inception and are pioneers in emerging
markets equity investing. They bring more
than 18 years of average industry experience
along with local knowledge from over 100
investment professionals, based in
17countries around the world.
The team has a collaborative investment
process where all analysts and portfolio
managers work together to contribute to
investment returns. They meet regularly,
bothformally and informally, to debate and
exchange ideas, investment themes and
enrich their understanding of the markets
bydrawing on local insights to build a global
perspective and context to their thinking.
Theyalso benefit from the broader resources
available throughout Franklin Templeton.
The Portfolio Managers for TEMIT, Chetan
Sehgal (lead) and Andrew Ness, are senior
executives in TGI.
Portfolio Managers
Chetan is the lead Portfolio Manager of TEMIT and is based
inSingapore.
As part of his broader responsibilities in TGI, Chetan is also
the director of portfolio management. In this capacity, he is
responsible for the overall Global Emerging Markets strategies,
providing guidance and thought leadership, co-ordinating
appropriate resources and coverage, and leveraging the
group’s expertise to add value across products within
thestrategies.
Chetan joined Franklin Templeton in 1995 from Credit Rating
Information Services of India Ltd, where he was a senior analyst.
Chetan holds a B.E. Mechanical (Hons) from the University of
Bombay and a postgraduate diploma in Management from the
Indian Institute of Management in Bangalore, where he
specialised in finance and business policy and graduated as
an institute scholar. Chetan speaks English and Hindi and is a
Chartered Financial Analyst (‘CFA’) Charterholder.
Andrew Ness is a Portfolio Manager of TEMIT and is based in
Edinburgh. He also serves as Deputy Director of Research for
Templeton Global Investments.
Prior to joining Franklin Templeton in September 2018, Andrew
was a Portfolio Manager at Martin Currie, an Edinburgh based
asset manager. He began his career at Murray Johnstone
in 1994 and worked with Deutsche Asset Management in
both London and New York before joining Scottish Widows
Investment Partnership in 2007.
Andrew holds a B.A. (Hons) in Economics and an MSc in
Business Economics from the University of Strathclyde in
the UK. He is an Associate Member of the UK Society of
Investment Professionals and a member of the CFA Institute.
Chetan Sehgal
CFA
Andrew Ness
ASIP
(a) In 2022, Templeton Global Investments (‘TGI’) was formed, integrating the trading, investment risk, Asia research and business development functions of Franklin Templeton Emerging Markets
and Templeton Global Equity Group. Effective September 2025, the research teams of both groups were also fully integrated under TGI.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
The investment managers’ report
Review of performance
(a)
Emerging markets advanced over the 12 months ended 31 March 2026. Most of the financial year was fraught with negativity and
volatility, however emerging markets managed to overcome this. The MSCI Emerging Markets (Net Dividends) Index returned
26.8% in the 12-month period under review, while TEMIT delivered a net asset value total return of 41.3% (all performance figures
are net total return in sterling terms)
(b)
. Full details of TEMIT’s performance can be found on page 4.
The reporting period started with Liberation Day, when the US imposed tariffs on most of its trading partners. This was a sweeping
10% baseline tariff, alongside “reciprocal” duties reaching as high as 50% for specific trading partners. Trade negotiations
commenced, with China notably reacting with a “tit-for-tat” strategy, retaliating with matching tariffs. Most nations managed to lower
their levies. In February 2026, the US Supreme Court then ruled that these tariffs were unconstitutional, and as of end February 2026,
a 10% tariff rate was implemented across the board. Unlike the immediate aftermath of Liberation Day, where governments were
scrambling to negotiate the level of tariffs with the United States, US trading partners are now avoiding clashes over the new tariffs.
Geopolitical tensions remained elevated over the past 12 months. US-China trade frictions were more pronounced in the early
part of the period alongside the ongoing Russia-Ukraine conflict, with the Middle East unrest now emerging as the main
flashpoint. On the last day of February 2026, the United States and Israel launched co-ordinated air strikes inside Iran targeting
leadership, military infrastructure and strategic sites. Iran responded with missile and drone attacks, including on several Gulf
countries, pulling the wider region directly into the conflict.
The closure of the Strait of Hormuz, which serves as a crucial maritime chokepoint, has impacted oil prices and international trade.
This has resulted in higher risk aversion, pushed oil prices higher and raised the broader economic risk premium attached to
Middle Eastern assets. In totality, these conflicts have increased geopolitical risks in recent years and, beyond their direct impact,
have also contributed to volatility in commodity prices.
We remain watchful of these risks and incorporate them carefully into our investment decisions.
Artificial intelligence (‘AI’) continued to thrive in the 12-month period under review. AI is rapidly proliferating across sectors and is
expected to drive strong demand for AI computing for many years to come, which should be structurally positive for the entire AI server
supply chain. Some of the best performing emerging markets for this period were the technology-heavy markets of South Korea and
Taiwan, where market expectations of returns from expenditure on AI had a major part to play.
All EM regions, as measured by the MSCI Emerging Markets Index, advanced. The reasons behind each country’s equity market
performance are detailed below for TEMIT’s largest-weighted country exposures.
(a) All benchmark performance as per the MSCI Emerging Markets (Net Dividends) Index.
(b) See glossary of terms and alternative performance measures on pages 114 and 115.
(c) As at 31 March 2026.
Portfolio weighting 23.4%
(c)
Benchmark weighting 25.5%
(c)
TEMIT’s largest market exposure, although the portfolio remained underweight relative to the
benchmark. Chinese and Hong Kong equities rose by a net 1.5% in sterling terms over the 12-month
period. The first six months started out strong, when outperformance was mainly driven by the
notable easing of trade tensions with the United States, optimism in AI-related stocks and a drive to
relieve production overcapacity in several industries (also known as anti-involution). However,
fortunes changed in the last six months. The Politburo signalled a more restrained approach on
2026 stimulus, and the anti-involution drive lost momentum. Internet companies also weakened as
accelerating AI investments pressured near-term free cash flows amid uncertain return profiles.
Our approach to Chinese equities continues to be selective. Reviewing the macroeconomic
background, we have not yet observed any meaningful change in demand; and the declining
and ageing population remains a key structural challenge. Our largest exposure to Chinese
equities remains in internet platforms, which have strong cash generating core businesses and
are available at attractive valuations. Most of these platforms are now investing in AI to drive
additional growth as well as for cost efficiencies, although this will have an impact on medium
term cash flows for these companies. Over the period, we have also increased our exposure to
industrial companies. The global demand for power continues to rise, a trend accelerated by
the energy needs of data centres supporting the AI boom. This has created a surge in demand
for related infrastructure including energy storage batteries and related power equipment. We
have added to Chinese industrial companies that are at the forefront of this trend,
demonstrating leadership and experiencing strong growth in both their domestic market and,
increasingly, through exports. Similarly, Chinese Electric Vehicle (‘EV’) manufacturers are
leveraging their technological advantages to gain international market share, a trend that is
anticipated to continue throughout 2026.
China/Hong Kong
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Taiwan
Portfolio weighting 23.0%
(a)
Benchmark weighting 22.5%
(a)
TEMIT’s second-largest market exposure, where the portfolio was overweight versus the
benchmark. The Taiwanese equity market performed well and ended the 12-month period
with an impressive gain of 70.4% in sterling terms. The Taiwanese equity market has a tilt towards
the technology sector, and the strong global AI rally lent a helping hand.
The largest holding in TEMIT’s portfolio is Taiwan Semiconductor Manufacturing Company
(‘TSMC’), the global leader in semiconductor foundry. We have also added to other companies
in the AI Supply chain, such as makers of power supply units and of printed circuit boards.
South Korea
Portfolio weighting 22.0%
(a)
Benchmark weighting 15.5%
(a)
TEMIT’s third-largest market exposure, where the portfolio was overweight versus the
benchmark. South Korean equities surged by 117% in sterling terms during the reporting period.
This outperformance was led by the two leading semiconductor memory companies, driven by
strong demand and rising memory prices. Leading automotive companies provided further
support, bolstered by receding US tariff headwinds and optimism on their robotics businesses.
Geopolitical tensions outside South Korea resulted in increased military spending globally, and
this flowed to the optimism on the country’s defence companies. The industrials sector was the
second-best performing sector for the year.
The appointment of South Korea’s new president kicked off several market reforms, which were
conducive to the country’s equity market performance. These included amendments to the
Commercial Act to boost corporate governance and increase stock market valuation. This added
to an earlier government-led initiative that was launched in 2024, the ‘Value-Up’ Programme,
which encourages listed companies to strengthen their shareholder return policies. The
programme has been improved and strengthened since, which expanded corporate
governance disclosure among other points.
Our overweight position in South Korea includes companies that are positioned to capture
longer-term structural growth drivers in the form of semiconductors and AI (Samsung
Electronics and SK Hynix), the green transition (Samsung SDI and LG Corp), next-generation
mobility and robotics (Hyundai Motor) and the country’s dominant internet search platform
integrating e-commerce, payments and digital content (NAVER).
(a) As at 31 March 2026.
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India
Portfolio weighting 8.5%
(a)(b)
Benchmark weighting 12.6%
(a)
TEMIT’s fifth-largest market exposure. India’s equity market declined by over 15% during
the period as it faced several headwinds. US policy actions, notably doubled import levies
and increased non-immigration visa fees, weighed heavily on the market. The fee hikes on
visas combined with concerns over AI disruption to labour-intensive models pressured
software services equities. Furthermore, the Middle East conflict drove oil prices higher,
exacerbating fears of a widened current account deficit, margin compression and rising
headline inflation.
Despite these challenges, India’s underlying macroeconomic fundamentals improved.
While energy prices posed external risks, domestic core inflation remained manageable
and economic growth remained among the strongest across major economies. The
market also saw brief, policy-driven rallies, supported by structural reforms such as the
government’s overhaul of the GST regime.
As valuations moderated over the past year, we capitalised on attractive entry points to
initiate new positions in the portfolio. While India remains one of TEMIT’s largest absolute
country allocations, it is still underweight relative to the benchmark.
Other emerging markets
The emerging Europe, Middle East and Africa (‘EMEA’) region navigated a period of elevated geopolitical volatility in the past year.
Escalating tensions in the Middle East disrupted key shipping corridors and drove energy prices higher, weighing heavily on
equities in the Gulf states.
While these disruptions keep broader inflation risks in focus, the portfolio’s limited Middle East exposure and diversified
positioning mitigates idiosyncratic regional risk. We have historically maintained an underweight position to the MiddleEast given
its inherent sensitivity to volatile oil cycles. That positioning remains in place.
Mexican equities gained from a combination of factors such as a weaker US dollar and rising commodity prices. Its central bank
kept up with monetary easing during the year.
(a) As at 31 March 2026.
(b) TEMIT has indirect exposure to India through its holdings in Genpact and Cognizant Technology Solutions. If indirect exposure was included, TEMIT’s total exposure to India would be 10.5%.
Brazil
Portfolio weighting 9.5%
(a)
Benchmark weighting 5.1%
(a)
TEMIT’s fourth-largest market exposure, Brazil, delivered a robust 53% return over the reporting
period driven by the anticipation of the beginning of an interest rate cut cycle, which
commenced in March 2026, and low starting valuations. The country’s leading oil producer,
Petrobras (one of the top ten holdings in TEMIT’s portfolio), also saw a surge in its share price
towards the end of the period along with the increase in oil prices. However, the recent surge in
oil prices could dampen the pace of interest rate cuts.
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Performance Attribution Analysis %
Year to 31 March
2026 2025 2024 2023 2022
Net Asset Value Total Return
(a)
41.3 8.8 7.9 0.8 (17.3)
Expenses Incurred 0.9 0.9 1.0 1.0 1.0
Gross Total Return
(a)
42.2 9.7 8.9 1.8 (16.3)
Benchmark Total Return
(a)
26.8 5.8 5.9 (4.9) ( 7.1)
Excess Return
(a)
15.4 3.9 3.0 6.7 (9.2)
Stock Selection 9.8 2.7 0.3 7.3 (10.2)
Sector Allocation 4.9 1.6 2.1 (0.4) 0.8
Currency 0.7 (0.7) 0.3 (0.2) 0.2
Share Buyback Impact 0.8 1.2 0.5 0.2 0.0
Residual Return
(a)
(0.8) (0.9) (0.2) (0.2) –
Total Contribution 15.4 3.9 3.0 6.7 (9.2)
Source: FactSet and Franklin Templeton.
(a) A glossary of terms and alternative performance measures is included on pages 114 and 115.
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.
Investment strategy, portfolio changes
and performance attribution
The following sections highlight the drivers of TEMIT’s
performance over the 12-month period. We continue to
emphasise that our investment process selects companies
based on their individual attributes and ability to generate
attractive risk-adjusted returns.
Our investment philosophy is centred on seeking companies
with sustainable earnings power trading at a discount to their
intrinsic worth and to other investment opportunities in the
market. We see high levels of leverage as a risk, avoiding
companies with weak balance sheets.
As a bottom-up manager, the value-add that the team
provides to its clients stems from superior stock selection. We
focus on original, in-depth research of individual companies,
drawing rich investment insights from the full breadth and
depth of the investment platform, and we expect the dominant
driver of the portfolio to be stock-specific risk. Therefore, all of
our active decisions are made at the individual stock level, with
sector and regional weightings a residual of this process.
Our well-resourced on the ground analysts are a key
competitive advantage. Their local knowledge and language
skills are instrumental in identifying emerging trends in
markets including China, Brazil, and India. This local presence
gives us greater insight into business models, supply chains,
and competitive dynamics.
Input from our analysts is an integral part of the investment
process. Their conversations with regulators and company
management, views on industry trends and insights on
management capabilities are incorporated into our estimates
of a company’s earnings power. They also enable us to
separate short-term noise from long-term trends.
In the portfolio, we remain positioned in long-term themes
including AI-related supply chains, digitalisation, healthcare
and consumption. We remain focused on seeking and
investing in companies which reflect our investment
philosophy.
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This table sets out the results of a detailed analysis of the returns produced by individual securities in the TEMIT portfolio, and how
this has affected the overall returns produced by the portfolio compared with theoretical returns available from the benchmark index.
Top 10 Contributors and Detractors to Relative Performance by Security (%)
(a)
Top Contributors
Contribution to
portfolio relative
to MSCI Emerging
Markets Index Top Detractors
Contribution to
portfolio relative
to MSCI Emerging
Markets Index
Overweight
(TEMIT holds more than the index weight)
SK Hynix 6.2 ICICI Bank (1.7)
TSMC 1.7 Prosus (1.4)
Hyundai Motor 1.5 Genpact (1.0)
Samsung Life Insurance 1.2
Cognizant Technology
Solutions
(0.8)
Samsung Electronics 0.9
Budweiser Brewing
Company APAC
(0.7)
Grupo Financiero Banorte 0.9 Delivery Hero (0.6)
Itaú Unibanco 0.6 Bajaj Holdings & Investment (0.5)
China Merchants Bank (0.5)
ReNew Energy Global (0.4)
Underweight
(TEMIT has no holding or
aholdingsmaller than the index weight)
Meituan 1.0 Delta Electronics (0.8)
Xiaomi 0.9
Tencent 0.8
(a) For the period 31 March 2025 to 31 March 2026.
An overweight allocation to SK Hynix served the portfolio well.
SK Hynix is a leading semiconductor memory manufacturer in a
highly consolidated industry. Strong operating performance,
rising memory prices and expectations of strong demand
growth for high bandwidth memory (‘HBM’) used in AI chips
boosted the stock price. We expect this trend to continue and
hence maintain our conviction in the company.
A long-term holding of the portfolio, TSMC, was also among
the top contributors for the period. TSMC is a global leader in
advanced semiconductor logic chips which are used in a wide
variety of solutions, including AI servers, smartphones, personal
computers, automotive and industrial equipment. Its share
price advanced on strong earnings growth and optimism over
the company’s business outlook driven by growing demand for
AI chips. TSMC’s unrivalled leadership in advanced chip
manufacturing makes it a key beneficiary of the growth in
demand for AI chips.
Also finishing higher was Hyundai Motor, a South Korea-based
automobile company. It manufactures, sells and exports
passenger cars, trucks and commercial vehicles. Risks to its
operating environment dwindled due to a reduction in US
tariffs on South Korean automobiles. Its robotics affiliate
demonstrated advancements in humanoid robotics, which
triggered a sharp surge in the group’s share price. Our
investment thesis in Hyundai Motor is backed by its resilient
earnings and strong cash generation. It also offers exposure to
the humanoid robotics thematic through its stake in Boston
Dynamics.
ICICI Bank is a leading India-based private sector bank. The
share price traded sideways for most of the year post a strong
2024, impacted by sector headwinds of lower loan growth and
declining net interest margins. The share price further declined
in March 2026 along with the broader Indian equity market due
to macroeconomic headwinds driven by higher oil prices.
A weaker Indian rupee also impacted performance during
the period.
An off-benchmark holding in Prosus, a leading global
investment company and the largest shareholder of Tencent
(also held in the portfolio), was also a notable detractor. Prosus
also owns multiple food delivery platforms, classified
advertisements, payments and e-commerce companies. Its
share price largely moved in line with Tencent’s and fell over
the year. Prosus’ share price performance was also impacted
by capital allocation concerns over some of its recent
acquisitions.
Genpact is a US-listed technology services company that
derives much of its earnings from services provided from India.
The stock traded lower due to concerns around AI-related
disruption. While the near-term outlook appears steady, there
is uncertainty on the longer-term growth trajectory for the
industry. Genpact has deep industry expertise and has been
leveraging AI to develop new solutions as well as to lower costs.
While valuations are attractive and seem to factor in much of
the negativity, we remain watchful and continue to evaluate the
impact of AI on companies in the software sector.
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Templeton Emerging Markets Investment Trust plc 19
This table shows the contribution of the overall portfolio returns of the different sectors within the TEMIT portfolio relative to the
MSCI Emerging Markets Index.
Contributors and Detractors to Relative Performance by Sector (%)
(a)
Top Contributors
Contribution to
portfolio relative
to MSCI Emerging
Markets Index Top Detractors
Contribution to
portfolio relative
to MSCI Emerging
Markets Index
Overweight
(TEMIT holds more than the index weight)
Information Technology 8.5 Industrials (1.3)
Consumer Discretionary 3.0
Health Care 1.1
Underweight
(TEMIT has no holding or
a holding smaller than the index weight)
Financials 1.7 Materials (0.9)
Communication Services 1.1 Utilities (0.2)
Energy 0.5
Real Estate 0.3
Consumer Staples 0.3
(a) For the period 31 March 2025 to 31 March 2026.
Stock selection in the information technology, consumer
discretionary and financials sectors were key drivers of these
sectors’ relative contribution, but an overweight allocation to
information technology played a supporting role in boosting
TEMIT’s performance relative to the benchmark index during
the 12-month period under review. The overweight exposure to
information technology is largely due to the portfolio’s holdings
in semiconductor and AI supply chain companies. As the AI
investment theme accelerated, surging demand for AI-specific
chips and infrastructure provided a significant tailwind, driving
price appreciation for these holdings. Hyundai Motor led gains
in the consumer discretionary sector, while the financials sector
saw several top contributors: South Korea’s leading life
insurance company Samsung Life Insurance, leading
Mexicanfinancial institution Grupo Financiero Banorte and
Brazil retail-focused bank Itaú Unibanco.
In contrast, stock selection and allocations in the industrials,
materials and utilities sectors dampened TEMIT’s relative
performance. An underweight allocation in materials also ate
into returns. The weakness in the industrials sector was mainly
due to the portfolio’s off-benchmark holding in Genpact
(described above). A key cause of weakness in the utilities
sector was due to the portfolio’s holding in ReNew Energy
Global, a leading Indian green power company. Its share price
dropped after a member of the buyout consortium withdrew its
offer, leading to the cancellation of the proposal deal to take
the company private and delist it from US exchanges.
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This table shows the contribution of the overall portfolio returns by country relative to the MSCI Emerging Markets Index.
Contributors and Detractors to Relative Performance by Country (%)
(a)
Top Contributors
Contribution to
portfolio relative
to MSCI Emerging
Markets Index Top Detractors
Contribution to
portfolio relative
to MSCI Emerging
Markets Index
Overweight
(TEMIT holds more than the index weight)
South Korea 7.7 United States (1.8)
Taiwan 1.2 Thailand (0.5)
Philippines (0.2)
Underweight
(TEMIT has no holding or
a holding smaller than the index weight)
China/Hong Kong 2.4 South Africa (0.3)
India 2.0 United Arab Emirates (0.1)
Saudi Arabia 1.1
(a) For the period 31 March 2025 to 31 March 2026.
By market, stock selection and allocations in South Korea
(overweight) and China/Hong Kong (underweight) added to a
positive contribution from an underweight allocation to India.
Besides SK Hynix and Hyundai Motor, other South Korea-based
contributors included the country’s leading life insurance
company Samsung Life Insurance and Samsung Electronics,
one of the largest memory semiconductor manufacturers in
the world.
The largest relative detractor was the United States, due to
the portfolio’s holdings in Cognizant Technology Solutions and
Genpact. These companies are both US-listed companies that
derive much of their earnings from services provided from
India. We discussed Genpact above; Cognizant’s share price
decline was due to concerns around AI-related disruption.
Other detractors included Thailand and the Philippines,
largely due to stock selection, albeit to a smaller extent than the
United States.
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Outlook for emerging markets
The outlook for emerging markets equities is balanced
between structural tailwinds and persistent geopolitical risks,
resulting in a more selective and differentiated opportunity set
rather than a broad-based rally.
Geopolitical risks remain elevated and are increasingly
influential in shaping capital flows, commodity prices, and
investor sentiment. Growth dynamics also vary significantly
across regions and sectors.
In the past 12 months, we have experienced tensions in Asia
(between China and the West), the Middle East, and Europe
(Russia and Ukraine). The portfolio is relatively insulated to the
direct effects of turmoil in the Middle East and Europe region
due to our underweight exposure.
Visible supply chain disruptions, concerns over inflation and
underlying regional economic growth are some obstacles that
pertain to EM economies. Emerging Asia, in particular, is home
to several nations which are heavily reliant on energy imports.
Nations such as Indonesia, Thailand and the Philippines are
experiencing surging fuel subsidy costs to keep prices stable
and India, which is vulnerable to energy supply shocks, is
facing risks of higher inflation. However, these are issues that
the rest of the world faces as well, albeit to different extents.
US-China tensions remain a persistent feature of the external
backdrop. We believe that while there may be ups and downs
in the relationship between both countries, disagreements will
continue to feature. China, however, has shown that it has
been able to manage the strained relationship well, but we
think that the relationship is likely to remain fragile.
On the positive side, structural growth themes are evident,
with Artificial intelligence (‘AI’) being one of the key drivers.
While there have been bouts of volatility in the AI trade,
demand continues to expand. This is driven by increased
uptake, improvements in model performance and widening
productivity gains.
AI-related investment continues to support the broader
information technology sector. We believe that AI will continue
to have a strong investment case across major EMs, benefiting
companies across the supply chain including semiconductors,
electronics manufacturing services, power supply and printed
circuit board companies. This conviction drives our overweight
position in the information technology sector. These
companies are primarily in South Korea and Taiwan.
Besides traditional information technology enablers,
companies across many sectors are utilising AI to enhance
productivity and competitive positioning. Notably, Chinese
online platform companies are transitioning away from legacy
digital models, embedding proprietary AI tools directly into
their core e-commerce and entertainment offerings to drive a
more optimal user experience.
The electric power demands of AI are necessitating further
investments in grid infrastructure, power generation, and
energy storage. Chinese industrial companies across power
transmission equipment, energy storage, and data centre
engines are well-positioned to benefit from this cycle.
Domestically, several countries have implemented policies or
are in the midst of reforms. We believe that these could
provide us with an insight for the short and/or medium terms.
We list our outlooks for the larger EM countries below.
China
China’s central bank expects to ease its monetary policy in
2026 to support growth and domestic demand. China’s gross
domestic product (‘GDP’) growth target for 2026 is between
4.5% and 5%, and boosting domestic demand remains a top
priority. This has taken the form of renewal of consumer goods
trade-in programmes, and policies to support private
investment and consumer spending. However, structural
headwinds in China remain. These include a shrinking
population and an aging society. In addition, the
anti-involution campaign has lost momentum somewhat.
Worries over excessive competition in several sectors,
particularly e-commerce and food delivery, remain.
Brazil
Brazil’s anticipated monetary easing cycle commenced in
March, validating a core pillar of our macro recovery thesis.
However, the recent surge in the prices of oil and other
commodities could impact the pace of rate cuts. Beyond
structurally reducing corporate borrowing costs and alleviating
debt-servicing burdens, declining rates fundamentally
diminish the entrenched appeal of local fixed income
investments, catalysing a much-needed domestic capital
rotation back into risk assets. This dynamic could support
capital flow back into equities. Valuations remain attractive.
India
In 2025, the Indian government introduced a mix of monetary
easing and fiscal/tax measures to support demand, including
interest rate reductions and a major reform in its Goods and
Services Tax (‘GST’) regime, which resulted in lower tax rates
on consumer goods. With these moves, India has a suite of
pro-growth policies that should yield their full effects in 2026.
However, the Indian economy currently faces headwinds from
higher oil prices, which remains a key risk.
The Indian economy is characterised by its large domestic
market and limited dependence on trade exports. It has
favourable demographics, rising income levels and evolving
consumption patterns, which will drive discretionary spending
and demand for more premium offerings. However, there is
also a risk that technological advances in AI could adversely
affect job opportunities in the country. We remain selective as
we balance both the risks and opportunities in India.
Conclusion
In many ways, the uncertainties that we reported 12 months
ago have remained. These topics continue to dictate broader
market behaviour, resulting in near-term volatility and
short-term price dislocations. The macroeconomic
environment has been, and remains, decidedly tricky and
intertwined with a multitude of headwinds and risks.
We continue to abide by our investment approach and seek
opportunities across equity markets, focusing on companies
that, in our assessment, have long-term earnings power.
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Top 10 Holdings
As at 31 March 2026
Portfolio
Benchmark
%
Over/(Under)
weight %Holding £’000 %
TSMC
The world’s largest semiconductor foundry company, which is based in Taiwan. Optimism
regarding the growth potential from AI and a recovery in the demand for technology products
have sent its share price soaring. We maintain a positive long-term view on TSMC and the
semiconductor industry. AI can 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 essential components used in a myriad of industries.
425,276 16.6 13.3 3.3
SK Hynix
A South Korean semiconductor company and a maker of memory chips used globally across
a wide range of solutions. The company remains in a competitive position in high bandwidth
memory (‘HBM’) chips, which are expected to continue to enjoy strong demand. We maintain
our conviction, due to memory market tightness and SK Hynix’s leadership position in the
latest generation of the HBM market. The AI-driven memory cycle has led to a situation of
dynamic random access memory (‘DRAM’) and HBM demand outpacing supply. This
underpins strong pricing power and margin expansion. SK Hynix’s execution and technology
leadership has positioned the company to capture growth via adjusting its product mix and
capital expenditure. Together, these reinforce long-term capacity and competitiveness.
184,060 7.2 2.8 4.4
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. It is
one of the key manufacturers in the highly consolidated memory semiconductor industry and
is benefitting from strong growth in demand for HBM chips for AI accelerators. It also appears
to be increasing its share in the newer generation of memory chips for AI applications. At the
same time, its foundry business has seen improving order flows, reflecting rising customer
engagement.
166,512 6.5 5.7 0.8
Prosus
A leading global investment company and the largest shareholder of Tencent, a Chinese
technology company. We see Prosus as a good proxy for Tencent exposure and it is available
at a discount to its NAV. Besides Tencent, Prosus also owns multiple food delivery platforms,
classified advertisements, payments and e-commerce companies. Management’s efforts to
narrow the share price discount to NAV via share buybacks should also support returns.
83,012 3.2 – 3.2
ICICI Bank
A leading India-based private sector bank. Its share price had seen sustained appreciation
over a longer-term horizon but dropped in the last 12 months alongside the Indian equity
market. Despite recent fluctuations, the stock has delivered significant gains over a five-year
period. We believe that its strong franchise positioning leaves it well-placed to capture India’s
structural economic expansion.
67,284 2.6 0.7 1.9
Grupo Financiero Banorte
Grupo Financiero Banorte is a leading financial institution in Mexico. Given the large
percentage of unbanked population and rising digital payment penetration, we remain
optimistic on the growth prospects of Mexico’s banking sector. The bank generates positive
economic value via a structurally high return on equity driven by its scale in Mexican retail
and government banking, low-cost core deposits, disciplined pricing, and strong fee
generation. Shareholder returns are also compelling with a high dividend yield.
65,173 2.5 0.3 2.2
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Portfolio
Benchmark
%
Over/(Under)
weight %Holding £’000 %
MediaTek
MediaTek is a Taiwan-based chip designer for smartphones, computer peripherals,
application-specific integrated circuits (‘ICs’) and multimedia ICs. MediaTek has a solid
position in mobile computing chips and we believe that it should benefit from growth in
demand for chips from IoT (‘Internet of Things’), automotive, industrial, and wi-fi applications.
The company is also expanding its operations into a diversified compute-chip provider, with
additional growth potential from its emerging AI chip business via its partnership with Google
(not a portfolio holding) and other potential customers.
61,418 2.4 0.7 1.7
Itaú Unibanco
Itaú Unibanco is a Brazilian retail-focused bank providing a broad range of services such as
cards, loans and insurance. In our view, the bank has a high-quality franchise and strong
management team. The low penetration of financial products in Brazil provides an opportunity
for the bank to increase its market share via its strong distribution network. In a competitive
market, Itaú Unibanco has advantages thanks to its scale and is investing aggressively in
technology to stay ahead of the competition.
57,790 2.3 0.4 1.9
Petrobras
Petrobras is a Brazilian energy company engaged in the exploration, production, and
distribution of oil and gas. The company is recognised worldwide for its oil exploration
technology in ultra-deep waters. Our conviction hinges on the company’s efficient asset
base, characterised by a long reserve life and industry-leading production costs. These
operational advantages result in strong free cash flow and a high dividend yield.
55,550 2.2 0.8 1.4
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 one of
the key beneficiaries of AI across its business segments in China. Tencent has built its own
ecosystem, leveraging its user traffic, customer relationships, content and capital strength. AI
is expected to enhance Tencent’s existing core businesses of online games, advertisements
and fintech. The company’s AI strategy seems pragmatic, with a clear path to monetisation.
