(Alliance News) - Templeton Emerging Markets IT PLC on Thursday proposed a special payout despite swinging to a negative total return in its recently ended financial year.
Total return for the year ended March 31 was negative 11%, swinging from 1.8% in the year prior. It did, however, still outperform its benchmark, the MSCI Emerging Markets Index, which lost 13%.
The emerging markets investor's net asset value per share fell 13% to 732.3 pence from 842.5p. Its shares closed 0.1% lower at 758.00p each on Thursday in London.
"For the first nine months of the accounting year returns were positive, if at times volatile," Templeton Emerging said.
"This, of course, all changed in the first quarter of 2020, with March being particularly challenging," the company added, referring to a period which was hit by the Covid-19 pandemic.
Despite its annual performance souring just before the end of play, it boosted its ordinary dividend by 19% to 19.00p from 16.00p. It also proposed a special dividend of 2.60p, after not releasing one in the year prior.
"Economic damage has been substantial and the true scale of this will only be apparent in years to come. Markets have recovered from the lows experienced earlier this year but we should not be complacent as there will inevitably be further periods of high volatility in share prices," the company added.
The company added that Gregory Johnson will step down from its board at its annual general meeting on July 9.
Johnson has represented Franklin Resources Inc, also known as Franklin Templeton, on the Templeton Emerging board since 2007. Johnson is executive chair of Franklin Resources.
Chair of Templeton Emerging Paul Manduca said: "Mr Johnson has made a significant contribution to TEMIT during his time on the board. His knowledge of both markets and the investment management industry has helped us in our deliberations and he has been a strong liaison between the board and Franklin Resources. We must of course respect his wish to step down after 12 years on the board, but he will be much missed."
By Eric Cunha; ericcunha@alliancenews.com
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Templeton Emerging Markets (TEM)