REG - TempletonEmerg.Mkt. - Half-year Financial Report
08/12/2025 16:45
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RNS Number : 7090K Templeton Emerging Markets IT PLC 08 December 2025
Stock Exchange Announcement
Templeton Emerging Markets Investment Trust PLC ('TEMIT' or the 'Company')
Half Yearly Results to 30 September 2025
Legal Entity Identifier 5493002NMTB70RZBXO96
Introducing TEMIT
Launched in June 1989, Templeton Emerging Markets Investment Trust plc
('TEMIT' or the 'Company') is an investment trust that invests principally in
emerging markets companies with the aim of delivering capital growth to
shareholders over the long term. While the majority of the Company's
shareholders are based in the UK, shares are traded on both the London and
New Zealand stock exchanges. From its launch to 30 September 2025, TEMIT's
net asset value ('NAV') total return was +5,698.9% compared to the benchmark
total return of +2,134.7%.
The Company is governed by a Board of Directors who are committed to ensuring
that shareholders' best interests, considering the wider community of
stakeholders, are at the forefront of all decisions. Under the guidance of
the Chairman, the Board of Directors is responsible for the overall strategy
of the Company and monitoring its performance.
Financial highlights
For the six months to 30 September 2025
2025 2024 3 Years Cumulative 5 Years Cumulative 10 Years Cumulative
Net Assets Value Total Return 25.3% 7.2% 61.6% 44.2% 227.1%
(cum-income)((a))
Share Price Total Return((a)) 30.8% 12.0% 70.9% 52.9% 250.5%
MSCI Emerging Markets Index((a)(b)) 18.8% 7.5% 37.0% 34.8% 142.7%
Interim dividend for the financial year((c)(d)) 2.00p 2.00p 15.25p 24.85p 38.67p
(a) A glossary of terms and alternative performance measures is included
in the full Half Yearly Report.
(b) Source: MSCI. The Company's benchmark is the MSCI Emerging Markets
(Net Dividends) Index.
(c) 3, 5 and 10 year cumulative dividends include ordinary dividends that
shareholders were entitled to in those periods. 5 and 10 year cumulative
figures exclude the special dividend of 0.52 pence per share for the year
ended 31 March 2020 and the special dividend of 2.00 pence per share for the
year ended 31 March 2021.
(d) Financial years 2016 to 2021 have been retrospectively adjusted
following the sub-division of each existing ordinary share of 25 pence into
five ordinary shares of 5 pence each on 26 July 2021.
Chairman's statement
"The prize on offer in the long term from investment in emerging markets is
exposure to lower valued companies based in higher growth economies."
Angus Macpherson
Chairman
Performance((a))
In the six months under review, the performance of the TEMIT portfolio was,
once again, strong. The net asset value ('NAV') total return over the 6 months
to 30 September 2025 was +25.3%, while the share price total return was
+30.8%. By contrast, the benchmark's total return was +18.8%.
The Board was pleased to note that in May 2025 the portfolio managers at our
Investment Managers, Chetan Sehgal and Andrew Ness, were awarded Citywire's
highest rating of AAA, recognising their consistent performance in managing
TEMIT's portfolio.
As I noted in June in our most recent Annual Report, US President Trump's
"Liberation Day" was declared on the second day of our current financial year.
The announcement of the intention to impose widespread tariffs on imports into
the United States from most countries was an unwelcome event creating
considerable investor anxiety as a wider range of countries were affected by
the proposed tariffs than had been expected, particularly in Asia.
Subsequently, there has been a flurry of activity as countries and regional
blocs have sought an accommodation with the US administration but the
situation remains far from settled, particularly with regard to China. The
Board and Investment Managers continue to believe both that China is too
integrated into the global economy for economic sanctions to profit any party
and that it seems increasingly apparent that China has the ability to play the
long game.
As a result of the geopolitical tensions, both the NAV of the Company and its
share price initially fell sharply but subsequently increased substantially
over the summer.
(a) See Glossary of Terms and Alternative Performance Measures in the full
Half Yearly Report.
Share price rating
I would like to reiterate that the Board finds the persistence and scale of
the discount that the Company's shares have traded to their underlying NAV in
recent years to be unsatisfactory.
The Board's premise is that whilst there are significant benefits to a closed
ended vehicle, the fact that we are not required to return capital to
shareholders does not mean that we should not do so, provided that it does not
compromise the ability of the Company to meet its objectives.
In June 2024, we announced a series of measures with the intention of
improving liquidity and returns for holders of TEMIT's shares. In summary,
these were commitments to:
• At least maintain the then-current level of annual dividend of 5.00
pence per share;
• Repurchase up to £200 million of shares over the next 12 to 24 months
(from June 2024);
• A conditional tender offer, under which TEMIT will tender for up to
25% of its shares if it underperforms its benchmark index over five years to
March 2029; and
• A phased reduction in AIFM fees.
The Board does not believe that these share buybacks alone will eliminate the
discount, but they will enhance liquidity and earnings to the benefit of all
shareholders. For the discount to narrow, we believe that there are three
important factors: renewed investor enthusiasm for emerging market equities; a
company structure with investment performance that makes it attractive
relative to other investment vehicles; and an enhanced profile through
marketing that increases awareness amongst new investors.
In the Annual Report for the year to 31 March 2025, which was released in June
of this year, we announced that TEMIT intends to purchase a further
£100-£200 million of shares over the next 12 to 24 months (that is, from
June 2025), subject of course to market conditions. Over the six months under
review, 53.6 million shares were bought back at a cost of £101.2 million and
an average discount of 11.0% which resulted in an accretion of 0.6% to the NAV
per share for continuing shareholders.
We reported in the most recent Annual Report that the discount had closed from
15.4% at the end of financial year 2024 to 12.4% at the end of March 2025. I
am pleased to report that at the end of September 2025 the discount had closed
further and stood at 8.8%.
TEMIT has for many years committed a sizeable budget to marketing the
Company's shares, which is matched by a contribution from Franklin Templeton.
We were pleased to be awarded "Best Marketing Campaign" by the Association of
Investment Companies this year, with the citation: "The judges were impressed
with the winning entry's imaginative and meaningful multi-channel campaign.
The scientific approach and measurable results showed the effectiveness of the
campaign and the impact on shareholders."
The Board has been pleased to note that there has been something of a shift in
the market in recent weeks, with more buyers apparent. I would, of course
caution that demand for shares can be transient but it is encouraging to see
the return of a more favourable balance between buyers and sellers.
Revenue and dividends
Revenue earnings for the six months under review were 3.33 pence per share.
The majority of TEMIT's revenues are usually earned during the first six
months of its financial year and the Board has resolved to pay an unchanged
interim dividend of 2.00 pence per share. It is our intention at least to
maintain the total dividend each year and, while it is too early to predict
earnings for the second half of the year, the final dividend will be at least
3.25 pence per share.
Gearing
TEMIT has a £122 million multi-currency revolving credit facility with The
Bank of Nova Scotia, London branch. The loan facility is available to 30
January 2026 and provides flexible debt which can be drawn in sterling, US
dollars and offshore renminbi (Chinese Yuan, CNH). As at the end of September
2025, drawings were £40 million and CNH 300 million, equivalent to £31
million, both loans maturing at end of October 2025 and subsequently rolled
over to mature on 30 January 2026.
In mid-September 2025, the Board announced that it had authorised the
Investment Managers to invest in equity options and equity Contracts for
Difference. Whilst no such investments have yet been made, in due course they
will enable more flexibility and potentially lower costs in managing the
portfolio's geared exposure to equities. To accommodate this, minor changes
were made to the Company's investment policy which did not require approval by
shareholders. The revised investment policy can be found on TEMIT's website at
www.temit.co.uk/resources/literature.
Annual General Meeting ('AGM')
The resolutions at the AGM held on 10 July 2025 were each passed by a large
majority. The Board would like to thank shareholders for their continuing
support. We were pleased to welcome shareholders to the meeting in person and
I would like to reiterate that I am happy to hear from shareholders at any
time.
Outlook
The Investment Managers refer to there having been a period of 'uncertainty'
in emerging markets over the last six months. It is uncertainty for which
shareholders have been well rewarded, with an increase in the share price of
around 30%. While performance is unlikely to match this in the next six
months, longer term the Board is optimistic about emerging markets.
Irrespective of whether you believe it is justified, the imposition of tariffs
by the United States is intended as a move to protect the US economy from the
effects of a rebalancing of power in the world economy. For many years
emerging market economies have been growing at a faster rate than developed
economies and the International Monetary Fund ('IMF') now estimates that on a
purchasing power parity basis ('PPP') emerging and developing economies
represent over 60% of the global economy. They are estimated by the IMF to
continue to grow faster than advanced economies in 2025.
Despite this, valuation multiples of listed companies in emerging markets are
significantly lower than in developed markets. As at 30 September 2025, the
aggregate price to earnings ratio of the MSCI World Index (which measures
developed markets) was 24.4x, whilst that of the MSCI Emerging Markets Index
was 16.4x((a)(b)). In part this reflects the benefits of globalism enjoyed by
major developed markets companies - emerging market growth has also fuelled
the growth of multi-nationals based in North America and Europe. By contrast,
in the past it has sometimes been difficult to secure investment exposure to
the most interesting growth segments in emerging markets.
(a) See Glossary of Terms and Alternative Performance Measures in the full
Half Yearly Report.