55,525 2.2 3.9 (1.7)
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Portfolio Changes by Country
Total Return in Sterling
Country
31 March 2025
Market Value £m Purchase £m Sales £m
Market
Movement £m
31 March 2026
Market Value £m TEMIT %
MSCI Emerging
Markets Index %
China/Hong Kong 549 154 (115) 13 601 6.5 1.5
Taiwan 335 52 (50) 253 590 78.3 70.4
South Korea 332 51 (211) 391 563 136.4 117.3
Brazil 172 20 (18) 68 242 49.9 53.1
India 293 83 (107) (51) 218 (21.5) (15.3)
South Africa 46 17 – 17 80 37.8 48.1
Mexico 43 5 (8) 25 65 72.6 53.8
United States 72 – (3) (17) 52 (23.8) –
Thailand 64 2 (37) 4 33 13.5 39.8
Chile 20 – – 9 29 49.0 39.4
Others 77 35 (32) 9 89 – –
Total Investments 2,003 419 (581) 721 2,562
South Africa
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Templeton Emerging Markets Investment Trust plc 25
Geographic Asset Allocation
As at 31 March 2026
Country Weightings vs Benchmark (%)
(a)
39.3
20.6
13.6
7.7
5.4
4 .5
3.0
2.8
2.4
2.1
0.8
0.8
3.5
1 .2
2.4
7.1
4 .3
7.9
7.1
10.2
31.8
21.5
0
5
10
15
20
25
30
35
40
45
Financials Communication
Services
Health Care Consumer
Staples
EnergyMaterials UtilitiesReal
Estate
Consumer
Discretionary
IndustrialsInformation
Technology
TEMIT
MSCI Emerging Markets Index
Sector Asset Allocation
As at 31 March 2026
Sector Weightings vs Benchmark (%)
(a) Other countries included in the benchmark are Colombia, Czech Republic, Egypt, Greece, Kuwait, Malaysia, Poland, Qatar, Romania and Saudi Arabia.
(b) TEMIT has indirect exposure to India through its holdings in Genpact and Cognizant Technology Solutions. If indirect exposure was included, TEMIT’s total exposure to India would be 10.5%.
(c) Countries not included in the MSCI Emerging Markets Index.
(d) All companies held by TEMIT in this country are valued at zero.
5.1
3.6
2.2
0.4
3.1
2.5
12.6
8.5
9.5
0
5
10
15
2
0
25
3
0
China/
Hong Kong
South Africa
United Arab
Emirates
Taiwan
South Korea
Brazil
India
(b)
Mexico
United
States
(c)
Thailand
Chile
Hungary
Russia
(c)(d)
Peru
Philippines
Turkey
Indonesia
23.0
22.0
22.5
15.5
23.4
25.5
-
2.0
1.1
1.3
1.1
0.5
1.1
0.9
0.3
1.3
0.5
0.4
0.4
0.9
0.3
-
0.5
0.0
0.3
TEMIT
MSCI Emerging Markets Index
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Portfolio by Fair Value
Holding
Sector Fair Value £’000
(a)
% of Portfolio
Brazil
Itaú Unibanco
(b)(c)
Financials 57,790 2.3
Petrobras
(b)
Energy 55,550 2.2
Vale Materials 47,735 1.9
Banco Bradesco
(b)(c)
Financials 43,447 1.7
TOTVS Information Technology 14,958 0.6
Hypera Health Care 12,759 0.5
XP Financials 9,651 0.3
241,890 9.5
Chile
Banco Santander Chile
(c)
Financials 29,061 1.1
29,061 1.1
China/Hong Kong
Prosus
(d)
Consumer Discretionary 83,012 3.2
Tencent Communication Services 55,525 2.2
Alibaba Consumer Discretionary 54,846 2.1
China Merchants Bank Financials 51,583 2.0
BYD Consumer Discretionary 51,382 2.0
Techtronic Industries
(e)
(Shares and Options) Industrials 43,419 1.7
WuXi Biologics Health Care 42,241 1.6
NARI Technology Industrials 31,006 1.2
Ping An Insurance Financials 28,085 1.1
Baidu Communication Services 25,254 1.0
Budweiser Brewing Company APAC Consumer Staples 21,843 0.9
NetEase Communication Services 21,350 0.8
Trip.com Consumer Discretionary 17,224 0.7
Weichai Power Industrials 15,787 0.6
Haier Smart Home Consumer Discretionary 13,029 0.5
Uni-President China Consumer Staples 12,307 0.5
Kuaishou Technology Communication Services 9,875 0.4
COSCO SHIPPING Ports Industrials 7,034 0.3
JD.com Consumer Discretionary 5,894 0.2
Daqo New Energy
(c)
Information Technology 4,857 0.2
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Templeton Emerging Markets Investment Trust plc 27
Holding
Sector Fair Value £’000
(a)
% of Portfolio
China/Hong Kong
Greentown Service Group Real Estate 3,269 0.1
Weifu High-Technology Consumer Discretionary 2,018 0.1
600,840 23.4
Hungary
Gedeon Richter Health Care 26,269 1.0
Wizz Air Holdings Industrials 1,171 0.1
27,440 1.1
India
ICICI Bank Financials 67,284 2.6
HDFC Bank Financials 37,325 1.5
Eternal
(f)
Consumer Discretionary 16,301 0.6
Bajaj Holdings & Investment Financials 14,862 0.6
Infosys Information Technology 12,413 0.5
ReNew Energy Global Utilities 11,931 0.5
Pine Labs Financials 8,737 0.3
Dr. Reddy's Laboratories Health Care 8,670 0.3
Niva Bupa Health Insurance Financials 7,002 0.3
MakeMyTrip Consumer Discretionary 6,934 0.3
Ather Energy Consumer Discretionary 6,234 0.2
ACC Materials 6,036 0.2
Federal Bank Financials 5,869 0.2
Brigade Enterprises Real Estate 5,469 0.2
Asahi India Glass Consumer Discretionary 1,864 0.1
Hemisphere Properties Real Estate 1,234 0.1
HDB Financial Services Financials 246 0.0
218,411 8.5
Indonesia
Astra International Industrials 10,501 0.4
10,501 0.4
Mexico
Grupo Financiero Banorte Financials 65,173 2.5
65,173 2.5
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Holding
Sector Fair Value £’000
(a)
% of Portfolio
Peru
Intercorp Financial Services Financials 11,779 0.5
11,779 0.5
Philippines
BDO Unibank Financials 10,736 0.4
10,736 0.4
Russia
LUKOIL
(g)
Energy 0.0 0.0
Sberbank of Russia
(g)
Financials 0.0 0.0
0.0 0.0
South Africa
Discovery Financials 40,846 1.6
Netcare Health Care 20,714 0.8
Harmony Gold Mining Materials 18,130 0.7
79,690 3.1
South Korea
SK Hynix Information Technology 184,060 7.2
Samsung Electronics Information Technology 166,512 6.5
Hyundai Motor Consumer Discretionary 50,597 2.0
LG Corp Industrials 39,432 1.5
NAVER Communication Services 26,486 1.0
Doosan Bobcat Industrials 21,151 0.9
Samsung Life Insurance Financials 19,054 0.8
Delivery Hero Consumer Discretionary 14,092 0.6
KakaoBank Financials 10,636 0.4
Misto
(h)
Consumer Discretionary 9,994 0.4
Hanmi Pharm Health Care 8,715 0.3
Samsung SDI Information Technology 8,557 0.3
Hankook Tire Consumer Discretionary 2,879 0.1
KT Skylife Communication Services 1,014 0.0
563,179 22.0
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Templeton Emerging Markets Investment Trust plc 29
Holding
Sector Fair Value £’000
(a)
% of Portfolio
Taiwan
TSMC Information Technology 425,276 16.6
MediaTek Information Technology 61,418 2.4
Hon Hai Precision Industry Information Technology 46,106 1.8
Lite-On Technology Information Technology 31,994 1.2
Zhen Ding Technology Information Technology 25,219 1.0
590,013 23.0
Thailand
Minor International Consumer Discretionary 11,849 0.5
Kiatnakin Phatra Bank Financials 9,999 0.4
Thai Beverage Consumer Staples 5,630 0.2
Star Petroleum Refining Energy 5,291 0.2
32,769 1.3
Turkey
BIM Birlesik Magazalar Consumer Staples 8,442 0.3
8,442 0.3
United Arab Emirates
Emaar Development Real Estate 10,092 0.4
Emirates Central Cooling Systems Utilities 6,862 0.3
Spinneys Consumer Staples 3,914 0.2
20,868 0.9
United States
Genpact
(i)
Industrials 26,805 1.0
Cognizant Technology Solutions
(i)
Information Technology 24,766 1.0
51,571 2.0
Total Investments at Fair Value 2,562,363 100.0
(a) Total portfolio fair value comprises equity investments of £2,562,364,000 less derivative liabilities of £1,000 per the Statement of Financial Position on page 84.
(b) Preferred shareholders are entitled to dividends before ordinary shareholders.
(c) US listed American Depository Receipt.
(d) Prosus is an investment group whose net asset value is predominately driven by its holding in Tencent.
(e) The gross asset exposure of Techtronic Industries is £43,471,000, respectively, comprising market exposure to equity investments of £43,420,000, plus market exposure to derivative instruments
of £51,000.
(f) Zomato was renamed Eternal.
(g) This company is fair valued at zero as a result of its trading being suspended on international stock exchanges. At 31 March 2026, the Company held 888,726 shares in LUKOIL and 10,954,600
shares in Sberbank of Russia.
(h) Fila was renamed Misto.
(i) This company, listed on a stock exchange in a developed market, has significant exposure to operations from emerging markets.
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
TEMIT Market Capitalisation Breakdown %
Less than
£1.5bn
£1.5bn to
£5bn
£5bn to
£25bn
Greater than
£25bn
31 March 2026 3.4 7.7 26.2 62.7
31 March 2025 3.6 9.2 27.7 59.5
Benchmark Market
Capitalisation Breakdown %
(a)
Less than
£1.5bn
£1.5bn to
£5bn
£5bn to
£25bn
Greater than
£25bn
31 March 2026 0.0 5.6 35.9 58.5
31 March 2025 – 9.3 37.6 53.1
Source: FactSet Research System, Inc.
(a) The MSCI Emerging Markets (Net Dividends) Index.
Chile
Chetan Sehgal
Lead Portfolio Manager
2 June 2026
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Templeton Emerging Markets Investment Trust plc 31
The investment managers’ process
Investment philosophy and approach
TGI’s long-term approach is driven by the 3 S’s, seeking
Structural
growth opportunities in emerging markets,
investing in businesses with
Sustainable
earnings power at
adiscount to intrinsic worth, and believing in responsible
Stewardship
of clients’ capital. TGI seeks to capture the
growth potential of emerging market companies and believes
that this is best achieved by employing a bottom-up and
fundamental security selection process. TGI conducts
in-depth proprietary company research with a long-term and
independent perspective. TGI believes in the responsible
stewardship of clients’ capital and that governance and
sustainability issues create risks and opportunities for
companies. ESG analysis is therefore integrated as a key
element of fundamental bottom-up analysis.
TEMIT’s performance in different
market environments
TGI’s approach aims for outperformance over the long term.
The investment strategy tends to produce stronger
performance when company fundamentals are the primary
driver for stock returns, where a focus on stock selection
should produce superior results. Performance may be less
strong in highly sentiment-driven market environments, when
investors focus more on the overall economic picture rather
than company fundamentals.
Idea generation
The key source of idea generation is TGI’s team of over
100 analysts and portfolio managers located around the
globe. Their experience and expertise allow them to
identify trends which they may want to explore further
through company research. In addition, TGI’s local
presence, network and understanding of local dynamics
may help to identify trends and opportunities that other
market participants may filter out through standard
quantitative screens. TGI analysts speak the local
language and are part of the local culture and fabric of
the countries where they conduct research.
1
This can also be the case when the market is overly short-term
oriented, and rewards companies driven by what TGI views as
unsustainable factors such as short-term demand/supply
imbalances or inorganic growth.
Investment process
The three broad stages of TGI’s investment process comprise:
idea generation, stock research, and portfolio construction
and management; with governance and sustainability
considerations and risk management fully integrated at all
stages.
South Korea
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Portfolio construction
TGI seeks to build a high-conviction stock-centric
portfolio that is primarily driven by company-specific
factors and focused on the long term. A bottom-up
approach to stock selection is used, with country and
sector allocations a residual of this process.
Portfolio style and characteristics
The strategy typically displays the following
characteristics:
Core style
The strategy aims to deliver outperformance
irrespective of market direction. The portfolio
construction process leads to the majority of
active risk being focused on stock selection,
not style or currency factors.
Quality and growth but not at excessive valuation levels
The philosophy typically leads to a portfolio
with higher quality and growth than the
aggregate of the benchmark index.
High conviction portfolio
The top 10 holdings typically account
forover 45% of the portfolio which
overall is well-diversified across the
market cap spectrum.
Low turnover
TGI’s high conviction and long-term
approach means that the typical annual
portfolio turnover is less than 20%.
Buy and sell discipline
TGI’s buy discipline is primarily designed to ensure that
the portfolio managers buy when they have both
conviction in a business and it is trading below its intrinsic
value; TGI’s sell discipline is designed to capture the
opposite. All holdings are regularly reviewed to ensure
that analyst recommendations are up to date and
accurately reflect any changes in company fundamentals.
In this way, ongoing fundamental research drives all buy
and sell decisions.
3
Stock research
TGI analysts conduct rigorous analysis to assess whether
a company has sustainable earnings power, and to
establish a proprietary estimate of its intrinsic worth. By
integrating ESG analysis with traditional business and
financial analysis, TGI seeks to gain insights into the
quality and risks of companies. TGI’s research platform
currently has coverage of over 1,200 companies of which
over 700 are in emerging markets countries using a
proprietary and rigorous bottom-up research approach,
along with extensive knowledge of the wider investment
universe.
TGI’s research analysts form detailed views of companies
by collecting and analysing a variety of information. The
team conducts detailed quantitative financial analysis by
building in-depth company models to evaluate financial
strength and profitability, and to project future earnings
and cash flow. Industry demand and supply models are
incorporated in the analysis, as well as country and
currency macro considerations. TGI has a strong
emphasis on qualitative assessment.
The assessment of a company’s ability to sustain stable
or growing economic profits over time is typically driven
by a combination of factors, including (i) sound business
models; (ii) sustainable competitive advantages;
(iii)management foresight; and (iv) low debt levels.
Earnings power is the demonstrable ability to generate
sustainable economic profit into the future in areas
which could be beyond the current scope of operations.
The analysts look for real earnings growth by focusing on
economic earnings and cash flows rather than reported
earnings and differentiating between operational
earnings and financial earnings. They evaluate internal
versus external drivers to earnings and prefer companies
with earnings which can be affected through
management action.
A key element of earnings power is therefore quality,
assignified by (i) products and services with low
regulatory and macro risk; (ii) financial strength; and
(iii)management strength.
Each research recommendation may incorporate several
valuation methods extending typically over a three to
five-year horizon. TGI aims to clarify the risk/reward
balance of a company by conducting sensitivity analysis,
stress-testing, and scenario analysis. It seeks to identify
what the market consensus expectations are for a stock
and how the team’s fundamental views may differ.
2
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Templeton Emerging Markets Investment Trust plc 33
Investment risk management
Investment in emerging markets equities involves exposure to a
volatile asset class and therefore entails a higher degree of risk.
Franklin Templeton applies a comprehensive and integrated
approach to risk management across its portfolios, which is
embedded throughout all stages of the investment process.
Investment risks are intentionally taken and clearly identified
rather than indiscriminately minimised. Risk management is
implemented in close collaboration with dedicated resources
from Franklin Templeton’s Investment Risk Management Group,
which operates independently from the portfolio management
team. A range of risk management tools is employed to
anticipate, measure and decompose the portfolio’s active risk,
supporting a clear understanding and ongoing management of
the portfolio’s active risk profile.
For additional information with respect to the AIFM
risk management framework, please read the
Investor Disclosure Document on our website
(www.temit.co.uk).
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 particular sustainable
targets (e.g., carbon reduction) or objectives.
Being responsible stewards of our clients’ capital is reflected in:
How we act as investors
•
ESG research integration
•
Company engagement and proxy voting
•
Policy advocacy
How we treat our clients
•
Putting clients first
•
Being responsible fiduciaries of our clients’ capital
How we behave as a business
•
Building relationships
•
Working with integrity
Integrating ESG factors
As part of TEMIT’s stock research process, ESG factors are
researched alongside other important factors, such as
company earnings power, competitive positioning and
management quality. These factors are likely to impact
materially on the operating performance or financial
conditions of a company. This deepens our understanding of
the companies we research; it also guides us in our
engagement activities over a range of issues, better informing
our research insights as we strive to protect shareholder value.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Our proprietary three-pillar ESG research
framework is an assessment tool that has
further enhanced our ability to identify
financial risk and opportunities.
3
Pillars
Operations
Assessing companies’ commitment to managing material ESG
risks and their long-term growth prospects and considering
ESG factors in our valuation models.
Alignment
Assessing the alignment of companies’ products and services
to positive social and environmental outcomes.
Engagement
Identifying companies’ potential for change and monitoring
their incremental progress, using our on-the-ground capabilities
and experience as active owners to foster positive change.
Please find below a case study of a company’s commitment to
manage the ESG footprint of its operating model from the full
TEMIT Stewardship Report 2026 to give shareholders a
snapshot of the typical operations analysis undertaken. Case
studies of alignment and engagement can also be found in the
full TEMIT Stewardship Report 2026 at www.temit.co.uk.
The case study in this section aims to showcase our ESG
research, focusing on a company that is a larger weight in
theportfolio.
(a)
Source: SK Hynix Sustainability Report 2025.
Operations case study: Environmental SK Hynix
South Korean semiconductor company SK Hynix is among the
global leaders in memory chip production.
Materiality and Risk:
Natural resources and carbon footprints are financially material to
semiconductor manufacturing. Advanced chip manufacturing
requires significant volumes of electricity and ultra-pure water,
increasing exposure to power price volatility, carbon regulation and
water stress. As climate policy tightens and customers demand
lower-carbon supply chains, companies face rising transition risks.
These may include higher operating costs, additional capital
expenditure and production disruptions.
ESG Thesis:
SK Hynix has a strong focus on climate transition and energy
management, recognising carbon and electricity intensity as
critical risk factors. It has implemented several initiatives to reduce
operational emissions and improve energy efficiency
(a)
:
•
SK Hynix has committed to achieving Net Zero by 2050 and
maintaining Scope 1 and 2 emissions at the 2020 levels
through to 2030, despite expected production growth
driven by AI demand.
•
The company is actively reducing high-GWP (Global
Warming Potential) process gas usage through optimisation
and alternative gas adoption. Abatement systems are also
being improved, with scrubber enhancements pushing
treatment efficiency up to 99%.
•
Energy efficiency initiatives delivered 350 gigawatt-hour
(GWh) of savings in 2024, exceeding internal targets. This
was enabled by ISO 50001-certified energy management
systems and AI-enabled optimisation.
SK Hynix has developed a robust strategy to manage climate
transition risks, embedding oversight at the board and
executive level while linking operational decarbonisation,
renewable procurement and product energy efficiency
improvements to long-term competitiveness.
Business Thesis:
SK Hynix is among the top two global DRAM memory leaders
by sales volume. It commands strong competitiveness and
technological leadership in High Bandwidth Memory (HBM),
a critical component for AI data centers. While the memory
industry remains structurally volatile given its history of
supply-demand mismatches, consolidation across the DRAM
and NAND markets is gradually improving industry structure.
At the same time, DRAM is evolving towards customisation for
specific customer requirements, alongside the rapid growth
of HBM driven by AI applications. These trends are
reinforcing each other and should support a more stable
earnings outlook for the memory market.
FPO
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Templeton Emerging Markets Investment Trust plc 35
TEMIT’s research process includes a structured analysis of 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 (e.g., carbon reduction) or objectives.
Climate Change
Emerging market (EM) 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 for company research incorporates both local and
global perspectives, recognising that the pace of
decarbonisation and the associated strategies will differ globally.
Our investment process incorporates top-down policy and industry
studies, bottom-up company research and comprehensive ESG
analysis including climate considerations, all of which help to
deepen our research insights. Factoring material environmental
issues into our company forecasts can lead to adjustments in
growth projections, margin expectations or discount rates. In
addition, as active stewards of our clients’ capital, engagement is a
key tool that enables us to understand and facilitate a company’s
sustainability journey, where financially material, which is supported
by a local footprint and access to management.
We do not rule out investing in companies in carbon intensive
sectors, such as cement, steel, industrials and extractive industries.
As a material sustainability issue, carbon emissions management
can impact a company’s business model in various ways, including
carbon taxes, technology upgrades and compliance costs.
Climate Risk
The following case study discusses climate-related risks through
our research of a large absolute carbon emitter.
Climate risk case study Petrobras
Petrobras is a government-controlled oil and gas company in Brazil.
Materiality and Risk:
Climate risks are highly material for oil and gas companies.
Given the sector’s carbon-intensive nature and long-lived
assets, climate-related developments, such as changes to
climate policies, carbon pricing and technologies, have the
potential to materially impact the financial performance,
capital allocations, and asset viability of oil and gas
companies over the medium to long term.
ESG Thesis:
Petrobras has implemented several initiatives to address its
climate impact risks:
(a)
•
Petrobras targets net zero operational emissions by 2050, net
zero growth in operational emissions by 2030, and near net zero
methane emissions by 2030. It links emissions performance to
the variable compensation of all employees, including senior
management. Additionally, it seeks to influence partners to adopt
a 2050 net zero ambition for non-operating assets.
•
Petrobras positions carbon capture and reinjection as a core
strategic lever, targeting continued growth in offshore CO₂
reinjection capacity.
(a)
Source: Petrobras Sustainability Report 2024.
•
US$16.3bn (15% of capital expenditure) was allocated to
decarbonisation, exploring hydrogen, biofuels, renewables and
CCUS (carbon capture, utilisation and storage) technologies.
Low-carbon R&D is expected to hit 30% of total R&D by 2029.
•
The company is meanwhile expanding into carbon-neutral
gasoline and renewable diesel, while developing sustainable
aviation fuel and bioenergy value chains.
Petrobras has demonstrated a strengthening commitment to
addressing emissions across its value chain, notably through
diversification into alternative fuels and the establishment of
near- and long-term operational targets. This signals a
recognition of transition risk and the need to align strategy with
decarbonisation pathways. However, given that use-phase
emissions (Scope 3 Category 11) constitute most of its overall
footprint, a more explicit ambition for value chain emissions
would enhance credibility. Setting quantified medium- to
long-term targets linked to the company’s outlook on
affordability, availability and demand for alternative fuels would
provide greater transparency on how its portfolio evolution is
expected to translate into real-world emissions reductions.
Business Thesis:
Petrobras holds a portfolio of high-quality, long-life oil
reserves supported by structurally-low lifting costs. This
underpins strong cash generation resilience. The company
benefits from leading deep and ultra-deepwater expertise,
which sustains competitive production economics, alongside
a sizeable and efficient refining system. It maintains a solid
proven reserve base and has emerged from a multi-year
turnaround and deleveraging phase with a strengthened
balance sheet, positioning it to support disciplined capital
allocation and attractive shareholder returns. The investment
case assumes moderate long-term oil prices and modest
production growth, supported by continued capital discipline.
Compared to its oil and gas sector peers, Petrobras has strong
disclosure of its environmental risks, which has been reflected
in the discount rate applied to its discounted cash flow.
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Effective engagement
We define effective engagement as a targeted dialogue with a
company or regulator that seeks changes or improved outcomes
related to financially material ESG topics as well as their disclosures.
Each ESG engagement must have a specific and clearly-defined
objective to measure progress against. This interaction entails a
sustained, medium- to long-term dialogue, typically conducted
through management meetings or written communications.
We may also reach out to gather ESG-related information, as part
of our efforts to monitor investee companies’ strategy and
practices. Collectively, our engagement activities provide a
strong foundation for TGI to build relationships with companies
as co-owners, which will in turn inform our investment processes
and drive long-term value creation for our clients.
ESG Discussion ESG Engagement
Clarifying View Seeking Change or Improved Disclosure
This is a targeted interaction to gather
material ESG information through a
company call, meeting or a one-time
short-term discussion.
This is a targeted interaction to influence change related to financially material ESG
topics and risks, including improved ESG disclosures. Each ESG engagement must
have a specific and clearly defined objective to measure progress against. This
interaction entails a sustained, medium-to long-term dialogue.
Our engagements are often with decision makers who can affect positive changes at the board or senior management level; subject-matter
experts may also be involved. We adopt a non-adversarial engagement approach, aiming for mutually beneficial outcomes if possible.
Engagement statistics
We focus our time and efforts on material issues that affect the
sustainability of earnings, and a company’s operating model,
including strategy. Our analysts are in continual dialogue with
companies on a range of topics, including operational
performance, competition landscape, business outlook and
company financials, to name a few. There are also companies
which we identify where we believe that dedicated discussions
and engagements on ESG topics can impact long-term
performance. Please see below a report on the nature and
outcome of these meetings, where relevant. Given our long-
term outlook, we build strong relationships with our investee
companies as co-owners on our clients’ behalf.
For the 12 months ended 31 March 2026, of the 353 company
engagements (including repeated meetings with certain
companies), there were 27 tagged ESG interactions (14 ESG
discussions and 13 ESG engagements) where detailed
interactions were conducted with an investee company.
Below is an ESG engagement example with an investee
company in South Korea.
Company: Objectives:
Samsung SDI
(Korea)
Global leader in
advanced
battery and
materials
solutions
We have been engaging Samsung SDI
on the potential disposal of its non-core
holding, Samsung Display. While the
disposal may be challenging to achieve
without affecting the group structure,
the stake is valued at approximately
KRW5 trillion and may provide capital to
support the company’s expansion in the
electric vehicle battery market, which
may be accretive to shareholder returns.
ESG engagement
topic:
Outcome: Dialogue taking place between
TGI and entity
Corporate
governance –
Shareholder
protection and
rights
In March 2025, we wrote a letter to
Samsung SDI, expressing our concerns
regarding the dilutive impacts of new
share issuance and encouraging the
company to monetise its stake in
Samsung Display. The company
acknowledged that they were considering
a stake sale. In October 2025, when we
enquired about its plans for asset disposal,
the company responded that there was
no definitive timeline for the potential
disposal, contrary to what was said in its
1Q25 earnings announcement. There was
no progress following this exchange until
the beginning of 2026, when the
company shared that the disposal of its
Samsung Display stake would remain a
key priority. We will continue to engage
the company on its progress here.
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc 37
Percentage figures rounded to the nearest whole number.
Source: ISS
“Other” votes were instances where we have abstained a vote
due to a lack of disclosure on director election candidates.
The number of resolutions proposed by shareholders (as distinct
from a company’s governing board) is increasing around the
world, particularly on environmental and social issues, although
they remain relatively uncommon in emerging markets. We
encountered several governance-related shareholder proposals
over the year. For TEMIT’s portfolio, we voted “For” on 37
governance related shareholder proposals, representing 65% of
all votable shareholder proposals. These were across several
categories, such as director elections and company articles. We
will continue to closely examine the merits of views raised by
fellow shareholders and vote accordingly.
We encourage you to download the full TEMIT Stewardship
Report 2026 from www.temit.co.uk for further, detailed information.
Below is an ESG discussion example with an investee
company in India.
Company: Materiality
Eternal (India)
Indian online
food delivery
and quick-
commerce
company
Fleet electrification is financially
material to Eternal, which is dependent
on a large delivery network, with fuel
costs and regulatory exposure related
to recent labour law reforms directly
affecting its margins. Additionally, slow
progress towards EV adoption may
impact its emissions profile and the
credibility of its climate commitments.
ESG discussion
topic:
Discussion
Environmental –
Transition risk
We sought an update from Eternal on its
progress towards its stated target of
transitioning to a 100% EV delivery fleet by
2030. Management indicated that EVs
currently account for approximately 15% of
its fleet, citing constraints including limited
charging infrastructure, high upfront
vehicle costs, and financing barriers that
are slowing commercial adoption of
electric two-wheelers. The current pace of
adoption suggests execution risks relative
to the 2030 target. We will continue to
engage with Eternal to assess the
credibility of its transition pathway,
including interim milestones, capital
allocation, and measures to address
structural barriers to scaling up.
Proxy voting
In the year ended 31 March 2026, we voted on over 1,100
management proposals at annual and special general
meetings for TEMIT. Most of the proposals which we voted on
were related to companies’ director appointments, routine
business proposals and capital structure-related proposals.
Of the votable management proposals, we voted “For” proposals
86% of the time and “Against” in another 13%. By proposal
category, as a percentage of votes within each category and
where we had a total of more than 20 votes, our votes against
For
Against
Other
85.6%
12.7%
1.7%
were largely concentrated on capital structure, management
compensation, company articles and director-related matters.
To ensure best practices, we referred to recommendations by
third-party proxy voting services, such as ISS, where
appropriate. However, we believe that we are also positioned to
make our own assessments and judgements, in instances where
we are better informed by our own research and interaction with
management. We view votes against proposals as a formal way
to communicate our views to management, and we do this
based on our investment team’s assessment of each motion, in
line with our clients’ best interests.
Voted on Over 1,100
Management Proposals
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Business review
Strategy and business model
Company purpose and objective
TEMIT’s purpose is to provide both private and institutional
investors with the opportunity for capital appreciation via a
professionally managed vehicle focused on listed equity
investments in emerging markets.
The objective of TEMIT is to provide long-term capital
appreciation via exposure to global emerging markets,
supported by a culture of both strong customer service and
corporate governance.
Investment policy
The Company seeks long-term capital appreciation through
investment in companies in emerging markets or companies
which earn a significant amount of their revenues in emerging
markets but are domiciled in, or listed on, stock exchanges in
developed countries (‘Emerging Markets Companies’).
It is expected that the majority of investments will be in listed
equities. However, up to 10% of the Company’s assets may be
invested in unlisted securities. In addition, while it is intended
that the Company will normally invest in equity instruments, the
Investment Managers may invest in equity-related investments
(such as convertibles or derivatives which are financial contracts
whose value is linked to the price of shares and include equity
options and equity contracts for difference) where they believe
that it is advantageous to do so including for gearing purposes.
The portfolio may frequently be overweight or underweight in
certain investments compared with the MSCI Emerging
Markets (Net Dividends) Index (the ‘Benchmark’) and may be
concentrated in a more limited number of sectors or
geographical areas than the Benchmark. Investments may be
made in Emerging Markets Companies outside the Benchmark
that meet the investment criteria.
