Templeton Emerging Markets IT PLC

Annual Report • Jun 6, 2025

Annual Report and Accounts to 31 March 2025

Templeton Emerging Markets Investment Trust plc 5 Morrison Street, Edinburgh, EH3 8BH, UK temitcosec@franklintempleton.com

EMEA_EUK_2466005_2366005 TEMIT ANNUAL REPORT 03/25

www.temit.co.uk

© 2025 Franklin Templeton. All rights reserved.

Introducing TEMIT

Launched in June 1989, Templeton Emerging Markets Investment Trust plc ('TEMIT' or the 'Company') is an investment trust that invests principally in emerging markets companies with the aim of delivering capital growth to shareholders over the long term. While the majority of the Company's shareholders are based in the UK, shares are traded on both the London and New Zealand stock exchanges. From its launch to 31 March 2025, TEMIT's net asset value ('NAV') total return was +4,528.5% compared to the benchmark total return of +1,781.1%.

The Company is governed by a Board of Directors who are committed to ensuring that shareholders' best interests, considering the wider community of stakeholders, are at the forefront of all decisions. Under the guidance of the Chairman, the Board of Directors is responsible for the overall strategy of the Company and monitoring its performance.

Winner 2023 and 2024

Your future is emerging

TEMIT offers you easy access to the dynamic growth potential of emerging markets.

Access to growth markets

TEMIT offers investors a simple way to invest in the growth potential of dynamic economies in Asia, Latin America, the Middle East, Africa and Europe. Emerging markets currently generate 65% of global growth and that is forecast to increase(a).

35-year track record

TEMIT is the first emerging markets investment trust and has delivered a NAV total return of +4,528.5% over its 35-year life. It is also the largest with just under £2.0 billion of net assets.

Best ideas portfolio

TEMIT's portfolio is diversified across approximately 80 high quality companies that include the very best investment opportunities.

Investment expertise

With over 70 investment professionals spread across 13 countries our Investment Managers can identify investment opportunities beyond the mainstream, often before they are recognised by the broader market.

ESG analysis

Structured analysis of Environmental, Social and Governance ('ESG') factors is part of the research process.

Shareholderfriendly features

As a stock market listed investment trust, this offers additional features and benefits for shareholders including dividends, gearing, and independent board governance.

Subscribe to our monthly newsletter

Receive all the latest information direct to your email inbox every month. Our newsletter provides you with all the updates, announcements and information on emerging markets like our stock story and manager update videos, factsheets and insights.

(a) Source: IMF WEO, October 2024, the latest available. All other data sourced: Franklin Templeton as at 31 March 2025.

Financial highlights

	2025	2024	3 Years Cumulative	5 Years Cumulative	10 Years Cumulative
Net Assets Value Total Return (cum-income)(a)	8.8%	7.9%	18.3%	51.1%	88.0%
Share Price Total Return(a)	13.3%	4.9%	19.5%	50.1%	95.7%
MSCI Emerging Markets Index(a)(b)	5.8%	5.9%	6.5%	40.8%	65.5%
Proposed Total Ordinary Dividend(c)	5.25p	5.00p	14.80p	24.40p	37.07p

(a) A glossary of alternative performance measures is included on pages 114 and 115.

(b) Source: MSCI. The Company's benchmark is the MSCI Emerging Markets (Net Dividends) Index.

(c) An annual ordinary dividend of 5.25 pence per share for the year ended 31 March 2025 has been proposed. This comprises the interim dividend of 2.00 pence per share paid by the Company on 31 January 2025 and the proposed final dividend of 3.25 pence per share.

Contents

01. Strategic Report

Strategic report	7
10 year record	8
Chairman's statement	9
The investment managers	12
The investment managers' report	13
The investment managers' process	29
Business review	36

02. Governance

Supporting charitable causes	48
Directors' report	49
Directors' remuneration report	60
Report of the audit and risk committee	65
Statement of directors' responsibilities	71

03. Financial Review

Independent auditor's report	73
Statement of comprehensive income	81
Statement of financial position	82
Statement of changes in equity	83
Statement of cash flows	84
Notes to the financial statements	86
Securities financing transactions - unaudited	104
AIFMD report in remuneration - unaudited	106

04. Investor Information

Notice of meeting	108
Shareholder communications	111
General information	112
Shareholder information	113
Glossary of alternative performance measures	114

Strategic Report 01.