(b) Source: MSCI
Emerging markets are arguably under-owned by western investors. Capitalisation
weighted indices, which particularly drive passive investment, have low
weightings for emerging markets. For example, at 31 October 2025 in the MSCI
All Country World Index Nvidia was 5.4%, while the country weighting for China
as a whole was only 3.2%. At the same date, US companies were 64.7% of that
index despite the US on a PPP basis (as assessed by the IMF) being only 14.7%
of the global economy. By contrast China was estimated to be 19.6% of the
global economy on the same basis.
There is no question that geopolitical uncertainty will cause considerable
volatility, possibly for some time and experience shows that investment in
emerging markets can be subject to unexpected shocks and to prolonged periods
in the doldrums. However, for the prudent investor the prize on offer in the
long term from investment in emerging markets is exposure to lower valued
companies based in higher growth economies which are potentially under-owned
by international investors seeking exposure to global growth. As I have said
previously, the imposition of punitive tariffs on China and other emerging
markets is a sign of the economic strength, not the weakness, of these high
growth countries. Having continued investment exposure to them may well turn
out to be even more important than before.
Angus Macpherson
Chairman
8 December 2025
Interim management report
Principal risks
The Company invests predominantly in the stock markets of emerging markets.
The principal categories of risks facing the Company, determined by the Board
and described in detail in the Strategic Report within the Annual Report and
Accounts, are:
• Market, geopolitical and investment;
• Technology;
• Concentration;
• Key personnel;
• Foreign currency;
• Discount;
• Regulatory;
• Sustainability and climate change; and
• Operational and custody.
The Board has provided the Investment Managers with guidelines and limits for
the management of principal risks and receives regular reports. The Board and
Investment Managers remain alert to macroeconomic headwinds and geopolitical
tensions including those between the United States and China (notably over the
Taiwan Strait), the ongoing Israel-Hamas conflict, and the continuing
ramifications of the Russian invasion of Ukraine, together with any sanctions
and market-access developments that could affect portfolio companies or
investability. There have been no further changes to the principal and
emerging risks reported in the Annual Report and, in the Board's view, these
risks are equally applicable to the remaining six months of the financial year
as they were to the six months under review.
Related party transactions
There were no transactions with related parties during the period other than
the fees paid to the Directors and the AIFM.
Going concern
The Company's assets consist primarily of equity shares in companies listed on
recognised stock exchanges and in most circumstances are realisable within a
short timescale. Having made suitable enquiries, including consideration of
the Company's objective, the nature of the portfolio, current liabilities
including those relating to the £122 million multi-currency revolving credit
facility which matures 30 January 2026, expenditure forecasts, the compliance
with loan covenants, the principal and emerging risks and uncertainties
described within the Annual Report, the Directors are satisfied that the
Company has adequate resources to continue to operate as a going concern for
the period to 31 March 2027, which is at least 12 months from the date of
approval of these Financial Statements, and are satisfied that the going
concern basis is appropriate in preparing the Financial Statements.
Statement of Directors' Responsibilities
The Disclosure Guidance and Transparency Rules of the UK Listing Authority
require the Directors to confirm their responsibilities in relation to the
preparation and publication of the Interim Management Report and Financial
Statements.
Each of the Directors, who are listed in the full Half Yearly Report, confirms
that to the best of their knowledge:
• The condensed set of Financial Statements, for the period ended 30
September 2025, have been prepared in accordance with the UK adopted
International Accounting Standard (IAS) 34 'Interim Financial Reporting'; and
• The Half Yearly Report includes a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and a fair
review of the information required by:
(i) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of Financial
Statements, and a description of the principal risks and uncertainties for the
remaining six months of the year; and
(ii) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period, and any changes in
the related party transactions described in the last Annual Report that could
do so.
The Half Yearly Report was approved by the Board on 8 December 2025 and the
above Statement of Directors' Responsibilities was signed on its behalf by
Angus Macpherson
Chairman
8 December 2025
Investment managers' report
Outlook for emerging markets
We consider the past six months to have had some volatility as emerging
markets ('EMs') equities see-sawed in accordance with US tariffs and
geopolitical conflicts. As we head into the final quarter of 2025, we believe
that some uncertainties have cleared up.
In general, the outlook for EMs has stabilised amid US dollar weakness and a
clearer global trade landscape. While there have been lots of changes to
initial tariff announcements, we have seen countries adapt swiftly, and we
believe that they will continue to do so. In general, EMs have taken a more
conciliatory approach, seeking trade diversification while limiting the
fallout from tariffs. However, this belies some outliers, notably China, India
and Brazil.
At the time of writing, the United States and China have both reached a trade
deal. The US' heightened reciprocal tariffs on Chinese imports have now been
suspended for a year, with the current 10% reciprocal tariff remaining in
effect during this period. This comes shortly after the United States had
threatened to impose an additional 100% tariff on China, after China tightened
controls on its rare earth exports. Earlier, investors had believed that the
tariff issue had more or less settled. We expect to see more tariff-related
headlines, resulting in volatility in share prices as this topic is broached
repeatedly. For Brazil and India, we note that these economies are not too
dependent on exports, making them somewhat more resilient to tariff shocks.
Notwithstanding the above, there are broader considerations for our optimism
in EM equities.
It is undeniable that Artificial Intelligence ('AI') is gaining ground. AI
continues to see strong growth, with companies across various sectors
utilising AI to drive efficiencies. Whilst we are optimistic about the growth
potential that AI brings, we are mindful of the growth that has been factored
in by some share prices. In particular, the returns on AI investments have yet
to be seen. AI benefits TEMIT's portfolio holdings in South Korea and Taiwan,
which consist of companies lodged in the supply chain. These include companies
in semiconductor chips, electronic manufacturing services, server cooling
solutions.
India remains structurally strong; its economy is characterised by its large
domestic market and limited dependence on trade exports. The Indian government
has made reforms; most notably and recently introducing a generous cut and
simplification of the goods and services tax structure. Valuations have
corrected in the last six months and, in line with our investment approach, we
have added selectively to our India exposure.
In a twist of fate, China has witnessed a recovery in investor sentiment, and
stocks have seen a rerating. While this was partially driven by an improved
tone in trade negotiations between the United States and China (albeit
momentarily), domestic policy support and a return of confidence in China's
ability to innovate spurred investor confidence.
We believe that interest rates in Brazil have peaked or are close to peaking.
We expect Brazil eventually to reduce interest rates, which would bolster
domestic demand and infuse local equities with positive sentiment. In the
Middle East, slower global growth as a result of tariffs and increased oil
output from OPEC+ have had an impact on energy prices. This has guided our
exposure to the region. We remain underweight in the Middle East, due to its
reliance on oil prices for economic growth.
We continue to remain upbeat about EM economies. Despite the current
environment of slowing growth and geopolitical issues globally, we have
confidence in both the EM asset class and our strategies. We continue to seek
high-quality business with solid balance sheets, competitive advantages and
attractive valuations.
Review of performance((a))
EMs advanced over the six months under review. Beneath this positive
performance were tempestuous geopolitical relationships emanating from
sweeping trade tariffs and regional conflicts, which resulted in notable
volatility in financial markets. The performance of TEMIT surpassed the
benchmark, and we believe that our investment approach served us well in
achieving this outcome. Our investment philosophy is anchored in a bottom-up
process to find companies that our analysis indicates have sustainable
earnings power and whose shares trade at a discount relative to their
intrinsic worth. The MSCI Emerging Markets (Net Dividends) Index returned
18.8% in the six-month period under review, while TEMIT delivered a net asset
value total return of 25.3% (all performance figures are net total return in
sterling terms)((b)). Full details of TEMIT's performance can be found in the
full Half Yearly Report.
(a) All benchmark performance as per the MSCI Emerging Markets (Net
Dividends) Index.
(b) See Glossary of Terms and Alternative Performance Measures in the full
Half Yearly Report.
Several macroeconomic themes were important during the period:
• The headlines in the past six months of 2025 have been all about US
tariffs. The negotiation process between the United States and other countries
saw several unexpected turns. The period kicked off with US President Donald
Trump's "Liberation Day" announcement, in which he declared sweeping new
tariffs on the goods of more than 180 countries and territories. There were
several policy U-turns subsequently, and these eventually culminated in new
trade deals between the United States and other countries. Where most
countries secured lower tariff rates as they embarked on negotiations with the
United States, India and Brazil saw a sudden increase in US levies. US tariffs
on India doubled to 50%. The trade conflict between China and the United
States worsened, with both countries placing tariffs on each other's imports.
Conflicting statements regarding US-China negotiations also highlighted
underlying tensions. Policy tensions between the United States and China
thawed at the end of the six-month period, where reciprocal tariffs were
delayed to November 2026. The US president's trip to Asia in late October
showed a hint of keenness for bilateral diplomacy, where trade deals were also
formed with Malaysia, South Korea and Thailand, among others. While Latin
America had previously been relatively insulated from US tariffs compared to
other regions, a few countries in the region have since faced higher adjusted
US tariffs on their imports. US tariffs on selected Brazilian goods now stand
at 50%-a large jump from the 10% set in April-and certain Mexican imports
which are not compliant with the United States-Mexico-Canada Agreement
('USMCA') are now subject to a 25% US tariff rate. The US president also met
Brazil's president in Asia, where, although trade negotiations stalled, there
was some alleviation of concerns that negotiations would continue. The
uncertainty and frequency of policy changes have led to significant market
volatility. The United States' approach towards the rest of the world and
policy uncertainty has also put in question US exceptionalism, which has had
some impact on flows and the strength of the US dollar.