Whilst there are no specific restrictions on investment in any
one sector or geographic area, the portfolio will be managed
in a way which aims to spread investment risk. The portfolio will
typically contain between 50 and 100 individual stocks but
may, at times, contain fewer or more than this range. No more
than 12% of the Company’s assets will be invested in the
securities of any one issuer at the time of investment, save that
any investment in unlisted securities of any one issuer will be
limited to no more than 2% of the Company’s assets, measured
at the time of investment.
The maximum borrowing (including any gearing generated
through investing in derivatives) will be limited to 20% of the
Company’s net assets, measured at the time of borrowing.
No more than 10%, in aggregate, of the value of the
Company’s assets will be invested in other listed
closed-ended investment funds.
In accordance with the UK Listing Rules, the Company will not
make any material change to its published investment policy
without the prior approval of the UK’s Financial Conduct
Authority (‘FCA’) and the approval of its shareholders by
ordinary resolution. Any material change would be announced
by the Company through a Regulatory Information Service.
Distribution policy
The Company will ensure that its total annual dividends will be
paid out of the profits available for distribution under the
provisions of the relevant laws and regulations and will be at
least sufficient to enable it to qualify as an investment trust
under the Corporation Tax Act 2010 and the ongoing
requirements of The Investment Trust (Approved Company)
(Tax) Regulations 2011. If the Company has received an
exceptional level of income in any accounting year, the Board
may elect to pay a special dividend. The primary focus of the
investment policy is on generating capital returns, the
Company does not target a particular level of income and
there is no guarantee that dividend levels will be maintained
from one year to the next.
The Company will normally pay two dividends per year, an
interim dividend declared at the time when the half yearly
results are announced, and a final dividend proposed at the
time when the annual results are announced. The final
dividend will be subject to shareholder approval at the AGM
each year.
The Company may also distribute capital by means of share
buybacks when the Board believes that it is in the best interests
of shareholders to do so. The share buyback programme will be
subject to shareholder approval at each AGM.
Business model
The Company has no employees and all of its Directors are
non-executive. The Company delegates its day-to-day
activities to third parties.
Since 1 October 2021, Franklin Templeton Investment Trust
Management Limited (‘FTITML’, ‘AIFM’ or the ‘Manager’) has
been the Company’s AIFM and Company Secretary.
The Board is responsible for all aspects of the Company’s
affairs, including the setting of parameters for the monitoring
of the investment strategy and the review of investment
performance and policy. It also has responsibility for
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc 39
Strategy
The Company seeks to achieve its objective by following a
strategy focused on the following:
Performance
At the heart of the strategy is the appointment and retention of
capable investment management professionals, whose aim is
to identify value and to achieve superior long-term growth for
shareholders. TGI, under the leadership of Chetan Sehgal,
continues to apply the same core investment philosophy that
has driven TEMIT’s performance since the Company’s launch.
The investment team aims to achieve long-term capital
appreciation for shareholders seeking exposure to global
emerging markets by investing in companies that they believe
offer the potential for long-term sustainable growth and good
value, combined with strong management and sound
governance.
Investment Process and Environmental, Social and Governance
(‘ESG’) Considerations
As part of TEMIT’s stock research process, ESG factors are
researched alongside other important factors, such as
company earnings power, competitive positioning and
management quality. These factors are likely to impact
materially the operating performance or financial conditions of
a company. This deepens our understanding of the companies
we research; it also guides us in our engagement activities
over a range of issues, better informing our research insights,
as we strive to protect shareholder value.
As TEMIT is an investment trust, the key ESG consideration is
the stewardship of its portfolio of investments. The Board has
reviewed and fully supports TGI’s approach to stewardship
and receives regular reports on Franklin Templeton’s
policiesandcontrols.
TEMIT has no greenhouse gas emissions to report from the
operations of the Company, as all of its activities are
outsourced to third parties. While as an investment trust TEMIT
is exempt from disclosures recommended by the Task Force
on Climate-related Financial Disclosures (‘TCFD’), Franklin
Templeton continues to develop metrics for our carbon
footprint. Further information on our approach to stewardship
and climate change can be found under Stewardship starting
on page 33 of this report and in more detail in the full
Stewardship Report, available on our website (www.temit.co.uk).
Information on the Company’s approach to Diversity is set out
in the Directors’ Report on page 54.
Liquidity
The shares issued by the Company are traded on the London
and New Zealand stock exchanges. The Company has
engaged Winterflood Securities and JP Morgan as joint
financial advisers andstockbrokers.
Covered Call Options
The portfolio managers have the
ability to invest for TEMIT in
‘covered call options’ with the aim of increasing returns for
shareholders.
A call option gives the buyer the right to buy shares in an
underlying company at a fixed price at some point in the
future. The fixed price is called the ‘strike price’. By selling
(or‘shorting’) a covered call option, TEMIT sells to a
counterparty the right to buy some of the shares that it owns.
When TEMIT sells a covered call option, it receives an amount
(the ‘premium’) from the buyer in exchange for the buyer
obtaining the right to buy the shares at the stri
ke price.
TEMIT has no employees and is not an organisation that
provides goods or services as defined in the Modern Slavery
Act 2015 and thus the Company considers that the Act does
not apply. The Company’s own supply chain consists
predominantly of professional services advisers.
Culture and Values
The Board believes in a culture of openness and constructive
challenge in its interactions with the Manager and other
service providers. The Board aims to maintain open and
regular communication with shareholders, as set out under
Communication on page 42.
The Company is committed to acting professionally, fairly and
with integrity in all of its business dealings and relationships. The
Board has a zero-tolerance policy towards bribery and looks to
ensure that its service providers and associated persons have
effective policies and procedures designed to actively prevent
bribery which are proportionate, and risk based. In relation to
the corporate offence of failing to prevent tax evasion, it is the
Company’s policy to conduct all business in an honest and
ethical manner. The Company also takes a zero-tolerance
approach to any facilitation of tax evasion whether under UK law
or under the law of any foreign country. The Board notes that
the Manager has a robust whistleblowing policy in place.
overseeing all strategic policy issues, namely dividend,
gearing, share issuance and buybacks, share price and
discount/premium monitoring, corporate governance matters
and engagement with all of the Company’s stakeholders.
01. Strategic Report
40
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
A covered call option has a fixed life, with the final date of its
life called the ‘maturity date’.
•
If on the maturity date the share price is below the option
strike price, then the call option will expire. TEMIT will have
received the option premium, enhancing investment returns,
and will still own the underlying shares.
•
If on the maturity date the share price is above the option
strike price, then the owner of the option has the right to buy
the shares under the option at the fixed strike price. If this
happens, then TEMIT will have sold the return on the shares
above the strike price, but it will have received the option
premium.
The effect of covered call options then is that TEMIT receives
an option premium but the upside on the returns on the
underlying shares is limited to the option strike price as shown
in the diagram.
Option Premium
0
Return on Covered Ca
ll
Profit
Underlying Share Price
Return on Underlying Share
M
ax profit (limited)
Strike
Price
If the price of the shares underlying a call option increases to
the strike price or above, in practice TEMIT’s fund managers
will make a decision on whether to reinvest by (re)buying the
shares. This will depend on their views on the likely further
upside at the time and the company’s prospects will be
reassessed, as the prospects of all companies in the portfolio
are regularly reassessed as new information comes to light.
As at 31 March 2026 TEMIT had written covered call options in
Techtronic Industries. During the year the Company also wrote
covered call options in Alibaba, which expired in March, and
Baidu, which were bought back prior to maturity.
Gearing
Fixed Term Loan
On 31 January 2020, the Company entered into a five-year
£100million loan at a fixed rate of 2.089% with Scotiabank
Europe plc. The loan was repaid in full at its maturity on
31January 2025. The fixed term loan was denominated in
pounds sterling and is disclosed in Note 11 of the Notes to the
Financial Statements on pages 96 and 97.
Revolving Credit Facility
On 30 January 2026, the Company entered into a £122 million
multi-currency revolving loan facility with The Bank of Nova
Scotia, London Branch. This loan facility is a rolling agreement
with the option to terminate after one year and commercial
terms will be reviewed every three years. Drawings may be in
sterling, US dollars (‘USD’) or Chinese renminbi (‘CNH’). As at
31 March 2026, tranches of £40 million, USD50 million and
CNH 300 million were drawn down from this facility. Further
details of the facility are set out in Note 11 of the Notesto the
Financial Statements on pages 96 and 97.
The Company had no other debt as at 31 March 2026. The net
gearing position was 1.2% (net of cash in the portfolio) at the
year-end (2025: 0.2%)
(a)
.
The Board continues to monitor the level of gearing and
currently considers borrowing of up to 20% of net assets to be
appropriate, measured at the time of borrowing.
Affirmation of Shareholder Mandate
In accordance with the Company’s Articles of Association, the
Board must seek shareholders’ approval every five years for
TEMIT to continue as an investment trust. This allows
shareholders the opportunity to decide on the long-term
future of the Company. The last continuation vote took place
at the AGM on 11 July 2024, when 99.3% of the votes cast were
registered as votes in favour. The next continuation vote will
take place at the 2029 AGM.
(a) A glossary of terms and alternative performance measures is included on pages 114 and 115.
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc 41
Stability – Share Buybacks and Conditional Tender Offer
The Company has powers to buy back its shares as a discount control
mechanism and when this is in the best interests of the Company’s
shareholders and has a Conditional Tender Offer. The share price
discount to net asset value is discussed under Key Performance
Indicators on page 46.
Under the Conditional Tender Offer, if over the five-year period from
31March 2024 to 31 March 2029 the Company’s net asset value total
return fails to exceed the benchmark total return, the Board will put
forward proposals to shareholders to undertake a tender offer for up to
25 per cent of the issued share capital of the Company, at the discretion
of the Board.
Any such tender offer will be at a price equal to the then prevailing net
asset value less two per cent (and less the costs of the tender offer).
There will be no tender offer if the Company’s net asset value total
return exceeds the benchmark total return (MSCI Emerging Markets
(Net Dividends) Index) over the five-year period. Any tender offer
would take place following the Company’s 2029 AGM and will also be
conditional on shareholders approving the continuation vote in 2029
which is described under ‘Affirmation of Shareholder Mandate’ above.
A key point in the Investment Managers’ mandate is to take a
long-term view of investments and one of the advantages of a
closed-end fund is that the portfolio structure is not disrupted by
large inflows or outflows of cash. However, the Board and the
Investment Managers recognise that the returns experienced by
shareholders are in the form of movements in the share price, which
are not directly linked to NAV movements, and the shares may trade
at varying discounts or premiums to the prevailing NAV. Many
shareholders, both professional and private investors, have
expressed a view that a high level of volatility in the discount is
undesirable and that the Company should continue its active share
buyback programme. A less volatile discount, and hence share price,
is seen as important to investors. For this reason, TEMIT uses share
buybacks selectively with the intention of limiting volatility in the
share price. Details of the share buybacks are included in the
following table. All shares bought back in the year were cancelled,
with none being placed in treasury. As at 31 March 2026, the
Company held 60,000,000 shares in treasury (2025: 60,000,000
shares in treasury).
Discount management is reviewed regularly by the Board to ensure
that it remains effective in the light of prevailing market conditions.
The Conditional Tender Offer will not affect the Board’s current
approach to discount management. The Board will continue to
exercise the Company’s right to buy back shares when it believes this
to be in shareholders’ interests and with the aim of reducing volatility
in the discount.
2026 2025
Shares Bought Back and Cancelled During the Year 79,922,725 89,989,892
Proportion of Share Capital Bought Back and Cancelled 7.8% 8.1%
Total Cost of Share Buybacks £166.7m £149.2m
The Benefit to NAV £18.4m £23.7m
The Percentage Benefit to NAV 0.8% 1.2%
Share Price Discount to NAV
0
-2
-4
-6
-8
-10
-12
-14
-16
-18
March
2021
’22 ’23 ’26’25’24
TEMIT Share Price Discount, based on a 7 day moving average
01. Strategic Report
42
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Communication
The Board and Manager aim to ensure that investors are kept updated
regularly about the performance of TEMIT and of emerging markets
through clear communication and updates. The Board is fully
committed to TEMIT’s marketing and communications programme.
There is a substantial annual marketing and communication budget,
and expenditure by TEMIT and the Manager makes a contribution to
these costs.
TEMIT has received AIC Shareholder Communication awards for its
effective campaigns and promotions in 2022, 2023, 2024 and 2025.
Through innovative use of broadcast media and direct marketing,
TEMIT’s profile has been elevated, showcasing the Company’s
benefits and conveying the dynamic growth story of emerging
markets to a wider audience. This follows a rebrand in January 2022,
when TEMIT unveiled a fresh corporate identity, establishing a unique
brand for the Company for the first time.
TEMIT seeks to keep shareholders updated on performance and
investment strategy through its Annual and Half Yearly Reports, along
with monthly factsheets and manager commentaries, which are
available on the Company’s website - temit.co.uk - offering a wealth of
updates, stock story videos, articles, portfolio details, and essential
documents. Connect with x.com/temit for ongoing updates and
announcements as we expand our social media presence.
The Board encourages registration to our monthly email that keeps
subscribers appraised of the latest performance, insights and
announcements.
In addition, TEMIT has an active communications programme. Our
Investment Managers provide topical and informative comments to
journalists, host media briefings and events and publish articles on
issues relevant to investing in emerging markets. The Investment
Managers meet regularly with professional investors and analysts and
host interactive webinars. At each AGM the Investment Managers
make a presentation with the opportunity for all shareholders to
askquestions.
The Chairman regularly meets major shareholders to discuss
investment performance and developments in corporate governance.
We try to engage with a wide spectrum of our shareholders and aim to
address their concerns as far as practically possible. Shareholders are
welcome to contact the Chairman or the Senior Independent Director
at any time via temitcosec@franklintempleton.com.
Indonesia
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc 43
Section 172 Report – Promoting the success of the Company
The Companies (Miscellaneous Reporting) Regulations 2018 require Directors to explain how they have discharged their duties
under Section 172(1) of the Companies Act 2006 in promoting the success of their companies for the benefit of ‘members as a
whole’ and having regard for all stakeholders.
Section 172 Matter 1. The likely consequences of any decision in the long term.
2. The interests of the Company’s employees.
3. The need to foster the Company’s business relationships with suppliers, customers and others.
4. The impact of the Company’s operations on the community and the environment.
5. The desirability of the Company maintaining a reputation for high standards of business conduct.
6. The need to act fairly between members of the Company.
Board’s Statement 1. The Board is focused on promoting the long-term success of the Company and regularly reviews the Company’s
long-term strategic objectives, including consideration of the impact of the Investment Managers’ actions on the
marketability and reputation of the Company and the likely impact on the Company’s stakeholders of the
Company’s strategy.
2. The Company has no direct employees.
3. The Board’s approach to its key stakeholders is set out below.
4. The Board’s approach is set out in the section on Investment Process and ESG Considerations under Strategy
and Business Model on page 38.
5. The Board’s approach is set out in ‘Culture and Values’ on page 39.
6. The Board’s approach to its key stakeholders is set out below.
In addition to the primary focus of the Board, and with due regard to its obligations under Section 172 of the Companies Act 2006,
the following important matters were considered at Board meetings during the year:
•
Changes to the risk matrix, monitoring such changes carefully and introducing alternative mitigating controls where necessary
and practicable to support the operation of an effective control environment;
•
Review of the marketing plan with the Manager;
•
Review of the share buyback programme;
•
Review of the dividend policy; and
•
Review of the gearing facility and in particular the decision to enter into a new revolving credit facility.
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Stakeholders
Area of Engagement
Consideration Engagement Outcome
Shareholders
and Potential
Investors
Company Objective Delivering on the
Company’s objective to
shareholders over the
long term.
The Company’s objective and
investment policy are set out
on page 38.
The Company’s performance
against its objective is regularly
reviewed by the Board, taking
account of views expressed by
shareholders.
The Company holds a
continuation vote every five
years to allow shareholders to
decide on the long-term future
of the Company.
The Investment Managers’
Reportcommencing on
page 14 gives a full commentary
on the Company’s portfolio as
well as on the approach and
considerations undertaken by the
Investment Managers for stock
selection in the portfolio.
A continuation vote took place at
the 2024 AGM, with 99.30% of
votes cast in favour. The next
continuation vote is scheduled to
take place at the 2029 AGM.
Shareholders
and Potential
Investors
Dividend The objective of the
Company is to provide
long term capital
appreciation, however,
the Board recognises the
importance of dividend
income to many
shareholders.
The Board reviews regularly
the level of dividends, taking
account of the income
generated by the Company’s
portfolio and the availability
ofreserves.
In considering the
sustainability of the dividend
and of the Company, the
Board reviews the models
supporting the going concern
assessment and viability
statement.
Dividend payments are
discussed in the Chairman’s
Statement on page 9.
Shareholders
and Potential
Investors
Communication with
Shareholders
The Board understands
the importance of
communication with its
shareholders and
maintains open channels
of communication with
shareholders.
Working closely with the
Manager, the Board ensures
that there is a variety of regular
communication with
shareholders.
Full details of all Board and
Manager communication are
included on page 42.
Shareholders are invited to
submit questions for the Board to
address at the Company’s AGM.
They are also welcome to contact
the Chairman or other Board
members at any time.
The Board considers the main stakeholders in the Company to be its shareholders and its service providers, the principal one of
which is its Manager, along with its investee companies. A summary of the key areas of engagement undertaken by the Board with
its main stakeholders in the year under review and how Directors have acted upon this to promote the long-term success of the
Company are set out in the following table.
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc 45
Stakeholders
Area of Engagement
Consideration Engagement Outcome
Shareholders
and Potential
Investors
Discount
Management
To smooth the volatility
inthe discount.
The Board monitors the
discount closely and discusses
discount strategy with the
Investment Managers and the
Company’s joint stockbrokers
at every regular Board
meeting. The stockbrokers
provide a summary of the
discount and market
conditions to the Board and
Investment Managers at the
close of each trading day in
London. The Board also meets
with the Investment Managers
to discuss the Company’s
marketing strategy to ensure
effective communication with
existing shareholders and to
consider strategies to create
additional demand for the
Company’s shares.
TEMIT continues to adopt an
active buy back policy and has a
Conditional Tender Offer. Details
of these can be found under
‘Stability – Share Buybacks and
Conditional Tender Offer’ on
page 41.
Further details of the current
discount and discount
management are detailed in the
Chairman’s Statement under
‘Share price rating’ on page 9.
Manager Communication
Between the Board
and the manager
The Board’s oversight of
the Manager is very
important.
The Manager attends all
regular Board meetings where
it reviews and discusses
performance reports, changes
in the portfolio composition
and risk matrix. The Board
receives timely and accurate
information from the Manager
and engages with the
Investment Managers and the
Company Secretary between
meetings as well as with other
representatives of the
Manager as and when it is
deemed necessary.
The Board operates in a
supportive and open manner,
challenging the activity of the
Manager and its results. The
Board believes that the Company
is well managed and the Board
places great value on the
experience of the Investment
Managers to deliver superior
long-term returns from
investments and on the other
functions of the Manager to fulfil
their roles effectively.
Third-party
Service
Providers
Engagement with
Service Providers
The Board acknowledges
the importance of
ensuring that the
Company’s service
providers are delivering a
suitable level of service,
that the service level is
sustainable and that they
are fairly remunerated for
their service.
As TEMIT is an investment
company all services are
outsourced to third-party
providers. The Board considers
the support delivered by
service providers including the
quality of the service,
succession planning and any
potential interruption of
service or other potential risks.
The Manager maintains the
overall day-to-day relationship
with the service providers and
the Board undertakes an annual
review of the performance of the
Company’s service providers.
This review also includes the
levels of fees paid.
Investee
Companies
Engagement with
Investee Companies
The relationship between
the Company and the
investee companies is
very important.
On behalf of the Company the
Investment Managers engage
with investee companies
implementing corporate
governance principles. They
discuss the portfolio with the
Board on a quarterly basis.
The Investment Managers have a
dedicated research team that is
employed in making investment
decisions and when voting at
shareholder meetings of investee
companies.
01. Strategic Report
46
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Key performance indicators
The Board considers the following to be the key performance
indicators (‘KPIs’) for the Company:
•
Net asset value and share price total return over various
periods, compared to its benchmark;
•
Share price discount to net asset value;
•
Dividend and revenue earnings; and
•
Ongoing charges ratio.
The 10 Year Record of the KPIs is shown on page 8.
Net asset value and share price total return
(a)
Net asset value and share price total return data is presented
within the Financial Highlights on page 4 along with the
10Year Record on page 8.
The Chairman’s Statement on pages 9 to 12 and the
Investment Managers’ Report on pages 14 to 30 include
further commentary on the Company’s performance.
Performance of the Company’s portfolio is measured in
pounds sterling (GBP) against the MSCI Emerging Markets
(Net Dividends) Index (GBP).
Share price discount to net asset value
(a)
Details of the Company’s share price discount to net asset
value are presented in the Financial Summary on page 7.
On21May 2026, the latest practicable date for which
information was available, the discount was 8.9%.
The Company has powers to buy back its shares as a discount
control mechanism when the Board considers that this is in
the best interests of the Company’s shareholders and has a
Conditional Tender Offer mechanism. These are described
under ‘Stability – Share Buybacks and Conditional Tender
Offer’ on page 41.
Dividend and revenue earnings
Total income earned in the year was £65.6 million
(2025:£70.4million) which translates into net revenue
earnings of 5.39pence per share (2025: 5.41 pence per share),
slightly lower compared to the prior year.
The Company paid an interim dividend of 2.00 pence per
share on 30 January 2026. The Board is proposing a final
dividend of 3.25 pence per share, making total ordinary
dividends for the year of 5.25 pence per share.
Ongoing charges ratio
(a)
(‘OCR’)
The OCR reduced to 0.86% for the year ended 31 March 2026,
compared to 0.95% in the prior year. This was driven by the
reduction in the AIFM fee rate as detailed in the Directors’
Report on page 58 and in the Chairman’s Statement on
page10 and an uplift in the average net assets over the year.
The OCR has been calculated in line with the Association of
Investment Companies (‘AIC’) recommended methodology.
Costs associated with the purchase and sale of investments
are taken to capital and are not included in the OCR.
Transaction costs are disclosed in Note 8 of the Notes to the
Financial Statements on page 95.
(a) A glossary of terms and alternative performance measures is included on pages 114 and 115.
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Templeton Emerging Markets Investment Trust plc 47
Principal Risk Mitigation
Market, Geopolitical
and Investment
Market risk arises from volatility in the prices of the
Company’s investments, from the risk of volatility in
global markets arising from macroeconomic and
geopolitical circumstances and conditions. Many of
the companies in which TEMIT invests are, by reason
of the locations in which they operate, exposed to the
risk of political or economic change. In addition,
sanctions, exchange controls, tax or other regulations
introduced in any country in which TEMIT invests may
affect its income and the value and the marketability of
its investments. Emerging markets can be subject to
greater price volatility than developed markets.
Geopolitical risk arises from political instability, conflict,
policy intervention and regulatory actions that
inherently affect market access, investability, valuation
and liquidity across emerging markets. Such
developments can give rise to sanctions, trade and
capital restrictions, supply chain disruption and
changes in inflationary conditions, which can increase
market volatility, impair investor sentiment and impact
the operating environment of investee companies.
Investment risk refers to the possibility that an
investment’s actual returns may differ from the expected
returns, potentially resulting in financial loss. As well as
market and geopolitical risk, this risk is impacted by the
decisions made by portfolio managers regarding sector,
country allocation, and stock selection.
The Board reviews regularly and discusses with the
Investment Managers the portfolio, the Company’s
investment performance and the execution of the
investment policy against the long-term objectives of
the Company. The Manager’s independent risk team
performs systematic risk analysis, including country
and industry specific risk monitoring, as well as stress
testing of the portfolio’s resilience to geopolitical
shocks. The Manager’s legal and compliance team
monitors sanctions. Where TEMIT is affected,
adherence to all sanctions and restrictions is ensured
by this team. The Board also regularly reviews reports
from the Manager’s risk, legal and compliance teams.
Technology Failure or breach of the security of information
technology systems of the Company’s service
providers may entail risk of financial loss, disruption
tooperations or damage to the reputation of
theCompany.
The Company benefits from Franklin Templeton’s
technology framework designed to mitigate the risk of
a cyber security breach.
For key third-party providers, the Audit and Risk
Committee receives regular independent reports on
their technology control environment.
Concentration Concentration risk arises from investing in relatively
few holdings, few sectors or a restricted geographic
area. NAV performance may be more volatile and
dividend payment less predictable, than with a greater
number of securities.
The Board reviews regularly the portfolio composition/
asset allocation and discusses related developments
with the Investment Managers and the independent
risk management team. The Investment Compliance
team of the Investment Managers monitors
concentration limits and highlights any concerns to
portfolio management for remedial action.
Principal and emerging risks
At least quarterly, the Board reviews with the AIFM and the Investment Managers a wide range of risk factors that may impact the
Company. A full review of risks and internal controls is held every September by the Audit and Risk Committee. These reviews
include a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its
business model, future performance, solvency or liquidity. These are summarised in the table below.
Further explanation of the monitoring of risk and uncertainties is covered in the Report of the Audit and Risk Committee on
page 67. Information on the risks that TEMIT is subject to, including additional financial and valuation risks, are also detailed in
Note 16 of the Notes to the Financial Statements.
Due to the nature of the Company’s business, investment risk is a key focus and is reviewed on an ongoing basis by the Investment
Managers as part of every investment decision. Further information on this process is detailed on page 33.
01. Strategic Report
48
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Principal Risk Mitigation
Key Personnel
The ability of the Company to achieve its objective is
significantly dependent upon the expertise of the
Investment Managers and their ability to attract and
retain suitable staff.
The Manager endeavours to ensure that the principal
members of its management teams are suitably
incentivised, participate in strategic leader programmes
and monitor key succession planning metrics. The
Board meets privately with the key personnel at least
twice a year. The Board discusses this risk regularly with
the Manager.
Foreign Currency
Currency exchange rate movements may affect
TEMIT’s performance. In general, if the value of sterling
increases compared with a foreign currency, an
investment traded in that foreign currency will be
worth less in sterling terms. This can have a negative
effect on the Company’s performance.
The Board monitors currency risk as part of the regular
portfolio and risk management oversight. TEMIT does
not hedge currency risk.
Discount Risk
The discount/premium at which the Company’s shares
trade relative to its net asset value can change. The
risk of a widening discount, and/or related volatility,
could reduce shareholder returns and confidence
in the Company.
The Board monitors the level of discount/premium at
which the shares trade and has an active investor
relations programme. The Company has authority to buy
back its existing shares when deemed by the Board to be
in the best interests of the Company and its shareholders.
Regulatory
The Company is an Alternative Investment Fund (‘AIF’)
and is listed on both the London and New Zealand
stock exchanges. The Company operates in an
increasingly complex regulatory environment and
faces numerous regulatory risks. Breaches of
regulations could lead to a number of detrimental
outcomes and reputational damage.
The Board, with the assistance of the Manager, ensures
that the Company complies with all applicable laws and
regulation and its internal risk and control framework
reduces the likelihood of breaches happening.
Sustainability and
Climate Change
The Company’s portfolio, and also the Company’s
service providers and the Investment Managers, are
exposed to risks arising from governance and
sustainability issues, including climate change. To the
extent that such a risk occurs, or occurs in a manner
that is not anticipated by the Investment Managers,
there may be a sudden, material negative impact on
the value of an investment, and the operations or
reputation of the Investment Managers.
The Investment Managers consider that sustainability
risks are relevant to the returns of the Company. The
Manager has implemented a policy in respect of the
integration of sustainability and climate change risks in its
investment decision making process. The Board receives
regular reports on the policies and controls in place on
ESG considerations. The Board has reviewed and fully
supports the Franklin Templeton Stewardship Statement
and its Sustainable Investing Principles and Policies.
Operational
and Custody
Like many other investment trust companies, TEMIT
has no employees. The Company therefore relies upon
the services provided by third parties and is
dependent upon the control systems of the
Investment Managers and of the Company’s other
service providers. The security, for example, of the
Company’s assets, dealing procedures, accounting
records and maintenance of regulatory and legal
requirements depends on the effective operation of
these systems.
The Manager’s systems are regularly tested and
monitored and an internal controls report, which includes
an assessment of risks together with an overview of
procedures to mitigate such risks, is prepared by the
Manager and reviewed by the Audit and Risk Committee.
J.P. Morgan Europe Limited is the Company’s depositary.
Its responsibilities include cash monitoring, safe keeping
of the Company’s financial instruments, verifying
ownership and maintaining a record of other assets and
monitoring the Company’s compliance with investment
limits and borrowing requirements. The depositary is liable
for any loss of financial instruments held in custody and
will ensure that the custodian and any sub-custodians
segregate the assets of the Company. The depositary
oversees the custody function performed by JPMorgan
Chase Bank. The custodian provides a report on its key
controls and safeguards (SOC 1/ SSAE 16/ ISAE 3402) that
is independently reported on by its auditor, PwC.
The Board reviews regular operational risk management
reporting provided by the Investment Managers.
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc 49
Emerging risks
The Board and the Investment Managers continue to monitor
emerging developments that may affect the Company’s
portfolio, investability or operating environment, including
developments that could amplify the principal risks.
Geopolitical uncertainty remains an important area of focus,
particularly where political instability, conflict, policy
fragmentation and regulatory intervention increase the
likelihood of sudden changes in market access, sanctions,
trade restrictions or capital restrictions. The Board also
continues to monitor the potential implications of rapid
technological change, including developments in artificial
intelligence, which may affect competitive dynamics, valuation,
market structure and operational resilience across sectors and
geographies relevant to the portfolio.
Viability statement
The Board considers viability as part of its continuing
programme of monitoring risk. In preparing the Viability
Statement, in accordance with the UK Corporate Governance
Code and the AIC Corporate Governance Code, the
Directors have assessed the prospects of the Company over
a longer period than the 12 months required by the
‘GoingConcern’provision.
The Board has considered the Company’s business and
investment cycles and is of the view that five years is a suitable
time horizon to consider the continuing viability of the
Company, balancing the uncertainties of investing in emerging
markets securities against having due regard to viability over
the longer term.
In assessing the Company’s viability, the Board has performed
a robust assessment of controls over the principal risks. The
Board considers, on an ongoing basis, each of the principal
and emerging risks as noted above and set out in Note 16 of
the Notes to the Financial Statements. The Board evaluated
various scenarios including a material increase in expenses
and a continued significant and prolonged fall in emerging
equity markets. The Board also considered the latest
assessment of the portfolio’s liquidity. The Board monitors
income and expense projections for the Company, with the
majority of the expenses being predictable and modest in
comparison with the assets of the Company.