6 Templeton Emerging Markets Investment Trust plc TEMIT.co.uk

Strategic report

The Directors present the Strategic Report for the year ended 31 March 2025, which incorporates the Chairman's Statement, and has been prepared in accordance with the Companies Act 2006.

The aim of the Strategic Report is to provide shareholders with the ability to assess how the Directors have performed in their duty to promote the success of the Company for shareholders' collective benefit, and having regard for the interests of all stakeholders, by bringing together in one place key information about the Company's strategy, the risks it faces, how it is performing and the outlook.

Financial Summary 2024–2025

	Year Ended 31 March 2025	Year Ended 31 March 2024
Net Asset Value Total Return (Cum-Income)(a)	8.8%	7.9%
Share Price Total Return(a)	13.3%	4.9%
MSCI Emerging Markets (Net Dividends) Index Total Return(a)	5.8%	5.9%
Total Net Assets (£ millions)	1,985.4	2,034.9
Net Asset Value (Pence per Share)	193.7	182.5
Share Price (Pence per Share)	169.6	154.4
Share Price Discount to Net Asset Value at Year End(a)	12.4%	15.4%
Average Share Price Discount to Net Asset Value Over the Year(a)	13.8%	13.9%
Ordinary Dividend(b) (Pence per Share)	5.25	5.00
Revenue Earnings(c) (Pence per Share)	5.41	5.18
Net Gearing(a)	0.2%	0.0%
Ongoing Charges Ratio(a)	0.95%	0.97%

Source: Franklin Templeton and FactSet.

(a) A glossary of alternative performance measures is included on pages 114 and 115.

(b) An annual ordinary dividend of 5.25 pence per share for the year ended 31 March 2025 has been proposed. This comprises the interim dividend of 2.00 pence per share (2024: 2.00 pence per share) paid by the Company on 31 January 2025 and a proposed final dividend of 3.25 pence per share (2024: 3.00 pence per share).

(c) The revenue earnings per share figures are shown in the Statement of Comprehensive Income on page 81 and Note 7 of the Notes to the Financial Statements.

10 year record

2015-2025

Year Ended	Total Net Assets (£m)	Annual Dividend (£m)	Buy backs (£m)	NAV(a) (Pence per Share)	Share Price(a) (Pence per Share)	Year-End Discount(b) (%)	Annual Dividend(a) (Pence per Share)	Ongoing Charges Ratio(b) (%)
31 March 2015	2,045.0	26.1	24.7	128.2	111.2	13.3	1.65	1.20
31 March 2016	1,562.3	24.1	93.6	104.8	90.8	13.4	1.65	1.22
31 March 2017	2,148.1	23.1	89.4	152.6	132.3	13.3	1.65	1.20
31 March 2018	2,300.8	40.0	72.5	169.2	148.6	12.2	3.00	1.12
31 March 2019	2,118.2	40.2	147.5	168.5	153.2	9.1	3.20	1.02
31 March 2020	1,775.7	45.9(c)	69.9	146.5	131.4	10.3	3.80 (c)	1.02
31 March 2021	2,591.3	44.9(c)	49.6	219.4	202.4	7.7	3.80(c)	0.97
31 March 2022	2,100.4	44.8	3.6	178.2	156.4	12.2	3.80	0.97
31 March 2023	2,017.5	57.8	29.2	174.1	152.2	12.6	5.00	0.98
31 March 2024	2,034.9	55.4	65.9	182.5	154.4	15.4	5.00	0.97
31 March 2025	1,985.4	54.0(d)	149.2	193.7	169.6	12.4	5.25(d)	0.95

10 Year Performance

2015–2025

NAV, Share Price and Benchmark Total Return(e)

250

Source: Franklin Templeton and FactSet.