• Despite the looming threat of tariffs, semiconductor companies lodged
in the AI supply chain kept up with positive outlooks. While alluding to the
uncertainties from tariffs, several Taiwan-based semiconductor and related
firms expressed confidence in the growth trajectory of AI, leading to an
improved business outlook. AI continues to see rapid progress; multiple new
models have been released in 2025 alone. Corporations across sectors have
started to use AI models in some form, although these are mainly still in
their initial stages. Investments in AI and related developments have been key
drivers for markets.
• Major geopolitical issues-including Russia-Ukraine, Middle East and
US-China relations-have led to a continuation in market volatility. This has
also affected commodity prices.
The reasons behind each country's equity market performance are detailed below
for TEMIT's largest country exposures.
China/Hong Kong
Portfolio weighting 27.9%((a)) Benchmark weighting
31.2%((a))
TEMIT's largest market exposure, although the portfolio remained underweight
relative to the benchmark. Chinese equities rose by nearly 18% in sterling
terms over the six-month period. Outperformance was mainly driven by the
notable easing of trade tensions with the United States after the initial
"Liberation Day" shock, optimism in AI-related stocks and a drive to relieve
manufacturing overcapacity in several industries. Sector-wise, the share
prices of infrastructure and power companies benefitted from China's launch of
the construction of a US$167bn hydropower project in Tibet. Chinese
semiconductor firms benefitted from the government's intent to strengthen its
domestic semiconductor industry.
Our approach towards Chinese equities continues to be selective. While policy
support has resulted in a return of investor interest, we are sceptical of the
benefits of these policies in the longer term. Reviewing the macroeconomic
background, we have not yet observed any meaningful change in demand; and the
declining and ageing population remains a key structural challenge. Our
largest exposure in Chinese equities remains in internet platforms.
Notwithstanding their growth potential from AI developments, Chinese internet
companies give us an additional degree of comfort through their cash flows and
shareholder returns. During the six-month period, we have also added to
leading Chinese industrial companies which, in addition to steady domestic
demand, are expected to benefit from rising export demand.
Taiwan
Portfolio weighting 20.6%((a)) Benchmark weighting
19.4%((a))
TEMIT's second-largest market exposure, where the portfolio was slightly
overweight versus the benchmark. The Taiwanese equity market performed well
and ended the six-month period with a gain of over 38% in sterling terms. The
US tariff reprieve on semiconductors, together with the strong momentum of AI,
infused optimism into the technology-reliant Taiwanese equity market. The US
President's trip to Asia in late October reinforced the status quo. Despite
the uncertainty of US tariffs on the semiconductor sector, the country's most
valuable company, Taiwan Semiconductor Manufacturing Company ('TSMC'),
remained upbeat on its outlook.
The portfolio's exposure to the country is concentrated in the island's
semiconductor and the broader electronics industries which should be key
beneficiaries of growth in AI investments. TEMIT's largest portfolio holding
is in TSMC, a global leader in semiconductor foundry. TSMC, despite its
dominance in the semiconductor foundry, is not immune to trade uncertainties.
The company announced plans to increase its investment in manufacturing in the
US amid tariff concerns.
South Korea
Portfolio weighting 18.4%((a)) Benchmark weighting
11.0%((a))
TEMIT's third-largest market exposure, where the portfolio was overweight
versus the benchmark. South Korean equities surged by over 43% in sterling
terms during the reporting period. South Korean equities were supported by the
election of a President who promised market reforms, providing a potential for
extended equity performance. The South Korean government also unveiled a tax
reform plan to restore fiscal soundness. Like Taiwan, the South Korean equity
market received a boost from the tariff relief on semiconductors and the
strong momentum in AI.
Our overweight position in South Korea includes companies that are positioned
to capture longer-term structural growth drivers in the form of semiconductors
and AI (Samsung Electronics and SK Hynix), the green transition (Samsung SDI
and LG Corp) and dominant internet search platform integrating e-commerce,
payments and digital content (NAVER).
India
Portfolio weighting 10.5%((a)(b)) Benchmark weighting
15.2%((a))
TEMIT's fourth-largest market exposure. India's equity market experienced a
change of fortunes rapidly, in a relatively short period. The United States
unexpectedly doubled its levies on Indian goods, and implemented a large fee
hike on H-1B, or non-immigrant visas in the United States. This impacted
information technology stocks in the country. While the impact is not expected
to be material, this further soured sentiment towards Indian information
technology companies, which were already under pressure from declining growth
in global information technology spending. Quarterly earnings were mixed,
which influenced the slide of its equity market. However, the macroeconomic
backdrop improved. Inflation eased and, for two consecutive quarters, the
country saw better-than-expected gross domestic product growth. The
government's overhaul of the goods and services tax structure caused a
broad-based rally and helped to overcome some weakness. For the period, Indian
equities fell by more than 3%.
While valuations are still a concern for us, recalling that our investment
approach hinges on finding companies whose shares, according to our analysis,
trade at a discount relative to their intrinsic worth, we continue to see
attractive opportunities in India. As of end September 2025, more than half of
TEMIT's India exposure is in private-sector banks. These currently offer
attractive valuations compared to other sectors, with strong retail franchises
and growing deposit share, making them well-positioned to gain market share.
While the country is one of TEMIT's largest absolute weighting allocations,
the portfolio is still underweight relative to the benchmark.
Brazil
Portfolio weighting 8.0%((a)) Benchmark weighting 4.3%((a))
TEMIT's fifth-largest market exposure, where the portfolio was overweight
compared to the benchmark. We are positioned in some of the country's leading
banks such as Itaú Unibanco and Banco Bradesco. These trade at compelling
valuations. Equities in Brazil finished the reporting period with a gain of
nearly 18%, despite trading against tariff headwinds. US tariffs on selected
Brazilian goods jumped from 10% in April to 50% currently. While this took us
by surprise, we note that the Brazilian economy is not excessively dependent
on exports. Brazil's central bank raised its key interest rate over the period
but opted to keep interest rates unchanged at its more recent meetings in July
and September 2025. The benchmark interest rate now hovers at a near
two-decade high of 15%. We expect Brazil eventually to follow the global
interest rate trajectory, which should be positive for the country's equity
market.
(a) As at 30 September 2025.
(b) TEMIT has indirect exposure to India through its holdings in Genpact
and Cognizant Technology Solutions. If indirect exposure was included, TEMIT's
total exposure to India would be 12.9%.
Other emerging markets
In the emerging Europe, Middle East and Africa ('EMEA') region, geopolitics
was factored into the returns of the regional equity market, with the
continuation of conflict in Gaza, Israel and Iran raising the region's
political risk premium. A weaker oil price also capped gains. However, global
events, particularly US economic policy decisions, continued to play a crucial
role in the region's stock market performance. The eventual reduction of
interest rates in the United States helped the region to overcome equity
weakness from geopolitical concerns to advance as a whole.
Mexico's central bank reduced interest rates for the 10(th) consecutive
meeting to 7.5%. This is the lowest level since June 2022. This decision was
made amid concerns about global trade tensions and sluggish economic growth.
Investment strategy, portfolio changes and performance attribution
The following sections highlight the drivers of TEMIT's performance over the
six-month period. We continue to emphasise our investment process that selects
companies based on their individual attributes and ability to generate
attractive risk-adjusted returns.
Our investment philosophy is centred on seeking companies with sustainable
earnings power trading at a discount to their intrinsic worth and to other
investment opportunities in the market. We see high levels of leverage as a
risk, avoiding companies with weak balance sheets.
We utilise our research-based active management approach to identify companies
with high standards of corporate governance and to understand the local
factors that influence consumer trends and habits. We regularly engage with
senior management of existing and potential investments.
We conduct detailed analysis of potential returns versus risks over a time
horizon of five years or more.
Our well-resourced on the ground analysts are a key competitive advantage.
Their local knowledge and language skills are instrumental in identifying
emerging trends in markets including China, India, and Brazil. This local
presence gives us greater insight into business models, supply chains, and
competitive dynamics.
Input from our analysts is an integral part of the investment process. Their
conversations with regulators, views on industry trends and insights on
management capabilities are incorporated into our estimates of a company's
earnings power. They also enable us to separate short-term noise from
long-term trends.
In the portfolio, we remain positioned in long-term themes including
consumption premiumisation, digitalisation, health care and technology. We
remain focused on seeking and investing in companies which reflect our
investment philosophy.
Performance Attribution Analysis %
Six months to 30 September
2025 2024 2023 2022 2021
Net Asset Value Total Return((a)) 25.3 7.2 (0.3) (8.3) (7.5)
Expenses Incurred((b)) 0.5 0.5 0.5 0.5 0.5
Gross Total Return((a)) 25.8 7.7 0.2 (7.8) (7.0)
Benchmark Total Return((a)) 18.8 7.5 (0.5) (7.4) (1.0)
Excess Return((a)) 7.0 0.2 0.7 (0.4) (6.0)
Stock Selection 3.5 (0.2) 0.1 2.9 (4.3)
Sector Allocation 0.8 0.5 0.4 (2.2) (1.4)
Currency 1.6 0.0 (0.1) (1.1) (0.5)
Share Buyback Impact 0.6 0.6 0.3 0.1 0.0
Residual Return((a)) 0.5 (0.7) 0.0 (0.1) 0.2
Total Contribution 7.0 0.2 0.7 (0.4) (6.0)
Source: FactSet and Franklin Templeton.