The Company foresees no issues with meeting interest
payments and current liabilities relating to the £122 million
multi-currency revolving credit facility. A significant proportion
of the Company’s expenses is the ad valorem AIFM fee, which
would naturally reduce if the market value of the Company’s
assets were to fall.
Considering the above, and with careful consideration given
to the current market situation, the ramifications of continuing
geopolitical tensions and the challenges posed by climate
change, the Board has concluded that there is a reasonable
expectation that, assuming that there will be a successful
continuation vote at the 2029 AGM, the Company will be able
to continue to operate and meet its liabilities as they fall due
over the next five years.
Future strategy
The Company was founded, and continues to be managed,
based on a long-term investment strategy that seeks to
generate superior returns from investments, principally in the
shares of carefully selected companies in emerging markets.
The Company’s results will be affected by many factors
including political decisions, economic factors, the
performance of investee companies and the ability of the
Investment Managers to choose investments successfully as
well as the current challenges.
The Board and the Investment Managers continue to believe
in investment with a long-term horizon in companies that are
undervalued by stock markets, but which are fundamentally
strong and growing. It is recognised that, at times, extraneous
political, economic and company-specific and other factors
will affect the performance of investments, but the Company
will continue to take a long-term view in the belief that
patience will be rewarded.
By order of the Board
Angus Macpherson
2 June 2026
01. Strategic Report
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Templeton Emerging Markets Investment Trust plc 50
02.
Governance
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 51
Directors’ report
The Board is responsible for framing and executing the Company’s strategy and for monitoring
risks closely. The Board endeavours to run the Company in a manner which is responsible,
honest, transparent and fully accountable. In the Board’s view, good governance means
managing the Company’s business well and engaging effectively with investors and other
stakeholders. The Board considers the practice of good governance to be an integral part of the
way that it manages the Company and it is committed to maintaining the highest standards of
financial reporting, transparency and business integrity.
The Directors submit their Annual Report, together with the Financial Statements of the
Company, for the year ended 31 March 2026.
Board of Directors
Angus Macpherson
(Chairman of Board, Chairman of
Management Engagement Committee and
Chairman of Nomination and Remuneration
Committee: 1 January 2024)
Date of appointment: 6 October 2023
Angus is chairman of Noble and Company (UK) Limited, an independent boutique Scottish
corporate finance business. He was based in Asia between 1995 and 2004 in Singapore and
Hong Kong, latterly as head of capital markets and financing for Merrill Lynch for Asia. He was
previously Chairman of Pacific Horizon Investment Trust and of Henderson Diversified Income
Trust. Angus brings to the Board extensive experience in corporate finance in Europe and in
Asia and is an experienced chairman of investment trusts.
Other Current Appointments:
•
The Scottish American Investment Company P.L.C. (Chairman)
•
Schroder Japan Growth Fund plc (Non-Executive Director)
•
Hampden & Co plc (Non-Executive Director)
•
Noble and Company (UK) Limited (Chairman)
Angus is an independent Director.
Sarika Patel
(Chair of the Audit and Risk Committee:
11July 2025)
Date of appointment: 1 January 2025
Sarika is an experienced Chair and non-executive Director with a strong track record across
FTSE-listed investment trusts, regulated sectors and complex public institutions. She is a
Chartered Accountant and a Chartered Marketer. She also is a Bachelor in Law (LLB) and a
Bachelor in Commerce (BCom).
Other Current Appointments:
•
abrdn Equity Income Trust plc (Chair)
•
SDCL Energy Efficiency Income Trust plc (Chair of Audit and Risk Committee)
•
Action for Children (Chair)
Sarika is an independent Director.
David Graham
Date of appointment: 1 September 2016
David is a Chartered Accountant whose career was in investment management, firstly as an
Asian fund manager with Lazard and then building businesses across Asia Pacific, Europe,
Middle East and Africa for BlackRock and predecessor firms (Merrill Lynch Investment
Managers and Mercury Asset Management). David has worked in Hong Kong, Tokyo and
Sydney and has been a Representative Director in domestic, joint venture, fund management
companies in India, China, Thailand and Taiwan. David contributes extensive experience of Asia
and other emerging markets.
Other Current Appointments:
•
JPMorgan China Growth & Income plc (Chair of the Audit Committee)
•
Jio-Blackrock Asset Management Private Limited (Non-executive Director)
David is an independent Director.
David will retire at the conclusion of the Annual General Meeting in July 2026.
02. Governance
52
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Board of Directors
Magdalene Miller
Date of appointment: 10 May 2021
Magdalene is a former investment director who specialised in investments in global emerging
markets. Based in London and Edinburgh, she spent 32 years managing listed equity portfolios,
investing in Japanese, Asian Pacific and UK markets. Born in Hong Kong, Magdalene is fluent in
Cantonese and Mandarin and has travelled extensively in China and Asia over the course of her
career. She currently serves as a trustee for an educational endowment fund and participates in
volunteering work.
Other Current Appointments:
•
Baillie Gifford China Growth Trust plc (Non-Executive Director)
Magdalene is an independent Director.
Charlie Ricketts
(Senior Independent Director: 11 July 2025)
Date of appointment: 12 July 2018
With over 30 years’ experience in the investment trust sector, Charlie brings a wealth of
experience to the Board. He was Head of Investment Funds at Cenkos Securities for 8 years and
prior to that was Managing Director, Head of Investment Companies at UBS Investment Bank.
Since leaving full-time employment in 2014 Charlie has pursued both charitable and business
interests including a now completed senior non-executive director appointment at Asia Dragon
Trust plc and a present directorship with Cyclico, a board performance review company. Charlie
has a wide-ranging understanding of the investment companies sector and draws on previous
experience across corporate finance, corporate broking, marketing and risk management.
Other Current Appointments:
•
Cyclico Limited (Director)
•
Carefree (Chair)
Charlie is an independent Director.
Abigail Rotheroe
Date of appointment: 1 November 2022
Abigail is a CFA Charterholder with over 25 years’ experience in the investment industry. During
her fund management career, Abigail held roles at Schroder Capital Management, HSBC Asset
Management and Columbia Threadneedle Investments, where she managed retail and pension
fund assets across Asia and emerging markets. More recently, she was Investment Director at
Snowball Impact Management. Abigail has experience in fund management, manager selection
and sustainability.
Other Current Appointments:
•
Baillie Gifford Shin Nippon plc (Non-Executive Director)
•
Hydrogen Capital Growth plc (Non-Executive Director)
•
Greencoat UK Wind plc (Non-Executive Director)
Abigail is an independent Director.
Details of the fees earned by each Director can be found on page 64. The Directors’ interests in the Company’s shares are noted
onpage 66.
02. Governance
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 53
Appointment and re-election of Directors
Directors are initially appointed by the Board after a rigorous
selection process and each Director is then subject to annual
re-election by the shareholders. At the first AGM following
theirappointment a Director is subject to election by the
shareholders. Thereafter, a Director’s reappointment is subject
to a performance review carried out each year and the
approval of shareholders at each AGM, in accordance with
corporate governance best practice. When making a
recommendation, the Board considers the ongoing
requirements of the UK Corporate Governance Code
(the ‘UK Code’), including the need to refresh the Board
and its Committees.
The terms and conditions of the Directors’ appointments are
set out in their Letters of Appointment, which are available for
inspection on request at the registered office of the
Company and at the AGM. The terms of appointment provide
that a Director will be subject to re-election at each AGM.
ADirector may be removed from office following three
months’ notice. The Board has agreed that the Directors
should stand down at the AGM after nine years from their
initial appointment other than in exceptional circumstances.
Directors are prepared to resign or take steps that could lead
to a loss of office at any time in the interests of long-term
shareholder value. The continuation of an appointment is
contingent on satisfactory annual performance review.
A Director may resign by notice in writing to the Board at any
time and there is no notice period for resignation.
The Board
The primary focus of the Directors at regular Board meetings is
the consideration of investment performance and outlook,
market activity, discount management mechanisms including
share buybacks, gearing, marketing, shareholder register
analysis, investor relations, peer group information, top risks
and investment risk management, regulatory updates,
corporate governance and industry issues.
The Board has reviewed the effectiveness of the Company’s
system of internal controls for the year ended 31 March 2026.
During its review the Board has not identified or been advised of
any significant failings or weaknesses relating to the Company.
Further details of the Directors’ responsibilities can be found in
the Statement of Directors’ Responsibilities on page 73.
Board performance review
The Board undertakes an annual review of its own
performance and that of its Committees and individual
Directors including the Chairman. The Board has also
considered the independence of each Director, including
theChairman.
As required under corporate governance best practice of
FTSE 350 companies a formal performance review of the
Board, its Committees and the individual Directors is
undertaken with an external agency every third year. In the
year under review, the annual performance process was
facilitated by the company secretary. The process included
the completion of questionnaires. The company secretary
prepared summary reports which were discussed by the
Directors. The independence of each Director was checked
considering the provisions of the UK Code. The experience,
balance of skills, diversity, time commitment, tenure of each
director, openness, spirit of debate and knowledge of the
Board were considered as well as Board effectiveness, role
and structure.
Charlie Ricketts, in his role as Senior Independent Director
conducted the annual appraisal of Angus Macpherson, the
Chairman, drawing on anonymised questionnaire responses
from, and follow-up discussions with, Directors. The review
confirmed the Board’s strong support for the Chairman and
recognised the experience, commitment and leadership that he
brings to the role. The appraisal also provided an opportunity to
reflect on the continued evolution of the Board process.
Overall, the Board concluded that the Chairman continues to
perform his role effectively and that the Company benefits
significantly from his leadership.
The Chairman confirms that, following the annual performance
review, each Director’s performance continues to be effective,
demonstrating commitment to their role and each
independent Director is recommended for re-election at the
AGM. David Graham is not seeking re-election and is stepping
down from the Board at the conclusion of the AGM on 9 July
2026. The Chairman also confirms that each Committee’s
performance continues to be effective in fulfilling its
responsibilities and duties. Formal Board performance reviews
will continue to take place at least annually with the
appointment of an external reviewer every three years.
02. Governance
54
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Diversity
TEMIT’s aim is to have an appropriate level of diversity in the
boardroom.
The Nomination and Remuneration Committee considers
diversity generally when making recommendations for
appointments to the Board, considering gender, social and
ethnic backgrounds, independent thought, experience and
qualification. The prime responsibility, however, is the strength
of the Board and the overriding aim in making any new
appointments is always to select the best candidate based on
objective criteria and merit.
In all of the Board’s activities, there has been and will be no
discrimination on the grounds of gender, race, ethnicity,
religion, sexual orientation, age or physical ability.
The Board has made a commitment to consider diversity
whenreviewing the composition of the Board and notes the
UKListing Rules requirements (UKLR 6.6.6 R (9)) regarding
thetargets on board diversity:
•
At least 40% of individuals on the Board are women;
•
At least one senior Board position (chairman, chief
executive officer (‘CEO’), senior independent director or
chief financial officer (‘CFO’)) is held by a woman; and
•
At least one individual on the Board is from a minority ethnic
background, defined to include those from an ethnic group
other than a white ethnic group, as specified in categories
recommended by the Office for National Statistics.
As required by the UK Listing Rules the reporting for TEMIT
against these targets is set out in the tables below in the
prescribed format. The data was collected on a self-identifying
basis. The Board notes that as an externally managed
investment trust there is no CEO or CFO and the Board
considers the Chairman of the Company, the Chairman of any
of the Company’s Committees and the Senior Independent
Director to be senior positions. David Graham will retire from
the Board at the conclusion of the AGM on 9 July 2026.
Following the conclusion of the AGM (i) the Board will consist
of 2 men and 3 women and (ii) 3 Board members are White
British and 2 Board members are Asian British.
Sex
Number of
Board Members
Percentage of
the Board
Number of Senior
Positions on the Board
Men 3 50% 2
Women 3 50% 1
Not Specified/Prefer Not to Say – – –
Ethnic Background
Number of
Board Members
Percentage of
the Board
Number of Senior
Positions on the Board
White British or Other White (Including Minority White Groups) 4 67% 2
Mixed/Multiple Ethnic Groups – – –
Asian/Asian British 2 33% 1
Black/African/Caribbean/Black British – – –
Other Ethnic Group, Including Arab – – –
Not Specified/Prefer Not to Say – – –
02. Governance
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 55
Diversity at the Manager
The Board also takes a close interest in inclusion and diversity
at the Manager. Franklin Templeton is committed to building a
workforce that respects, includes, and values all of its
employees, who span across generations, genders,
preferences, capabilities, and cultural identification. The firm’s
culture embraces both the individual differences and wealth
of perspectives within its global workforce. This is at the
forefront of Franklin Templeton’s mission both to attract and
retain the best talent and to drive innovation and provide
better client outcomes.
Franklin Templeton’s global inclusion strategy is grounded in
three pillars: people—by empowering diverse perspectives
and attracting, retaining, and developing top talent at every
level; practices—by supporting an inclusive culture that allows
innovation and drives growth; and presence—by building
strategic partnerships that expand reach and impact across
the industry. The firm has allocated dedicated resources to
achieve and support this strategy, including the establishment
of a global governance structure and the implementation of
research-based inclusion policies and procedures. To localise
its global strategy and approach, the firm also formed three
Regional Executive Inclusion Councils in the Americas, EMEA
and APAC and supports nine Business Resource Groups
across the global organisation.
Additionally, Franklin Templeton has positioned Inclusive
Leadership as a strategic priority for FY26, recognising its
essential role in driving innovation, enhancing agility, and
fostering sustainable growth across the organisation. The
programme is designed to build leadership capability at all
levels, embed inclusive behaviours into daily decision-making,
and align inclusion efforts with broader business goals.
The firm also partners with organisations that seek to promote
principles of inclusion. In the UK, partnerships have continued
with organisations like Black Professionals UK and the Business
Disability Forum, the leading business membership
organisation in disability inclusion. The firm remains an active
partner and supporter of several organisations that promote
inclusion and social mobility in the UK, such as Inclusion in
Finance, 10,000 Interns Foundation, the Robertson Trust,
Leonard Cheshire and Career Ready. We became a signatory
of the Women in Finance Charter in 2018.
Additionally, Franklin Templeton sponsors thousands of
volunteer activities each year through its global Involved
programme which helps to provide better outcomes for local
communities.
Succession planning and recruitment
When considering succession planning, the Nomination
andRemuneration Committee bears in mind the tenure,
balance of skills, knowledge, experience and diversity
existingon the Board.
The recruitment process is underway to find another Director
to be appointed after David Graham retires at the conclusion
of the AGM on 9 July 2026. The recruitment process is being
led by Angus Macpherson as Chairman and commenced in
March 2026. The process is being facilitated by Odgers
Berndtson as the appointed external agency. Odgers
Berndtson does not undertake any other services for TEMIT
and has no connection with any of the Directors.
The succession plan agreed by the Nomination and
Remuneration Committee includes an emergency succession
plan identifying contingency arrangements.
The Nomination and Remuneration Committee also reviews
and recommends to the Board the reappointment of the
Directors. The recommendation is not automatic and will follow
a process of evaluation of each Director’s performance and
consideration of the Director’s independence. The Nomination
and Remuneration Committee also considers the mix of skills
and experience of the current Board members.
Meetings and committees
The Board delegates certain responsibilities and functions to
Committees. Five Directors are members of all Committees.
The Chairman is not a member of the Audit and Risk
Committee, but he attends the Audit and Risk Committee
meetings byinvitation.
The table below details the number of Board and Committee
meetings attended by each Director. During the year, there
were four Board meetings, three Audit and Risk Committee
meetings, one Management Engagement Committee meeting
and one formal Nomination and Remuneration
Committeemeeting.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Board
Audit and
Risk Committee
Management
Engagement
Committee
Nomination and
Remuneration
Committee
David Graham 4/4 3/3 1/1 1/1
Simon Jeffreys
(a)
1/1 1/1 0/0 0/0
Angus Macpherson
(b)
4/4 3/3 1/1 1/1
Magdalene Miller 4/4 3/3 1/1 1/1
Sarika Patel 4/4 3/3 1/1 1/1
Charlie Ricketts 4/4 3/3 1/1 1/1
Abigail Rotheroe 4/4 3/3 1/1 1/1
The Audit and Risk Committee is chaired by Sarika Patel.
Theformal Report of the Audit and Risk Committee is on
pages 67 to 72.
The Management Engagement Committee is chaired by the
Chairman of the Board and all Directors are members of the
committee. The primary role of the committee is to review the
performance of, and the contractual arrangements with, the
Manager. The Management Engagement Committee held one
meeting during the year and undertook a formal review of the
Manager and of the Investment Managers.
The review considered investment strategy, investment
process, performance and risk, and was carried out through
meetings between the Management Engagement Committee
and members of the investment and risk management teams
of the Manager. When assessing the performance of the
Manager and of the Investment Managers, the Committee
believes that it is appropriate to make this assessment over a
medium to long-term timeframe, which is in accordance with
the long-term approach taken to investment. As a result of the
performance review performed by the Management
Engagement Committee, the Board confirms that it is satisfied
that the continuing appointment of the Manager is in the
interests of shareholders as a whole.
The Nomination and Remuneration Committee is
chaired by the Chairman of the Board and all Directors are
members of the Committee. The Nomination and
Remuneration Committee held one formal meeting during the
year and discussed the annual review process for the Board,
the individual Directors and the Chairman and succession
planning. The role of the Nomination and Remuneration
Committee is to review regularly the Board structure, size and
composition and make recommendations to the Board with
regard to any adjustments that are appropriate, to consider the
rotation and renewal of the Board, approve the candidate
specification for all Board appointments, approve the process
by which suitable candidates are identified and short-listed,
and to nominate candidates for consideration by the full
Board, whose responsibility it is to make appointments. The
Nomination and Remuneration Committee also considers the
effectiveness of individual Directors and makes
recommendations to the Board in respect of re-elections. The
Nomination and Remuneration Committee keeps under review
the balance of skills, independence, knowledge of the
Company and experience and length of service of the
Directors.
The Nomination and Remuneration Committee annually
reviews the level of fees paid to the Chairman, the Chair of the
Audit and Risk Committee, the Senior Independent Director
and other Directors relative to other comparable companies
and in the light of the Directors’ responsibilities. The
Committee may engage independent external advisors if it
considers this to be necessary.
The terms of reference for the Audit and Risk Committee,
Management Engagement Committee and Nomination and
Remuneration Committee are available to shareholders on the
TEMIT website (www.temit.co.uk) or upon request via email to
temitcosec@franklintempleton.com.
(a) Retired from the Board on 10 July 2025.
(b) Attended three out of three meetings of the Audit and Risk Committee by invitation including when the Annual Report and Half Yearly Report were being drafted and the Company’s risk matrix
was being reviewed.
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Templeton Emerging Markets Investment Trust plc 57
Conflicts of interest
The Company maintains a register of Directors’ interests which
has been disclosed to, and approved by, the Board. The list of
interests of each Director is reviewed at every Board meeting.
Directors who have potential conflicts of interest will not take
part in any discussions which relate to that particular conflict.
The Board confirms that at 31 March 2026 and the date of this
report there were no conflicts of interest.
Indemnification and insurance
The Company has entered into deeds of indemnity with each
of the Directors. These are qualifying third-party indemnity
provisions and are in force as at the date of this report. This
information is disclosed in accordance with Sections 236(2)
and 236(3) of the Companies Act 2006. The Company
maintains appropriate insurance cover in respect of legal
action against the Directors.
The Company
Principal activity and investment company status in the UK
The Company is a public limited company in terms of the
Companies Act 2006 and is an investment company under
Section 833 of the Companies Act 2006.
The Company has been accepted as an approved investment
trust by HM Revenue & Customs for accounting periods
commencing on or after 1 April 2012, subject to continuing to
meet the eligibility conditions of Section 1158 of the
Corporation Tax Act 2010 and the ongoing requirements of
The Investment Trust (Approved Company) (Tax) Regulations
2011. The Directors are satisfied that the Company intends to
direct its affairs to ensure its continued approval as an
investment trust.
Results and dividends
The capital profit for the year was £705.8 million (2025: profit of
£95.8 million) and the revenue profit was £52.7 million
(2025:£57.9 million).
The full results for the Company are disclosed in the Statement
of Comprehensive Income on page 83.
The Directors propose a final ordinary dividend of 3.25 pence
per share. Including the interim dividend of 2.00 pence per
share, which was paid by the Company on 30 January 2026,
this represents an annual ordinary dividend of 5.25 pence per
share (2025: 5.25 pence per share) and, if approved by
shareholders at the AGM on 9 July 2026, the final dividend will
be payable on 31 July 2026 to shareholders on the register at
close of business on 26 June 2026.
Financial
Share capital and gearing
Changes in the share capital of the Company are set out in
Note 13 of the Notes to the Financial Statements.
As part of the Company’s objective and current investment
policy, the Company may borrow up to 20% of its net assets.
The current gearing is discussed in the Business Review on
page 40.
Share buybacks
The Board is again seeking shareholder permission to
continue its programme of share buybacks as outlined under
‘Stability – Share Buybacks and Conditional Tender Offer’ on
page 41.
Auditor
Ernst & Young LLP was appointed in 2019 as the Company’s
auditor. Ernst & Young LLP has expressed a willingness to
continue in office as auditor and a resolution proposing its
reappointment will be submitted at the AGM. Further details of
the assessment of the auditor can be found in the Report of
the Audit and Risk Committee on page 70.
The Directors who held office at the date of approval of this
Directors’ Report confirm that, so far as they are each aware,
there is no relevant information of which the Company’s
auditor was unaware and that each Director had taken all steps
that they ought to have taken as a Director to make themselves
apprised of any relevant audit information and to establish that
the Company’s auditor was notified of that information. This
confirmation is given, and should be interpreted in accordance
with, the provisions of Section 418 of the Companies Act 2006.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Substantial shareholdings
As at 31 March 2026 and 31 March 2025, the Company had been notified that the following were interested in 3% or more of the
issued share capital of the Company.
Name
31 March 2026
Number of Shares %
31 March 2025
Number of Shares %
City of London Investment Management
Company Limited
179,990,124 19.1 284,423,711 27.8
Lazard Asset Management LLC Group 91,828,495 9.7 97,872,005 9.6
Rathbone Brothers PLC 62,392,578 6.6
32,144,309 3.1
Allspring Global Investments, LLC 47,891,321 5.1 77,574,353 7.6
Evelyn Partners 48,609,096 5.1
41,145,053 4.0
RBC Brewin Dolphin 40,239,385 4.3 44,937,794 4.4
Quilter Cheviot Investment Management
(previously Old Mutual Plc)
39,168,368 4.2 40,393,918 3.9
On 29 April 2026 the Company was notified that City of
London Investment Management Company Limited holds
169,585,898 shares representing 18.0% of the Company’s
issued share capital at that date.
Principal service providers
Alternative Investment Fund Manager, Secretary
and Administrator
FTITML is the Alternative Investment Fund Manager, Secretary
and Administrator with the role of investment management
delegated to FTIML and TAML. Portfolio Managers from FTIML
and TAML form part of the wider TGI as described on page13.
The main secretarial duties involve compliance with statutory
and regulatory obligations which the Company must observe.
All Directors have access to the advice of the Company
Secretary, who is responsible for advising the Board on all
governance matters. The appointment of the Company
Secretary was discussed and approved by the Board and the
secretarial activity is reviewed on an annual basis.
With effect from 1 July 2025 the annual fee rate for the services
provided by FTITML, including investment management, risk
management, secretarial and administration services, was
reduced to:
•
1% of the first £1 billion of net assets;
•
0.6% of net assets between £1 billion and £2 billion; and
•
0.5% of net assets over £2 billion.
The previous fee structure was 1% of net assets up to £1 billion,
0.7% of net assets between £1 billion and £2 billion, and 0.5%
of net assets over £2 billion.
With effect from 1 July 2026 the fee for all assets above
£1billion will be 0.5%.
The agreement between the Company and FTITML may be
terminated by either party giving one year’s notice, but in
certain circumstances the Company may be required to pay
compensation to FTITML of an amount up to one year’s fee in
lieu of notice. No compensation is payable if at least one year’s
notice of termination is given.
Details of the remuneration policy of the AIFM and amounts
attributable to the Company are available to existing
shareholders upon request at the registered office of the
Company. FTITML’s remuneration disclosures are set out on
page 106.
The Board considers the arrangements for the provision of
investment management services to the Company on an
ongoing basis, and a formal review is conducted annually by
the Management Engagement Committee. In the opinion of
the Directors, the continuing appointment of FTITML is in the
best interests of the shareholders as a whole.
Depositary and custodian
J.P. Morgan Europe Limited performs the role of depositary
and JPMorgan Chase Bank performs the role of custodian.
The agreements in place may be terminated by either party
giving the other 90 days’ notice.
A detailed list of service providers, along with addresses, can
be found in the General Information section on page 112.
Corporate governance
The Company is committed to high standards of corporate
governance. The Board is accountable to the shareholders for
good governance and this statement describes how
governance principles have been applied.
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Templeton Emerging Markets Investment Trust plc 59
Association of investment companies code of
corporategovernance
The Board has considered the Principles and Provisions of the
2024 AIC Corporate Governance Code (‘AIC Code’). The AIC
Code addresses the Principles and Provisions set out in the
2024 UK Corporate Governance Code (‘UK Code’), as well as
setting out additional provisions on issues that are of specific
relevance to the Company as an investment company.
The Board considers that reporting against the Principles and
Provisions of the AIC Code, which has been endorsed by the
FRC, provides the relevant information to shareholders.
The Company has complied with the Principles and Provisions
of the AIC Code which also meets the obligations under the
UK Code (and associated disclosure requirements under
paragraph 6.6.6 R of the UK Listing Rules). The AIC Code is
available on the AIC website (www.theaic.co.uk). It includes an
explanation of how the AIC Code adapts the Principles and
Provisions set out in the UK Code to make them relevant for
investment companies.
A statement explaining TEMIT’s compliance with the AIC Code
principles can be found at www.temit.co.uk.
Supporting charitable causes
Last year we notified shareholders of the extensive research
we had undertaken into our shareholder ownership, part of
which was to establish ‘dormant shareholders’ for whom
contact had been lost pre-2008. We were successful in
re-uniting many shareholders with their holdings and for the
remaining unidentified shareholdings, we commenced a legal
forfeiture and disposal exercise. As per the UK Government
backed Dormant Assets Scheme, we were able to donate a
proportion of the unlocked assets for important UK social and
environmental initiatives. Each year we will report briefly on
one of the four selected beneficiaries.
Carefree (carefreespace.org) transforms vacant hotel rooms
into vital breaks for unpaid carers. Unpaid carers (of whom
there are 1.7 million in the UK providing over 50 hours of care
per week) are disproportionally overworked, isolated,
financially stressed and physically and mentally challenged.
Carefree partners with social services and with hotel groups
willing to donate vacant rooms for carer stays.
Last year Carefree provided nearly 6,500 carer breaks. It now has
over 50,000 unpaid carers registered on it database and has
delivered over 20,000 breaks in total. 40 new hotels partnered
with Carefree last year and Community Partnerships across the
UK grew to 66 in total. Independent research from Just
Economics quantified the incredible impact made by Carefree;
every £1 invested in the Charity creates a return of over £21 for
society and every break delivered saves the public purse £294 in
avoided care costs. As a digital, increasingly AI driven charity,
Carefree embraces technology to deliver real social impact.
Additional information for New Zealand
shareholders
As a result of a requirement for Overseas Issuers listed on the
New Zealand Stock Exchange, the following should be noted
by New Zealand shareholders:
•
The corporate governance rules and principles in TEMIT’s
home exchange jurisdiction of the United Kingdom may
materially differ from the New Zealand Stock Exchange
(‘NZX’) corporate governance rules and the principles of the
NZX Corporate Governance Code;
•
Investors may find more information about the corporate
governance and principles of TEMIT’s home exchange in
the United Kingdom in the above Corporate Governance
statement and online at
www.frc.org.uk/corporate/ukcgcode.cfm;
•
The Company relies on the Financial Markets Conduct
(Overseas FMC Reporting Entities) Exemption Notice 2021,
issued by the New Zealand Financial Markets Authority,
which exempts it from certain financial reporting obligations
under the Financial Markets Conduct Act 2013; and
•
The Company relies on the Financial Markets Conduct
(Climate-related Disclosures for Foreign Listed Issuers)
Exemption Notice 2025, which exempts it from Part 7A of
the New Zealand Financial Markets Conduct Act 2013 such
that the Company is exempt from climate-related disclosure
requirements under New Zealand law. Any climate
statements prepared by the Company from time to time are
made available, free of charge, on the Company’s website
at www.temit.co.uk.
Schedule of Reserved Matters
The Board has formally adopted a Schedule of Reserved
Matters, which details the matters which the Board has agreed
are specifically reserved for its collective decision. These
matters include, inter alia, approval of the Half Yearly and
Annual Financial Statements, the approval of interim and
special dividends, recommendation of the final dividend,
approval of any preliminary results announcements of
theCompany, approval of any proposed changes to
theCompany’s objective and/or investment policy,
appointment or removal of the Company’s Manager or
Investment Managers, gearing, Board membership and Board
Committee membership and any major changes to the
objective, philosophy or investment policy of the Company,
other than any such changes delegated to the Investment
Managers under the Investment Management Agreement.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Resolution 3 seeks shareholders’ approval of the Directors’
Remuneration Report for the year ended 31 March 2026.
Approval of the Directors’ Remuneration Report is sought at
each AGM and this year’s report is set out in full on pages 62
to 66 of the 2026 Annual Report.
Resolution 4 seeks shareholders’ approval to declare a final
dividend of 3.25 pence per share, payable on 31 July 2026 to
shareholders on the register as at close of business on
26 June 2026.
Resolutions 5.1 to 5.5 seek shareholders’ approval to re-elect
Abigail Rotheroe, Charlie Ricketts, Magdalene Miller, Angus
Macpherson and Sarika Patel as Directors. David Graham is
not seeking re-election and is stepping down from the Board
at the conclusion of the AGM on 9 July 2026.
The Board recommends that each director is re-elected or
elected as appropriate, as set out under Board Performance
Review on page 53.
In accordance with the provisions of the UK Corporate
Governance Code, all independent Directors will offer
themselves for election at the first AGM following their
appointment and for re-election at each subsequent AGM.
Resolutions 6 and 7 seek shareholders’ approval to re-appoint
Ernst & Young LLP as auditor of the Company, and to authorise
the Directors to determine the auditor’s remuneration. Following
the recommendation of the Company’s Audit and Risk
Committee, shareholders will be asked to approve the
re-appointment of Ernst & Young LLP as the Company’s auditor,
to hold office until the conclusion of the Company’s 2027 Annual
General Meeting. Shareholders will be asked to grant authority to
the Board to determine the remuneration of the auditor.
