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

Morning Note – 22 April 2024

Benefits of scale set to materialise

Frenkel Topping - Resilient with strong growth potential

FY 2023 was a challenging year for Frenkel with higher interest rates encouraging clients to place money into lower margin money market funds. Despite this, sales grew +32% (supported by recurring revenue +9% and +51% in non-recurring), EBIT margins remained strong at 22% and adj. EPS grew +17% (taking into account the higher number of shares). FY 2024 has seen a solid start to transactional business and there is a strong pipeline of new FUM opportunities both of which support further growth. Wi

Bluefield Solar Income Fund – Fundamentals shine despite discount

The manger comments that, in common with the other trusts in the renewable energy sector, the last six months have continued what has been a challenging period for the Bluefield Solar Income Fund (BSIF). It adds that the trust’s ongoing fundamental performance has failed to reverse a steady slide in its share price which began back in May 2023. Despite this, it says the company has continued to deliver solid NAV growth and market-leading shareholder distributions thanks to a range of contractual

LSL Property Services (LSL LN) - Transformation & market recovery

2023 results are, as indicated in its February pre-close update, “slightly ahead of market expectations”. Current trading continues to improve, with 1Q24 underlying operating profit up yoy, “reflecting the benefits of the Group’s transformation programme completed in 2023 as well as improving market conditions.” With net cash of £35m at end 2023, the Board approved 7.4p final DPS and £7m buy back.

Henderson Far East Income - Repositioning to raise total returns

Henderson Far East Income (HFEL) has consistently delivered on its objective to provide a rising dividend. However, like many investors, HFEL’s managers overestimated the potential for a post-pandemic rebound in China. The trust’s resultant overweight to Chinese consumer and other cyclicals led to a fall in portfolio revenues and underperformance in the financial year ended 31 August 2023 (FY23). With a view to improving future returns, HFEL’s board has since indicated an increased willingness t

S&U - PBT ahead, encouraging volume trends

S&U reported FY24 PBT of £33.6m, down from £41.4m in FY23 on higher funding and regulatory costs and higher impairments in Advantage in H2. PBT was 2% ahead of our forecast as stronger revenues – up 12% to £115.4m – and better costs offset higher-than-expected impairments. Net receivables grew to a record at both Advantage and Aspen and management noted particular strength in Q4 and a good trading environment in the current year. Having absorbed a significant rise in funding cost as well as addi

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

Foresight Solar Fund - Termination of coverage

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web

International Public Partnerships - Consistently and responsibly delivering

International Public Partnerships’ (INPP’s) FY23 results show that it continues to deliver consistent and predictable returns for investors, while delivering environmental and social benefits for the individuals and communities that are served by its assets. Despite this strong performance and a substantial need for private infrastructure funding, the macroeconomic environment has weighed on INPP’s share price, in common with the wider sector. Regardless, attractive returns are available from th

LIBERUM: PensionBee: Strong start to the new financial year

LIBERUM: NewRiver: Q4 trading update: Continued operational momentum

Regional REIT - Performing as expected ahead of refinancing

In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.

Witan

Business as usual for WTAN’s executive team, while the board reviews investment management arrangements…

LIBERUM: PayPoint: On track for £100m of EBITDA in FY 26