TEMIT's Ness on gearing and three 'new realities' in emerging markets

Technology and politics among key themes

The Templeton Emerging Markets Investment Trust (TEMIT) is increasingly embracing its ability to gear as it looks to take advantage of favourable valuations across emerging markets.

TEMIT increased its three-year unsecured multi-currency revolving loan facility on 31 August 2018 from £150m to up to £220m, allowing it to gear the portfolio up to 10%.  The trust managers have long been mindful of the heightened risks when employing debt, but have been putting the trust's ability to gear to use over the past two years. While its current net gearing is just 1.8%, it has been as high as 4% as recently as September 2018, and the portfolio managers expect it to rise again soon. Seven key themes in emerging markets After a difficult 18 months for emerging markets d...