Improving relative performance

Templeton Emerging Markets Inv. Trust (TEMIT) aims to generate long-term capital growth from a diversified portfolio of emerging market equities. Since the change in manager in October 2015, there has been a notable improvement in TEMIT’s relative performance – over the last 12 months, its NAV total return has outperformed its MSCI Emerging Markets index benchmark by 10.2%. TEMIT has historically run a small cash balance, but in January 2017 announced it had entered into a new £150m credit facility; if fully drawn down, it would take gross gearing to c 7.0% of net assets.