Templeton Emerging Markets It Closed Fund (LON:TEM) (578p and 4% of JIC Portfolio) I have bought back into this investment trust having sold the previous holding back in April at an average price of 632p. Emerging markets have performed poorly during 2013, especially in comparison to developed markets such as the US and Europe. Much of this has been down to a withdrawal of liquidity as markets looked to the end of quantitative easing in the US. I think that emerging markets can have a catch up in the coming months as the US last night agreed to increase the debt ceiling for three months, which presents a window of opportunity before we no doubt go through the whole tortuous process again in the New Year. In addition the appointment of Janet Yellen as next head of the Federal Reserve, is I understand, likely to lead to more quantitative easing for longer and lastly, emerging market valuations are looking more attractive.
Conclusion; I like the management of the Templeton Trust, it has an excellent long term record based on sound stock picking and the share price currently stands on an 8% discount to net assets. The latest portfolio breakdown can be found on its website www.temit.co.uk At 30th September it had around 30% in China/HongKong, 14% in Brazil, 13% in Thailand, 10% in India and 6% in Indonesia. (See Transactions)
