13th Jun 2014 10:13
LONDON (Alliance News) - Templeton Emerging Markets Investment Trust PLC Friday said its net asset value fell sharply in its last financial year, underperforming a smaller drop in its benchmark.
The trust said its net asset value fell 15.7% over the year to end-March to 591.8 pence per share, from 702.3 pence at the start of the year, while the MSCI Emerging Markets Index Total Return declined 9.9% over the same period.
Templeton's share price fell 17.7% over the year. However it paid a dividend of 7.25 pence for the year, up from 6.25 pence in fiscal 2013.
"Emerging markets have been turbulent in recent months and it is acknowledged that, in the short-term, investors have made greater returns in developed markets. However, as we look to the future, we believe that our approach and the TEMIT portfolio should serve investors well," the investment manager said in a statement.
"Our high conviction, long-term approach to investing in emerging markets has contributed to outperformance over the last five years and in the 25 years since TEMIT was launched. Despite weakness in the last 12 months, we believe that emerging markets in general and our stock holdings in particular stand to benefit from attractively low valuations, improving global growth prospects, and we continue to maintain faith in our positioning," he said.
The trusts shares were down 1.2% at 558 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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