8th Jun 2016 14:11
LONDON (Alliance News) - Templeton Emerging Markets Investment Trust PLC Wednesday said the difficulties being faced by emerging markets has continued, leading to a fall in net asset value and its share price during the last financial year, but said it has recognised the need for change within its investment portfolio.
The trust said its net asset value at the end of the last financial year to March had fallen to 524.2 pence per share from 641.2 pence a year earlier, declining at a steeper rate compared to its benchmark index.
The 18% fall in NAV compares to the 11% fall in the MSCI Emerging Markets Index.
Templeton's share price at the end of March was over 18% lower than a year earlier, and shares were trading up 0.4% on Wednesday afternoon at 469.0 pence.
The trust kept its dividend flat for the year at 8.25 pence.
"Our manager has recognised the need for change and from October 1 last year, Carlos Hardenberg replaced Mark Mobius as our lead portfolio manager," said the trust.
"Dr Mobius will continue to bring his long experience to bear as an adviser to Mr Hardenberg. As you will note from these accounts, Mr Hardenberg's appointment has already brought a significant change in the portfolio. Shareholders can see a higher turnover in holdings than has sometimes been the case in the past, with a diminishing emphasis on banks and major resources companies, and a more diversified portfolio," it added.
Paul Manduca, the chairman of the trust added: "The global economy is expected to continue to grow slowly over the next year. But we may have seen the worst of the bear market in commodity prices as China manages a softer landing than expected for its economy. In this environment stock selection becomes critical. Finding companies with the potential to grow earnings and yet whose shares are priced reasonably will be challenging and in this respect we are encouraged by the start Carlos has made."
By Joshua Warner; [email protected]; @JoshAlliance
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