(a) Comparative figures for financial years 2015 to 2021 have been retrospectively adjusted following the sub-division of each existing ordinary share of 25 pence into five ordinary shares of 5 pence each on 26 July 2021.

(b) A glossary of alternative performance measures is included on pages 114 and 115.

(c) Excludes the special dividend of 0.52 pence per share for the year ended 31 March 2020 and the special dividend of 2.00 pence per share for the year ended 31 March 2021.

(d) Based on a proposed annual ordinary dividend of 5.25 pence per share for the year ended 31 March 2025. This comprises a proposed final dividend of 3.25 pence per share calculated using shares in issue as at 16 May 2025 and the interim dividend of 2.00 pence per share paid 31 January 2025.

(e) Rebased to 100 at 31 March 2015.

Chairman's statement

'The net asset value ('NAV') total return over the 12 months to 31 March 2025 was +8.8%. The investment managers deserve congratulation for this performance.'

Angus Macpherson Chairman

Performance(a)

In the financial year under review, the performance of the TEMIT portfolio was excellent. The net asset value ('NAV') total return over the 12 months to 31 March 2025 was +8.8%, while the share price total return was +13.3%. By contrast, the benchmark's total return was +5.8%. The investment managers deserve congratulation for this performance.

It would be remiss not to comment on the impact of President Trump's "Liberation Day", declared two days after the financial year end. The announcement of the intention to impose widespread tariffs on imports into the United States from most countries was an unwelcome event creating considerable investor anxiety as a wider range of countries were affected by the proposed tariffs than had been expected, particularly in Asia.

Subsequently it became clear that China, the largest weighting in the Emerging Markets benchmark, was being singled out in particular. In last year's letter I wrote "the Board and Investment Managers believe that China is probably too integrated into the global economy for economic sanctions to profit any party". The temporary truce in place at the time of writing supports this premise.

Both the NAV of the Company and its share price initially fell sharply but have now recovered to similar levels to the year end.

The truce is temporary and tariffs appear to be part of a broader reset of the relationship between the United States and the rest of the world. This outlook for the portfolio against this backdrop is discussed in greater detail at the end of this letter and in the manager's report.

Communication with investors

Over the last twelve months, I have spoken with holders of more than half of the Company's shares and our brokers have also conducted interviews to solicit views on TEMIT, while the managers have worked to share their actions and insights through written articles, videos and seminars to ensure existing and prospective investors are fully informed.

The Board continues to explore ways in which demand for TEMIT's shares could be improved and, to this end, we commissioned research from independent third parties to obtain the views of both private and professional investors in May 2025. The shareholders who were interviewed were broadly supportive of the Company in its current form and recognised the very good investment performance relative to the benchmark. We received a lot of positive feedback on the investment managers' strategy. Some shareholders expressed a preference for higher – but still moderate – levels of gearing. Finally, the general lack of demand for investment trust shares remains an issue and there was widespread support for our efforts to manage the balance of demand through share buybacks, which is discussed further below.

(a) See Glossary of Alternative Performance Measures on pages 114 and 115.

Share price rating

The Board was very clear in last year's report that it found the persistence and scale of the discount that the Company's shares trade to their underlying NAV unsatisfactory.

We believe 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.

In June 2024 we announced a series of measures with the intention of improving liquidity and returns for holders of TEMIT's shares. In summary, these were commitments to:

• At least maintain the current level of annual dividend;
• Repurchase up to £200m of shares over the next 12 to 24 months;
• A conditional tender offer, under which TEMIT will tender for up to 25% of its shares if it underperforms its benchmark index over five years to March 2029; and
• A phased reduction in AIFM fees.

These measures were intended to make the value proposition of the shares more evident to shareholders and to improve liquidity for shareholders wishing to buy or sell. The Board's premise is that whilst there are significant benefits to a closed ended vehicle, the fact that we are not required to return capital to shareholders does not mean that we may not do so, provided that it does not compromise the ability of the company to meet its objectives.

Following this announcement, we stepped up the rate of share buybacks and over the year under review around 90 million shares were bought back, returning £149.2 million to

shareholders and in line with the commitment set out above. These buybacks represented 8.1% of shares in issue on 31 March 2024 and, as all buybacks were at a discount to the prevailing NAV, resulted in an uplift of 1.16% of NAV per share for remaining shareholders.

