Highlights

  • Templeton Emerging Markets Investment Trust reported a cum-income NAV of 370.01 pence per share and a total NAV of approximately GBP 3,451.293 million as at 17 June 2026.
  • The ex-income NAV was reported at 364.53 pence per share, equivalent to approximately GBP 3,400.147 million, with the difference reflecting accrued income.
  • Daily NAV disclosures help investors monitor whether the trust's shares trade at a premium or discount to the value of the underlying portfolio.

Introduction

Templeton Emerging Markets Investment Trust PLC (NZX:TEM), commonly known as TEMIT, has released its latest unaudited net asset value (NAV) update. The announcement, dated 18 June 2026, provides a snapshot of the trust's portfolio value as at the close of business on 17 June 2026.

While daily NAV updates are routine disclosures for listed investment trusts, they remain an important source of information for investors. These figures help shareholders assess the value of the underlying portfolio and compare it with the trust's market price. For investors seeking exposure to emerging markets, NAV updates offer a useful reference point for understanding valuation and market sentiment.

Company Overview

Templeton Emerging Markets Investment Trust PLC is a long-established closed-ended investment company focused on investing in equities across global emerging markets.

The trust is managed by Franklin Templeton Investment Trust Management Limited and provides diversified exposure to developing economies across regions such as Asia, Latin America, Eastern Europe, the Middle East, and Africa.

Its primary listing is on the London Stock Exchange, while New Zealand investors can access the trust through its NZX foreign-exempt listing under the ticker TEM.

As a closed-ended investment trust, the number of shares in issue remains fixed, meaning the market price can trade above or below the value of the underlying assets. This is one of the key reasons NAV disclosures are closely monitored by investors.

What Did the Announcement Say?

The latest update reported two separate NAV measures calculated as at 17 June 2026.

The trust's cum-income NAV was reported at 370.01 pence per share, representing a total net asset value of approximately GBP 3,451.293 million.

The ex-income NAV was reported at 364.53 pence per share, representing approximately GBP 3,400.147 million.

The difference between these figures is approximately 5.5 pence per share and reflects income that has accrued within the portfolio but has not yet been distributed.

The announcement also confirmed that both NAV calculations were prepared using bid prices for the underlying holdings, consistent with recommendations from the Association of Investment Companies (AIC).

Key details from the disclosure include:

  • Cum-income NAV: 370.01 pence per share, approximately GBP 3,451.293 million.
  • Ex-income NAV: 364.53 pence per share, approximately GBP 3,400.147 million.
  • Both figures are unaudited and calculated using bid prices.
  • The valuation reflects portfolio positions as at 17 June 2026.

Why Does the NAV Update Matter?

NAV per share represents the value of a trust's assets after liabilities have been deducted and the result divided by the number of shares in issue.

For a closed-ended investment trust such as TEMIT, the market price is determined by investor demand and may differ from the NAV. As a result, shares can trade at either a premium or a discount to their underlying value.

Daily NAV updates provide investors with a transparent benchmark that can be used to evaluate the relationship between market price and portfolio value. This information helps investors understand whether the trust is trading above or below the value of its assets.

Regular disclosure also supports market transparency by ensuring all investors have access to the same valuation information at the same time.

Market and Sector Context

TEMIT operates within the global emerging-markets equity sector, which offers exposure to economies that often have higher long-term growth potential than many developed markets.

Emerging markets can benefit from favourable demographic trends, expanding middle classes, increasing consumption, and ongoing economic development. These factors have historically attracted investors seeking long-term growth opportunities.

However, emerging markets also carry higher levels of volatility and risk. Political developments, currency fluctuations, regulatory changes, and liquidity constraints can all affect performance.

By investing across a broad range of countries and companies, TEMIT seeks to provide diversified exposure to this asset class. For New Zealand investors, the NZX listing offers a convenient way to access emerging-market opportunities through a locally traded security.

Potential Impact on Shareholders

For existing shareholders, the daily NAV update serves primarily as a valuation reference rather than a catalyst for immediate action.

Comparing the market share price with NAV allows investors to assess whether the trust is trading at a discount or premium. A discount means the market price is below the stated value of the underlying assets, while a premium indicates the opposite.

However, discounts and premiums can persist for extended periods and should not automatically be interpreted as indicators of value or future performance.

It is also important to remember that NAV represents a valuation snapshot. The actual market price at which shares can be bought or sold will depend on prevailing market conditions and investor demand.

Financial and Operational Implications

One notable aspect of the announcement is the use of bid prices in calculating NAV.

Bid prices represent the level at which underlying assets could potentially be sold and are widely regarded as a conservative valuation approach. Using this methodology helps ensure consistency and comparability across investment trusts that follow AIC recommendations.

The reported total NAV of approximately GBP 3.45 billion also highlights the scale of the trust. Large investment trusts may benefit from broader diversification, operational efficiencies, and generally stronger market liquidity.

As with all daily NAV updates, the figures remain unaudited and reflect only a single valuation date. Investors seeking a more comprehensive view of performance and portfolio composition should refer to periodic and annual reports.

Key Risks and Uncertainties

Investing in emerging-market equities involves a range of risks that investors should carefully consider.

Currency Risk

Returns may be affected by movements between the New Zealand dollar, British pound, and the various emerging-market currencies represented within the portfolio.

Political and Regulatory Risk

Emerging economies can be more sensitive to policy changes, geopolitical developments, and regulatory uncertainty.

Market Volatility

Emerging-market shares often experience greater price fluctuations than developed-market equities.

Liquidity Risk

Some emerging markets may have lower trading volumes and reduced liquidity during periods of market stress.

Premium and Discount Risk

The trust's share price can move independently of NAV, causing discounts or premiums to widen or narrow over time.

Valuation Risk

The NAV figures are unaudited and represent a single point-in-time valuation that can change as market conditions evolve.

What Should Investors Watch Next?

Investors following TEM may wish to monitor future NAV disclosures to assess how the portfolio value evolves over time.

Particular attention is often paid to the relationship between the market share price and NAV, as shifts in discounts or premiums can provide insight into investor sentiment.

Other areas worth monitoring include:

  • Trends in NAV performance across successive updates.
  • Changes in the trust's discount or premium to NAV.
  • Annual and interim reports covering portfolio holdings, costs, and performance.
  • Developments across major emerging-market economies that could influence portfolio returns.

Looking at these factors together can provide a more complete picture than any individual NAV update alone.

Investor Takeaway

The latest NAV disclosure from Templeton Emerging Markets Investment Trust (NZX) provides a routine but valuable update on the trust's underlying portfolio value.

As at 17 June 2026, the trust reported a cum-income NAV of 370.01 pence per share and an ex-income NAV of 364.53 pence per share. The approximately 5.5 pence difference reflects accrued income within the portfolio, while both figures were calculated using bid prices in line with AIC guidance.

For investors, the primary value of the update lies in its role as a transparent benchmark for assessing portfolio value and tracking any discount or premium between NAV and the market price. While useful, NAV should be considered alongside broader market conditions, portfolio performance, and the risks associated with emerging-market investing.

Disclaimer

This article is for informational purposes only and does not constitute financial advice.