Templeton Emerging Markets Investment Trust - Under-owned, undervalued & under-appreciated

Templeton Emerging Markets Investment Trust’s (TEMIT’s) co-managers Chetan Sehgal (lead manager) and Andrew Ness consider that the case for emerging markets is not well understood. Hence, they believe that the regions remain under-owned, undervalued and under-appreciated, which provides an interesting opportunity for global investors. There are several powerful trends supporting the superior economic growth prospects of emerging markets versus those in developed regions, including demographics,

Templeton Emerging Markets

TEM offers broad exposure to the growth potential in emerging markets…

Templeton Emerging Markets Investment Trust - Managers keeping the faith with quality portfolio

Templeton Emerging Markets Investment Trust (TEMIT) benefits from the extensive experience of co-managers Chetan Sehgal (lead manager) and Andrew Ness. The trust’s performance has turned a corner as its results tend to be better during periods when share prices are driven by company fundamentals, which are the driver of long-term equity returns, rather than macroeconomic factors. Emerging markets offer a broad range of investment opportunities and are home to a growing number of world-class, lea

Templeton Emerging Markets

TEM offers broad exposure to the growth potential in emerging markets...

Templeton Emerging Markets Investment Trust - Fundamentals once again driving outperformance

Templeton Emerging Markets Investment Trust (TEMIT) has two very experienced managers: Chetan Sehgal (lead manager – based in Singapore) and Andrew Ness (based in Edinburgh). They are encouraged by the trust’s improved absolute and relative performance in recent months as investors are focusing more on company fundamentals rather than macroeconomic developments. The managers seek quality companies with high returns and sustainable business models that are trading at a discount to their intrinsic

Templeton Emerging Markets Investment Trust - Good opportunity to revisit an unloved asset class

Templeton Emerging Markets Investment Trust (TEMIT) has experienced a difficult period of performance in recent quarters as investors have focused on the tough macroeconomic backdrop rather than on individual company fundamentals. However, managers Chetan Sehgal (lead manager) and Andrew Ness are confident in the long-term strategy of investing in companies with sustainable earnings power that are trading at a discount to their estimated intrinsic values. They believe emerging markets are under-

Ready player one

The last six months may seem like a lifetime to investors, with the jubilation of the post-COVID economy giving way to inflationary blues, and equity markets entering the worst bear market in years. The roller coaster is not over, however, with the Ukrainian crisis yet to be resolved, inflation rampant, and supply chains restricted. Oases have been hard to find. Many real assets, alternatives and infrastructure trusts have managed to generate positive NAV returns. However, as the risk-off ride a

Templeton Emerging Markets

Templeton Emerging Markets (TEM) has a long track record going back over 30 years. Chetan Sehgal joined Franklin Templeton in 1995 and has been the lead portfolio manager since February 2018, and prior to that was co-manager from October 2015. Andrew Ness joined as the co- manager in September 2018. They are supported by a 60+ analyst team based in 14 key emerging market countries. The trust invests in emerging market stocks, with the managers taking a bottom-up stock selection approach. The tea

Templeton Emerging Markets Investment Trust - Sticking to process – potential for higher valuation

Templeton Emerging Markets Investment Trust (TEMIT) is a very large and well-established fund run by experienced managers, Chetan Sehgal (lead manager) and Andrew Ness. Despite a tough period of performance since Q221 due to macroeconomic developments, the managers are sticking to their long-term strategy of investing in companies with sustainable earnings power that are trading at a discount to their estimated intrinsic values. Sehgal and Ness remain positive on the prospects for emerging marke

Templeton Emerging Markets Investment Trust - Broad opportunities in public and private markets

Templeton Emerging Markets Investment Trust (TEMIT) is by far the largest fund in the AIC Global Emerging Markets sector. Its two managers Chetan Sehgal (lead manager) and Andrew Ness seek companies with robust business models, sustainable earnings growth potential and which are trading at a discount to their estimated intrinsic values. The managers’ considerable experience, coupled with the deep resources of a broad investment team, enables them to identify interesting opportunities that may be

Templeton Emerging Markets Investment Trust - Broader investment remit and positive outlook

Templeton Emerging Markets Investment Trust (TEMIT) is managed by Chetan Sehgal (lead manager, based in Singapore) and Andrew Ness (based in Edinburgh). They have a broader remit as up to 10% of the portfolio may now be held in unlisted companies, while the limit on a single holding has been raised from 10% to 12%. The managers are able to draw on the considerable resources of a global team of more than 80 investment professionals operating out of 14 countries; this enables them to seek out inte

Templeton Emerging Markets Investment Trust - Successfully navigating choppy waters

Templeton Emerging Markets Investment Trust (TEMIT) has the benefit of two highly experienced managers, Singapore-based Chetan Sehgal and Andrew Ness, who is based in Edinburgh. They can draw on the significant resources of a team of more than 80 investment professionals working in 14 countries around the globe. The managers successfully navigated choppy waters during 2020, a period characterised by bouts of significant stock market volatility due to the global pandemic. TEMIT’s NAV has outperfo

Templeton Emerging Markets Investment Trust - Long-term record of outperformance

Templeton Emerging Markets Investment Trust’s (TEMIT) two managers have more than 50 years’ combined investment experience. Chetan Sehgal is based in Singapore and Andrew Ness is based in Edinburgh; they are part of a more than 80-strong team of portfolio managers and analysts across 16 countries around the globe. The trust’s relative performance was negatively affected during the coronavirus-led market sell-off earlier in 2020 but has since bounced back strongly. TEMIT has outperformed its benc

