Lead manager of the Templeton Emerging Markets investment trust (TEMIT) Chetan Sehgal is banking on the portfolio's continued outperformance and improved earnings figures to narrow the company's discount to NAV, which continues to linger at around 10%.
TEMIT is up 17.9% over one year to 18 October, while the MSCI Emerging Markets index and IT Global Emerging Markets sector have returned 9.7% and 6.6% respectively, according to FE. Despite this outperformance, the £2.2bn AUM trust currently trades a discount of 9.5%, according to the Association of Investment Companies (AIC). However, its share price is up 13.7% over one year. Speaking to Investment Week, Sehgal said that in addition to continued outperformance the trust's discount to NAV should narrow as a result of a "strong recovery in earnings" as well as an improvement in free c...
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