Templeton Emerging Markets Investment Trust PLC - emerging markets investor - For the year ended March 31, net asset value total return stands at minus 17.3%, lagging behind its benchmark index, the MSCI Emerging Markets Index, which made a negative return of 6.8%.
As at March 31, net asset value per share drops 19% to 178.2 pence from 219.4p the same date a year prior, which the trust attributes to weaker technology stocks, regulatory pressure in China and sanctions on Russia following the invasion of Ukraine.
In early March, Templeton confirmed that it held securities in five Russian firms, which were ascribed a zero value.
Keeps dividend per share at 3.80 pence.
"These are difficult times for investment managers. At the time of writing the war in Ukraine appears likely to continue for some time and while active hostilities will, we hope, end shortly, the ramifications are likely to be felt for some considerable time. From the perspective of investors the major issues will be the extent to which commodity prices remain elevated and the effect that this has on broader inflation around the world. Higher inflation generally leads to higher interest rates and this affects the market value of assets, particularly high growth companies for which values are derived from expectations of earnings over the longer term," says Chair Paul Manduca.
Current stock price: 149.20 pence
12-month change: down 28%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Templeton Emerging Markets (TEM)