"The 'emerging markets' moniker may be considered too broad for the set of disparate and complex countries it covers.However, Dan Kemp, chief investment officer at Morningstar Investment Management EMEA, points out that, viewed through a country ..."
"In November, LSE:SMT:Scottish Mortgage kept its position as the most popular investment trust to buy on the Interactive Investor trading platform.The investment trust was able to maintain its place as the most-bought trust, despite a 4.7% slide ..."
I am a long term holder (since 1992) buying monthly with a view to continued long term hold and occasional part sale for profit (if discount <10%).
Regarding discount - EM is still relatively risky while developed markets prosper, and temit now has a higher % in IT and China than before - perceived as more risky areas - and a more concentrated portfolio which also implies more risk/conviction (delete as you see fit) . I see 42% in top 10 stocks, with some holdings at 7-8% - in former times more holdings and largest holding more like 3-4%.
I think 13% is continued buy, and the EM story is as strong as ever. Not all will prosper, but remember that 100 years ago USA was considered an EM.
I have also been in TEM since early 90s adding monthly Excellent long term performance and paid for several holidays and sofa with occasional disposal. Been rebuilding over the last few years. Like all em you need a long term view to keep going between the peaks - then it is an excellent vehicle and good diversification
I've been a holder of this fund for over 6 years. It has been a bumpy ride, but has returned around 7%pa over that period which is satisfactory for me.
EMs have been in vogue for a while now and so I'd expect most EM ITs to be doing pretty well, but when I selected this fund I felt it was the best for my needs and over the years I have not had a compelling reason to switch or sell (I have been close a couple of times, though!)
"The attractions of emerging markets are well documented. These fast-growing economies are armed with favourable demographics, in the shape of young, increasingly upwardly mobile populations. This means plenty of taxpayers and spenders, which in ..."
"Interactive Investor is 21 years old. To celebrate, our top journalists and the great and the good of the City have written a series of articles discussing what the future might hold for investors. Here's Templeton fund manager ..."
As I've said before, TEMIT is going backwards and now with Mobius gone it is a headless chicken with a 15% spread between NAV and market price. We would all be better off if the trust was broken up and the proceeeds distributed to shareholders.
Let's start a campaign to get the TEMIT fund managers off the pot!
"This year, you might title the theme song of the global markets "All About Those [Central] Banks", as monetary policy divergences have kept investors on alert and has heightened market volatility.A secondary theme might be "All About Those [Oil] ..."
"Global emerging market (GEM) funds dominate the top of Money Observer's Deficient 50 list, which highlights funds that have consistently disappointed investors with fourth quartile returns over each of the past three years compared to their peer ..."
I've been making regular monthly payments into TEMIT for 19 years and it had made me lots of profit. Only problem was CGT when I had to cash some in to pay for a loft conversion. Been drifting last few years but from my experience it should be worth a fortune if you take a 10 or 20 year timescale from now.
Still paying in and trusting pound cost averaging plus a good long term fund manager.
"LSE:TEM:Templeton Emerging Markets Investment Trust, the flagship fund run my Dr Mark Mobius for Franklin Templeton Investments, has an impressive track record, returning 377% over the past 10 years compared to 243% from its benchmark, MSCI ..."
The 18 July AGM sees the 5 yearly vote on continuation or not for TEMIT. I think performance is poor enough - and the discount to NAV large enough - to say let's wind it up and share out the cash. If enough shareholders vote AGAINST RESOLUTION 14 either in person or on the Proxy Voting Form you should have all received, then we might get back some of the value TEMIT has lost in recent years.
"The Russian market is now good value and could be an attractive prospect for contrarian investors, says Alan Brierley, director of investment companies at stockbroker Canaccord Genuity.According to Brierley, the MSCI Russia 10/40 total return ..."
"Baillie Gifford's LSE:SMT:Scottish Mortgage Investment Trust and LSE:BIOG:Biotech Growth, run by Frostrow Capital, had a successful first quarter: both were ranked in the top three most-bought trusts by Interactive Investor clients in each ..."
Lillty, it's possible to transfer your holding to whichever broker you like. III for example give you cash back on transferring your holdings (or did when I did mine). I put all of mine held in a variety of sources into one broker and for ease of monitoring and dealing. Most of my holdings are within an ISA and i buy and sell as normal and in real time if I wish.