Templeton Emerging Markets Investment Trust - Exciting opportunities and improved performance

Templeton Emerging Markets Investment Trust (TEMIT) has two experienced managers – Chetan Sehgal (based in Singapore) and Andrew Ness (based in Edinburgh). In 2019, they delivered a very strong year of performance in both absolute and relative terms, and are continuing to find attractive investment opportunities across a range of sectors and geographies. The managers are able to draw on a large and well-resourced investment team that has been refreshed in recent years, seeking quality companies

Templeton Emerging Markets - Overview

Templeton Emerging Markets (TEM) invests in stockmarkets of emerging countries with a bottom-up driven, stock-specific approach. It has more of a value tilt than any of its peers in the AIC Global Emerging Markets sector, and the managers tend to take a five-year view on companies’ growth potential. The trust has outperformed a passive investment in the emerging markets over the past year, and over three- and five-year periods, thanks largely to the themes and stocks brought into the portfolio

NewRiver REIT+ (NRR, House Stock at 72p) - Possible offer for Capital & Regional plc and withdrawal of forecasts

Avation - Update shows further positive progress and results ahead of expectations

Avation, a lessor of 34 commercial aircraft, provided a trading update on Friday for the year to date, reporting a significant expected increase in the value of its ATR 72 purchase rights, along with an improvement in lease revenues and cash collections. Following the announcement of a restructured aircraft purchasing plan with ATR earlier this month, the company has reported that the grant of new aircraft purchase rights and the extension of the existing rights is expected to increase the value

Morning Note – 29 May 2024

TRIG - Renewables Infrastructure Group

TRIG’s portfolio continues to evolve, despite equity capital markets being closed…

Bank of Georgia Group Plc - Robust Q1, volatility likely to continue, but deep d

Headline Q1 net profit of GEL1.04bn included negative goodwill of GEL686m arising from the Ameriabank acquisition. Adjusted profit of GEL369m was a touch light of our estimate, but on lower other income, while costs came in higher on increased investment spend. However, the Group net interest margin increased slightly on 4Q23, unchanged also on the prior year, and better than expected, against a backdrop of faster cuts in interest rates by the National Bank of Georgia this year. Economic growth

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

UK REITs: Building back better

UK commercial property has been a cornerstone asset for many income-seeking investors (both retail and institutional) in recent decades, particularly since the global financial crisis of 2007/8 and the resulting ultra-low interest rate environment. However, since rates began to rise in 2022 to tackle surging inflation, meaningful returns have once more become available on lower-risk assets such as cash and government bonds, which has led to a retrenchment from alternative income assets such as p

Bankers Investment Trust (The) - Greater investment flexibility may boost returns

The Bankers Investment Trust (BNKR) focuses on cash-generating companies and FY23 (ended 31 October 2023) was its 57th consecutive year of dividend growth. Dividends rose by 10%, maintaining the trust’s track record of above inflation dividend growth over the long term. The board expects dividends to rise by at least 5% in FY24. While this is commendable, BNKR’s recent relative total return performance has been adversely affected by its lack of exposure to most of the so-called Magnificent Seven

Profit and NAV upgrade, ATR value being proven

NB Private Equity Partners

NBPE’s realisation activity shows its portfolio is ‘in demand’…

Regional REIT - Q124 DPS unchanged ahead of refinancing

For Q124, Regional REIT (RGL) has maintained the rate of quarterly DPS at 1.2p. We expect DPS for the year will partly depend on RGL’s chosen re-financing route. Meanwhile, RGL’s asset disposal programme continues to progress. Portfolio EPC ratings have continued to show good improvement and, adjusted for disposals, rent roll and occupancy were robust. We have made no changes to our forecasts.

Solid H1 as investments in capacity start to pay off

AUM was up by £2.2bn or 6% over H1-24, reaching £39.6bn on 31 Mar 24 (30 Sep 23: £37.4bn). This was a top-third growth rate among a London-listed peer group. While sustainable investing flows around the world have been subdued, we are seeing some early signs of a return to stronger flows. H1-24 revenue of £86.2m was down 2% y-o-y from £88.0m in H1-23 on lower average AUM levels and an unchanged average fee margin of 45bps. However, an AUM recovery during the period saw run-rate revenue increase

UK Equities: Overlooked, oversold, and over here

In this note we look at the gap between perception and reality in the UK equity market, the opportunities and threats in the economic and market outlook, and the emerging consensus that the valuation discount versus other major markets is at or close to an inflection point. We consider the benefits of UK equity strategies both for income investors and for those seeking exposure to the higher growth potential of smaller and mid-cap companies.

AJ Bell: AJB gets “a little bit aggressive”. Market maybe cannot compute.

AJB’s CEO, Michael Summersgill, said on the results call that some of the recent price changes were perhaps “unnecessary” and maybe “a little bit aggressive” at the time. That is because AJ Bell is a proper growth company, taking share in two big markets. We believe the nub of the investment story is that the market has a tough time estimating the growth acceleration that should come from such aggressive pricing. We now see the company close to fair value, but the market-share-taking trend may b

LIBERUM: Real Estate Investors: Releasing value