Special business
The Special Business to be dealt with at the AGM is:
Authority for the Allotment of New Shares
The resolutions to allot shares are set out in resolutions 8 (ordinary
resolution) and 9 (special resolution) in the Notice of Annual
General Meeting. These resolutions, if passed, will give your
Directors power to allot for cash equity securities of the Company
and/or to sell equity securities held as treasury shares up to a
maximum aggregate nominal amount of £2,345,000 (being an
amount equal to 5% of the issued share capital of the Company as
at 21 May 2026) as if Section 561 of the Companies Act 2006 (‘the
Act’) did not apply (this section requires, when shares are to be
allotted for cash or shares held as treasury shares are sold, that
such shares first be offered to existing shareholders in proportion
to their existing holdings of shares, this entitlement being known
as ‘pre-emption rights’). The authorities contained in resolutions8
and 9 will continue until the AGM of the Company in 2027 and
your Directors envisage seeking the renewal of this authority in
2027 and in each succeeding year. Such authorities will only be
The day-to-day investment management of the portfolio of the
Company is delegated to the Investment Managers, who
manage the portfolio in accordance with the objectives of the
Company as set by the Board.
Articles of association
The Company may change its Articles of Association by
special resolution of its shareholders.
Internal control
Details of the Company’s system of internal controls can be
found on page 72.
Annual General Meeting
The AGM will be held on Thursday 9 July 2026 at The Minster
Building, 21 Mincing Lane, London EC3R 7AG. Further details
regarding the AGM are set out in the Notice of Meeting on
page 108.
This year we have arranged a guest speaker, the highly respected
financial journalist, Jeff Prestridge. Until recently Jeff was the
Money Editor-at-Large of the Daily Mail and Mail on Sunday. The
Portfolio Managers will also be presenting and there will be the
opportunity to ask them, Jeff and the TEMIT Directors questions
and join them all over lunch for informaldiscussion.
Whether you intend to attend the meeting in person or not,
you are strongly encouraged to submit your votes on the AGM
resolutions in advance of the meeting. Submitting votes by
proxy does not preclude you attending the meeting or
changing your vote if you attend the AGM, but your votes will
be counted if you have submitted a proxy vote in advance and
if you are then unable to attend the AGM.
Additionally, for the first time, the event will be available live via an
online streaming service. If you cannot attend the event in
person, we encourage you to register to attend online, all
information about the event and how to register is included on
the TEMIT website www.temit.co.uk. The event will also be
recorded and will be available on TEMIT’s website after the event.
Ordinary business
The formal business of the Meeting will begin with resolution 1
which seeks shareholders’ approval to receive and adopt the
Directors’ and Auditor’s Reports and Financial Statements for
the year ended 31 March 2026.
Resolution 2 seeks approval of the Directors’ Remuneration
Policy at this year’s AGM. Shareholders are invited to approve
the Directors’ Remuneration Policy as set out on page 63,
which sets the Company’s forward-looking policy on Directors’
Remuneration. This policy was last approved by shareholders
at the AGM in 2023.
02. Governance
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Templeton Emerging Markets Investment Trust plc 61
used when your Directors believe that it would be in the best
interests of the Company to do so and only at a price which is at
or above the prevailing NAV per share at the time of issue.
(i) Authority to Purchase Own Shares
At the AGM of the Company held on 10 July 2025, a Special
Resolution was passed authorising the Company to purchase
its shares in the market, limited to a maximum of 14.99% of the
shares in issue on 10 July 2025 equivalent to 148,577,932
shares. The present authority expires at the conclusion of the
AGM on 9 July 2026.
Under Resolution 10, the Directors are seeking renewal of the
authority to purchase the Company’s shares in the market,
limited to a maximum of 14.99% of the Company’s issued
ordinary share capital, excluding treasury shares, at the date of
the passing of this resolution (equivalent to 140,635,636 ordinary
shares of 5 pence per share as at 21 May 2026).
Any shares purchased pursuant to this authority may be
cancelled or held in treasury pursuant to the Companies
(Acquisition of Own Shares) (Treasury Shares) Regulations
2003. Purchases will only be made for cash, provided that:
(a) the maximum price which may be paid is the higher of:
•
5% above the average market value of the shares for the
five business days before the purchase is made;
•
the higher of the last independent trade price and the
highest current independent bid price on the London
Stock Exchange;
(b) the minimum price payable for the shares will be the
nominal value of 5 pence per share; and
(c) shares will only be purchased at a price which is at a
discount to the prevailing net asset value per share at the
time of purchase.
The authority to purchase shares (whether for cancellation or
to be held in treasury) will only be exercised if to do so would
be in the best interests of shareholders generally and would
result in an increase in the net asset value per share for the
remaining shareholders. The purpose of holding some shares
in treasury is to allow the Company to re-issue those shares
quickly and cost-effectively, thus providing the Company with
flexibility in the management of its capital base. Whilst in
treasury, no dividends are payable on, or voting rights attach
to, these shares. No shares will be purchased by the Company
during periods when the Company would be prohibited from
making such purchases by the rules of the FCA. As at the date
of this report, there are no warrants or options outstanding to
subscribe for equity shares in the Company.
The Directors envisage seeking the renewal of the relevant
authority in 2027 and in each succeeding year.
(ii) Notice period for general meetings
At the AGM of the Company held on 10 July 2025, a Special
Resolution was passed authorising the Company to call
general meetings (other than Annual General Meetings) on
14days’ clear notice, up to the conclusion of the AGM in 2026.
The Directors are seeking renewal under Resolution 11 of the
authority to call general meetings (other than Annual General
Meetings) on 14 days’ clear notice.
This resolution is required to reflect the Act which requires that
all general meetings must be held with at least 21days’ notice
unless shareholders agree to a shorter noticeperiod.
The Directors only intend to call a general meeting on less
than 21 days’ notice where the proposals are time sensitive,
and the short notice would clearly be in the best interests of
the shareholders as a whole.
The approval will be effective until the Company’s AGM in 2027,
when it is intended that a similar resolution will be proposed.
The Company will also be required to meet the requirements for
electronic voting under section 307A of the Act before it can
call a general meeting on 14 clear days’ notice.
Recommendation
The Directors believe that all the resolutions proposed are in
the best interests of the Company and the shareholders as a
whole and recommend that all shareholders vote in favour of
all the resolutions.
The results of the votes on the resolutions at the AGM will be
published on the Company’s website.
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, current liabilities relating to the £122 million
multi-currency revolving credit loan facility, expenditure
forecasts, compliance with the loan covenants, 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 2028, which is at least
12months from the date of approval of these Financial
Statements, and are satisfied that the going concern basis is
appropriate in preparing the Financial Statements.
By order of the Board
Angus Macpherson
2 June 2026
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Directors’ remuneration report
This report has been prepared in accordance with the requirements of Section 420-422 of the
Companies Act 2006, with subsequent amendments. The Directors’ Remuneration Policy is
subject to a triennial binding shareholder vote and the Directors’ Remuneration Report is
subject to an annual non-binding shareholder vote, both as ordinary resolutions.
The law requires the Company’s auditor to audit certain of the disclosures provided. Where
disclosures have been audited, they are indicated as such. The auditor’s opinion is included in
its report on pages 75 to 82.
All Directors are non-executive, appointed under the terms of Letters of Appointment, and none
has a service contract. These letters are available for inspection by shareholders at the
Company’s registered address or at the AGM. The Directors’ Report includes, on page 53,
details of the Directors’ terms of appointment.
The Company has no employees. Details of the Nomination and Remuneration Committee can
be found on page 56 in the Directors’ Report.
Mexico
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Templeton Emerging Markets Investment Trust plc 63
Directors’ remuneration policy
This Policy provides details of the remuneration policy for the
Directors of the Company.
A resolution proposing the approval of the Directors’
remuneration policy was put to the shareholders at the 2023
AGM and passed by 748,951,673 (99.95%) of shareholders
voting in favour of the resolution, 404,878 (0.05%) voting
against and 156,977 abstaining from voting.
The Policy as set out below has not changed and will be
subject to shareholders approval at the AGM to be held on
9July 2026.
The Board’s policy, which has been designed to support the
Company’s strategy and promote long-term sustainable
success, is that the remuneration of non-executive Directors
should reflect the responsibilities of the Board, Directors’ time
spent on the Company’s business, the experience of the
Board as a whole, and be fair and comparable to that of other
investment trusts similar in size, capital structure and objective.
The Chairman of the Board, Chair of the Audit and Risk
Committee and Senior Independent Director are paid higher
fees than the other Directors, reflecting the greater amount of
time spent on the Company’s business.
The review process involves an analysis of fees paid to
Directors of other companies having similar profiles to that of
the Company. This review is submitted to the Nomination and
Remuneration Committee and the Directors’ fees are agreed
for the next year. The Company has no Chief Executive Officer
and no employees and therefore there was no consultation of
employees and there is no employee comparative data to
provide, in relation to the setting of the remuneration policy
forDirectors.
Directors’ and Officers’ liability insurance cover is maintained
by the Company, at its expense.
Directors’ remuneration is not linked to the performance of the
Company and Directors are not eligible for bonuses, pension
benefits, share options, long-term incentive schemes or
otherbenefits.
The independent non-executive Directors are entitled to
reclaim reasonable expenses incurred to perform their duties
as non-executive Directors for the Company. Directors are not
entitled to payment for loss of office and may be removed from
office by the Company on three months’ notice.
The Nomination and Remuneration Committee considers any
comments received from shareholders on the remuneration
policy on an ongoing basis and takes account of those views.
Directors’ remuneration implementation report
The Directors’ Remuneration Report, which includes details of
the Directors’ Remuneration Policy and its implementation, is
subject to an annual shareholders’ vote and an ordinary
resolution to approve the Remuneration Policy will be put to
shareholders at the forthcoming AGM. A review was carried out
during the financial year to 31 March 2026 and this review
recommended increases in fees as set out in the table below
for the forthcoming financial year. These changes to
remuneration are in line with the Directors’ Remuneration
Policy as set out above. The involvement of remuneration
consultants has not been deemed necessary as part of this
year’s review.
Role Component Current Annual Fee Proposed Annual Fee
Independent Directors Annual Fee £43,000 £44,500
Chairman Additional Fee £33,000 £34,000
Chair of the Audit and Risk Committee Additional Fee £16,000 £16,500
Senior Independent Director Additional Fee £3,500 £3,500
02. Governance
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Directors’ fees for the year
Fees paid to each Director for the financial year to 31 March 2026 are set out below. A non-binding ordinary resolution proposing
adoption of the Directors’ Remuneration Report was put to shareholders at the Company’s AGM held on 10 July 2025 and was
passed by 633,748,498 (99.83%) of shareholders voting in favour of the resolution, 1,047,742 (0.17%) voting against and 279,759
abstaining from voting.
The Directors who served during the year received the following fees, which represented their total remuneration from the Company:
2026 2025
Audited Information
Annual
Fee £
Taxable
Benefits
(a)
£ Total £
Annual
Fee £
Taxable
Benefits
(a)
£ Total £
David Graham 43,000 – 43,000 42,000 – 42,000
Simon Jeffreys
(b)
15,769 37 15,806 60,500 738 61,238
Angus Macpherson 76,000 – 76,000 74,500 4,498 78,998
Magdalene Miller 43,000 5,783 48,783 42,000 3,787 45,787
Charlie Ricketts
(c)
45,530 4,095 49,625 42,000 6,741 48,741
Abigail Rotheroe 43,000 – 43,000 42,000 57 42,057
Sarika Patel
(d)
54,565 407 54,972 10,500 – 10,500
Total 320,864 10,322 331,186 313,500 15,821 329,321
(a) Taxable benefits relate to the reimbursement of expenses incurred in connection with the performance of the Directors’ duties and attendance at Board and Committee meetings. The figures
are shown gross of relevant taxes.
(b) Retired from the Board on 10 July 2025.
(c) Took on the role of Senior Independent Director on 11 July 2025.
(d) Took over as Chair of the Audit and Risk Committee on 11 July 2025.
Annual percentage change in Directors’ fees
The table below shows the annual percentage change in Directors’ fees over the five financial years preceding the year to
31March 2026:
Component 2026 £
% Change
from 2025
to 2026 2025 £
% Change
from 2024
to 2025 2024 £
% Change
from 2023
to 2024 2023 £
% Change
from 2022
to 2023 2022 £
% Change
from 2021
to 2022 2021 £
Independent Directors Annual fee 43,000 2.4 42,000 2.4 41,000 2.5 40,000 2.6 39,000 2.6 38,000
Chairman Additional fee 33,000 1.5 32,500 1.6 32,000 3.2 31,000 3.3 30,000 3.4 29,000
Chairman of the Audit
and Risk Committee
Additional fee 16,000 3.2 15,500 3.3 15,000 11.1 13,500 3.8 13,000 4.0 12,500
Senior Independent
Director
Additional fee 3,500 16.7 3,000 20.0 2,500 – 2,500 – 2,500 100 –
02. Governance
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 65
Performance graph
(a)
The line graph below details TEMIT’s share price total return against TEMIT’s benchmark, the MSCI Emerging Markets (Net
Dividends) Index total return over the past 10 years.
(a) Figures rebased to 100 at 31 March 2016.
(b) Directors’ Remuneration comprises Directors’ fees of £320,864 and Employer National Insurance Contributions of £34,030 for the financial year 2026 (2025: £313,500 and £30,411 respectively).
(c) Based on a proposed final dividend of 3.25 pence per share calculated using shares in issue as at 21 May 2026 and the interim dividend of 2.00 pence per share paid 30 January 2026.
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Relative cost of Directors’ fees
The table below shows the Company’s expenditure on Directors’ fees compared to distributions to shareholders:
The items detailed in the above table are as required by the Large and Medium-size Companies and Groups (Accounts and Reports) 2013.
2026
£’000
2025
£’000
Directors’ Remuneration
(b)
355 344
Distribution to Shareholders:
Dividends 49,666
(c)
53,494
Share Buybacks 166,706 149,230
02. Governance
66
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Statement of Directors’ shareholdings
The Directors’ interests (including any family interests) existing as at 31 March in the Company’s shares were as follows:
Approval
The Directors’ Remuneration Report was approved by the Board of Directors on 2 June 2026.
Angus Macpherson
2 June 2026
The Company has not received any other notifications of changes in the above interests as at 21 May 2026.
Audited Information
2026
Number of Shares
2025
Number of Shares
David Graham 111,977 110,737
Angus Macpherson 68,000 68,000
Magdalene Miller 20,000 20,000
Sarika Patel 15,399 –
Charlie Ricketts 25,000 25,000
Abigail Rotheroe 27,110 27,110
02. Governance
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 67
Report of the audit and risk committee
Composition
As of 31 March 2026, the Audit and Risk Committee comprised
Sarika Patel (Chair), David Graham, Magdalene Miller, Charlie
Ricketts and Abigail Rotheroe, all independent
non-executive Directors.
The Board considers that the members of the Audit and Risk
Committee have sufficient recent and relevant financial
experience for it to perform its functions effectively, noting in
particular that the Audit and Risk Committee Chair is a
Chartered Accountant. David Graham is also a Chartered
Accountant. The Directors’ biographies are given on
pages 51 and 52.
Role and responsibilities
The Audit and Risk Committee plays an important role in the
appraisal and supervision of key aspects of the Company’s
business. The Committee carried out the following activities to
accomplish its principal objectives and reported to the Board
on how it discharged its responsibilities:
•
Provided advice to the Board on whether the Annual Report
and Financial Statements, taken as a whole, are fair,
balanced and understandable, and provide the information
necessary for shareholders to assess the Company’s
position and performance, business model and strategy;
•
Monitored the integrity of the Financial Statements
including the review of and agreeing the appropriateness of
the Company’s accounting policies, accounting estimates
and judgements, treatment and disclosures of tax,
alternative performance measures and compliance with the
appropriate reporting requirements;
•
Oversaw the relationship with the external auditor, including
monitoring of any non-audit services in accordance with
the policy;
•
Reviewed and monitored the external auditor’s
effectiveness, objectivity and independence, and the
effectiveness of the audit process, taking into consideration
relevant UK professional and regulatory requirements;
•
Monitored, reviewed and confirmed the effectiveness of
the internal financial controls and internal controls and risk
management systems on which the Company is reliant;
•
Reviewed the effectiveness of the internal audit function of
Franklin Templeton and its reports, and was satisfied with
the results;
•
Reviewed the internal and external audit plans and the
findings of the audits, including the external
Auditor’sReport;
•
Reviewed and confirmed that the value and quality of
services provided to the Company by third parties were
satisfactory;
•
Reviewed in detail the contents of the Company’s risk
matrix;
•
Received regular updates from the Manager’s tax team on
ongoing claims for recoverable taxes; and
•
Reviewed other ad hoc items referred to the Audit and
RiskCommittee by the Board.
This report summarises how the Committee discharged its role
and responsibilities, the work carried out by the Committee and
the conclusions reached.
As Chair of the Audit and Risk Committee, I am pleased to present this report to shareholders. The report
contains details of the Audit and Risk Committee’s activities and responsibilities along with the
evaluation of effectiveness of the external and internal audit process for the year ended 31 March 2026.
02. Governance
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Activities during the year
The Committee met formally three times during the year.
The Chair and other members of the Committee, also:
•
Reviewed and challenged the scenarios presented by the
Manager to support the use of the going concern basis and
the ongoing viability assessment. Upon review and
discussion with the Manager the Committee concluded
that the scenarios were appropriate to support the use of
the going concern basis and the ongoing
viabilitystatement;
•
Met with the Manager to discuss its approach to ESG
considerations including the continued evolution of the
Stewardship Report for TEMIT;
•
Held meetings with the Manager to discuss with those
responsible all relevant matters relating to financial
reporting, company secretarial, taxation, internal audit and
risk and control framework;
•
Discussed with the investment and risk teams the ongoing
geopolitical tensions and their impacts on the portfolio as
well as any potential restrictions on the ability to invest in
certain companies;
•
Discussed with the Investment Managers’ risk team
improvements to the design and content of the Company’s
risk matrix; and
•
Discussed with the Manager the classification of the special
dividends received throughout the year and agreed the
capital and revenue split. The Committee concluded that
the treatment applied in the Statement of Comprehensive
Income was appropriate and therefore no significant
judgement was required.
The Committee maintains a programme of agenda items to
ensure that its workload is balanced across the year and that
matters are addressed at appropriate times.
Performance review
The Board undertakes an annual review of performance of the
Audit and Risk Committee and of its individual Directors,
further details of this review can be found on page 53. The
Board is satisfied with the performance and effectiveness of
the Audit and Risk Committee.
02. Governance
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 69
Annual Report and Financial Statements
A primary responsibility of the Audit and Risk Committee is to review the appropriateness of the Annual and Half Yearly Reports.
During the year, the work of the Committee included the following significant activities in relation to the Financial Statements:
Portfolio Valuation The Directors received regular portfolio reports, liquidity information and presentations from
the Manager and the Investment Managers. The Committee reviewed valuation reports from
the Manager and is satisfied that valuations are compliant with the accounting policies
commencing on page 88.
Misappropriation of Assets and
Counterparty Risk
The Committee considered the risk of counterparty failure. The Company has appointed an
independent custodian (JPMorgan Chase Bank) to hold its investments. The Manager
reconciled the investment portfolio to the custodian’s records on a regular basis and any
material variances are reported to the Committee. In addition, the Committee received from
the Manager an annual review evaluating JPMorgan Chase Bank’s global custody and
sub-custody network including the results of an ISAE 3402 report on internal controls by
PricewaterhouseCoopers. The results were satisfactory.
Going Concern and Viability The Committee considered that the Company’s assets consist of equity shares in companies
listed on recognised stock exchanges which 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, current liabilities relating to the
£122million multi-currency revolving credit facility, expenditure forecasts, compliance with the
loan covenants, the principal and emerging risks and uncertainties described in the Annual
Report, the Committee was satisfied that the Company has adequate resources to continue to
operate as a going concern for the period to 31 March 2028, which is at least 12 months from
the date of approval of these Financial Statements. The Committee therefore concluded that it
was appropriate to prepare the Financial Statements on a going concern basis and made its
recommendations to the Board. The scenarios considered include the liquidity of the portfolio,
a sustained increase in the value of the portfolio (which would result in an increase in running
costs, particularly the AIFM fee), a significant drop in value of the assets and a similar decrease
in dividend income and confirms that the Company could continue as a going concern. The
Committee also considered such scenarios over a five-year period, including for this purpose
the continuation vote due to be held in 2029, to support the Company’s ongoing viability as
noted in the Viability Statement on page 49.
Recognition of
Investment Income
Each quarter the Committee received and reviewed annual income forecast reports which
detailed the income received and the estimated income due to be received in the financial
year. These forecasts included details of material variances compared with prior forecasts.
TheCommittee is satisfied with these analyses.
Compliance with Section 1158
of the Corporation Tax Act 2010
The Company has been accepted as an approved investment trust by HM Revenue & Customs
for accounting periods commencing on or after 1 April 2012, subject to continuing to meet the
eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing
requirements of The Investment Trust (Approved Company) (Tax) Regulations 2011. The
Committee is satisfied that the Company complies with these conditions and intends to direct
its affairs to ensure its continued approval as an investment trust.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Areas of audit focus
The Committee reviewed and agreed the external audit plan
including the level of audit materiality which it challenged and
concluded was appropriate. The external auditor determined
the scope of their work and the Committee also discussed with
them key matters which they wanted to be covered and which
included the following:
•
Ownership and valuation of the portfolio given that the
majority of the Company’s assets are invested in its
portfolio companies. The external auditor validated the
ownership and valuations to its independent sources and
concluded that the results of their procedures did not
identify any material misstatements;
•
Income recognition to confirm that income was correctly
recorded and received. The external auditor recalculated
all dividend income from independent sources and tested a
sample to bank statements, and assessed the classification
of special dividends as revenue or capital items in the
Statement of Comprehensive Income. The external auditor
concluded that the results of their procedures did not
identify any material misstatements; and
•
Although not a key audit matter as determined by the
external auditor the Committee focused on Compliance
with S1158 regulations in order to ensure that the Company
is meeting its minimum distribution obligations. The external
auditor concluded that the Company was in compliance
with S1158 regulations as at the balance sheet date.
The Committee notes that there was no significant accounting
judgement required in relation to the classification of special
dividends received.
Further information on these key audit matters and the
external auditor’s observations reported to the Committee are
detailed within their audit report on pages 75 to 82. The
Committee reviewed and were satisfied with the conclusions
presented by the external auditor for each of these matters.
Conclusion
As a result of the work undertaken by the Committee as noted
on page 68 and from the conclusions presented by the external
auditor, the Committee has concluded that the Financial
Statements for the year ended 31 March 2026, taken as a whole,
are fair, balanced and understandable and provide the
information necessary for shareholders to assess the
Company’s position and performance, business model and
strategy, and has reported on these findings to the Board.
TheBoard’s conclusions in this respect are set out in the
Statement of Directors’ Responsibilities on page 73.
External auditor
Assessment of effectiveness and independence
of the external audit process
To assess the effectiveness and independence of the external
audit process, the auditor is asked, on an annual basis, to set
out the steps that it has taken to ensure objectivity and
independence. The auditor’s performance, behaviour and
effectiveness during the exercise of its duties are monitored
during the year by the Audit and Risk Committee. The Audit
and Risk Committee considered the annual independent Audit
Quality Inspection report by the FRC, which monitors audit
quality of the major audit firms in the UK and discussed with
the external auditor the results of its FRC audit quality review.
Ernst & Young LLP presented its detailed audit plan for the
2026 financial year end at the November2025 Audit and Risk
Committee meeting. The Audit and Risk Committee also
reviewed Ernst & Young LLP’s policies and procedures
including quality assurance procedures and independence and
concluded that they were satisfactory.
The outcome of these reviews and discussions with the Senior
Statutory Auditor were that the Committee is satisfied that
Ernst & Young LLP has a suitable culture, control environment
and risk framework to enable it to deliver a high-quality audit.
In assessing the quality of the audit, the Committee
considered areas where the auditor had demonstrated
professional scepticism and challenged management. They
noted that this had been demonstrated around the disclosure
of the revolving credit facility loans as current payables under
IAS1 whereby the auditor asked management to fully justify
and explain the classification, with the conclusion being that
current payables was appropriate on the basis of the lenders
right to terminate within a 12 month period from reporting date.
Taking into consideration all the above and its review and
discussions with the key parties the Committee concluded
that the external auditor had delivered a quality audit for the
financial year ended 31 March 2026.
02. Governance
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 71
Auditor rotation
The regulations on mandatory auditor rotation require an audit
tender to take place every ten years. An audit tender took
place during 2019 and shareholders approved the
appointment of Ernst & Young LLP as the Company’s external
auditor at the Annual General Meeting held on 11 July 2019.
The year ended 31 March 2026 was the fourth year for which
Ashley Coups (Senior Statutory Auditor) has served as audit
partner for TEMIT.
Non-audit services
Performance of any non-audit services by the external auditor
must be approved in advance by the Committee and must
comply with the guidelines set out in the FRC’s Revised Ethical
Standard 2024. The Committee concluded that the non-audit
service fees were appropriate relative to fees paid for audit
services. An engagement letter is issued for all non-audit work
and is reviewed by the Committee to ensure that the
independence and objectivity of the auditor is safeguarded.
During the year, Ernst & Young LLP was engaged to perform a
review of the Half Yearly Report. This is assurance related and
the Committee believes that Ernst & Young LLP is best placed
to provide this service for the shareholders.
Audited Information 2026 2025
Audit Services £56,500 £56,200
Non-Audit Services
- Review of Half Yearly Report £11,230 £10,850
Percentage of Audit Services 19.9% 19.3%
The Committee therefore confirms that the non-audit work undertaken by the auditor satisfies and does not compromise the tests
of the auditor’s independence, objectivity, effectiveness, resources and qualification.
The fees paid to the Auditor in the year were as follows:
02. Governance
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Internal control
The Committee monitors the risk management and system of
internal controls on an ongoing basis and engages Franklin
Templeton’s internal audit function to carry out a review of
specific areas that the Audit and Risk Committee
considersappropriate.
The Committee met representatives of the Manager and
Investment Managers, including its internal auditor, risk
manager and its compliance officer, who reported as to the
proper conduct of business in accordance with the regulatory
environment in which both the Company and the Manager
operate. Certain meetings held with the internal auditors are
conducted on a private basis, with no representatives of the
Manager present.
The Committee reviewed the Company’s risk matrix that
explains in detail the key risks identified by the Company,
assessing the likelihood of each risk materialising and the
impact that this would have on the Company. The Committee
also confirmed the effectiveness of the key operational
procedures and oversight by the Manager and the Board.
Other areas
TEMIT is able to rely on the Financial Markets Conduct
(Overseas FMC Reporting Entities) Exemption Notice 2021,
that exempts it from requirements to prepare audited Financial
Statements in accordance with the New Zealand Financial
Market Conduct Act 2013. This exemption recognises that
companies with a primary listing in the United Kingdom
prepare Financial Statements and are audited in accordance
with UK requirements. This exempts TEMIT from the
New Zealand requirement that firms be audited by a
New Zealand unlimited liability entity.
TEMIT is in compliance with the provisions of ‘The Statutory
Audit Services for Large Companies Market Investigation’
(Mandatory Use of Competitive Tender Processes and Audit
Committee Responsibilities) Order 2014 as issued by the
Competition & Markets Authority.
The Committee confirms that for the year ended 31 March
2026, it has compiled with the Audit Committees and External
Audit: Minimum Standard.
Sarika Patel
Audit and Risk Committee Chair
2 June 2026
02. Governance
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 73
Statement of directors’ responsibilities
In respect of the Annual Report and
theFinancial Statements
The Directors are responsible for preparing the Annual Report
and the Financial Statements in accordance with applicable
law and regulations. Details of the Directors and members of
the Committees are reported on pages 51 and 52.
Company law requires the Directors to prepare Financial
Statements for each financial year. Under that law the
Directorsare required to prepare the Financial Statements in
accordance with UK adopted International
AccountingStandards.
Under company law the Directors must be satisfied that the
Financial Statements give a true and fair view of the state of
affairs of the Company and of the profit or loss of the Company
for the period.
In preparing these Financial Statements, International
Accounting Standard 1 requires that Directors:
•
Properly select and apply accounting policies;
•
Present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
•
Provide additional disclosures when compliance with the
specific requirements of UK adopted International
Accounting Standards is insufficient to enable users to
understand the impact of particular transactions, other
events and conditions on the entity’s financial position and
financial performance; and
•
Assess the Company’s ability to continue as a going concern.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain the
Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the Company
and to enable them to ensure that the Financial Statements
comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website (www.temit.co.uk). Legislation in
the United Kingdom governing the preparation and
dissemination of Financial Statements may differ from
legislation in other jurisdictions.
Responsibility statement
Each of the Directors, who are listed on pages 51 and 52,
confirms that to the best of their knowledge:
•
The Financial Statements, which have been prepared in
accordance with UK adopted International Accounting
Standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company for the
year ended 31 March 2026; and
•
The Chairman’s Statement, Strategic Report and the Report
of the Directors include a fair review of the information
required by 4.1.8R to 4.1.11R of the FCA’s Disclosure
Guidance and Transparency Rules; and
•
The Annual Report and Audited Financial Statements, taken
as a whole, are fair, balanced and understandable and
provide the information necessary for shareholders to
assess the Company’s position and performance, business
model and strategy, and include a description of the
principal risks and uncertainties.
By order of the Board
Angus Macpherson
2 June 2026
02. Governance
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
03.
Financial
Review
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 75
Independent auditor’s report
to the members of Templeton Emerging Markets Investment Trust plc
Opinion
We have audited the Financial Statements of Templeton
Emerging Markets Investment Trust plc (the ‘Company’) for the
year ended 31 March 2026 which comprise the Statement of
Comprehensive Income, the Statement of Financial Position,
the Statement of Changes in Equity, the Statement of Cash
Flows, and the related notes 1 to 22 to the Financial
Statements, including material accounting policy information.
The financial reporting framework that has been applied in
their preparation is applicable law and UK adopted
International Accounting Standards.
In our opinion, the Financial Statements:
•
give a true and fair view of the Company’s affairs as at
31March 2026 and of its profit for the year then ended;
•
have been properly prepared in accordance with UK
adopted International Accounting Standards; and
•
have been prepared in accordance with the requirements
of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in
the Auditor’s responsibilities for the audit of the Financial
Statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We are independent of the Company in accordance with the
ethical requirements that are relevant to our audit of the
Financial Statements in the UK, including the FRC’s Ethical
Standard as applied to listed public interest entities, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
The non-audit services prohibited by the FRC’s Ethical
Standard were not provided to the Company and we remain
independent of the Company in conducting the audit.