(a) A glossary of terms and alternative performance measures is included
in the full Half Yearly Report.
(b) Represents expenses incurred. Details of the annualised ongoing
charges ratio are included in the glossary of terms and alternative
performance measures in the full Half Yearly Report.
This table sets out the results of a detailed analysis of the returns produced
by the TEMIT portfolio, how this compares with the theoretical returns
available from the benchmark index and factors affecting the comparison with
the returns of the benchmark index.
Top 10 Contributors and Detractors to Relative Performance by Security
(%)((a))
Top Contributors Contribution to Top Detractors Contribution to
portfolio relative portfolio relative to
to MSCI Emerging MSCI Emerging
Markets Index Markets Index
Overweight SK Hynix 1.7 ICICI Bank (1.0)
(TEMIT holds more than the index weight)
Prosus 1.4 Genpact (0.7)
Samsung Life Insurance 0.9 Cognizant Technology Solutions (0.6)
TSMC 0.9 Budweiser Brewing Company APAC (0.4)
Grupo Financiero Banorte 0.6 Petrobras (0.4)
Hon Hai Precision Industry 0.5 China Merchants Bank (0.4)
NAVER 0.4 Alibaba (0.4)
Banco Bradesco 0.4 MediaTek (0.4)
Weichai Power (0.3)
Underweight Meituan 0.7 Delta Electronics (0.4)
(TEMIT has no holding or a holding smaller than the index weight)
BYD 0.3
(a) For the period 31 March 2025 to 30 September 2025.
SK Hynix is a South Korean semiconductor company and a maker of memory chips
which are used globally across a wide range of solutions. The company's share
price ascent was mainly driven by an improvement in sentiment around US
tariffs and continued optimism on growth in AI-related demand. The company's
completion of the next generation of high-bandwidth memory ('HBM'), the HBM4,
which is crucial for AI work, sent its share price to a record high. Investor
optimism in South Korean equities from the conclusion of South Korea's
presidential election-which lent hope of improved corporate governance and
capital market reforms also provided a positive backdrop for SK Hynix's stock
price as well.
An off benchmark holding in Prosus served the portfolio well. Prosus is a
leading global investment company with a 22.99%((a)) shareholding in Tencent
(also held directly by TEMIT), a Chinese technology company. The company also
has investments in several food delivery platforms in different parts of the
world. Its share price had two drivers for the six-month period under review.
Firstly, it tracked Tencent's stock price, on account of the latter's strong
second-quarter results and AI development. Secondly, Prosus' own
better-than-expected results for its 2025 financial year and the company's
positive outlook for the 2026 financial year also aided Prosus' share price.
(a) As at 25 July 2025.
Samsung Life Insurance is the leading life insurance company in South Korea
and owns around 8.5% in Samsung Electronics. Better-than-expected results for
the first and second quarter 2025 earnings results, expectations that Samsung
Fire & Marine Insurance (not a portfolio holding) could become an
associate of the company and potentially boost reported earnings, and the
upward performance of the South Korean equity market following the country's
elections were among the factors conducive for its share price.
ICICI Bank is a leading India-based private sector bank. Its share price
inched downwards alongside the broader Indian equity market. However, this hid
the bank's fourth-quarter fiscal-year 2025 results, where an annual net profit
increase was accompanied by lower non-performing assets.
Genpact and Cognizant Technology Solutions are both US-listed technology
services companies that derive much of their earnings from services provided
from India. A pessimistic backdrop affected their share prices-post the US'
tariff announcement, expectations of a slowdown in the United States and a
corresponding weaker demand for information technology services had led to
some pessimism in investor sentiment. Information technology services
companies in general are seeing a slowdown in the execution of discretionary
projects, leading to weaker earnings growth for the industry. An increase in
fees for new applications of the United States H-1B visa fees capped off the
six-month period. In our view, the overall impact of this visa fee hike for
these two companies- and the industry-seems quite manageable. As the next
batch of visa approvals will be announced in September 2026, these companies
have time to calibrate the mix of their onshore-offshore revenue streams,
consider nearshoring options, and/or negotiations with clients.
Contributors and Detractors to Relative Performance by Sector (%)((b))
Top Contributors Contribution to Top Detractors Contribution to
portfolio relative
portfolio relative to
to MSCI Emerging
MSCI Emerging
Markets Index
Markets Index
Overweight Information Technology 2.7 Industrials (1.6)
(TEMIT holds more than the index weight)
Consumer Discretionary 2.7
Financials 1.4
Health Care 0.3
Underweight Communication Services 0.9 Materials (0.8)
(TEMIT has no holding or a holding smaller than the index weight)
Utilities 0.3
Real Estate 0.1
Energy 0.1
Consumer Staples 0.1
(b) For the period 31 March 2025 to 30 September 2025.
Stock selection in the information technology, consumer discretionary and
financials sectors added to TEMIT's performance relative to the benchmark
index during the six-month period under review. An overweight allocation in
the information technology sector provided additional support. The strength
from the information technology sector came from SK Hynix, TSMC, Hon Hai
Precision Industry and Zhen Ding Technology, all of which were in the top 10
relative contributors of the portfolio for assets held. Hon Hai Precision
Industry is a Taiwan-based provider of electronic manufacturing services for
consumer electronics, cloud and networking products, computing products and
components. Zhen Ding Technology is the largest printed circuit board ('PCB')
manufacturer in the world. Prosus and Samsung Life Insurance (both described
above) are examples of companies that aided relative returns for the consumer
discretionary and financials sectors respectively.
In contrast, stock selection in the industrials and materials sectors caused
relative detraction, alongside an underweight allocation in the latter. The
weakness in the industrials sector is partially due to Genpact, with the
portfolio's holding in Techtronic Industries also causing some pressure.
Techtronic Industries is a leading power tools and outdoor power equipment
manufacturer based in Hong Kong. Its share price fell as the US imposed high
tariffs on Asian countries; Techtronic Industries has significant exposure to
the US market and has manufacturing capabilities in China and Vietnam. The
company has been diversifying its manufacturing footprint and is working on
further shifting out production from China for its sales in the United States.
We believe that its diversified production footprint relative to the industry,
production efficiency and market positioning will help Techtronic Industries
to mitigate tariff risks.
Contributors and Detractors to Relative Performance by Country (%)((a))
Top Contributors Contribution to Top Detractors Contribution to
portfolio relative portfolio relative to
to MSCI Emerging MSCI Emerging
Markets Index Markets Index
Overweight South Korea 2.2 United States (1.3)
(TEMIT holds more than the index weight)
Taiwan 1.3 Thailand (0.4)
Hungary (0.1)
Underweight India 2.0 South Africa (0.7)
(TEMIT has no holding or a holding smaller than the index weight)
China/Hong Kong 1.5 Greece (0.1)
Saudi Arabia 0.9
(a) For the period 31 March 2025 to 30 September 2025.
By markets, stock selection and allocations in South Korea (overweight) and
India (underweight) added onto a positive contribution from stock selection in
China/Hong Kong. Once again, SK Hynix and Samsung Life Insurance aided
relative returns in South Korea. In China, Prosus was a leading contributor.
Conversely, an off-benchmark allocation in the United States was a key source
of detraction. The portfolio's exposure to the United States is through
Genpact and Cognizant Technology Solutions, both of which have been elaborated
earlier. Other sources of relative detraction were from stock selection in
South Africa and Thailand.
South Africa's weakness came from Discovery, South Africa's biggest health
insurance provider, which also offers banking and investment services.
Additionally, the company has international insurance operations in the United
Kingdom and partners with other insurance companies through its shared-value
insurance model called Vitality. It first traded downwards alongside South
African equities as a result of negative sentiment emanating from US tariffs.
Discovery's full-year results for the year ended June 2025 were strong but its
share price reacted negatively to the weak new business growth for its South
Africa life insurance business.
Top 10 Holdings
As at 30 September 2025
Portfolio Benchmark Over/(Under)
% Weight %
Holding £'000 %
TSMC 335,325 14.2 10.9 3.3
The world's largest semiconductor foundry company, which is based in Taiwan.
The company is a key beneficiary of the increase in computing demand from
mobile devices, high performance computing applications such as AI, data
servers and networking among others. It remains the leading manufacturer of
the most advanced logic chips required for AI applications. The company has
maintained a strong lead in technological advances which should secure its
future market position and earnings growth.
Prosus 137,441 5.8 - 5.8
A leading global investment company and the largest shareholder of Tencent, a
Chinese technology company. We see Prosus as a good proxy for Tencent exposure
and its shares are available at a discount to its net asset value ('NAV').
Besides Tencent, Prosus has a diversified portfolio of internet assets in
areas such as food delivery, payments and e-commerce. Management's efforts to
narrow the share price discount to NAV via share buybacks should also support
returns.
SK Hynix 122,975 5.2 1.4 3.8
A South Korean semiconductor company and a maker of memory chips used globally
across a wide range of solutions. The company is the industry leader in HBM
chips, which are expected to see strong demand growth for AI applications. We
continue to maintain our conviction, largely due to its leadership position in
the latest generation of the HBM market.
