Templeton Emerging Markets Investment Trust : Annual Report to 31 March 2023

Templeton Emerging Markets Investment Trust plc

Annual Report and Accounts to 31 March 2023

Contents

Company Overview	1	Independent Auditor's Report	71
Strategic Report	2		Financial Statements	80
Financial Summary	2		Statement of Comprehensive	80
Ten Year Record	3		Income
	Statement ofFinancial Position	81
Chairman's Statement	5
	Statement of Changes in Equity	82
The Investment Manager	8
	Statement of Cash Flows	83
The Investment Manager's Report	9
	Notes to the Financial Statements	85
The Investment Manager's Process	23
	Securities Financing Transactions	103
Business Review	32
	Investor Information	105
Report of the Directors and
		Notice of Meeting	105
Governance	46
Directors' Report	46		Investor Communications	110
Directors' Remuneration			General Information	111
Report	60
	Shareholder Information	112
Report of the Audit and Risk
Committee	64		Glossary of Alternative
Statement of Directors'			Performance Measures	114
Responsibilities	70

This report does not constitute or form part of any offer for shares or an invitation to apply for shares. The price of shares and income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is no guarantee of future performance. Currency fluctuations will affect the value of overseas investments. Emerging markets can be riskier than developed markets. Please consult your professional adviser before deciding to invest.

Company Overview

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.

TEMIT has a diversified portfolio of around 80 high quality companies, actively selected for their long-term growth potential and sustainable earnings, and with due regard to Environmental, Social and Governance ("ESG") attributes. TEMIT's research-driven investment approach and strong long-term performance has helped it to grow to be the largest emerging markets investment trust in the UK, with assets of £2.0 billion as at 31 March 2023. From its launch to 31 March 2023, TEMIT's net asset value ("NAV") total return was +3,845.7% compared to the benchmark total return of +1,707.2%.

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.

TEMIT at a glance

For the year to 31 March 2023

Net asset value total	Share price total	MSCI Emerging Markets	Proposed total
return (cum-income)(a)	return(a)	Index total return(a)(b)	ordinary dividend(c)
0.8%	0.5%	-4.5%	5.00p
(2022: -17.3%)	(2022: -21.2%)	(2022: -6.8%)	(2022: 3.80p)

Cumulative total return to 31 March 2023 (%)(a)

80
60						55.3
						50.1
						46.4
40
		28.8	26.3	27.1
20				16.4	17.7
					10.5
0.8	0.5
0
		-4.5
-20
	1 Year		3 Years		5 Years	10 Years

NAV total return

Share price total return

MSCI Emerging Markets Index

1. A glossary of alternative performance measures is included on pages 114 and 115.
2. Source: MSCI. The Company's benchmark is the MSCI Emerging Markets Index, with net dividends reinvested.
3. An annual ordinary dividend of 5.00 pence per share for the year ended 31 March 2023 has been proposed. This comprises the interim dividend of 2.00 pence per share paid by the Company on 27 January 2023 and the proposed final dividend of 3.00 pence per share.

www.temit.co.uk

Templeton Emerging Markets Investment Trust plc

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Strategic Report

The Directors present the Strategic Report for the year ended 31 March 2023, which incorporates the Chairman's Statement, and has been prepared in accordance with the Companies Act 2006.

The aim of the Strategic Report is to provide shareholders with the ability to assess how the Directors have performed in their duty to promote the success of the Company for shareholders' collective benefit, and having regard for the interests of all stakeholders, by bringing together in one place key information about the Company's strategy, the risks it faces, how it is performing and the outlook.

Financial Summary

2022-2023		Year ended	Year ended	Capital	Total
		31 March	31 March	return	return
	Notes	2023	2022	%	%
Total net assets (£ millions)		2,017.5	2,100.4
Net asset value (pence per share)	(a)	174.1	178.2	(3.7)	0.8
Highest net asset value (pence per share)		185.1	223.9
Lowest net asset value (pence per share)		150.3	161.0
Share price (pence per share)	(a)	152.2	156.4	(4.2)	0.5
Highest end of the day share price (pence per share)		164.6	208.0
Lowest end of the day share price (pence per share)		130.6	140.6
MSCI Emerging Markets Index	(a)			(7.6)	(4.5)
Share price discount to net asset value at year end	(a)	12.6%	12.2%
Average share price discount to net asset value over the year		13.0%	9.5%
Ordinary dividend (pence per share)	(b)	5.00	3.80
Revenue earnings (pence per share)	(c)	5.72	3.44
Capital earnings (pence per share)	(c)	(5.50)	(40.90)
Total earnings (pence per share)	(c)	0.22	(37.46)
Net gearing	(a)(d)	0.0%	1.1%
Ongoing charges ratio	(a)	0.98%	0.97%

Source: Franklin Templeton and FactSet.

