Templeton Emerging Markets Fund (TEM)

Profile

https://www.franklintempleton.co.uk/en_GB/investor/funds/investment-trust-temit

Templeton Emerging Markets Fund is a mutual fund managed by Franklin Templeton that primarily invests in equities of companies across all market capitalizations located in or deriving significant business from emerging markets, including China. Its core objective is to achieve long-term capital growth through capital appreciation by targeting undervalued opportunities in these dynamic regions. The fund benchmarks its performance against the MSCI Emerging Markets Index-NR and maintains a diversified portfolio, with approximately 92% allocated to equities and the remainder in cash equivalents. Geographic exposure emphasizes Asia (around 75%), Latin America (10%), and other emerging areas, spanning sectors like financials, technology, consumer discretionary, and communication services, while favoring large-cap companies exceeding $50 billion alongside mid- and small-caps. Notable features include its Article 8 classification under the EU Sustainable Finance Disclosure Regulation, promoting environmental and social characteristics via proprietary ESG ratings, exclusions, and a minimum 20% allocation to sustainable investments without causing significant harm to sustainability objectives. In the financial markets, it plays a key role in providing investors access to high-growth potential emerging economies, though it carries elevated risks from market volatility, currency fluctuations, liquidity constraints, and geopolitical factors inherent to these regions.