Samsung Electronics 93,213 4.0 3.3 0.7
Samsung Electronics is one of the largest memory semiconductor manufacturers
in the world. It also manufactures a wide range of consumer and industrial
electronics and equipment. Loss of technology leadership in advanced memory
products as well as conflicting business interests for its various business
segments, have impacted the company's performance in recent years. The
company's share price has seen a recovery in recent months driven by some
order wins for its foundry business as well as reports that its memory
products have passed the qualification test for Nvidia (not a portfolio
holding). The company remains one of the key companies in the highly
consolidated memory market, and should benefit from the rise in demand for
memory products which has been further accentuated by growth in AI models.
Alibaba 85,670 3.6 4.0 (0.4)
The leading e-commerce company in China. Intensified competition and a weak
economy have impacted the growth of its e-commerce business, which had led to
a derating for the stock over the past few years. The company's recent success
in AI and plans for large investments in AI has sparked investor optimism and
contributed to a recovery in Alibaba's share price. However, there has been
increase in competition for the instant commerce business in recent quarters,
which should impact its earnings in the near term. Structurally the company
remains well positioned with its strong core e-commerce business, market
leadership in Chinese cloud computing and strong balance sheet.
ICICI Bank 79,564 3.4 0.8 2.6
A leading India-based private sector bank. It has a strong retail franchise
with a low-cost deposit base, high-quality retail assets and a large network.
It is well positioned to benefit from the Indian growth story. Its
subsidiaries are market leaders in their respective segments - capital
markets, asset management and insurance.
Tencent 75,426 3.2 5.6 (2.4)
The largest gaming, communication and social entertainment platform in China.
It has a major presence in online games, digital advertising, video, music and
live-streaming, fintech, and other businesses such as cloud computing. We
believe that the company should be a key beneficiary of AI across its business
segments. Tencent also has significant public and private investments in China
and globally.
Grupo Financiero Banorte 62,891 2.6 0.3 2.3
A leading financial institution in Mexico, with a strong presence in banking,
insurance, pensions and brokerage. We remain optimistic on Mexico's banking
sector growth prospects, given the large percentage of the population that
does not currently have a bank account. The bank's robust capitalisation
provides some resilience against economic volatility and supports expansion in
high-growth segments.
MediaTek 56,161 2.4 0.7 1.7
MediaTek is a Taiwan-based chip designer for smartphones and other technology
devices. These devices include televisions, wireless communications and
optical storage. MediaTek has a solid position in mobile computing chips and
we believe that it should benefit from growth in demand for chips from IoT
('Internet of Things'), automotive, industrial, and wi-fi applications. Its
partnership with Nvidia (not a portfolio holding) to provide advanced
automotive chips integrating Nvidia's graphic processors as well as
opportunities in enterprise application specific chips should drive additional
growth.
Hon Hai Precision Industry 53,228 2.3 0.9 1.4
The company is a Taiwan-based provider of electronic manufacturing services
for consumer electronics, cloud and networking products, computing products
and components. The group has a proven execution track record in the
information and communications technology industry, with superior production
scale and a global production footprint. The company has a strong market
position in AI servers, which should be a key growth driver for the company.
Portfolio Changes by Country
Total Return in Sterling
Country 31 March 2025 Purchases £m Sales £m Market 30 September 2025 TEMIT % MSCI Emerging
Market Value £m Movement £m Market Value £m Markets Index %
China/Hong Kong 549 63 (68) 114 658 23.7 17.9
Taiwan 335 18 (19) 151 485 46.1 38.5
South Korea 332 31 (74) 143 432 47.0 43.5
India 293 29 (82) 6 246 1.0 (3.2)
Brazil 172 3 (9) 23 189 17.8 17.6
Mexico 43 4 (1) 19 65 48.6 30.7
United States 72 - (3) (13) 56 (17.5) -
Thailand 64 2 (9) (2) 55 3.7 13.1
South Africa 46 1 - 2 49 4.6 31.5
United Arab Emirates 15 20 (6) 1 30 (0.2) 12.5
Others 82 9 (7) 6 90 - -
Total Investments 2,003 180 (278) 450 2,355
Portfolio by Fair Value
Holding Sector Fair Value £'000 % of Portfolio
Brazil
Itaú Unibanco((a)(b)) Financials 48,308 2.0
Petrobras((a)) Energy 40,526 1.7
Banco Bradesco((a)(b)) Financials 40,089 1.7
Vale Materials 21,654 0.9
TOTVS Information Technology 16,511 0.7
Hypera Health Care 10,729 0.5
XP Financials 9,369 0.4
Oncoclinicas do Brasil Servicos Medicos Health Care 2,232 0.1
189,418 8.0
Chile
Banco Santander Chile((b)) Financials 22,678 1.0
22,678 1.0
China/Hong Kong
Prosus Consumer Discretionary 137,441 5.8
Alibaba Consumer Discretionary 85,670 3.6
Tencent Communication Services 75,426 3.2
China Merchants Bank Financials 41,632 1.8
Techtronic Industries Industrials 40,479 1.7
Baidu Communication Services 31,564 1.4
NARI Technology Industrials 29,203 1.2
WuXi Biologics Health Care 28,461 1.2
NetEase Communication Services 26,320 1.1
Budweiser Brewing Company APAC Consumer Staples 24,914 1.1
Ping An Insurance Financials 24,873 1.1
BYD Consumer Discretionary 23,437 1.0
Kuaishou Technology Communication Services 16,232 0.7
Weichai Power Industrials 14,931 0.6
Haier Smart Home Consumer Discretionary 14,127 0.6
Uni-President China Consumer Staples 12,763 0.5
COSCO SHIPPING Ports Industrials 7,491 0.3
Daqo New Energy((b)) Information Technology 7,328 0.3
JD.com Consumer Discretionary 6,812 0.3
Greentown Service Group Real Estate 3,789 0.2
Beijing Oriental Yuhong Waterproof Technology Materials 3,340 0.1
Weifu High-Technology Consumer Discretionary 2,191 0.1
658,424 27.9
Hungary
Gedeon Richter Health Care 25,183 1.0
Wizz Air Holdings Industrials 1,592 0.1
26,775 1.1
India
ICICI Bank Financials 79,564 3.4
HDFC Bank Financials 48,836 2.1
Eternal((c)) Consumer Discretionary 20,755 0.9
ReNew Energy Global Utilities 19,222 0.8
Infosys Information Technology 15,479 0.7
Bajaj Holdings & Investment Financials 13,200 0.6
Federal Bank Financials 12,709 0.4
ACC Materials 9,093 0.4
Niva Bupa Health Insurance Financials 8,295 0.4
Ather Energy Consumer Discretionary 7,008 0.3
Brigade Enterprises Real Estate 6,936 0.3
Asahi India Glass Consumer Discretionary 3,976 0.2
Hemisphere Properties Real Estate 966 0.0
HDB Financial Services Financials 347 0.0
246,386 10.5
Indonesia
Astra International Industrials 13,105 0.6
13,105 0.6
Mexico
Grupo Financiero Banorte Financials 62,891 2.6
Nemak Consumer Discretionary 1,671 0.1
64,562 2.7
Peru
Intercorp Financial Services Financials 9,317 0.4
9,317 0.4
Philippines
BDO Unibank Financials 10,193 0.4
10,193 0.4
Russia
LUKOIL((d)) Energy 0.0 0.0
Sberbank of Russia((d)) Financials 0.0 0.0
0.0 0.0
South Africa
Discovery Financials 31,264 1.4
Netcare Health Care 17,285 0.7
48,549 2.1
South Korea
SK Hynix Information Technology 122,975 5.2
Samsung Electronics Information Technology 93,213 4.0
NAVER Communication Services 42,686 1.8
Hyundai Motor Consumer Discretionary 36,819 1.6
LG Corp Industrials 30,971 1.4
Delivery Hero((e)) Consumer Discretionary 26,406 1.1
Doosan Bobcat Industrials 21,194 0.9
Samsung Life Insurance Financials 17,633 0.7
Samsung SDI Information Technology 12,889 0.5
Fila Consumer Discretionary 10,082 0.5
Hanmi Pharm Health Care 9,160 0.4
LigaChem Biosciences Health Care 5,036 0.2
Hankook Tire Consumer Discretionary 2,193 0.1
KT Skylife Communication Services 1,148 0.0
432,405 18.4
Taiwan
TSMC Information Technology 335,325 14.2
MediaTek Information Technology 56,161 2.4
Hon Hai Precision Industry Information Technology 53,228 2.3
Zhen Ding Technology Information Technology 18,048 0.7
Lite-On Technology Information Technology 11,611 0.5
Yageo Information Technology 11,009 0.5
485,382 20.6
Thailand
Kasikornbank Financials 28,546 1.2
Minor International Consumer Discretionary 12,752 0.5
Thai Beverage Consumer Staples 5,977 0.3
Kiatnakin Phatra Bank Financials 4,220 0.2
Star Petroleum Refining Energy 3,553 0.1
55,048 2.3
Turkey
BIM Birlesik Magazalar Consumer Staples 7,034 0.3
7,034 0.3
United Arab Emirates
Emaar Development Real Estate 15,052 0.6
Emirates Central Cooling Systems Utilities 9,493 0.5
Spinneys Consumer Staples 5,142 0.2
29,687 1.3
United States
Genpact((f)) Industrials 29,659 1.3
Cognizant Technology Solutions((f)) Information Technology 26,651 1.1
56,310 2.4
Total Investments 2,355,273 100.0
(a) Preferred shareholders are entitled to dividends before ordinary
shareholders.
