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Templeton Emerging Markets Investment Trust PLC - investment trust - net asset value per share rises 6.1% to 193.7 pence in the year to March 31 from 182.5p a year prior. Declares dividend of 5.25p per share, up from 5.00p a year ago. Explains NAV total return over the 12 months to March 31 was 8.8%, while the share price total return was 13.3%. By contrast, the benchmark’s total return was 5.8%. Finds the persistence and scale of the discount that the company’s shares trade to their underlying NAV ‘unsatisfactory.’ Believes that there are three important factors which can narrow the discount: renewed investor enthusiasm for emerging market equities; a company structure with investment performance that makes it attractive relative to other investment vehicles; and an enhanced profile through marketing that increases awareness amongst new investors. Company does not believe share buybacks narrow discounts other than in the short term; ‘their more measurable impact is to improve liquidity and to enhance earnings per share.’ But seeks authority to buyback just under 15% of share capital and intends to repurchase £100 million to £200 million of shares over the next 12 to 24 months.
Current stock price: 179.14 pence, up 0.5% in London on Friday
12-month change: up 13%
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