Conclusions relating to going concern
In auditing the Financial Statements, we have concluded that
the Directors’ use of the going concern basis of accounting in
the preparation of the Financial Statements is appropriate. Our
evaluation of the Directors’ assessment of the Company’s
ability to continue to adopt the going concern basis of
accounting included;
•
Confirming our understanding of the Company’s going
concern assessment process by engaging with the
Directors and the Company Secretary to determine if all key
factors were considered in their assessment.
•
Inspecting the Directors’ assessment of going concern,
including the revenue forecast, for the period to 31 March
2028 which is at least 12 months from the date the Financial
Statements were authorised for issue. In preparing the
revenue forecast, the Company has concluded that it is
able to continue to meet its ongoing costs as they fall due.
•
Review of the factors and assumptions, including the
impact of the current economic environment, as applied to
the revenue forecast and the liquidity assessment of the
investments. We considered the appropriateness of
themethods used to calculate the revenue forecast
andthe liquidity assessment and determined, through
testing of the methodology and calculations, that the
methods, inputs and assumptions utilised were appropriate
to be able to make an assessment for the Company.
•
In relation to the Company’s borrowing arrangements, we
inspected the Directors’ assessment of the risk of breaching
the debt covenants as a result of a reduction in the value of
the Company’s portfolio. We recalculated the Company’s
compliance with debt covenants in the scenarios assessed
by the Directors and reviewed the Directors’ reverse stress
testing in order to identify and challenge the factors which
would lead to the Company breaching the financial
covenants.
•
Reviewing the Company’s going concern disclosures
included in the Annual Report in order to assess that the
disclosures were appropriate and in conformity with the
reporting standards.
03. Financial Review
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
Company’s ability to continue as a going concern for a period
assessed by the Directors, being the period to 31 March 2028
which is at least 12 months from when the Financial Statements
were authorised for issue.
In relation to the Company’s reporting on how they have
applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the Directors’
statement in the Financial Statements about whether the
Directors considered it appropriate to adopt the going
concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with
respect to going concern are described in the relevant sections
of this report. However, because not all future events or
conditions can be predicted, this statement is not a guarantee
as to the Company’s ability to continue as a going concern.
Overview of our audit approach
Key audit matters
•
Risk of incomplete or inaccurate revenue
recognition
•
Risk of incorrect valuation or ownership of
the investment portfolio
Materiality
•
Overall materiality of £25.26m (2025:
£19.85m) which represents 1% of
shareholders’ funds.
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and
our allocation of performance materiality determine our audit
scope for the Company. This enables us to form an opinion on
the Financial Statements. We take into account size, risk profile,
the organisation of the Company and effectiveness of controls,
the potential impact of climate change and changes in the
business environment when assessing the level of work to be
performed. All audit work was performed directly by the audit
engagement team.
Climate change
Stakeholders are increasingly interested as to how climate
change will impact companies. The Company has determined
that the impact of climate change could affect the Company’s
portfolio. This is explained in the principal and emerging risks
section on page 48, which forms part of the “Other information”
rather than the audited Financial Statements. Our procedures
on these disclosures therefore consisted solely of considering
whether they are materially inconsistent with the Financial
Statements or our knowledge obtained in the course of the
audit or otherwise appear to be materially misstated.
Our audit effort in considering climate change was focused on
the adequacy of the Company’s disclosures in the Financial
Statements as set out in note 1(a) and conclusion that there
was no further impact of climate change to be taken into
account as the investments are valued based on market pricing
as required by UK adopted International Accounting Standards.
In line with UK adopted International Accounting Standards,
investments are valued at fair value, which for the Company are
quoted bid prices for investments in active markets.
Investments which are designated as level 3 are priced using
market-based valuation approaches. All investments therefore
reflect the market participants’ view of climate change risk on
the investments held by the Company. We also challenged the
Directors’ considerations of climate change in their assessment
of viability and associated disclosures.
Based on our work we have not identified the impact of climate
change on the Financial Statements to be a key audit matter or
to impact a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
Financial Statements of the current period and include the
most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters
included those which had the greatest effect on: the overall
audit strategy, the allocation of resources in the audit; and
directing the efforts of the engagement team. These matters
were addressed in the context of our audit of the Financial
Statements as a whole, and in our opinion thereon, and we do
not provide a separate opinion on these matters.
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Templeton Emerging Markets Investment Trust plc 77
Risk Our response to the risk
Key observations communicated to the
Audit and Risk Committee
Incomplete or inaccurate revenue
recognition (as described on page 70 in the
Report of the Audit and Risk Committee and as
per the accounting policy set out on page 89.
The total revenue for the year to 31 March 2026
was £66.77m (2025: £74.34m), being £63.50m
dividend income (2025: £69.30m), £0.91m
derivative income (2025: £0m) and £2.36m
(2025: £5.04m) other income.
There is a risk of incomplete or inaccurate
recognition of revenue through the failure to
recognise proper income entitlements or to
apply an appropriate accounting treatment.
Additionally, in accordance with the AIC SORP,
special dividends received by the Company
can be included in either the revenue or
capital columns of the Income Statement
depending on the commercial circumstances
behind the payments.
We performed the following procedures:
We obtained an understanding of the
Administrator’s processes and controls
surrounding revenue recognition by
performing walkthrough procedures.
For 100% of dividends received and accrued,
we recalculated the dividend income by
multiplying the investment holdings at the
ex-dividend date, traced from the accounting
records, by the dividend per share, which we
agreed to an independent data vendor. We
agreed a sample of dividend receipts to bank
statements.
For 100% of dividends accrued, we reviewed
the investee company announcements to
assess whether the dividend entitlements
arose prior to 31 March 2026.
To test completeness of recorded income, we
verified that all expected dividends for each
investee company held during the year have
been recorded as revenue with reference to
investee company announcements obtained
from an independent data vendor.
For all investments held during the year, we
inspected the type of dividends paid with
reference to an external data vendor to
identify those which were special dividends.
The Company received nine special dividends
of which none exceeded our testing threshold.
We assessed the appropriateness of
managements classification for a sample of
one special dividend as revenue by reviewing
the underlying rationale of the distribution.
The results of our procedures identified
no material misstatement in relation to
incomplete or inaccurate revenue
recognition.
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Risk Our response to the risk
Key observations communicated to the
Audit and Risk Committee
Incorrect valuation or ownership of the
investment portfolio (as described on
page70 in the Report of the Audit and Risk
Committee and as per the accounting policy
set out on page 90).
The valuation of the portfolio at 31 March
2026 was £2,562.36m (2025: £2,002.62m)
consisting of level 1 listed investments, and
two nil valued Russian securities designated
as level 3 investments (2025: two nil valued
Russian securities).
The fair value of financial instruments at the
year-end date is, ordinarily, based on the
latest quoted bid price at, or before, the US
market close (without deduction for any of the
estimated future selling costs), if the
instrument is held in active markets.
For all financial instruments not traded in an
active market or where market price is not
deemed representative of fair value, valuation
techniques are employed to determine
fairvalue.
We performed the following procedures:
We obtained an understanding of the
Administrator’s processes and controls
surrounding investment pricing and legal title
by performing walkthrough procedures.
For 100% of investments in the portfolio, we
verified the market prices and exchange rates
to an independent pricing vendor and
recalculated the investment valuations as at
the year-end. For the Russian securities we
have assessed the reasonableness and
appropriateness of them being designated as
level 3. We have reviewed the appropriateness
of valuing the remaining Russian securities
(Sberbank and Lukoil) at nil.
We made inquiries of the Administrator who
confirmed there were no investments with
stale prices as at the year-end. We challenged
this by reviewing the daily valuation of each
investment for five business days before and
after 31 March 2026 to identify any stale
prices. Our testing did not identify any
staleprices.
We compared the Company’s investment
holdings at 31 March 2026 to independent
confirmations received directly from the
Company’s Custodian and Depositary.
The results of our procedures identified
no material misstatement in relation to
the risk of incorrect valuation or
ownership of the investment portfolio.
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Templeton Emerging Markets Investment Trust plc 79
Our application of materiality
We apply the concept of materiality in planning and
performing the audit, in evaluating the effect of identified
misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that,
individually or in the aggregate, could reasonably be expected
to influence the economic decisions of the users of the
Financial Statements. Materiality provides a basis for
determining the nature and extent of our audit procedures.
We determined materiality for the Company to be
£25.26m(2025: £19.85m), which is 1% (2025: 1%) of
shareholders’ funds. We believe that shareholders’ funds
provides us with materiality aligned to the key measurement of
the Company’s performance.
Performance materiality
The application of materiality at the individual account or
balance level. It is set at an amount to reduce to an
appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds
materiality.
On the basis of our risk assessments, together with our
assessment of the Company’s overall control environment, our
judgement was that performance materiality was 75%
(2025:75%) of our planning materiality, namely £ 18.94m
(2025:£14.89m). We have set performance materiality at this
percentage due to our past experience of the audit that
indicates a lower risk of misstatements, both corrected and
uncorrected.
Given the importance of the distinction between revenue and
capital for investment trusts we also applied a separate testing
threshold for the revenue column of the Statement of
Comprehensive Income of £2.90m (2025: £3.13m) being 5%
(2025: 5%) of profit before tax.
Reporting threshold
An amount below which identified misstatements are
considered as being clearly trivial.
We agreed with the Audit and Risk Committee that we would
report to them all uncorrected audit differences in excess of
£1.26m (2025: £0.99m), which is set at 5% of planning
materiality, as well as differences below that threshold that, in
our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the
quantitative measures of materiality discussed above and in
light of other relevant qualitative considerations in forming our
opinion.
Other information
The other information comprises the information included in
the Annual Report other than the Financial Statements and
our auditor’s report thereon. The Directors are responsible for
the other information contained within the Annual Report.
Our opinion on the Financial Statements does not cover the
other information and, except to the extent otherwise explicitly
stated in this report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the Financial Statements or our knowledge
obtained in the course of the audit or otherwise appears to be
materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are
required to determine whether this gives rise to a material
misstatement in the Financial Statements themselves. If, based
on the work we have performed, we conclude that there is a
material misstatement of the other information, we are required
to report that fact.
We have nothing to report in this regard.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion the part of the Directors’ remuneration report to
be audited has been properly prepared in accordance with
the Companies Act 2006.
In our opinion, based on the work undertaken in the course of
the audit:
•
the information given in the strategic report and the
Directors’ report for the financial year for which the
Financial Statements are prepared is consistent with the
Financial Statements; and
•
the strategic report and Directors’ report have been
prepared in accordance with applicable legal requirements.
Matters on which we are required to report
byexception
In the light of the knowledge and understanding of the
Company and its environment obtained in the course of the
audit, we have not identified material misstatements in the
strategic report or Directors’ report.
We have nothing to report in respect of the following matters
in relation to which the Companies Act 2006 requires us to
report to you if, in our opinion:
•
adequate accounting records have not been kept, or
returns adequate for our audit have not been received from
branches not visited by us; or
•
the Financial Statements and the part of the Directors’
remuneration report to be audited are not in agreement
with the accounting records and returns; or
•
certain disclosures of Directors’ remuneration specified by
law are not made; or
•
we have not received all the information and explanations
we require for our audit.
Corporate Governance Statement
We have reviewed the Directors’ statement in relation to going
concern, longer-term viability and that part of the Corporate
Governance Statement relating to the Company’s compliance
with the provisions of the UK Corporate Governance Code
specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with
the Financial Statements or our knowledge obtained during
the audit:
•
Directors’ statement with regards to the appropriateness of
adopting the going concern basis of accounting and any
material uncertainties identified set out on page 61;
•
Directors’ explanation as to its assessment of the
Company’s prospects, the period this assessment covers
and why the period is appropriate set out on page 49;
•
Director’s statement on whether it has a reasonable
expectation that the Company will be able to continue in
operation and meets its liabilities set out on page 61;
•
Directors’ statement on fair, balanced and understandable
set out on page 70;
•
Board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on
pages 47 to 49;
•
The section of the Annual Report that describes the review
of effectiveness of risk management and internal control
systems set out on page 72; and
•
The section describing the work of the Audit and Risk
Committee set out on pages 67 and 68.
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Templeton Emerging Markets Investment Trust plc 81
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities
statement set out on page 73, the Directors are responsible for
the preparation of the Financial Statements and for being
satisfied that they give a true and fair view, and for such
internal control as the Directors determine is necessary to
enable the preparation of Financial Statements that are free
from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, 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 audit of the
Financial Statements
Our objectives are to obtain reasonable assurance about
whether the Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these Financial
Statements.
Explanation as to what extent the audit was
considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with
our responsibilities, outlined above, to detect irregularities,
including fraud. The risk of not detecting a material
misstatement due to fraud is higher than the risk of not
detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion. The extent to which
our procedures are capable of detecting irregularities,
including fraud is detailed below.
However, the primary responsibility for the prevention and
detection of fraud rests with both those charged with
governance of the Company and management.
•
We obtained an understanding of the legal and regulatory
frameworks that are applicable to the Company and
determined that the most significant are UK adopted
International Accounting Standards, the Companies Act
2006, the UK Listing Rules, the UK Corporate Governance
Code and the AIC Corporate Governance, the Statement of
Recommended Practice for the Financial Statements of
Investment Trust Companies as issued by the Association of
Investment Companies, Section 1158 of the Corporation Tax
Act 2010, and The Companies (Miscellaneous Reporting)
Regulations 2018.
•
We understood how the Company is complying with those
frameworks through discussions with the Audit and Risk
Committee and Company Secretary, review of the board
and committee minutes and review of papers provided to
the Audit and Risk Committee.
•
We assessed the susceptibility of the Company’s Financial
Statements to material misstatement, including how fraud
might occur by testing specific accounting journal entries
and considering the key risks impacting the Financial
Statements.
•
Based on this understanding we designed our audit
procedures to identify non-compliance with such laws and
regulations. Our procedures involved review of the
reporting to the Directors with respect to the application of
the documented policies and procedures and review of the
Financial Statements to ensure compliance with the
reporting requirements of the Company.
A further description of our responsibilities for the audit of the
Financial Statements is located on the Financial Reporting
Council’s website at https://www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Other matters we are required to address
•
Following the recommendation from the Audit and Risk
Committee, we were appointed by the Company on 11 July
2019 to audit the Financial Statements for the year ending
31 March 2020 and subsequent financial periods.
The period of total uninterrupted engagement including
previous renewals and reappointments is seven years,
covering the years ending 31 March 2020 to 31 March 2026.
•
The audit opinion is consistent with the additional report to
the Audit and Risk Committee.
Use of our report
This report is made solely to the Company’s members, as a
body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so
that we might state to the Company’s members those matters
we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
Company and the Company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
Ashley Coups
(Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor
London
2 June 2026
Hungary
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Templeton Emerging Markets Investment Trust plc 83
Statement of comprehensive income
For the year ended 31 March 2026
Year Ended 31 March 2026 Year Ended 31 March 2025
Note
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Net Gains/(Losses) on Investments and Foreign Exchange
Net Gains on Investments at Fair Value 8 – 721,419 721,419 – 115,856 115,856
Net Gains on Derivative Instruments 9 – 105 105 – – –
Net Losses on Foreign Exchange – (3,848) (3,848) – (403) (403)
Income
Dividends 2 62,296 1,204 63,500 65,353 3,944 69,297
Derivative Income 2 905 – 905 – – –
Other Income 2 2,360 – 2,360 5,038 – 5,038
65,561 718,880 784,441 70,391 119,397 189,788
Expenses
AIFM Fee 3 (4,547) (13,640) (18,187) (4,792) (12,620) (17,412)
Other Expenses 4 (2,259) – (2,259) (2,294) – (2,294)
(6,806) (13,640) (20,446) (7,086) (12,620) (19,706)
Profit Before Finance Costs and Taxation 58,755 705,240 763,995 63,305 106,777 170,082
Finance Costs 5 (816) (2,448) (3,264) (700) (1,885) (2,585)
Profit Before Taxation 57,939 702,792 760,731 62,605 104,892 167,497
Tax (Expense)/Income 6 (5,206) 3,011 (2,195) (4,682) (9,119) (13,801)
Profit for the Year 52,733 705,803 758,536 57,923 95,773 153,696
Profit Attributable to Equity Holders of the Company 52,733 705,803 758,536 57,923 95,773 153,696
Earnings per Share 7 5.39p 72.15p 77.54p 5.41p 8.95p 14.36p
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 revenue and capital columns
represent supplementary information prepared in accordance with the Statement of Recommended Practice (‘SORP’) issued by
the Association of Investment Companies (‘AIC’).
The Company does not have any other comprehensive income and, accordingly, profit attributable to equity holders of the
Company, as disclosed above, is the same as the Company’s total comprehensive income.
The accompanying notes on pages 88 to 105 are an integral part of the Financial Statements.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Note
As at 31 March 2026
£’000
As at 31 March 2025
£’000
Non-Current Assets
Investments at Fair Value Through Profit or Loss 8 2,562,364 2,002,617
Current Assets
Amounts Held at Brokers 235 –
Trade and Other Receivables 10 9,538 8,374
Cash and Cash Equivalents 78,641 75,549
Total Current Assets 88,414 83,923
Current Liabilities
Derivative Instrument Liabilities 9 (1) –
Bank Loans 11 (110,683) (80,000)
Other Payables 11 (5,495) (4,406)
Provisions 12 (399) (416)
Total Current Liabilities (116,578) (84,822)
Net Current Liabilities (28,164) (899)
Non-Current Liabilities
Capital Gains Tax Provision 6 (8,615) (16,276)
Total Assets Less Liabilities 2,525,585 1,985,442
Share Capital and Reserves
Equity Share Capital 1(k), 13 50,245 54,241
Capital Redemption Reserve 1(k) 32,424 28,428
Capital Reserve 1(k) 1,873,826 1,334,729
Special Distributable Reserve 1(k) 433,546 433,546
Revenue Reserve 1(k) 135,544 134,498
Equity Shareholders' Funds 2,525,585 1,985,442
Net Asset Value Pence per Share
(a)
267.3 193.7
The accompanying notes on pages 88 to 105 are an integral part of the Financial Statements.
The Financial Statements of Templeton Emerging Markets Investment Trust plc (company registration number SC118022) on
pages 83 to 105 were approved for issue by the Board and signed on 2 June 2026.
(a) Based on shares in issue excluding shares held in treasury.
Statement of financial position
As at 31 March 2026
Angus Macpherson
Chairman
Sarika Patel
Director
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Statement of changes in equity
For the year ended 31 March 2026
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 2024 60,932 21,737 1,388,186 433,546 130,462 2,034,863
Profit for the Year – – 95,773 – 57,923 153,696
Equity Dividends 14 – – – – (53,887) (53,887)
Purchase and Cancellation of Own Shares 13 (4,500) 4,500 (149,230) – – (149,230)
Cancellation of Treasury Shares 13 (2,191) 2,191 – – – –
Balance at 31 March 2025 54,241 28,428 1,334,729 433,546 134,498 1,985,442
Profit for the Year – – 705,803 – 52,733 758,536
Equity Dividends 14 – – – – (51,687) (51,687)
Purchase and Cancellation of Own Shares 13 (3,996) 3,996 (166,706) – – (166,706)
Balance at 31 March 2026 50,245 32,424 1,873,826 433,546 135,544 2,525,585
The accompanying notes on pages 88 to 105 are an integral part of the Financial Statements.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Statement of cash flows
For the year ended 31 March 2026
Note
For the Year to 31 March 2026
£’000
For the Year to 31 March 2025
£’000
Cash Flows From Operating Activities
Profit Before Taxation 760,731 167,497
Adjustments to Reconcile Profit Before Taxation to
Cash Used in Operations:
Bank and Deposit Interest Income Recognised (2,360) (5,015)
Dividend Income Recognised (63,500) (69,297)
Derivative Income Recognised (905) –
Finance Costs 3,264 2,585
Net Gains on Investments at Fair Value 8 (721,419) (115,856)
Net Gains on Derivative Instruments 9 (105) –
Net Losses on Foreign Exchange 3,848 403
(Increase)/Decrease in Debtors (154) 85
Increase in Creditors 553 10
Cash Used in Operations (20,047) (19,588)
Bank and Deposit Interest Received 2,366 5,089
Dividends Received 63,650 69,421
Derivative Income Recognised 1,010 –
Amounts Held at Brokers (235) –
Bank Overdraft Interest Paid – (2)
Tax Paid (9,714) (7,614)
Net Realised Losses/(Gains) on Foreign Currency Cash and Cash
Equivalents
(1,327) (82)
Net Cash Inflow From Operating Activities 35,703 47,224
Cash Flows From Investing Activities
Purchases of Non-Current Financial Assets (419,031) (402,009)
Sales of Non-Current Financial Assets 578,392
509,268
Cash Flows From Investing Activities 159,361 107,259
Cash Flows From Financing Activities
Equity Dividends Paid 14 (51,687) (53,887)
Purchase and Cancellation of Own Shares (166,176) (149,034)
Repayment of Bank Loans - Fixed Term Loan
(a)
– (100,000)
Repayment of Bank Loans – Revolving Credit Facility (40,000) –
Drawdown of Bank Loans - Revolving Credit Facility 68,567 80,000
Interest and Fees Paid on Bank Loans (3,543) (2,165)
Proceeds from Share Forfeiture (17) 821
Refund of Unclaimed Dividends – 220
Charity Donations – (625)
(a) The fixed term loan was repaid in full at its maturity on 31 January 2025.
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Changes in Liabilities Arising from Financing Activities
Liabilities as
at 31 March 2025
£’000
Cash Flows
£’000
Profit & Loss
£’000
Foreign
Exchange
Movement
£’000
Liabilities as
at 31 March 2026
£’000
Revolving Credit Facility 80,000 28,567 – 2,116 110,683
- Interest and Fees Payable 767 (3,543) 3,264 – 488
Total Liabilities From Bank Loans 80,767 25,024 3,264 2,116 111,171
Note
For the Year to 31 March 2026
£’000
For the Year to 31 March 2025
£’000
Net Cash Outflow From Financing Activities (192,856) (224,670)
Net Increase/(Decrease) in Cash 2,208
(70,187)
Cash and Cash Equivalents at the Start of the Year 75,549
145,736
Net Unrealised Gains on Foreign Currency Cash and Cash Equivalents 884 0
Cash and Cash Equivalents at the End of the Year
(a)
78,641
75,549
Liabilities as
at 31 March 2024
£’000
Cash Flows
£’000
Profit & Loss
£’000
Foreign
Exchange
Movement
£’000
Liabilities as
at 31 March 2025
£’000
Revolving Credit Facility – 80,000 – – 80,000
- Interest and Fees Payable – (71) 838 – 767
Fixed Term Loan 100,000 (100,000) – – –
- Interest and Fees Payable 349 (2,094) 1,745 – –
Total Liabilities From Bank Loans 100,349 (22,165) 2,583 – 80,767
The accompanying notes on pages 88 to 105 are an integral part of the Financial Statements.
(a) Cash and cash equivalents at the end of the year comprises cash of £41.2 million (2025: £0.2 million) and cash equivalents of £37.4 million (2025: £ 75.3 million).
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Notes to the financial statements
As at 31 March 2026
Accounting Policies
Basis of preparation
The Financial Statements of the Company have been
prepared in accordance with UK adopted International
Accounting Standards. The Financial Statements have
also been prepared in accordance with the SORP for
investment trusts issued by the AIC and updated in
December 2025 insofar as theSORP is compatible with
International AccountingStandards.
The principal accounting policies adopted are set out
below.
1
(a)
The Directors expect that the amendments listed above will have no material impact to the Financial Statements of the Company
in the next reporting periods.
Accounting Standards
Effective Date for Annual Periods Beginning On or After
Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and
Measurement of Financial Instruments
1 January 2026
IFRS 18 – Presentation and disclosure in financial statements 1 January 2027
Adoption of new and revised Accounting Standards
At the date of authorisation of these Financial
Statements, the following standards were assessed to be
relevant and are effective for annual periods beginning
on or after 1 January 2025:
•
IAS 21 Amendments: Lack of Exchangeability. This
amendment clarifies when a currency is
exchangeable and how to determine the exchange
rate when it is not.
The amendments listed above did not have any impact
on the amounts recognised in the current reporting
period.
At the date of authorisation of these Financial Statements, the following standards and interpretations which have not been
applied in these Financial Statements were in issue but not yet applicable:
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Income
Dividends receivable on equity shares are treated as
revenue for the year on an ex-dividend basis. Where no
ex-dividend date is available, dividends are recognised
on their due date. Provision is made for any dividends
not expected to be received.
Where the Company has elected to receive its dividends
in the form of additional shares rather than in cash, the
amount of the cash dividend is recognised in the
revenue column of the Statement of Comprehensive
Income. Any excess or shortfall in the value of the shares
received over the amount of the cash dividend forgone
is recognised in the capital column of the Statement of
Comprehensive Income.
Special dividends receivable are treated as repayment
of capital or as revenue depending on the facts of each
particular case. Interest on bank deposits and collateral
related to option contracts are recognised on an accrual
basis.
Stock lending income is shown gross of associated costs
and recognised in revenue as earned.
(c)
Going concern
The Directors have a reasonable expectation that the
Company has sufficient resources to continue in
operational existence for the period to 31 March 2028,
which is at least 12 months from the date of the approval
of these Financial Statements. The Directors reviewed
income forecasts covering the next two financial years,
including interest and fees arising from the revolving
credit loan facility. The Directors considered the
principal and emerging risks and uncertainties disclosed
on pages 47 to 49.
At 31 March 2026, the Company had net current
liabilities of £28,164,000 (31 March 2025: net current
liabilities of £899,000). In addition, the Company holds a
portfolio of largely liquid assets that, if required, can be
sold to maintain adequate cash balances to meet its
expected cash flows, including current liabilities relating
to the loans under the £122 million multi-currency
revolving credit facility. The Directors also reviewed
scenarios of a significant drop in value of the assets and
noted that in those scenarios they would still be
significantly higher than the Company’s liabilities. They
have also confirmed the resiliency of the Company’s key
service providers and are satisfied that their contingency
plans and working arrangements are sustainable.
The Board has established a framework of prudent and
effective controls performed periodically by the Audit
and Risk Committee, which enable risks to be assessed
and managed. Therefore, the going concern basis has
been adopted in preparing the Company’s Financial
Statements. The Going Concern statement is set out on
page 61.
Functional currency
As the Company is a UK investment trust, whose share
capital is issued in the UK and denominated in sterling,
the Directors consider that the functional currency of
the Company is sterling.
Estimates, assumptions and judgements
There have been no significant estimates, assumptions
or judgements for the year.
In preparing these Financial Statements, the Directors
have considered the impact of climate change as a
principal risk as set out on page 48 and have concluded
that there was no further impact of climate change to be
considered as the investments are valued based on
market pricing. In line with UK adopted International
Accounting Standards the investments are valued at fair
value, which for the Company are the bid prices quoted
on the relevant stock exchange at the date of the
Statement of Financial Position and therefore reflect
market participants’ views of climate change risk on the
investments held.
Presentation of statement of
comprehensive income
To reflect accurately the activities of an investment trust
company and in accordance with guidance issued by
the AIC, supplementary information which analyses the
Statement of Comprehensive Income between items of
a revenue and capital nature has been presented within
the Statement of Comprehensive Income. In
accordance with the Company’s Articles of Association,
net capital profits may not be distributed by way of
dividend. Additionally, the net revenue is the measure
that the Directors believe appropriate in assessing the
Company’s compliance with certain requirements set
out in Section 1158 of the Corporation Tax Act 2010.
(b)
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Finance costs
Finance costs relating to bank loans are accounted for
on an accrual basis using the effective interest method in
the Statement of Comprehensive Income according to
the Directors’ expectations of future returns. Finance
costs relate to interest and fees on bank loans and
overdrafts.
(e)
Taxation
The tax expense represents the sum of current and
deferred tax. Tax receivables will be recognised when it
is probable that the benefit will flow to the entity and the
benefit can be reliably measured. In line with the
recommendations of the SORP, the allocation method
used to calculate tax relief on expenses presented
against capital returns in the supplementary information
in the Statement of Comprehensive Income is the
‘marginal basis’. Under this basis, if taxable income is
capable of being offset entirely by expenses presented
in the revenue return column of the Statement of
Comprehensive Income, then no tax relief is transferred
to the capital return column.
Deferred taxation is recognised in respect of all taxable
temporary differences that have originated but not
reversed at the year-end date, where transactions or
events that result in an obligation to pay more tax in the
future or rights to pay less tax in the future have
occurred at the year-end date.
(f)
Investments held at fair value
through profit or loss
The Company classifies its equity investments based on
their contractual cash flow characteristics and the
Company’s business model for managing the assets.
The Company’s business is investing in financial assets
with a view to profiting from their total return in the
formof revenue and capital growth. This portfolio of
financial assets is managed, and its performance
evaluated on a fair value basis, in accordance with a
documented investment strategy, and information
aboutthe portfolio is provided internally on that basis to
the Company’s Directors and other key management
personnel. Equity investments do not meet the
contractual cash flows test so are measured at fair value.
Accordingly, upon initial recognition, all the Company’s
non-current asset investments are held at ‘fair value
through profit or loss’. They are included initially at fair
value, which is taken to be their cost excluding expenses
incidental to the acquisition.
Subsequently, the investments are valued at ‘fair value’,
which is measured as follows:
(g)
This is subject to deferred tax assets only being
recognised to the extent that it is probable that taxable
profit will be available against which the deductible
temporary difference can be utilised. Deferred tax assets
and liabilities are measured at the rates applicable to the
legal jurisdictions in which they arise.
Due to the Company’s status as an investment trust
company, and its intention to continue to meet the
eligibility conditions of Section 1158 of the Corporation
Tax Act 2010 and the ongoing requirements of The
Investment Trust (Approved Company) (Tax) Regulations
2011, the Company has not provided deferred tax in
respect of UK corporation tax on any capital gains and
losses arising on the revaluation or disposal of
investments. Where appropriate, the Company provides
for deferred tax in respect of overseas taxes on any
capital gains arising on the revaluation of investments.
The carrying amount of deferred tax assets is reviewed
at each year-end date and reduced to the extent
that it is no longer probable that sufficient taxable
profitswill be available to allow all or part of the asset
tobe recovered.
Expenses
All expenses are accounted for on an accrual basis
andare charged through the revenue and capital
sections of the Statement of Comprehensive Income.