(b) US listed American Depository Receipt.
(c) 'Zomato' was renamed to 'Eternal'.
(d) This company is fair valued at zero as a result of its trading being
suspended on international stock exchanges.
(e) This company is listed in Germany. The classification of South Korea
is due to significant exposure to this market.
(f) This company, listed on a stock exchange in a developed market, has
significant exposure to operations from emerging markets.
Market Capitalisation Breakdown % Less than £1.5bn to £5bn to Greater than
£1.5bn £5bn £25bn £25bn
30 September 2025 2.7 9.7 26.4 61.2
31 March 2025 3.6 9.2 27.7 59.5
Split Between Markets %((a)) 30 September 2025 31 March 2025
Emerging markets 97.6 96.2
Developed markets((b)) 2.4 3.6
Frontier markets - 0.2
Source: FactSet Research System, Inc.
(a) Geographic split between 'Emerging markets', 'Frontier markets',
'Developed markets' are as per MSCI index classifications.
(b) Developed market exposure represented by companies listed in the
United States which have significant exposure to operations from emerging
markets.
In investment terminology, a developed market is a country that is most
developed in terms of its economy and capital markets. To be classified as a
developed market, the country must have a high average level of personal
income, but this also includes openness to foreign ownership, ease of capital
movement, and efficiency of market institutions. An emerging market is a
market that has some characteristics of a developed market but does not fully
meet its standards. This includes markets that may become developed markets in
the future or were in the past. The term 'frontier market' is used for
developing countries with smaller, riskier, or more illiquid capital markets
than 'emerging'.
Stewardship
TEMIT seeks to capture the growth potential of emerging markets companies by
employing a bottom-up security selection process with a long-term perspective.
We aim to be a responsible steward of our clients' capital-that is why we
integrate Environmental, Social and Governance ('ESG') factors into our
investment research process to understand the financial risks and
opportunities that stem from governance and sustainability issues.
Whilst governance and sustainability issues are analysed in our research, the
findings are not binding on the stock selection process. TEMIT does not pursue
any sustainable targets (for example, carbon reduction) or objectives.
We provide some examples from the last six months which illustrate our
research process.
Business Thesis and ESG Research
TEMIT's research process includes a structured analysis of governance and
sustainability issues to understand the financial risk and opportunities of
investing in a stock. A case study example considering ESG factors is BIM
Birlesik Magazalar ('BIM'), whose shares were purchased during the six months
under review.
BIM is the largest grocery retailer in Turkey, with over 13,500 stores across
the country. The company utilises a hard discounter model, similar to
Germany's Aldi. Our ESG analysis highlights material environmental, social and
governance issues to the grocery retailer, including climate, waste, health,
and supply chain management. BIM has set several sustainability commitments
and goals related to these topics.
Environmental: The company targets reducing its greenhouse gas ('GHG')
emissions intensity by 20% by 2026 vs a 2019 baseline. As of end 2024, it had
achieved a 19% reduction. It also has a target to grow its renewable energy
consumption to 25% of total by 2025, although currently the proportion stands
at just 9.4%. Beyond these targets, BIM has begun Scope 3 emissions
measurement. The company has also been increasing its installation of solar
power plants at its regional warehouses. The resulting increase in internal
power generation should bring down BIM's electricity cost base by 10 basis
points, based on our research.
Meanwhile, BIM continues to improve resource efficiencies and optimise costs
through its internal Packaging Purchasing Unit, which reduces waste volumes
and increases the use of recycled materials. In 2024, the unit reduced raw
paper use by 801 tons (98% of its 2025 target) and plastic use by 491 tons
(65% of its 2025 target). The unit also increased BIM's use of recycled raw
materials to 311 tons, reaching 65% of the 2025 target.
Social: As a grocery retailer, BIM is exposed to social issues related to
product quality and consumer preferences. BIM is focused on maintaining high
supplier quality through audits, which are critical to ensuring supplier
performance and risk mitigation. In 2024, the company conducted 950 supplier
audits, accounting for 65.5% of its private label products supply. While
revenue exposure to healthy products is an important consumer trend in the
grocery retail sector, our analysis indicates that BIM may face challenges in
capturing growth driven by healthy product demand, due to its specific
business characteristics. Nonetheless, the company continues to measure and
disclose its revenue exposure to healthy products, including categories such
as 'organic products', 'foods with reduced salt, fat and sugar', and 'more
nutritious products'.
Governance: BIM's Board is comprised of experienced executives and
non-executives. The roles of Board Chairman and CEO were previously combined,
but they were separated in 2023, enhancing Board independence. Although BIM
has an experienced Board, currently only two of the six Board members are
independent. We would like to see greater director independence going forward.
This is one of our engagement priorities, as a sufficiently independent Board
would help ensure improved oversight in the best interests of shareholders.
Overall, our ESG analysis indicates BIM has good management of environmental
and social risks, with room for improvement on board independence. These
takeaways complement our understanding of BIM's investment thesis. BIM's
market share gains and best-in-class cost discipline position the company as a
price setter, allowing it to deliver sustainable profitability at the EBITDA
(Earnings Before Interest, Taxes, Depreciation, and Amortization) level. The
company's renewables target and associated investment in solar panels should
reduce GHG emissions and improve its cost base, further boosting the EBITDA
margin.
Active ownership
Our significant presence in emerging markets allows our investment team to
pursue active ownership, which is a key element of our comprehensive
stewardship approach. Over the period under review, we engaged with select
investee companies on various governance issues, as well as executing our
proxy voting policy on behalf of our shareholders.
BDO Unibank ('BDO'): During the review period, we met with the Head of
Investor Relations at Philippine banking group, BDO, to discuss its
ESG-compliant lending practices and employee turnover ratio. Our analysis
found that, compared with regional peers, BDO lagged in applying ESG standards
to its lending activities. We encouraged the bank to consider aligning with
industry frameworks, such as the Equator Principles, which help financial
institutions manage environmental and social risks in project financing. We
also noted that BDO's employee turnover ratio of 8% was high relative to peers
and suggested further investigation into the underlying drivers. BDO explained
that the elevated turnover is concentrated in the IT department, where
spending on IT capex and system upgrades has pushed up demand for talent. Due
to talent scarcity among the younger demographic in the Philippines,
competition for IT professionals is intense, resulting in higher attrition.
BDO acknowledged our comments and agreed to raise them with management. We
believe it is now actively exploring measures to improve IT staff retention.
Delivery Hero: Delivery Hero is a global leader in online food delivery and
quick commerce, operating in approximately 70 countries across Europe, Asia,
Latin America, the Middle East, and Africa. Listed on the Frankfurt Stock
Exchange, the company generates around 80% of its Gross Merchandise Value
('GMV') from emerging markets, driven by leading regional brands such as
HungerStation, Talabat, Baedal Minjok, and Foodpanda. In one of our recent
proxy voting efforts, we voted against proposals made by the food ordering and
delivery group to decrease authorised share capital and to increase capital by
up to 10% without pre-emptive rights for existing shareholders. In our
engagement with the company to understand the rationale for these proposals,
we were informed that management believes future merger and acquisition deals
may require capital increases without subscription rights and would like to
have this flexibility. We decided to vote against the capital-related
proposals, considering concerns over Delivery Hero's previous M&A activity
and risks of high dilution. Despite being approved, the capital-related
proposals faced notable opposition, with approximately 22% of shareholders
voting against them.
We continue to use our voting power as a signal to investee company management
on important issues raised through voting ballots. We will share a more
detailed account of our stewardship practices in the next Annual Report and
dedicated Stewardship Report.
Chetan Sehgal
Lead Portfolio Manager
8 December 2025
Independent review report
to the members of Templeton Emerging Markets Investment Trust plc
Conclusion
We have been engaged by the Templeton Emerging Markets Investment Trust plc
('the Company') to review the condensed set of Financial Statements in the
Half Yearly Report for the six months ended 30 September 2025 which comprises
the Statement of Comprehensive Income, Statement of Financial Position,
Statement of Changes in Equity, Statement of Cash Flows and related notes 1-9.