As I commented last year, the board 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. Indeed, the discount remained largely driven by market forces and there were times when it widened due to very limited demand. I am pleased to report that the share price discount narrowed from 15.4% at the start to 12.4% at the end of the year under review.

The board is seeking approval from shareholders for the authority to repurchase up to 14.99% of the issued shares over the year following the AGM and intends to purchase a further £100m-£200m of shares over the next 12 to 24 months, subject of course to market conditions.

Revenue and dividends

The net revenue profit for the year was 5.41 pence per share. The Company paid an interim dividend of 2.00 pence per share at the half year stage and the Board is recommending an increased final dividend of 3.25 pence per share, making a total dividend for the year of 5.25 pence; an increase of 5% compared with the prior year.

Gearing

TEMIT's previous £100 million fixed rate loan matured and was repaid on 31 January 2025. On that date, the Company entered into a £122 million multi-currency revolving loan facility with The Bank of Nova Scotia, London branch. The loan facility is available for 364 days, to 30 January 2026.

The facility provides flexible debt. Drawings may be in sterling, US dollars and offshore renminbi (Chinese Yuan, CNH). The Company initially drew down £80 million on 31 January 2025. Subsequently, when a £40 million tranche of debt matured at the end of April this was partly replaced by borrowing CNH300million, equivalent to £30.8 million at the time.

Stewardship and Governance

Since TEMIT was launched over 35 years ago, our Investment Managers have always focused on the corporate governance of investee companies, which we believe has helped many companies to understand and attract international investors. Over the years, the level of investor attention on sustainability has grown and investment managers' broader approach to the stewardship of investors' capital and the companies in which they invest has come under increasing scrutiny. The report on this subject starts on page 31. For those interested in exploring the subject in more depth, our Investment Managers have in recent years produced a comprehensive, dedicated Stewardship Report for TEMIT. This year's report is published simultaneously with this Annual Report and is available to download at www.temit.co.uk.

As part of an exercise of good corporate governance the Board has undertaken an extensive programme of shareholder tracing which has reunited a number of shareholders with their holdings. The process has also saved the Company the registration and serving costs of shareholders who remain unidentified and enabled legal forfeiture and disposal of these shares with the proceeds donated to a number of charitable institutions.

The Board

Sarika Patel was appointed as a non-executive Director of the Company with effect from 1 January 2025. Simon Jeffreys, the current Chair of the Audit and Risk Committee, will retire from the Board following the conclusion of the Annual General meeting in July. Following Simon's retirement, Sarika will take over the role of Chair of the Committee having worked closely with Simon since her appointment.

Sarika is a Chartered Accountant and has widespread experience in both investment trusts and trading companies. She is Chair of abrdn Equity Income Trust and chairs the Audit & Risk Committee of SDCL Energy Efficiency Income Trust and she is also Chair of Action for Children.

I would like to record thanks on behalf of myself, the Board and the managers for Simon's exemplary contribution to TEMIT and his leadership of the audit and risk management function over the last nine years. We wish him well in his current and future endeavours.

Annual General Meeting

I am pleased to extend an invitation to all shareholders to join us for our AGM on 10 July 2025 at Franklin Templeton's offices at 78 Cannon Street in London. The meeting will include a presentation by the Investment Managers. We look forward to welcoming those shareholders who are able to come to the meeting.

Whether or not you intend to attend the meeting in person, you are strongly encouraged to submit your votes on the AGM resolutions in advance of the meeting. Submitting votes by proxy does not preclude you attending the meeting or changing your vote if you do subsequently decide to attend the AGM. If you have any questions, please send these by email to temitcosec@franklintempleton.com or via www.temit.co.uk/investor/contact-us in advance of the meeting. You are also welcome to use these contact details should you have a question at any other time. Any questions that we receive will be considered and, if appropriate, responses will be provided on our website www.temit.co.uk.