Expenses are allocated to revenue except for:
•
Expenses relating to the purchase or disposal of an
investment are treated as capital. Details of transaction
costs on purchases and sales of investments are
disclosed in Note 8; and
•
The AIFM fee and any finance costs, except for interest
and fees on overdrafts, incurred are allocated 25% to
revenue and 75% to capital in line with the Directors’
expected long-term split of revenue and capital return
from the Company’s investment portfolio.
(d)
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Foreign currencies
Transactions involving foreign currencies are translated
to sterling (the Company’s functional currency) at the
spot exchange rates ruling on the date of the
transactions. Assets and liabilities in foreign currencies
are translated at the rates of exchange at the year-end
date. Foreign currency gains and losses are included in
the Statement of Comprehensive Income and allocated
as capital or income depending on the nature of the
transaction giving rise to the gain or loss.
(i)
Derivative instruments
When appropriate, permitted transactions in derivative
instruments are used. Derivative transactions into which
the Company may enter include written call option
contracts. Derivatives are classified as other financial
instruments and are initially accounted and measured at
fair value on the date the derivative contract is entered into
and subsequently measured at fair value as detailed below.
•
Options – the quoted traded price for the contract.
Where transactions are used to protect or enhance
income, if the circumstances support this, the income
and expenses derived are included in net income in the
revenue column of the Statement of Comprehensive
Income. Where such transactions are used to protect or
enhance capital, if the circumstances support this, the
income and expenses derived are included in gains and
losses on derivative instruments in the capital column of
the Statement of Comprehensive Income. Any positions
on such transactions open at the year end are reflected
on the Statement of Financial Position at their fair value
within current assets or current liabilities.
Option premiums earned from written call options are
recognised as revenue in the Statement of
Comprehensive Income over the maturity of the
instrument. Option premium income is recognised net of
fees or commissions related to option contracts.
The cash collateral related to option contracts is shown
in ‘Amounts Held at Brokers’ in the Statement of
Financial Position.
(h)
Financial instruments
Cash comprises cash in hand and demand deposits.
Cash equivalents are short-term, highly liquid
investments that are readily convertible to known
amounts of cash that are subject to an insignificant risk
of changes in value.
Bank loans are classified as financial liabilities at
amortised cost. They are initially measured as the
proceeds net of direct issue costs and subsequently
measured at amortised cost. Interest payable on the
bank loans is accounted for on an accrual basis in the
Statement of Comprehensive Income. The amortisation
of direct issue costs is accounted for on an accrual basis
in the Statement of Comprehensive Income using the
effective interest method.
All financial assets and financial liabilities are recognised
(or derecognised) on the date of the transaction using
‘trade date accounting’.
(j)
The fair value of financial instruments at the year-end
date is, ordinarily, based on the latest quoted bid price
at, or before, the US market close (without deduction for
any of the estimated future selling costs), if the
instrument is held in active markets. This represents a
Level 1 classification under IFRS 13. For all financial
instruments not traded in an active market or where
market price is not deemed representative of fair value,
valuation techniques are employed to determine fair
value. Valuation techniques include the market
approach (i.e. using recent arm’s length market
transactions adjusted as necessary and reference to the
market value of another instrument that is substantially
the same) and the income approach (i.e., discounted
cash flow analysis making use of available and
supportable market data as possible).
Gains and losses arising from changes in fair value are
included in the net profit or loss for the period as a
capital item in the Statement of Comprehensive Income.
Share capital and reserves
Equity Share Capital – represents the nominal value of
the issued share capital. This reserve is not distributable.
Capital Redemption Reserve – represents the nominal
value of shares repurchased and cancelled. This reserve
is not distributable.
Capital Reserve – gains and losses on realisation of
investments; changes in fair value of investments which
are readily convertible to cash, without accepting
adverse terms; realised exchange differences of a
capital nature; changes in the fair value of investments
that are not readily convertible to cash, without
accepting adverse terms; and the amounts by which
other assets and liabilities valued at fair value differ from
their book value are within this reserve. Purchases of the
Company’s own shares are funded from the realised
component of the Capital Reserve. The Company’s
Articles of Association preclude it from making any
distribution of capital profits by way of dividend.
(k)
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Income
2
2026 2025
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Dividends
(a)
International Dividends 62,296 1,204 63,500 65,234 3,944 69,178
UK Dividends – – – 119 – 119
62,296 1,204 63,500 65,353 3,944 69,297
Derivative Income
Option Income 905 – 905 – – –
905 – 905 – – –
Other Income
Bank and Deposit Interest 2,360 – 2,360 5,015 – 5,015
Stock Lending Income – – – 23 – 23
2,360 – 2,360 5,038 – 5,038
Total 65,561 1,204 66,765 70,391 3,944 74,335
(a) The Company received special dividends amounting to £2.8 million (2025: £8.6 million) of which £1.2 million (2025: £3.9 million) was classified as capital and £1.6 million (2025: £4.7 million) was
classified as revenue.
The AIFM fee is paid monthly and based on the month end total net assets of the Company. The previous fee structure applied
prior to 1 July 2024 was 1% of the first £1 billion of net assets, 0.75% of net assets between £1 billion and £2 billion, and 0.50% of net
assets over £2 billion. From 1 July 2025, the AIFM fee applied to the middle rate band for net assets between £1 billion and
£2billion was reduced to 0.60%, while the other rate bands remained the same, 1% of the first £1 billion of net assets and 0.50%
ofnet assets over £2 billion. This adjustment followed an earlier modification from 1 July 2024 when the AIFM fee was reduced to
0.70% for the same middle rate band.
75% of the annual AIFM fee has been allocated to the capital account.
AIFM Fee
3
2026 2025
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
AIFM Fee 4,547 13,640 18,187 4,792 12,620 17,412
Iftreasury shares are subsequently cancelled, the
nominal value is transferred out of Equity Share Capital
and into the Capital Redemption Reserve.
Special Distributable Reserve – reserve created upon
the transfer of the balances of the Share Premium
Account and of the Capital Redemption Reserve in
December 2008. This reserve is fully distributable.
Revenue Reserve – represents net income earned that
has not been distributed to shareholders. This reserve is
fully distributable.
Income recognised in the Statement of Comprehensive
Income is allocated to applicable reserves in the
Statement of Changes in Equity.
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Other Expenses
4
2026
£’000
2025
£’000
Custody Fees 523 502
Marketing Fees 403 352
Directors’ Remuneration 355 344
Membership Fees 247 205
Depository Fees 198 169
Broker Fees 85 43
Auditor’s Remuneration
- Audit of the Annual Financial Statements
- Review of the Half Yearly Report
57
11
56
11
Tax Advisory Fees 160 175
Registrar Fees 45 172
Printing and Postage Fees 24 23
Other Expenses 151 242
Total 2,259 2,294
Finance Costs
5
2026 2025
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Fixed Term Loan – – – 488 1,257 1,745
Revolving Credit Facility 816 2,448 3,264 210 628 838
Bank Overdraft Interest – – – 2 – 2
Total 816 2,448 3,264 700 1,885 2,585
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
As at 31 March 2026 the Company had unutilised management expenses and non-trade deficits of £329.3 million carried forward
(2025: £315.3 million). These balances have been generated because a large part of the Company’s income is derived from
dividends which are not taxed. Based on current UK tax law, the Company is not expected to generate taxable income in a future
period in excess of deductible expenses for that period and, accordingly, is unlikely to be able to reduce future tax liabilities by
offsetting these excess management expenses. These excess management expenses are therefore not recognised as a deferred
tax asset of £82.3 million (2025: £78.8 million) based on a prospective corporation tax rate of 25% (2025: 25%).
Movement in Provision for Capital Gains Tax
(a)
2026
£’000
2025
£’000
Balance Brought Forward 16,276 10,463
(Credit)/Charge For the Year (3,011) 9,119
Capital Gains Tax Paid (4,650) (3,306)
Balance Carried Forward 8,615 16,276
(a) A provision for deferred capital gains tax has been recognised in relation to unrealised gains for holdings in India.
Tax on Ordinary Activities
6
2026 2025
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Irrecoverable Overseas Withholding Tax 5,206 – 5,206 4,682 – 4,682
Capital Gains Tax Paid – 4,650 4,650 – 3,306 3,306
Total Current Tax 5,206 4,650 9,856 4,682 3,306 7,988
Capital Gains Tax Provision – (7,661) (7,661) – 5,813 5,813
Total 5,206 (3,011) 2,195 4,682 9,119 13,801
2026
£’000
2025
£’000
Profit Before Taxation 760,731 167,497
Theoretical Tax at UK Corporation Tax Rate of 25% 190,183 41,874
Effects of:
- Capital Element of Profit (179,720) (29,849)
- Irrecoverable Overseas Withholding Tax 5,206 4,682
- Excess Management Expenses 3,568 2,733
- Overseas Capital Gains Tax Paid 4,650 3,306
- Dividends Not Subject to Corporation Tax (13,883) (14,543)
- Movement in Overseas Capital Gains Tax Liability (7,661) 5,813
- UK Dividends – (30)
- Overseas Tax Expensed (148) (185)
Actual Tax Charge 2,195 13,801
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Earnings per Share
7
2026 2025
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Earnings 52,733 705,803 758,536 57,923 95,773 153,696
2026 2025
Revenue
pence
Capital
pence
Total
pence
Revenue
pence
Capital
pence
Total
pence
Earnings per Share 5.39 72.15 77.54 5.41 8.95 14.36
Financial Assets - Investments
8
2026
£’000
2025
£’000
Opening Investments
Book Cost 1,710,894 1,740,112
Net Unrealised Gains 291,723 255,120
Opening Fair Value 2,002,617 1,995,232
Movements in the Year
Additions at Cost 419,311 399,390
Disposals Proceeds (580,983) (507,861)
Net Gains on Investments at Fair Value 721,419 115,856
2,562,364 2,002,617
Closing Investments
Book Cost 1,709,656 1,710,894
Net Unrealised Gains 852,708 291,723
Closing Investments 2,562,364 2,002,617
The earnings per share is based on the profit attributable to equity holders and on the weighted average number of shares in
issue, excluding shares held in treasury, during the year of 978,257,253 (year to 31 March 2025: 1,070,018,105). There were no
dilutive shares in issue during the year (year to 31 March 2025: none).
All investments have been recognised at fair value with gains and losses recorded through the Statement of Comprehensive Income.
Transaction costs for the year on purchases were £511,000 (2025: £404,000) and transaction costs for the year on sales were
£1,110,000 (2025: £978,000). The aggregate transaction costs for the year were £1,621,000 (2025: £1,382,000).
The Company received £580,983,000 (2025: £507,861,000) from investments sold in the year. The book cost of these investments
when they were purchased was £420,549,000 (2025: £428,608,000). These investments have been revalued over time and, until
they were sold, any unrealised gains or losses were included in the fair value of the investments.
2026
£’000
2025
£’000
Net Gains on Investments at Fair Value Comprise:
Net Realised Gains on Sale of Investments at Fair Value 160,433 79,253
Net Movement in Unrealised Gains 560,986 36,603
Net Gains on Investments at Fair Value 721,419 115,856
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Revolving credit facility
On 31 January 2025, the Company entered into a £122 million multi-currency unsecured revolving credit facility (the ‘facility’) for a
period of one year with The Bank of Nova Scotia, London Branch, which expired on 30 January 2026. On the same date, the
Company entered into a new multi-currency revolving loan facility with the same entity. This is a rolling agreement with the option to
terminate after one year and commercial terms will be reviewed every three years. Under the terms of the credit facility the lender
has the right to terminate the credit facility within a period of less than 12 months from the reporting date therefore the bank loans
are classed as current liabilities within the Statement of Financial Position.
Derivative Instruments
9
2026
£’000
2025
£’000
Derivative Instruments Recognised in the Statement of
FinancialPosition
Derivative Instruments Liabilities
Options 1 –
1 –
2026
£’000
2025
£’000
Net Gains on Derivative Instruments
Net Change in Unrealised Gains on Options 105 –
105 –
Trade and Other Receivables
10
Current Payables
11
2026
£’000
2025
£’000
Dividends Receivable 8,003 8,153
Overseas Tax Recoverable – 142
Sales Awaiting Settlement 1,357 55
Other Debtors 178 24
Total 9,538 8,374
2026
£’000
2025
£’000
Revolving Credit Facility Payable 110,683 80,000
AIFM Fee 1,740 1,446
Purchase of Investments for Future Settlement 1,328 1,048
Amounts Owed for Share Buybacks 1,188 658
Accrued Expenses 751 487
Interest and Fees on Revolving Credit Facility 488 767
Total 116,178 84,406
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Provisions
12
2026
£’000
2025
£’000
Provision for claims arising from share forfeitures 399 416
Total 399 416
2026 2025
Ordinary Shares Held In Treasury
£’000 Number £’000 Number
Opening Ordinary Shares of 5 Pence 3,000 60,000,000 5,191 103,825,895
Cancellation of Shares – – (2,191) (43,825,895)
Closing Ordinary Shares of 5 Pence 3,000 60,000,000 3,000 60,000,000
Total Ordinary Shares In Issue and Held In Treasury
at the End of the Year
50,245 1,004,906,000 54,241 1,084,828,725
Equity Share Capital
13
2026 2025
Ordinary Shares In Issue
£’000 Number £’000 Number
Opening Ordinary Shares of 5 Pence 51,241 1,024,828,725 55,741 1,114,818,617
Purchase and Cancellation of Own Shares (3,996) (79,922,725) (4,500) (89,989,892)
Closing Ordinary Shares of 5 Pence 47,245 944,906,000 51,241 1,024,828,725
From 30 January 2026, the commitment fee on unutilised commitments is a flat fee of 0.325% per annum. The previous fee was
0.40% per annum on undrawn balances.
Under the facility balances can be drawn down in GBP, USD or CNH. From 30 January 2026, the interest margin is 0.95% as follows:
USD drawdowns incur interest at 0.95% per annum over the daily secured overnight financing rate (‘SOFR’) administered by the
Federal Reserve Bank of New York, GBP drawdowns incur interest at 0.95% per annum over the daily sterling overnight index
average (‘SONIA’) published by the Bank of England and CNH drawdowns incur interest at 0.95% per annum over the Hong Kong
Interbank Offered Rate (‘HIBOR’) as quoted by the Hongkong and Shanghai Banking Corporation Limited. The previous fee
structure was 1.10% per annum over the daily SOFR for USD drawdowns, 1.10% per annum over the daily SONIA for GBP drawdowns
and 1.10% per annum over the HIBOR for CNH drawdowns.
Under the terms of the facility, the net assets cannot be less than £1,015 million and the adjusted net asset coverage to all
borrowings cannot be less than 3.5:1.
As at 31 March 2026, £40 million, USD 50 million and CNH 300 million were outstanding loans drawn down from the revolving credit
facility. Facility drawdowns are shown at amortised cost and revalued for exchange rate movements. Any gain or loss arising from
changes in exchange rates is included in the capital reserves and shown in the capital column of the Statement of Comprehensive
Income. Interest costs are charged to capital (75%) and revenue (25%) in accordance with the Company’s accounting policies.
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
The Company’s shares (except those held in treasury) have unrestricted voting rights at all general meetings, are entitled to all of
the profits available for distribution by way of dividend and are entitled to repayment of all of the Company’s capital on winding up.
During the year, 79,922,725 shares were bought back for cancellation at a cost of £166,706,000 (2025: 89,989,892 shares were
bought back for cancellation at a cost of £149,230,200). All shares bought back in the year were cancelled, with none being placed
in treasury (2025: no shares were placed into treasury).
In the prior year, 43,825,895 shares held in treasury were cancelled. Following cancellation, 60,000,000 shares remained in treasury.
Dividends
2026 2025
Rate (pence) £’000 Rate (pence) £’000
Declared and Paid in the Financial Year
Dividend on Shares:
Final Dividends for the Years Ended 31 March 2025 and 31 March 2024 3.25 32,513 3.00 32,906
Interim Dividends for the Six-Month Periods Ended 30 September
2025and 30 September 2024
2.00 19,174 2.00 20,981
Total 5.25 51,687 5.00 53,887
Proposed for Approval at the Company's AGM
Dividend on Shares:
Final Dividend for the Year Ended 31 March 2026 3.25 30,492
14
Dividends are recognised when the shareholders’ right to receive the payment is established. In the case of the final dividend, this
means that it is not recognised until approval is received from shareholders at the AGM. The proposed final dividend of 3.25 pence
per share will be funded from the revenue reserve and the payment of this dividend will not threaten the going concern or viability of
the Company.
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Risk Management
In pursuing the Company’s objective, set out on page 38
of this Annual Report, the Company holds a number of
financial instruments which are exposed to a variety of
risks that could result in either a reduction in the
Company’s net assets or a reduction in the profits
available for dividends.
The main risks arising from the Company’s financial
instruments are investment and concentration risk,
market risk (which comprises market price risk, foreign
currency risk and interest rate risk), liquidity risk and
counterparty and credit risk.
The objectives, policies and processes for managing
these risks, and the methods used to measure the risks,
are set out below. These policies have remained
unchanged since the beginning of the year to which
these Financial Statements relate.
Investment and concentration risk
The Company may invest a greater portion of its assets
than the benchmark in the securities of one issuer,
securities of a particular country, or securities within one
sector. As a result, there is the potential for an increased
concentration of exposure to economic, business,
political or other changes affecting similar issues or
securities, which may result in greater fluctuation in the
value of the portfolio. Investment risk and a certain
degree of concentration risk is a known and necessary
effect of the stated investment approach in line with the
investment policy. The Directors regularly review the
portfolio composition and asset allocation and discuss
related developments with the Investment Managers.
Security, country, and sector concentrations are
monitored by the Manager’s risk and compliance teams
on a regular basis and any concerns are highlighted to
the Investment Managers for remedial action and
brought to the attention of the Directors.
16
Market price risk
Market risk arises mainly from uncertainties about future
prices of financial instruments held. It represents the
potential loss that the Company might suffer through
holding market positions in the face of price movements.
The Directors meet quarterly to consider the asset
allocation of the portfolio and to discuss the risks
associated with particular securities, countries or
sectors. The Investment Managers select securities in
the portfolio in accordance with the investment policy,
and the overall asset allocation parameters described
above, and seek to ensure that individual stocks also
meet the intended risk/reward profile.
The Company does not use derivative instruments to
hedge the investment portfolio against market price risk.
However, the Company invests in derivative instruments,
such as written call options, for the purpose of
generating additional returns.
100% (2025: 100%) of the Company’s equity investment
portfolio comprises securities listed on stock exchanges.
The following market price sensitivity relates solely to
these equity investments and excludes derivative
positions. If share prices as at 31 March 2026 had
decreased by 30% (2025: 30% decrease) with all other
variables remaining constant, the Statement of
Comprehensive Income capital return and the net
assets attributable to equity shareholders would have
decreased by £768,709,000 (2025: £600,785,000). A
30% increase (2025: 30% increase) in share prices would
have resulted in a proportionate equal and opposite
effect on the above amounts, on the basis that all other
variables remain constant.
Foreign currency risk
Currency translation movements can significantly affect
the income and capital value of the Company’s
investments, as the majority of the Company’s assets
and income are denominated in currencies other than
sterling, which is the Company’s functional currency.
The Investment Managers have identified three principal
areas where foreign currency risk could affect the
Company:
•
Movements in rates affect the value of investments
and derivative exposures;
•
Movements in rates affect short-term timing
differences; and
•
Movements in rates affect the income received.
Related Party Transactions
There were no transactions with related parties, other
than the fees paid to the Directors and the AIFM during
the financial years ended 31 March 2026 and 31 March
2025 respectively, which have a material effect on the
results or the financial position of the Company. Details
of fees paid to the Directors are included on page 64
and details of the fee paid to the AIFM are included in
Note3.
15
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Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
The Company does not hedge the sterling value of investments that are priced in other currencies. The Company may be subject
to short-term exposure to exchange rate movements, for instance where there is a difference between the date on which an
investment purchase or sale is entered into and the date on which it is settled.
The Company receives income in currencies other than sterling and the sterling values of this income can be affected by
movements in exchange rates. The Company converts all receipts of income into sterling on or near the date of receipt. However,
it does not hedge or otherwise seek to avoid rate movement risk on income accrued but not received.
The Company’s financial liabilities might comprise positions in derivative instruments denominated in currencies other than its
functional currency.
The fair value of the Company’s items denominated in a foreign currency exposure at 31 March are shown below:
Currency
Trade and
Other Receivables
£’000
Cash at Bank
(a)
£’000
Trade, Bank Loans,
and Other Payables
£’000
Total Net Foreign
Currency Exposure
£'000
Investment at
Fair Value Through
Profit or Loss
£'000
Derivative
Instrument Assets/
(Liabilities)
£’000
Taiwan Dollar 1,920 – – 1,920 590,013 –
Korean Won 3,530 – (1,328) 2,202 549,087 –
Hong Kong Dollar 82 – – 82 417,354 (1)
US Dollar 1,520 37,911 (37,784) 1,647 235,692 –
Indian Rupee – – (8,615) (8,615) 190,876 –
Other 2,306 2,999 (33,057) (27,752) 578,170 –
Total 9,358 40,910 (80,784) (30,516) 2,561,192 (1)
Currency
Trade and
Other Receivables
£’000
Cash at Bank
£’000
Trade, Bank Loans,
and Other Payables
£’000
Total Net Foreign
Currency Exposure
£'000
Investments at
Fair Value Through
Profit or Loss
£'000
Derivative
Instrument Assets/
(Liabilities)
£’000
Hong Kong Dollar 51 – – 51 390,136 –
Taiwan Dollar 1,165 – (406) 759 335,133 –
Korean Won 5,373 – – 5,373 310,143 –
Indian Rupee – – (16,312) (16,312) 280,837 –
US Dollar 889 – (609) 280 198,907 –
Euro – – – – 132,880 –
Other 872 48 (1) 919 352,538 –
Total 8,350 48 (17,328) (8,930) 2,000,574 –
2026
2025
The above tables are based on the currencies in which the shares are denominated rather than the country of listing.
As at 31 March 2026, 64.7% (2025: 70.2%) of the investments at fair value through profit or loss shown under US dollar and HongKong
dollar exposure relate to Chinese companies whose shares are denominated in those currencies, notwithstanding thatthe
underlying economic exposure of those businesses is to the Chinese yuan. The total exposure to Chinese yuan was £600.8million
(2025: £549.3 million), of which £82.6 million (2025: £42.2 million) comprised investments at fair value through profit or loss
denominated in Chinese yuan and included within the ‘Other currencies’ category in the foreign currency exposure table above.
(a) Cash at Bank includes amounts held at brokers.
03. Financial Review
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 101
Foreign currency sensitivity
The following table illustrates the foreign currency sensitivity on the revenue and capital return. The revenue return impact
represents the impact on total income (which is mainly comprised of dividend income) had sterling strengthened relative to all
currencies by 10% throughout the year.
The capital return impact represents the impact of the financial assets and liabilities of the Company if sterling had strengthened
by 10% relative to all currencies on the reporting date. With all other variables held constant, the revenue and capital return would
have decreased by the below amounts.
2026 2025
Revenue Return
£’000
Capital Return
£’000
Revenue Return
£’000
Capital Return
£’000
Taiwan Dollar 1,041 59,193 888 33,589
Korean Won 764 55,129 789 31,552
Hong Kong Dollar 190 41,744 72 39,013
US Dollar 50 23,734 54 19,979
Indian Rupee 193 18,226
243 26,452
Other 4,082 55,042
4,482 48,633
Total 6,320 253,068 6,528 199,218
Exposures vary throughout the year as a consequence of changes in the make-up of the net assets of the Company. Cash
balances are held on call deposit and earn interest at the bank’s daily rate. The Company’s net assets are sensitive to changes in
interest rates on borrowings. There was no exposure to fixed interest investment securities during the year or at the year end.
2026
£’000
2025
£’000
Cash 78,641 75,549
Amounts Held at Brokers 235 –
Revolving Credit Facility (110,683) (80,000)
Net Exposure at Year End (31,807) (4,451)
A 10% weakening of sterling against all currencies would have resulted in an equal and opposite effect on the above amounts.
Interest rate risk
The Company is permitted to invest in interest bearing securities. Any change to the interest rates relevant to particular
securitiesmay result in income either increasing or decreasing, or the Investment Managers being unable to secure similar returns
on the expiry of contracts or the sale of securities. In addition, changes to prevailing rates or changes in expectations of future rates
may result in an increase or decrease in the value of the securities held and the interest payable on bank loans when interest rates
are reset.
Interest rate risk profile
The exposure of the financial assets and liabilities to floating interest rate risks at 31 March is shown below:
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102
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Liquidity risk
The Company’s assets comprise mainly securities listed on the stock exchanges of emerging economies. Liquidity can vary from
market to market and some securities may take a significant period to sell. As a closed ended investment trust, liquidity risks
attributable to the Company are less significant than for an open-ended fund.
The risk of the Company not having sufficient liquidity at any time to meet its obligations associated with financial liabilities is
considered by the Board to be mitigated, given the large number of quoted equity investments held in the portfolio and the liquid
nature of the portfolio of equity investments.
The Investment Managers review liquidity at the time of making each equity investment decision and monitor the evolving liquidity
profile of the portfolio regularly.
The below table details the maturity profile of the Company’s financial liabilities as at 31 March 2026, based on the earliest date on
which payment can be required and current exchange rates as at the balance sheet date:
2026 2025
100 Basis Points
Increase in Rate
£’000
100 Basis Points
Decrease in Rate
£’000
100 Basis Points
Increase in Rate
£’000
100 Basis Points
Decrease in Rate
£’000
Revenue 512 (512) 555 (555)
Capital (830) 830 (600) 600
Total (318) 318 (45) 45
2026 2025
In One Year
or Less £’000
More Than
One Year £’000
Total
£’000
In One Year
or Less £’000
More Than
One Year £’000
Total
£’000
Revolving Credit Facility 114,871 – 114,871 84,596 – 84,596
Other Payables 5,406 – 5,406 4,055 – 4,055
Total 120,277 – 120,277 88,651 – 88,651
Interest rate sensitivity
If the above level of cash, amounts held at brokers and revolving credit facility was maintained for a year and interest rates were
100 basis points higher or lower, the net profit after taxation would be impacted by the following amounts:
03. Financial Review
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 103
Counterparty and credit risk
Certain transactions in financial instruments that the Company
enters into expose it to the risk that the counterparty will not
deliver the equity investment (purchase) or cash (in relation to
sale or declared dividend or derivative instrument contracts)
after the Company has fulfilled its responsibilities. The Company
only buys and sells through brokers which have been approved
by the Investment Managers as an acceptable counterparty.
Limits are set as to the maximum exposure to any individual
broker that may exist at any time. Total exposure is compared to
monetary limits that vary based on the size and creditworthiness
of the counterparty. Counterparty spreads and capital ratios are
reviewed periodically. The amounts under trade and other
receivables, amounts held at brokers and cash and cash
equivalents shown in the Statement of Financial Position
represent the maximum credit risk exposure at the year end.
The Company has an ongoing contract with its custodian
(JPMorgan Chase Bank) for the provision of custody services.
As part of the annual risk and custody review, the Company
reviewed the custody services provided by JPMorgan Chase
Bank and concluded that, while there are inherent custody risks
in investing in emerging markets, the custody network
employed by TEMIT has appropriate controls in place to
mitigate those risks, and that these controls are consistent with
recommended industry practices and standards.
Securities held in custody are held in the Company’s name or to
its accounts. Details of holdings are received and reconciled
monthly. Unrestricted cash is actively managed by Franklin
Templeton and is typically invested in overnight time deposits in
the name of TEMIT with an approved list of counterparties. Any
excess unrestricted cash not invested will remain in a JPMorgan
Chase interest bearing account. There is no significant risk on
debtors and accrued income or tax at the year end.
There was no securities lending performed during the year
(2025: the Company participated in a securities lending
programme through the year. At 31 March 2025, the market
value of the securities on loan and the corresponding collateral
received were both nil.).
The tables below analyse financial instruments carried at fair value by valuation method. The different levels have been defined
asfollows:
Quoted prices (unadjusted) in active markets for identical assets and liabilities;
Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(prices) or indirectly (derived from prices); and
Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 1.
Level 2.
Level 3.
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 accounting policies included in Note 1; and
•
Other financial assets and liabilities at the carrying value which is a reasonable approximation of the fair value.
03. Financial Review
104
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
(a) Represents the investment in Swiggy which was acquired during the financial year ended 31 March 2025 and initially classified as Level 3 due to its unlisted status. Following an initial public
offering and its subsequent listing on 13 November 2024, the holding in Swiggy was transferred from Level 3 to Level 1.
The hierarchy valuation of listed investments through profit and derivative instruments is shown below:
31 March 2026 31 March 2025
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Listed Investments 2,562,364 – – 2,562,364 2,002,617
– –
2,002,617
Derivative Instrument Liabilities 1 – – 1 –
– –
–
The following table presents the movement in Level 3 investments for the year ended:
31 March 2026
£’000
31 March 2025
£’000
Opening Balance – –
Additions at Cost - Purchase of Level 3 Assets – 37,952
(a)
Transfers from Level 3 Into Level 1 – (55,095)
(a)
Disposal Proceeds – Sale of Level 3 Assets – –
Net Gains on Investments at Fair Value – 18,122
Net Losses on Foreign Exchange – (979)
Level 3 Closing Balance – –
17
Significant Holdings in Investee Undertakings
As at 31 March 2026, TEMIT held 3% or more of the issued class of security in the following portfolio holding whose shares
are admitted to trading:
31 March 2026 31 March 2025
Holding
% of Issued
Security Class
Held by TEMIT
Fair Value
£’000
% of Issued
Security Class
Held by TEMIT
Fair Value
£’000
Haier Smart Home 3.0 13,029 – –
The Company held two Level 3 securities as at 31 March 2026 (31 March 2025: two).
The investments in Russian securities, LUKOIL and Sberbank of Russia, continue to be fair valued at £nil (31 March 2025: £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.
03. Financial Review
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 105
Capital Management Policies
and Procedures
The Company’s objective is to provide long-term
capital appreciation for private and institutional
investors seeking exposure to global emerging
markets, supported by a culture of both strong
customer service and corporate governance.
The Board monitors and regularly reviews the
structure of the Company’s capital on an ongoing
basis. This review includes the investment
performance and outlook, discount management
mechanisms including share buybacks, gearing and
the extent to which revenue in excess of that which is
required to be distributed under the investment trust
rules should be retained.
The Company’s investment policy allows borrowing
ofup to 20% of net assets, measured at the time
ofborrowing.
As at 31 March 2026, the Company had share capital
and reserves of £2,525,585,000 (31 March 2025:
£1,985,442,000). The Company’s policies and
procedures for managing capital are consistent with
the previous year.
