**Summary of Templeton Emerging Markets Investment Trust PLC Half-Year Financial Report (December 8, 2025)**
**Overview**
Templeton Emerging Markets Investment Trust PLC (TEMIT) released its half-year financial report for the period ending September 30, 2025. The trust, launched in June 1989, focuses on investing in emerging markets to deliver long-term capital growth. As of September 30, 2025, TEMIT’s net asset value (NAV) total return since inception was +5,698.9%, significantly outperforming the benchmark’s +2,134.7%.
**Financial Highlights (Six Months to September 30, 2025)**
**NAV Total Return**+25.3%
**Share Price Total Return**+30.8%
**Benchmark Return (MSCI Emerging Markets Index)**: +18.8%
**Interim Dividend**2.00 pence per share (unchanged from 2024).
**Performance and Market Context**
TEMIT’s portfolio outperformed the benchmark, driven by strong stock selection and sector allocation. Key contributors included SK Hynix, Prosus, and Samsung Life Insurance. The trust benefited from exposure to semiconductor companies in the AI supply chain, particularly in South Korea and Taiwan. India’s structural strength and China’s recovery in investor sentiment also supported performance.
Geopolitical tensions, including U.S. tariffs and conflicts in the Middle East and Ukraine, created volatility. However, TEMIT’s active management and focus on high-quality businesses with strong balance sheets helped navigate these challenges.
**Share Price and Discount**
The Board remains concerned about the persistent discount of TEMIT’s shares to NAV. Measures to address this include
Share buybacks (£101.2 million in the period, reducing the discount to 8.8% by September 2025).
A conditional tender offer to buy back up to 25% of shares if underperformance occurs.
A phased reduction in AIFM fees.
**Dividends and Revenue**
Revenue earnings were 3.33 pence per share, with the majority earned in the first half of the financial year. The Board maintained the interim dividend at 2.00 pence per share and expects the final dividend to be at least 3.25 pence per share.
**Gearing and Investment Strategy**
TEMIT has a £122 million multi-currency revolving credit facility, with £40 million and CNH 300 million drawn as of September 2025. The Board authorized investment in equity options and Contracts for Difference to enhance portfolio flexibility and reduce costs.
**Outlook**
The Board remains optimistic about emerging markets, citing lower valuations, higher growth potential, and under-ownership by Western investors. Despite geopolitical risks, the long-term prize is exposure to lower-valued companies in higher-growth economies.
**Stewardship and ESG**
TEMIT integrates Environmental, Social, and Governance (ESG) factors into its investment process. Examples include engagement with BDO Unibank on ESG lending practices and proxy voting against capital-related proposals at Delivery Hero.
**Conclusion**
TEMIT delivered strong performance in a volatile environment, outpacing its benchmark. The trust continues to focus on active management, shareholder value enhancement, and responsible stewardship, positioning itself for long-term growth in emerging markets.