We have read the other information contained in the Half Yearly Report and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of Financial
Statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of Financial Statements in the Half Yearly
Report for the six months ended 30 September 2025 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual Financial Statements of the Company are
prepared in accordance with UK adopted International Accounting Standards. The
condensed set of Financial Statements included in this Half Yearly Report has
been prepared in accordance with UK adopted International Accounting Standard
34, 'Interim Financial Reporting'.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the Directors
The Directors are responsible for preparing the Half Yearly Report in
accordance with the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
In preparing the Half Yearly Report, the Directors are responsible for
assessing the Company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the Directors either intend to liquidate the Company or
to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the Half Yearly Report, we are responsible for expressing to the
Company a conclusion on the condensed set of Financial Statements in the Half
Yearly Report. Our conclusion, including our Conclusions Relating to Going
Concern, are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the Company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) 'Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity' issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the Company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
London
8 December 2025
Financial statements
Statement of comprehensive income
For the six months to 30 September 2025
For the Six Months to For the Six Months to Year Ended
30 September 2025 (unaudited)
30 September 2024 (unaudited)
31 March 2025 (audited)
Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Net Gains/(Losses) on Investments and Foreign Exchange
Net Gains on Investments at Fair Value - 449,725 449,725 - 106,120 106,120 - 115,856 115,856
Net Losses on Foreign Exchange - (1,934) (1,934) - (286) (286) - (403) (403)
Income
Dividends 2 38,661 155 38,816 42,859 3,720 46,579 65,353 3,944 69,297
Other Income 1,368 - 1,368 3,046 - 3,046 5,038 - 5,038
40,029 447,946 487,975 45,905 109,554 155,459 70,391 119,397 189,788
Expenses
AIFM Fee((a)) (2,104) (6,312) (8,416) (2,606) (6,081) (8,687) (4,792) (12,620) (17,412)
Other Expenses (1,192) - (1,192) (981) - (981) (2,294) - (2,294)
(3,296) (6,312) (9,608) (3,587) (6,081) (9,668) (7,086) (12,620) (19,706)
Profit Before Finance Costs and Taxation 36,733 441,634 478,367 42,318 103,473 145,791 63,305 106,777 170,082
Finance Costs((a)) (439) (1,315) (1,754) (316) (733) (1,049) (700) (1,885) (2,585)
Profit Before Taxation 36,294 440,319 476,613 42,002 102,740 144,742 62,605 104,892 167,497
Tax Expense 6 (3,092) (4,073) (7,165) (2,701) (9,044) (11,745) (4,682) (9,119) (13,801)
Profit for the Period 33,202 436,246 469,448 39,301 93,696 132,997 57,923 95,773 153,696
Profit Attributable to Equity Holders of the Company 33,202 436,246 469,448 39,301 93,696 132,997 57,923 95,773 153,696
Earnings per Share 3 3.33p 43.69p 47.02p 3.60p 8.57p 12.17p 5.41p 8.95p 14.36p
(a) From 1 October 2024, 75% of the annual Alternative Investment Fund
Manager ('AIFM') fee and finance costs, except for interest and fees on
overdrafts, have been allocated to the capital account. The previous
allocation was 70%.
Under the Company's Articles of Association, the capital element of return is
not distributable. The total column of this statement represents the profit
and loss account of the Company. The accompanying notes are an integral part
of the Financial Statements.
Statement of financial position
As at 30 September 2025
Note As at 30 September 2025 As at 30 September 2024 As at 31 March 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Non-Current Assets
Investments at Fair Value Through Profit or Loss 2,355,273 2,055,139 2,002,617
Current Assets
Trade and Other Receivables 5,283 22,349 8,374
Cash and Cash Equivalents 52,265 105,830 75,549
Total Current Assets 57,548 128,179 83,923
Current Liabilities
Bank Loans (71,294) (100,000) (80,000)
Other Payables (3,603) (4,460) (4,406)
Provisions (408) - (416)
Total Current Liabilities (75,305) (104,460) (84,822)
Net Current (Liabilities)/Assets (17,757) 23,719 (899)
Non-Current Liabilities
Capital Gains Tax Provision (16,387) (18,241) (16,276)
Total Assets Less Liabilities 2,321,129 2,060,617 1,985,442
Share Capital and Reserves
Equity Share Capital 4 51,561 58,622 54,241
Capital Redemption Reserve 31,108 24,047 28,428
Capital Reserve 1,669,727 1,407,545 1,334,729
Special Distributable Reserve 433,546 433,546 433,546
Revenue Reserve 135,187 136,857 134,498
Equity Shareholders' Funds 2,321,129 2,060,617 1,985,442
Net Asset Value Pence per Share((a)) 239.0 192.8 193.7
(a) Based on shares in issue excluding shares held in treasury.
Statement of changes in equity
For the six months to 30 September 2025 (unaudited)
Note Equity Share Capital Capital Special Revenue Total
Capital Redemption Reserve Distributable Reserve £'000
£'000 Reserve £'000 Reserve £'000
£'000 £'000
Balance at 31 March 2024 60,932 21,737 1,388,186 433,546 130,462 2,034,863
Profit for the Period - - 93,696 - 39,301 132,997
Equity Dividends 5 - - - - (32,906) (32,906)
Purchase and Cancellation of Own Shares 4 (2,310) 2,310 (74,337) - - (74,337)
Balance at 30 September 2024 58,622 24,047 1,407,545 433,546 136,857 2,060,617
Profit for the Period - - 2,077 - 18,622 20,699
Equity Dividends 5 - - - - (20,981) (20,981)
Purchase and Cancellation of Own Shares 4 (2,190) 2,190 (74,893) - - (74,893)
Cancellation of Treasury Shares 4 (2,191) 2,191 - - - -
Balance at 31 March 2025 54,241 28,428 1,334,729 433,546 134,498 1,985,442
Profit for the Period - - 436,246 - 33,202 469,448
Equity Dividends 5 - - - - (32,513) (32,513)
Purchase and Cancellation of Own Shares 4 (2,680) 2,680 (101,248) - - (101,248)
Balance at 30 September 2025 51,561 31,108 1,669,727 433,546 135,187 2,321,129
Statement of cash flows
For the six months to 30 September 2025
For the Six Months to For the Six Months to For the Year to
30 September 2025 30 September 2024 31 March 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash Flows From Operating Activities
Profit Before Taxation 476,613 144,742 167,497
Adjustments to Reconcile Profit Before Taxation to Cash Used in Operations:
Bank and Deposit Interest Income Recognised (1,368) (3,023) (5,015)
Dividend Income Recognised (38,816) (46,579) (69,297)
Finance Costs 1,754 1,047 2,585
Net Gains on Investments at Fair Value (449,725) (106,120) (115,856)
Net Losses on Foreign Exchange 1,934 286 403
(Increase)/Decrease in Debtors (97) (18) 85
Increase in Creditors 32 159 10
Cash Used in Operations (9,673) (9,506) (19,588)
Bank and Deposit Interest Received 1,372 3,094 5,089
Dividends Received 42,041 50,017 69,421
Bank Overdraft Interest Paid - (2) (2)
Tax Paid (6,911) (3,574) (7,614)
Net Realised (Losses)/Gains on Foreign Currency (859) 647 (82)
Net Cash Inflow From Operating Activities 25,970 40,676 47,224
Cash Flows From Investing Activities
Purchases of Non-Current Financial Assets (179,643) (213,890) (402,009)
Sales of Non-Current Financial Assets 275,776 241,804 509,268
Net Cash Inflow From Investing Activities 96,133 27,914 107,259
Cash Flows From Financing Activities
Equity Dividends Paid (32,513) (32,906) (53,887)
Purchase and Cancellation of Own Shares (101,831) (74,549) (149,034)
Repayment of Bank Loans - Fixed Term Loan - - (100,000)
Repayment of Bank Loans - Revolving Credit Facility (40,000) - -
Drawdown of Bank Loans - Revolving Credit Facility 30,790 - 80,000
Interest and Fees Paid on Bank Loans (2,093) (1,041) (2,165)
Proceeds from Share Forfeiture - - 821
Refund of Unclaimed Dividends - - 220
Charity Donations - - (625)
Net Cash Outflow From Financing Activities (145,647) (108,496) (224,670)
Net Decrease in Cash (23,544) (39,906) (70,187)
Cash at the Start of the Period 75,549 145,736 145,736
Net Unrealised Gains on Foreign Currency Cash and Cash Equivalents 260 - -
Cash at the End of the Period 52,265 105,830 75,549
Changes in Liabilities Arising from Financing Activities
Liabilities as Cash Flows Profit & Loss Liabilities as
at 31 March 2025 £'000 £'000 at 30 September 2025
£'000 £'000
Revolving Credit Facility 80,000 (9,210) 504 71,294
- Interest and Fees Payable 767 (2,093) 1,754 428
Total Liabilities From Bank Loans 80,767 (11,303) 2,258 71,722
Liabilities as Cash Flows Profit & Loss Liabilities as
at 31 March 2024 £'000 £'000 at 30 September 2024
£'000 £'000
Fixed Term Loan 100,000 - - 100,000
- Interest and Fees Payable 349 (1,041) 1,047 355
Total Liabilities From Bank Loans 100,349 (1,041) 1,047 100,355
Liabilities as Cash Flows Profit & Loss Liabilities as
at 31 March 2024 £'000 £'000 at 31 March 2025
£'000 £'000
Revolving Credit Facility - 80,000 - 80,000
- Interest and Fees Payable - (71) 838 767
Fixed Term Loan 100,000 (100,000) - -
- Interest and Fees Payable 349 (2,094) 1,745 -
Total Liabilities From Bank Loans 100,349 (22,165) 2,583 80,767
Notes to the financial statements
For the six months to 30 September 2025
1 Basis of Preparation
The Half Yearly Report for the six months to 30 September 2025 has been
prepared in accordance with the UK adopted International Accounting Standard
('IAS') 34 'Interim Financial Reporting'.
The Company has adopted the Statement of Recommended Practice ('SORP') for
investment trusts issued by the Association of lnvestment Companies ('AIC')
and updated in July 2022 insofar as the SORP is compatible with UK adopted
International Accounting Standards. The accounting policies applied in these
half yearly Financial Statements are consistent with those applied in the
Company's Financial Statements for the year ended 31 March 2025 and have been
applied consistently to all periods presented in these interim Financial
Statements.