1. A glossary of alternative performance measures is included on pages 114 and 115.
2. An annual ordinary dividend of 5.00 pence per share for the year ended 31 March 2023 has been proposed. This comprises the interim dividend of 2.00 pence per share (2022: 1.00 pence per share) paid by the Company on 27 January 2023 and a proposed final dividend of 3.00 pence per share (2022: 2.80 pence per share).
3. The revenue, capital and total earnings per share figures are shown in the Statement of Comprehensive Income on page 80 and Note 7 of the Notes to the Financial Statements.
4. A net gearing figure of 0% means that the cash held in the Company is equal to or higher than the total bank loans.

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Templeton Emerging Markets Investment Trust plc

www.temit.co.uk

Ten Year Record

2013-2023

		NAV(a)	Share		Revenue	Annual	Ongoing
	Total net	price(a)	Year-end	earnings(a)	dividend(a)	charges
	assets	(pence per	(pence	discount(b)	(pence per	(pence per	ratio(b)
Year ended	(£m)	share)	per share)	(%)	share)	share)	(%)
31 March 2013	2,302.7	140.5	128.1	8.2	1.69	1.25	1.30
31 March 2014	1,913.6	118.4	105.4	10.9	1.83	1.45	1.30
31 March 2015	2,045.0	128.2	111.2	13.3	1.86	1.65	1.20
31 March 2016	1,562.3	104.8	90.8	13.4	1.41	1.65	1.22
31 March 2017	2,148.1	152.6	132.3	13.3	1.32	1.65	1.20
31 March 2018	2,300.8	169.2	148.6	12.2	3.18	3.00	1.12
31 March 2019	2,118.2	168.5	153.2	9.1	3.45	3.20	1.02
31 March 2020	1,775.7	146.5	131.4	10.3	4.88	3.80(c)	1.02
31 March 2021	2,591.3	219.4	202.4	7.7	5.73	3.80(c)	0.97
31 March 2022	2,100.4	178.2	156.4	12.2	3.44	3.80	0.97
31 March 2023	2,017.5	174.1	152.2	12.6	5.72	5.00(d)	0.98

Ten year growth record(e) 2013-2023

					MSCI
					Emerging	Revenue	Ordinary
				Share	Market	earnings
		NAV total	Share	price total	Index total	per share-	dividend
Year ended	NAV	return(b)	price	return(b)	return(b)	undiluted	per share
31 March 2013	100.0	100.0	100.0	100.0	100.0	100.0	100.0
31 March 2014	84.3	85.4	82.3	83.2	90.1	108.3	116.0
31 March 2015	91.2	93.6	86.8	88.9	102.0	110.1	132.0
31 March 2016	74.6	77.6	70.9	73.8	93.0	83.4	132.0
31 March 2017	108.6	114.7	103.3	109.5	125.8	78.1	132.0
31 March 2018	120.4	128.9	116.0	124.5	140.6	188.2	240.0
31 March 2019	119.9	131.2	119.6	131.9	140.6	204.1	256.0
31 March 2020	104.3	116.5	102.6	115.9	122.1	288.8	304.0
31 March 2021	156.2	179.8	158.0	184.9	174.4	339.1	304.0
31 March 2022	126.8	148.8	122.1	145.7	162.5	203.6	304.0
31 March 2023	123.9	150.1	118.8	146.4	155.3	338.5	400.0

Source: Franklin Templeton and FactSet.

1. Comparative figures for financial years 2013 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.
2. A glossary of alternative performance measures is included on pages 114 and 115.
3. Excludes 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.
4. An annual ordinary dividend of 5.00 pence per share for the year ended 31 March 2023 has been proposed. This comprises the interim dividend of 2.00 pence per share paid by the Company on 27 January 2023 and a proposed final dividend of 3.00 pence per share.
5. Rebased to 100 at 31 March 2013.

www.temit.co.uk

Templeton Emerging Markets Investment Trust plc

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