Thanks for the response musker ron. May be I need to expand on my post a little more. I started investing in TEMIT through a monthly invetsment plan arranged by TEMIT and they use equiniti as their investment plan administrator. This is where the problem lies as equiniti does not provide online dealing facility for TEMIT investment plan (I receive monthly paper format dealing statements). I would think you have probably made the arrangements yourself - using a different platform like interactive investor - rather than go through the nominated plan administrator which does not give me the flexibilty you have.
I monitor buy and sell, online through Interactive Investor so I don't understand why you cannot do the same. You won't get share certificates and if that is important to you you need to use a different broker. There are plenty of sites where you can monitor your portfolio including Temit. I'm also a monthly investor in Temit and others and don't have any problems at all. I don't use equiniti and don't know who they are.
Does anyone else - particulary monthly investment plan investors through equiniti - share my frustration that we can not view/access/buy/sell our shares- basically can not do anything - online?
I have been a monthly investor in this IT and others (e.g. F&C, Aberdeen, Bailie Gifford, JP Morgan) and have become increasingly frustrated when all others provide online facility to perform all sorts of activities whereas TEM IT provide none. I still have to complete the back of the monthly dealing statement from equiniti, send it through the post and wait for a cheque to arrive by post when selling shares in my investment. Are there others in my position who are able to use a different/better process? I actually called equiniti and spoke to them and have been told that there is no online management facility what so ever for TEMIT.
Manager has not changed, but as you have spotted last 3 month's performance is lagging behind the JP Morgan EM IT. It's too small a time frame to worry about and we need to wait and see how it pans out over the year. All long term past performance indicators favour TEMPIT so, as a regular investor, I will look at this as an opportunity rather than a crisis. I will be worried though if this continues for another 6/12 months.
a 6% discount is very good for a trust of this nature.
There does seem though to be a flight away from the risk inherent in these stocks so it may be appropriate to see where that goes. If you believe the discount will widen over the next few weeks, as I do, then the opportunity exists to sell and buy back in at a lower price later if you like the fundamentals of the stock. But each to his own and DYOR
Thank you very much for your explanations. I've learnt a lot already.
I've actually held these shares since 2000 but have only recently begun to take a more active interest. Of all the investments I had, this is by far the best and I'm wondering whether to buy some more. I do like the Mobius/Templeton approach you describe.
When you say any more than 6% discount is a sign to buy, how are you calculating that discount? On the ex-income or inc-income NAV? I presume it's roughly (1-SP/NAV).
Also, is there any known reason why this is going through such a retrace at the moment?
Again, really appreciate you sharing your knowledge.
Micawber is right.
Unlike open ended funds like unit trusts whose price is fixed at the NAV, investment trust prices are dependent on supply, demand and market sentiment. One of the factors investors use to determine to buy, sell or hold is the dicount/premium to NAV. If you buy at a discount you are actually getting more assets for your money. The opposite is true if you buy at a premium.
So daily NAV's are for investors/potential investors information. It tells you how well the underlying investments are performing.
TEMIT is a closed end Investment Trust not an open Unit Trust.
It invests with fixed capital and buys and sells shares in a very scientific rigorous way. After detailed analysis of hundreds of likely stocks it compiles a buy and a sell list on a five year view. If the stock is undervalued in terms of its likely earning 5 years away then it is on the buy list.
If a stock reaches its original target it gets sold.
This way it has nothing to do with momemtum. Markets can and do panic and sell sell sell. But Dr Mark Mobius and his team stick to their data. When prices plummet the buy list gets bigger. When prices are rock bottom, they are usually the only ones with cash to buy. When prices get
That's because they sell when the targets are reached. Even if stocks continue to rise they continue to sell. Thus they sell well before the inevitable bubble bursts.
Last time this happened TEMIT had about 50% cash - that's a lot of cash. If there's nothing on the sell list they just wait till there is. It's pretty simple really. Its done pretty well since 1989 and since the 1950s under the direction of founder Sir John Templeton.
Temit averages about 6% discount to NAV. Anything over that is a definite buy if you are a long-term (5yr) value investor. (But you can also sell when your own targets or reached). But that will not change the way Mobius buys and sells. He uses fundamentals supplemented by company visits (about 300 per year).
They used to release NAVs once a week but investors needed a better handle on the discount. So they are given daily now.
Hope that helps.
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