The financial information contained in this interim statement does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006. The financial information for the half years ended 30 September 2025 and
30 September 2024 has not been audited. The figures and financial information
for the year ended 31 March 2025 are extracted from the published accounts and
do not constitute the statutory accounts for that period. Those accounts have
been delivered to the Registrar of Companies and included the Report of the
Independent Auditors, which was unqualified and did not include a statement
under sections 498(2) or 498(3) of the Companies Act 2006.
As at 30 September 2025, the Company had net current liabilities of
£17,757,000 (31 March 2025: net current liabilities £899,000). The Directors
have a reasonable expectation that the Company has sufficient resources to
continue in operational existence for the period to 31 March 2027, which is at
least 12 months from the date of approval of these Financial Statements.
Accordingly, the Financial Statements have been prepared on a going concern
basis.
2 Income
The Company received special dividends amounting to £2.3 million (30
September 2024: £8.5 million) of which £0.2 million was classified as
capital and £2.1 million was classified as revenue (30 September 2024: £3.7
million and £4.8 million respectively).
3 Earnings per Share
For the Six Months to For the Six Months to For the Year to
30 September 2025 30 September 2024 31 March 2025
£'000 £'000 £'000
Revenue Profit 33,202 39,301 57,923
Capital Profit 436,246 93,696 95,773
Total 469,448 132,997 153,696
Weighted Average Number of Shares in Issue 998,433,675 1,092,655,677 1,070,018,105
Revenue Profit per Share 3.33p 3.60p 5.41p
Capital Profit per Share 43.69p 8.57p 8.95p
Total 47.02p 12.17p 14.36p
4 Equity Share Capital
For the Six Months to For the Six Months to For the Year to
30 September 2025 30 September 2024 31 March 2025
Ordinary Shares in Issue £'000 Number £'000 Number £'000 Number
Opening Ordinary Shares of 5 Pence 51,241 1,024,828,725 55,741 1,114,818,617 55,741 1,114,818,617
Purchase and Cancellation of Own Shares (2,680) (53,595,999) (2,310) (46,214,019) (4,500) (89,989,892)
Closing Ordinary Shares of 5 Pence 48,561 971,232,726 53,431 1,068,604,598 51,241 1,024,828,725
For the Six Months to For the Six Months to For the Year to
30 September 2025 30 September 2024 31 March 2025
Ordinary Shares Held in Treasury £'000 Number £'000 Number £'000 Number
Opening Ordinary Shares of 5 Pence 3,000 60,000,000 5,191 103,825,895 5,191 103,825,895
Cancellation of Shares - - - - (2,191) (43,825,895)
Closing Ordinary Shares of 5 Pence 3,000 60,000,000 5,191 103,825,895 3,000 60,000,000
Total Ordinary Shares in Issue and Held in Treasury at the End of the Period 51,561 1,031,232,726 58,622 1,172,430,493 54,241 1,084,828,725
In the six months to 30 September 2025, 53,595,999 shares were bought back for
cancellation for a total consideration of £101,248,000 (30 September
2024:46,214,019 shares were bought back for cancellation for a total
consideration of £74,337,000). All shares bought back in the period were
cancelled, with none being placed in treasury (30 September 2024: no shares
were placed into treasury).
On 25 March 2025, 43,825,895 shares held in treasury were cancelled. Following
the cancellation, 60,000,000 shares remained in treasury as at 31 March 2025.
5 Dividends
For the Six Months to For the Six Months to For the Year to
30 September 2025 30 September 2024 31 March 2025
Rate (Pence) £'000 Rate (Pence) £'000 Rate (Pence) £'000
Declared and Paid During the Period:
Dividend on Shares:
Final Dividends for the Years Ended 31 March 2025 and 31 March 2024 3.25 32,513 3.00 32,906 3.00 32,906
Interim Dividend for the Six Months Ended 30 September 2024 - - - - 2.00 20,981
Total 3.25 32,513 3.00 32,906 5.00 53,887
On 8 December 2025 the Board declared an interim dividend of 2.00 pence per
share for the financial year 2026 (financial year 2025: 2.00 pence per share
interim dividend). This dividend has not been accrued in the Financial
Statements for the six months ended 30 September 2025 as dividends are
recognised when the shareholders' right to receive the payment is established.
For the 2026 interim dividend this would be the ex-dividend date of 18
December 2025.
6 Taxation
The total tax expense of £7.16 million (30 September 2024: £11.74 million)
consists of a revenue tax expense of £3.09 million (30 September 2024:
£2.70 million) and a capital tax expense of £4.07 million (30 September
2024: £9.04 million). The revenue tax expense relates to irrecoverable
overseas tax on dividends. The capital tax expense consists of £0.07 million
(30 September 2024: £7.77 million) expense arising from an increase in the
provision for deferred tax on unrealised gains on holdings in India and a
£4.00 million expense (30 September 2024: £1.27 million) arising from tax on
realised gains on holdings in India.
7 Costs of Investment Transactions
During the period, expenses were incurred in acquiring or disposing of
investments. The following costs of transactions are included in the
gains/(losses) on investments at fair value:
For the Six Months to For the Six Months to For the Year to
30 September 2025 30 September 2024 31 March 2025
£'000 £'000 £'000
Purchase Expenses 200 226 404
Sales Expenses 505 531 978
Total 705 757 1,382
8 Fair Value
Fair values are derived as follows:
• Where assets are denominated in a foreign currency, they are converted
into the sterling amount using period-end rates of exchange;
• Investments held by the Company on the basis set out in the annual
accounting policies; and
• Other financial assets and liabilities at the carrying value which is
a reasonable approximation of the fair value.
The tables below analyse financial instruments carried at fair value by
valuation method. The different levels have been defined as follows:
Level 1. Quoted prices (unadjusted) in active markets for identical assets and
liabilities;
Level 2. Inputs other than quoted prices included with level 1 that are
observable for the asset or liability, either directly (prices) or indirectly
(derived from prices); and
Level 3. Inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The hierarchy valuation of listed investments measured at fair value through
profit and loss is shown below:
30 September 2025 30 September 2024 31 March 2025
£'000 £'000 £'000
Level 1 2,354,307 2,019,442 2,002,617
Level 2 - - -
Level 3 966 35,697((a)) -
Total 2,355,273 2,055,139 2,002,617
(a) Represents the investment in Swiggy acquired during the financial year
ended 31 March 2025 and initially classified as Level 3 due to its unlisted
status. Following an initial public offering and its subsequent listing on 13
November 2024, the holding was transferred from Level 3 to Level 1.
The Company held three Level 3 securities as at 30 September 2025 (31 March
2025: two).
The investments in Russian securities, LUKOIL and Sberbank of Russia, continue
to be fair valued at £nil (31 March 2025: £nil) and are classified as Level
3 due to the inability of the Company to access the local Moscow equity
markets and the very limited access to the over-the-counter market. The fair
value of these investments is based on a liquidity discount of 100% to the
last traded price for an exit price of zero.
The third Level 3 security is Hemisphere Properties which was fair valued at
£966,000 as of 30 September 2025. It has been classified as Level 3 as TEMIT
has received approval for off-market transfer. However, the timeline of the
transfer remains uncertain such that the shares are held in an escrow account.
Given the uncertainty on the receipt of these shares, the fair value was
calculated by applying a 50% discount to the market price. This discount
reflects the residual uncertainty around the timing of share receipt and
settlement risk, as the shares were not fully delivered and remained subject
to operational execution at the period end. The unobservable inputs used in
the valuation as of 30 September 2025 are below.
Description Fair value Unobservable Weighted Reasonable Reasonable Reasonable
£'000 input average possible possible possible
input shift +/- shift + shift -
£'000 £'000
Equities 966 Discount 50% 10% (97) 97
The following table presents the movement in Level 3 investments for the
period:
30 September 2025 30 September 2024 31 March 2025
£'000 £'000 £'000
Opening Balance - - -
Additions at Cost - Purchase of Level 3 Assets - 37,952((a)) 37,952((a))
Transfers from Level 3 into Level 1 - - (55,095)((a))
Revaluation Gain on Investments at Fair Value 966 - -
Net Gains on Investments at Fair Value - - 18,122
Net Losses on Foreign Exchange - (2,255) (979)
Level 3 Closing Balance 966 35,697 -
(a) Represents the investment in Swiggy acquired during the financial year
ended 31 March 2025 and initially classified as Level 3 due to its unlisted
status. Following an initial public offering and its subsequent listing on 13
November 2024, the holding was transferred from Level 3 to Level 1.
The fixed term loan matured on 31 January 2025. The fixed term loan held at 30
September 2024 was shown at amortised cost within the Statement of Financial
Position. If the fixed term loan was shown at fair value the impact would be:
30 September 2025 30 September 2024 31 March 2025
£'000 £'000 £'000
Fixed Term Loan at Amortised Cost - 100,000 -
Fixed Term Loan at Fair Value - 98,980 -
Increase in Net Assets - 1,020 -
The fair value of the fixed term loan included in the table above was
calculated by aggregating the expected future cash flows which were discounted
at a rate comprising the sum of SONIA rate plus a spread. The fixed term loan
at fair value was classed as Level 2.
9 Events After the Reporting Period
On 8 December 2025, the Board declared an interim dividend of 2.00 pence per
share for the financial year 2026 (financial year 2025: 2.00 pence per share
interim dividend). Please see Note 5 in the full Half Yearly Report for more
information.
The Half Yearly Report for the six months to 30 September 2025 was approved by
the Board on 8 December 2025. A copy of the report is available on our website
www.temit.co.uk.
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