18
19
20
21
22
Contingent Liabilities
No contingent liabilities existed as at 31 March 2026
or 31 March 2025.
Contingent Assets
No contingent assets existed as at 31 March 2026 or
31 March 2025.
Financial Commitments
No financial commitments existed as at 31 March
2026 or 31 March 2025.
Events After the Reporting Period
Between 31 March 2026 and 21 May 2026, the net
asset value of the Company rose 26.6% from
£2,525,585,000 to £3,197,527,000 and the cum-income
NAV per share rose 27.5% from 267.3p to 340.8p.
Between 1 April and 21 May 2026, the Company
bought back and cancelled 3,312,050 ordinary shares
at an average price of 305.9p per share.
The £40 million and CNH 300 million (equivalent to
£33 million at the year-end) outstanding loans
matured on 30 April 2026 and were subsequently
rolled over to 30 July 2026.
The proposed final dividend has been disclosed in
Note 14.
03. Financial Review
106
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
AIFMD report on remuneration - unaudited
Although FTITML does not directly employ staff it does utilise the services and employees of Franklin Templeton Global Investors
Limited (‘FTGIL’) and its subsidiaries (‘FTGIL Group’) and as such the following remuneration disclosure relates to the FTGIL Group.
The purpose of this Disclosure is to provide investors with quantitative disclosures of FTGIL Group Remuneration (as it applies to
FTITML and its activities relating to TEMIT) in accordance with the provisions in the UK implementing the Alternative Investment
Fund Managers Directive (‘AIFMD’), the European Commission Delegated Regulation implementing AIFMD and the “Guidelines on
sound remuneration policies under the AIFMD” issued by the European Securities and Markets Agency.
The total remuneration disclosed below relates to those staff within the FTGIL Group who are fully or partly involved in the
activities of TEMIT and includes those individuals within the FTGIL Group who perform risk and portfolio management functions in
respect of TEMIT.
The remuneration indicated reflects the estimated proportion of total remuneration for these individuals that is attributable to the
activities of FTTIML in respect of TEMIT.
(a) Total amount of compensation paid to the relevant FTGIL Group staff has been allocated to TEMIT based on its pro rata share of net assets of the AIFM for the year ended 30 September 2025.
03. Financial Review
Total amount of fixed remuneration paid by the FTGIL Group to relevant staff during the year ended 30 September 2025
as it relates to the activities of FTITML in respect of TEMIT.
(a)
£1,800,000
Total amount of variable remuneration paid by the FTGIL Group to relevant staff during the year ended 30 September
2025 as it relates to the activities of FTITML in respect of TEMIT.
(a)
£1,200,000
Number of staff of the FTGIL Group who have a material impact on the risk profile of the Group as at 30 September 2025. 18
Total amount of compensation paid by the FTGIL Group to senior managers during the year ended 30 September 2025
as it relates to the activities of FTITML in respect of TEMIT.
(a)
£146,000
Total amount paid by the FTGIL to other members of staff who have a material impact on the risk profile of the Company
during the year ended 30 September 2025 as it relates to the activities of FTITML in respect of TEMIT.
(a)
£421,000
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 107
Investor
Information
04.
108
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Notice of meeting
Notice is hereby given that the Investor
morning and Annual General Meeting (‘AGM’)
will be held on Thursday 9 July 2026 at 11am at
The Minster Building, 21 Mincing Lane,
London EC3R 7AG.
This year we have arranged a guest speaker,
the highly respected financial journalist, Jeff
Prestridge. Until recently Jeff was the Money
Editor-at-Large of the Daily Mail and Mail on
Sunday. The Portfolio Managers will also be
presenting and there will be the opportunity
to ask them, Jeff and the TEMIT Directors
questions and join them all over lunch for
informal discussion.
Your vote is very important to us. Voting at the
AGM this year will be on a poll and will reflect
all proxy instructions duly received.
Additionally, for the first time, the event will be
available live via an online streaming service. If
you cannot attend the event in person, we
encourage you to register to attend online, all
information about the event and how to
register is included on the TEMIT website
www.temit.co.uk. The event will also be
recorded and will be available on TEMIT’s
website after the event.
The AGM will transact the following business:
To consider and, if thought fit, to pass the
following resolutions. Resolutions 1 to 8 will be
proposed as ordinary resolutions and
resolutions 9 to 11 will be proposed as special
resolutions.
Ordinary Business
1. To receive and adopt the Directors’ and Auditor’s Reports
and Financial Statements for the year ended 31 March 2026.
2. To approve the Directors’ Remuneration Policy.
3. To approve the Directors’ Remuneration Report for the year
ended 31 March 2026.
4. To declare a final dividend of 3.25 pence per share for the
year ended 31 March 2026.
5. To appoint the Directors:
5.1. To re-elect Abigail Rotheroe as a Director.
5.2. To re-elect Charlie Ricketts as a Director.
5.3. To re-elect Magdalene Miller as a Director.
5.4. To re-elect Angus Macpherson as a Director.
5.5. To re-elect Sarika Patel as a Director.
6. To re-appoint Ernst & Young LLP as auditor of the Company,
to act until the conclusion of the next general meeting of the
Company at which audited accounts are laid before the
members.
7. To authorise the Directors to determine the auditor’s
remuneration.
Special Business Ordinary Resolution
8. That, in substitution for any existing authority, the Directors
be generally and unconditionally authorised to allot equity
securities (as defined in Section 560 of the Companies Act
2006 (the ‘Act’)) pursuant to Section 551 of the Act, up to an
aggregate nominal amount of £2,345,490 (being an amount
equal to 5% of the existing issued share capital of the
Company as at 21 May 2026, being the latest practicable
date before the date of this notice), provided that this
authority shall, unless renewed, varied or revoked by the
Company, expire on 30September 2027 or, if earlier, the
conclusion of the Company’s AGM to be held in 2027 save
that the Company may, before such expiry, make offers or
agreements which would or might require equity securities
to be allotted and the Directors may allot equity securities in
pursuance of such offer or agreement notwithstanding that
the authority conferred by this resolution has expired.
Special Resolutions
9. That, in substitution for any existing authority, subject to the
passing of resolution 8, the Directors be given the general
power pursuant to sections 570 and 573 of the Act to allot
equity securities (as defined by Section 560 of the Act) for
cash pursuant to the authority conferred by resolution 8,
and/or to sell equity securities held as treasury shares for
cash pursuant to Section 727 of the Act, in each case as if
Section 561(1) of the Act did not apply to any such allotment
or sale, provided that this power shall be limited to:
04. Investor Information
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 109
(a) any such allotment and/or sale of equity securities in
connection with an offer or issue by way of rights or other
pre-emptive offer or issue, open for acceptance for a
period fixed by the Directors, to holders of ordinary
shares (other than the Company) on the register on any
record date fixed by the Directors in proportion (as nearly
as may be) to the respective number of ordinary shares
deemed to be held by them, subject to such exclusions
or other arrangements as the Directors may deem
necessary or expedient in relation to fractional
entitlements, legal or practical problems arising in any
overseas territory, the requirements of any regulatory
body or stock exchange or any other matter whatsoever;
(b) any such allotment and/or sale, otherwise than pursuant
to sub paragraph (a) above, of ordinary shares having an
aggregate nominal value, not exceeding the sum of
£2,345,490 (being an amount equal to 5% of the
Company’s existing issued share capital, excluding
treasury shares, as at 21 May 2026, being the latest
practicable date before the date of this notice); and
(c) any allotment pursuant to sub-paragraph (b) above being
at a price which is at or above the prevailing NAV per
share at the time of issue.
The power granted by this resolution will expire on
30September 2027 or, if earlier, at the conclusion of the
Company’s AGM to be held in 2027 (unless renewed, varied
or revoked by the Company prior to or on such date) save
that the Company may, before such expiry, make offers or
agreements which would or might require equity securities to
be allotted or equity securities held as treasury shares to be
sold after such expiry and the Directors may allot and/or sell
equity securities and equity securities held as treasury shares
in pursuance of any such offer or agreement notwithstanding
that the power conferred by this resolution has expired.
10. That in substitution for any existing authority, the Company
be and is hereby authorised in accordance with Section701
of the Act to make market purchases (within the meaning of
Section 693(4) of the Act), of its ordinary shares in issue,
provided that:
(i) the maximum number of ordinary shares hereby
authorised to be purchased shall not exceed 14.99% of the
Company’s issued ordinary share capital, excluding
treasury shares, at the date of the passing of this
resolution;
(ii) the minimum price which may be paid for a share shall be
the nominal value of an ordinary share (excluding
expenses);
(iii) the maximum price which may be paid (excluding
expenses) for a share shall not be more than the higher
of: (a) an amount equal to 105 per cent of the average of
the closing mid-market price for the ordinary shares
(as derived from the Daily Official List of the London
Stock Exchange) for the five business days immediately
preceding the date of purchase; and (b) the higher of the
last independent trade price and the highest current
independent purchase bid price on the trading venue
where the purchase is carried out;
(iv) unless renewed, the authority hereby conferred shall
expire on 30 September 2027, or, if earlier, at the
conclusion of the Company’s AGM to be held in 2027,
save that the Company may, and prior to such expiry,
enter into a contract to purchase shares which will or
may be completed wholly or partly after such expiry; and
(v) shares will only be purchased at a price which is at a
discount to the prevailing NAV per share at the time of
purchase.
11. That a general meeting, other than an AGM, may be called
on not less than 14 clear days’ notice, such authority to
expire at the conclusion of the AGM in 2027.
By order of the Board
Angus Macpherson
2 June 2026
Registered Office: 5 Morrison Street,
Edinburgh, EH3 8BH
04. Investor Information
110
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Notes:
1. THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in
any doubt as to what action you should take, you are recommended to seek your own
financial advice from your stockbroker or other independent financial adviser authorised
under the Financial Services and Markets Act 2000 if you are resident in the UK or, if you
reside elsewhere, another appropriately qualified financial adviser.
2. If you have sold or transferred all of your shares in the Company, please forward this
document, together with the accompanying documents, as soon as possible either to the
purchaser or transferee or to the person who arranged the sale or transfer so that they can
pass these documents to the person who now holds the shares.
3. The Company specifies that only those members registered on the Company’s register of
members at 6.30 pm on 7 July 2026 shall be entitled to vote at the annual general meeting
(the ‘Meeting’).
4. A member of the Company entitled to vote at the Meeting may appoint a proxy or proxies to
vote thereat instead of them. A proxy need not be a member of the Company.
5. A member may appoint more than one proxy provided that each proxy is appointed to exercise
rights attached to different shares held by that member. A member may not appoint more than
one proxy to exercise rights attached to one share. Please contact the Company’s registrar
Equiniti, at Highdown House, Yeoman Way, Worthing, West Sussex BN99 6DA to appoint more
than one proxy. In the case of joint holders, the vote of the senior holder who tenders a vote
shall be accepted to the exclusion of the votes of the other joint holders. Seniority is
determined by the order in which the names of the joint holders appear in the Company’s
register of members in respect of the joint holding (the first named being the most senior).
6. The right to appoint a proxy does not apply to persons whose shares are held on their behalf
by another person and who have been nominated to receive communications from the
Company in accordance with Section 146 of the Companies Act 2006 (‘nominated persons’).
Nominated persons may have a right under an agreement with the registered shareholder
who holds the shares on their behalf to be appointed (or to have someone else appointed)
as a proxy. Alternatively, if nominated persons do not have such a right, or do not wish to
exercise it, they may have a right under such an agreement to give instructions to the
person holding the shares as to the exercise of voting rights.
7. A proxy form is enclosed with copies of this Report which are sent to registered shareholders.
A member can only appoint a proxy using the procedures set out in these notes and the
notes to the proxy form.
8. A proxy form must be returned to the Company’s registrar, Equiniti, Highdown House, Yeoman
Way, Worthing, West Sussex BN99 6DA to arrive not later than 11am on 7 July 2026. New Zealand
registered shareholders must return a proxy form to Computershare, Private Bag 92119, Victoria
Street West, Auckland 1142, New Zealand (if sent by post) or to Computershare, Level 2,
159Hurstmere Road, Takapuna, Auckland 0622, New Zealand (if delivered in person or by
courier) to arrive not later than 5.00pm on 6 July 2026 (New Zealand time).
9. A corporation which is a member can appoint one or more corporate representatives who
may exercise, on its behalf, all of its powers as a member provided that no more than one
corporate representative exercises powers over the same share.
10. As at 21 May 2026, the Company’s issued share capital was 938,196,372 shares of 5 pence
each. Each share carries the right to vote at an annual general meeting of the Company and,
therefore, the total number of voting rights in the Company as at 21 May 2026 was 938,196,372.
11. Copies of the letters of appointment of the Directors of the Company and the Articles of
Association are available for inspection at the Company’s registered office at 5 Morrison
Street, Edinburgh, EH3 8BH, and online at www.temit.co.uk until the close of the Meeting
and at the Meeting (for 15 minutes prior to the Meeting and during the Meeting).
12. All resolutions will be put to vote on a poll. This will result in an accurate reflection of the
views of shareholders by ensuring that every vote is recognised, including the views of all
shareholders who are unable to attend the meeting but who appoint a proxy for the
meeting. On a poll, each shareholder has one vote for every share held.
13. Electronic proxy appointment for CREST members (for UK only). CREST members who wish
to appoint a proxy or proxies through the CREST electronic proxy appointment service may
do so for the Meeting and any adjournment(s) thereof by using the procedures described in
the CREST Manual which can be viewed at www.euroclear.com. CREST Personal Members
or other CREST sponsored members, and those CREST members who have appointed a
voting service provider(s), should refer to their CREST sponsor or voting service provider(s),
who will be able to take the appropriate action on their behalf. In order for a proxy
appointment or instruction made using the CREST service to be valid, the appropriate
CREST message (a ‘CREST Proxy Instruction’) must be properly authenticated in accordance
with Euroclear UK & Ireland Limited’s (‘EUI’) specifications and must contain the information
required for such instructions, as described in the CREST Manual. The message, regardless
of whether it constitutes the appointment of a proxy or an amendment to the instruction
given to a previously appointed proxy must, in order to be valid, be transmitted so as to be
received by the issuer’s agent (RA19) by the latest time(s) for receipt of appointments
specified in the Notice of Meeting or, in the event of an adjournment of the Meeting,
48hours before the adjourned meeting. For this purpose, the time of receipt will be taken to
be the time (as determined by the timestamp applied to the message by the CREST
Applications Host) from which the issuer’s agent is able to retrieve the message by enquiry
to CREST in the manner prescribed by CREST. After this time any change of instructions to
proxies appointed through CREST should be communicated to the appointee through other
means. CREST members and, where applicable, their CREST sponsors or voting service
providers should note that EUI does not make available special procedures in CREST for any
particular messages. Normal system timings and limitations will therefore apply in relation
to the input of CREST Proxy Instructions. It is the responsibility of the CREST member
concerned to take (or, if the CREST member is a CREST personal member or sponsored
member or has appointed a voting service provider(s), to procure that his CREST sponsor or
voting service provider(s) take(s)) such action as shall be necessary to ensure that a
message is transmitted by means of the CREST system by any particular time. In this
connection, CREST members and, where applicable, their CREST sponsors or voting service
providers are referred, in particular, to those sections of the CREST Manual concerning
practical limitations of the CREST system and timings. The Company may treat as invalid a
CREST Proxy Instruction in the circumstances set out in Regulation 35(5) (a) of the
Uncertificated Securities Regulations 2001.
14. Electronic proxy appointment for non-CREST members (for UK only). Shareholders who
prefer to register the appointment of their proxy electronically via the Internet can do so
through the Equiniti website at www.shareview.co.uk where full instructions on the
procedure are given on the Shareview website. You will need to create an online portfolio
using your Shareholder Reference Number printed on your Form of Proxy. Alternatively,
shareholders who have already registered with Equiniti’s on-line portfolio service,
Shareview, can appoint their proxy electronically by logging on to their portfolio at
www.shareview.co.uk using their user ID and password. Once logged in, click ‘View’ on the
‘My Investments’ page, click on the link to vote then follow the on screen instructions.
A proxy appointment made electronically will not be valid if sent to any address other than
those provided or if received after 11am on 7 July 2026. Please note that any electronic
communication found to contain a computer virus will not be accepted.
15. Proxymity Voting - if you are an institutional investor you may be able to appoint a proxy
electronically via the Proxymity platform, a process which has been agreed by the Company
and approved by the Registrar. For further information regarding Proxymity, please go to
www.proxymity.io. Your proxy must be lodged by 11 am on 7 July 2026 in order to be considered
valid. Before you can appoint a proxy via this process you will need to have agreed to
Proxymity’s associated terms and conditions. It is important that you read these carefully as
you will be bound by them and they will govern the electronic appointment of your proxy.
16. Electronic proxy appointment for New Zealand registered shareholders. New Zealand
registered investors who prefer to register the appointment of their proxy electronically via
the Internet can do so through the Computershare website at www.investorvote.co.nz, and
enter the control number 104860 where full instructions on the procedure are given. Your
CSN (Common Shareholder Number) and postal code will be required to use this electronic
proxy appointment system. A proxy appointment made electronically will not be valid if sent
to any address other than that provided or if received after 5.00pm (New Zealand time) on
6July 2026. Please note that any electronic communication found to contain a computer
virus will not be accepted. New Zealand registered investors cannot appoint more than one
proxy when registering the appointment of their proxy electronically.
17. A member of the Company may make a request in accordance with Section 527 of the
Companies Act 2006 to have a statement published on the Company’s website setting out
an audit concern. This allows a member or members having a right to vote at the Meeting
and holding at least 5% of the total voting rights of the Company, or at least 100 members
having a right to vote at the Meeting and holding, on average, at least £100 of the paid up
share capital, to make a request so that the Company must publish on its website a
statement setting out any matter that such members propose to raise at the Meeting
relating to the audit of the Company’s accounts (including the auditor’s report and the
conduct of the audit) that are to be laid before the Meeting. Where the Company is required
to publish such a statement on its website: (i) it may not require the members making the
request to pay any expenses incurred by the Company in complying with the request; (ii) it
must forward the statement to the Company’s auditor no later than the time at which the
statement is made available on the Company’s website; and (iii) the statement may be dealt
with as part of the business of the Meeting. A member wishing to request publication of
such a statement on the Company’s website must send the request to the Company in hard
copy form to the Company Secretary or by email to enquiries@ franklintempleton.co.uk. The
request must either set out the statement in full or, if supporting a statement sent by
another member, clearly identify the statement which is being supported and be received
by the Company at least one week before the Meeting. Please note that any electronic
communication found to contain a computer virus will not be accepted.
18. Any member has the right to ask questions. Pursuant to Section 319A of the Companies Act
2006, the Company must provide an answer to any question which is put by a member
relating to the business being considered, except if a response would not be in the interests
of the Company or for the good order of the Meeting or if to do so would involve the
disclosure of confidential information. The Company may, however, elect to provide an
answer to a question within a reasonable period of days after the conclusion of the Meeting.
The answers to questions raised by shareholders will be provided on our website.
19. In accordance with Section 311A of the Companies Act 2006, the contents of this Notice of
Meeting, details of the total number of shares in respect of which members are entitled to
exercise voting rights at the Meeting and, if applicable, any members’ statements,
members’ resolutions or members’ matters of business received by the Company after the
date of this notice will be available on the Company’s website, www.temit.co.uk.
20. You may not use any electronic address provided either in this Notice of Meeting or any
related documents (including the Form of Proxy) to communicate with the Company for
any purposes other than those expressly stated.
04. Investor Information
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 111
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Templeton Emerging Markets Investment Trust (TEMIT)
Website
www.temit.co.uk
Our website
The Board and the AIFM aim to keep shareholders informed.
The website offers a wealth of information and updates on
TEMIT and emerging markets and is a comprehensive
resource for shareholders:
•
Important information and investor disclosures
•
Factsheets and commentary
•
Portfolio Manager updates
•
Stock story videos
•
Latest research
•
Investment performance
•
Useful insights and guides
•
Corporate announcements
04. Investor Information
112
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
General information
REGISTERED OFFICE
5 Morrison Street
Edinburgh
EH3 8BH
UK
(Registered No. SC118022)
www.temit.co.uk
REGISTRAR – UK
Equiniti Limited
Highdown House
Yeoman Way
Worthing
West Sussex
BN99 3HH
UK
www.shareview.co.uk
Tel +44 (0)371 384 2505
REGISTRAR – NEW ZEALAND
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna Auckland 0622
New Zealand
enquiry@computershare.co.nz
Tel +649 488 8777
ALTERNATIVE INVESTMENT
FUND MANAGER AND COMPANY SECRETARY
Franklin Templeton Investment Trust
Management Limited
5 Morrison Street
Edinburgh
EH3 8BH
UK
JOINT CORPORATE BROKER
Winterflood Securities Limited
Riverbank House
2 Swan Lane
London
EC4R 3GA
UK
JOINT CORPORATE BROKER
JPMorgan Cazenove Limited
25 Bank Street
Canary Wharf
London E14 5JP
UK
SOLICITOR
CMS Cameron McKenna Nabarro Olswang LLP
Saltire Court
20 Castle Terrace
Edinburgh
EH1 2EN
UK
SOLICITOR
Buddle Findlay
HSBC Tower
Level 18, 188 Quay Street
PO Box 1433
Auckland 1140
New Zealand
CUSTODIAN
JPMorgan Chase Bank
25 Bank Street
London
E14 5JP
UK
DEPOSITARY
J.P. Morgan Europe Limited
25 Bank Street
London
E14 5JP
UK
AUDITOR
Ernst & Young LLP
25 Churchill Place
Canary Wharf
London
E14 5EY
UK
04. Investor Information
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 113
Shareholder information
How to invest
There are three main ways to invest in TEMIT:
1. Through an investment platform. A number of fund
supermarkets or investment platforms allow you to buy, hold
and sell shares in investment trusts such as TEMIT quickly
and easily at a low cost. Many have no minimum investment
requirements. There are a number of companies that offer
these services and may also allow you to include TEMIT as
an investment in an Individual Savings Account (‘ISA’) or
Self-Invested Pension Plan (‘SIPP’). Some of the most popular
include Hargreaves Lansdown, Interactive Investor, Fidelity,
Charles Stanley Direct and AJ Bell.
Please note that this is not a complete list of ISA or SIPP
providers, and you should not consider this list to be a
recommendation of the services which these providers offer.
The Association of Investment Companies (‘AIC’) provides
an independent analysis of platform costs and charges on
their website in the ‘Ready to Invest’ section.
2. Directly through the stock market. You can invest directly in
TEMIT by purchasing shares in the stock market through a
stockbroker or authorised Financial Adviser.
3. Through Equiniti, the Registrar, which offers an online or
telephone service where you can buy shares in TEMIT as
part of an Investment Account or an ISA.
Financial advice
We strongly recommend that you take independent financial
advice before making any investment. If you have a financial
adviser, then they will advise you on the best way to invest in
TEMIT. If you currently do not have a financial adviser, there
are a number of resources online to help you. For investors
based in the UK, websites such as www.unbiased.co.uk or
www.vouchedfor.co.uk will provide you with details of financial
advisers in your area.
Codes
Ticker TEM
ISIN GB00BKPG0S09
SEDOL BKPG0S0
Final Dividend Ex-Date 25 June 2026
Final Dividend Record Date 26 June 2026
AGM 9 July 2026
Final Dividend Payment Date 31 July 2026
Half Year End 30 September 2026
Half Yearly Report Published December 2026
Interim Dividend Record Date December 2026
Year End 31 March 2027
NAV publication and reference codes
The NAV is released every London Stock Exchange business
day through the London and New Zealand stock exchanges.
Itis also published on our website: www.temit.co.uk and
published in the Financial Times.
Dividend Reinvestment Plan (‘DRIP’)
If you are a UK shareholder and your shares are held in your
own name on the Company’s share register, you can request
that any dividend payments are used to purchase further
shares in the Company. You can download and complete the
relevant application forms through Equiniti’s secure website
www.shareview.co.uk/info/drip or you can contact Equiniti by
phone on +44 (0)371 384 2505.
If you invest through a nominee or investment platform and
wish to reinvest dividends you will need to contact them
directly to find out what arrangements they offer.
Financial calendar
04. Investor Information
114
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Glossary of terms and alternative performance
measures
NAV Total Return Calculation 2026 2025
a) Opening NAV (as at 31 March
2025/2024)
193.7 182.8
b) Closing NAV (as at 31 March
2026/2025)
267.3 193.7
c) Dividends Paid
(a)
5.3 5.0
d) Effect of Dividend Reinvestment 1.1 0.1
e) Adjusted Closing NAV e = (b+c+d) 273.7 198.8
NAV Total Return (e-a)/a 41.3% 8.8%
Net asset value total return
A measure showing how the net asset value (‘NAV’) per share
has performed over a period of time, considering both capital
returns and dividends paid to shareholders in sterling terms.
Total return measures allow shareholders to compare
performance between investment trusts where the dividend
yield may differ.
To calculate total return, it is assumed that dividends are
reinvested into the assets of the Company at the prevailing
NAV on the day that the shares first trade ex-dividend
(see page 4). The NAVs include income for the current period
(‘cum-income’).
Share Price Total Return Calculation 2026 2025
a) Opening Share Price (as at 31 March
2025/2024)
169.6 154.4
b) Closing Share Price (as at 31 March
2026/2025)
245.5 169.6
c) Dividends Paid
(a)
5.3 5.0
d) Effect of Dividend Reinvestment 1.2 0.3
e) Adjusted Closing Share Price e = (b+c+d) 252.0 174.9
Share Price Total Return (e-a)/a 48.6% 13.3%
Share price total return
A measure showing how the share price has performed over a
period of time, considering both capital returns and dividends
paid to shareholders in sterling terms. Total return measures
allow shareholders to compare performance between
investment trusts where the dividend yield may differ.
To calculate total return, it is assumed that dividends are
reinvested into the shares of the Company at the prevailing
share price on the day that the shares first trade ex-dividend
(see page 4).
(a) Dividends assumed to be reinvested on ex-date. 2026: Final dividend of 3.25p relating to financial year 2025 first traded ex-dividend on 26 June 2025 and interim dividend of 2.00p relating for
financial year 2026 first traded ex-dividend on 18 December 2025 (2025: Final dividend of 3.00p relating to financial year 2024 first traded ex-dividend on 20 June 2024 and interim dividend of
2.00p relating to financial year 2025 first traded ex-dividend on 19 December 2024).
Share price discount to net asset value (‘NAV’)
If the share price is lower than the NAV per share, the shares
are said to be trading at a discount. If the share price is higher
than the NAV per share, the shares are said to be trading at
a premium.
As at 31 March 2026 the Company’s share price was 245.5
pence and the NAV per share was 267.3 pence, therefore the
discount was (245.5-267.3)/267.3 = 8.2% (31 March 2025: 12.4%).
The average share price discount to NAV over the year is
calculated using the daily NAV and market close share price.
Gearing/net gearing
A term used to describe the process of borrowing money for
investment purposes in the expectation that the returns on the
investments purchased using the borrowings will exceed the
costs of those borrowings.
For example, a figure of 5% means that the shareholders funds
are exposed to NAV returns by an additional 5%, positive or
negative, as a result of borrowings (see page 7).
A net gearing figure of 0.0% means that the cash held in the
Company is equal to or higher than the total bank loans.
Net Gearing Calculation
2026
£’000
2025
£’000
a) Bank Loans 110,683 80,000
b) Cash Held 78,641 75,549
c) Net Assets (Excluding Bank Loans) 2,636,268 2,065,442
Total Gearing = {(a-b)/c} 1.2% 0.2%
Ongoing Charges Calculation
2026
£’000
2025
£’000
a) Total AIFM Fee and Other Expenses 20,050 19,439
b) Average Net Assets 2,324,733 2,042,653
Ongoing Charges (a/b) 0.86% 0.95%
Ongoing charges ratio
The OCR represents the annualised ongoing charges
(excluding finance costs, transaction costs and taxation)
divided by the average daily net asset values of the Company
for the period and has been prepared in accordance with the
AIC’s recommended methodology. Ongoing charges reflect
expenses likely to recur in the foreseeable future. As at 31
March 2026 the OCR was 0.86% (31 March 2025: 0.95%).
04. Investor Information
TEMIT.co.uk
Templeton Emerging Markets Investment Trust plc 115
Benchmark return
The Company’s benchmark is the MSCI Emerging Markets
(Net Dividends) Index.
The benchmark is a recognised index of stocks which should
not be taken as wholly representative of the Company’s
investment universe. The Company’s investment strategy does
not track this index and, consequently, there may be material
divergence between the Company’s performance and that of
the benchmark.
Although not an alternative performance measure the total
return of the benchmark is calculated on a closing market
value to closing market value basis, assuming that all dividends
net of local taxes received were reinvested into the shares of
the relevant companies at the time at which the shares were
quoted ex-dividend (see page 4).
Returns are converted by the index provider into sterling at
prevailing exchange rates.
Benchmark performance source: MSCI.
Gross domestic product
Gross domestic product (‘GDP’) is the total monetary value of
all finished goods and services produced within a country’s
borders during a specific period.
Basis point
The term basis points is widely used in financial analysis to
describe small percentages or small changes. 1 basis point
is0.01%.
Gross total return
Gross total return is net asset value total return before the
deduction of expenses (see page 18).
Excess return
The difference between the gross total return of TEMIT and
the benchmark total return (see page 18).
Residual return
A measure representing the difference between the actual
excess return and the excess return explained by the
attribution model. This amount results from several factors,
most significantly the difference between the actual trade
price of securities included in actual performance and the end
of day price used by the benchmark indices and hence to
calculate attribution (see page 18).
04. Investor Information
116
Templeton Emerging Markets Investment Trust plc TEMIT.co.uk
Notes
Templeton Emerging
Markets Investment Trust
Your future is emerging
Are you underexposed to growth?
Value of investments can go down as well as up, investors may not get back the full amount invested.
Emerging markets can be riskier than developed markets.
*Source: IMF WEO, October 2025.
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Investment Trust is a balanced portfolio of
around 80 top-quality companies in dynamic
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Expertly managed, built for growth and
delivering shareholder returns for over 35
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opportunities.
Don’t miss your chance to be part of it.
Did you know that emerging markets generate
over 65% of global growth?
*
Visit temit.co.uk
or scan the QR code
to find out more.
Annual Report and Accounts to 31 March 2026
Templeton Emerging Markets Investment Trust plc
5 Morrison Street, Edinburgh, EH3 8BH, UK
temitcosec@franklintempleton.com
www.temit.co.uk
Your future is emerging
Cover artwork uses AI enhanced photography.