Outlook

The announcements on "Liberation Day" were shaped long before this year. Some retreat from globalisation and decoupling of the United States from China was likely whichever party formed the administration after the last election. Those disadvantaged by the deflationary forces of trade and immigration represent a significant political bloc which cannot be ignored in a democratic state.

The imposition on the American people of a significant import tax burden, higher consumer goods prices and their consequent inflationary impact is unlikely to be electorally compelling in the US mid-term elections without some evidence of compensatory economic benefit. Even if the current propositions prove sustainable, their impact on the US is likely to be much greater than on their targets' economies. China's exports to the United States, for example, are estimated to be less than 3% of its GDP.

We maintain a positive outlook on emerging markets, supported by a combination of improving macro conditions, structural growth trends, and a shifting geopolitical landscape. The backdrop of lower U.S. interest rates and a weaker dollar creates a more favourable environment for capital flows and local currency strength across many emerging economies.

It should be borne in mind that the imposition of punitive tariffs on China and other emerging markets is a sign of the economic strength, not the weakness, of these high growth countries. Having continued investment exposure to them may well turn out to be even more important than before.

Angus Macpherson Chairman

6 June 2025

The investment managers

TEMIT's investment management is delegated to Franklin Templeton Investment Management Limited ('FTIML') and Templeton Asset Management Ltd ('TAML') (together, the 'Investment Managers'). Portfolio Managers from FTIML and TAML form part of the wider Franklin Templeton Emerging Markets Equity group ('FTEME'). FTEME have managed the portfolio since TEMIT's inception and are pioneers in emerging markets equity investing. They bring more than 35 years of experience along with local knowledge from over 70 investment professionals, based in 13 countries around the world.

The team has a collaborative investment process where all analysts and portfolio managers work together to contribute to investment returns. They meet regularly, both formally and informally, to debate and exchange ideas, investment themes and enrich their understanding of the markets by drawing on local insights to build a global perspective and context to their thinking. They also benefit from the broader resources available throughout Franklin Templeton.

The Portfolio Managers for TEMIT, Chetan Sehgal (lead) and Andrew Ness, are senior executives in FTEME.

Portfolio Managers

Chetan is the lead Portfolio Manager of TEMIT and is based in Singapore.

As part of his broader responsibilities within FTEME, Chetan is also the director of portfolio management. In this capacity, he is responsible for the overall Global Emerging Markets strategies, providing guidance and thought leadership, co-ordinating appropriate resources and coverage, and leveraging the group's expertise to add value across products within the strategies.

Chetan joined Franklin Templeton in 1995 from Credit Rating Information Services of India Ltd, where he was a senior analyst.

Chetan holds a B.E. Mechanical (Hons) from the University of Bombay and a postgraduate diploma in Management from the Indian Institute of Management in Bangalore, where he specialised in finance and business policy and graduated as an institute scholar. Chetan speaks English and Hindi and is a Chartered Financial Analyst ('CFA') Charterholder.

Andrew Ness ASIP

Andrew Ness is a Portfolio Manager of TEMIT and is based in Edinburgh.

Prior to joining Franklin Templeton in September 2018, Andrew was a Portfolio Manager at Martin Currie. He began his career at Murray Johnstone in 1994 and worked with Deutsche Asset Management in both London and New York before joining Scottish Widows Investment Partnership in 2007.

Andrew holds a B.A. (Hons) in Economics and an MSc in Business Economics from the University of Strathclyde in the UK. He is an Associate Member of the UK Society of Investment Professionals and a member of the CFA Institute.

The investment managers' report

Outlook for emerging markets

In our Half-Yearly Report to 30 September 2024, we wrote that we have emerged from a volatile period in which worries about economic recession dominated investor sentiment. With the benefit of hindsight, what we experienced were ebbs and flows in what was perceived as volatility, and there will be more uncertainty for the foreseeable future.

Following US President Trump's 'Liberation Day' announcement of tariffs in April 2025, global equity markets have faced considerable turbulence.

We believe that the United States has three key objectives: to raise money to fund its deficit and restore the credibility of its financial systems, to add critical manufacturing capacity in the United States and to contain China. Whilst most countries are likely to negotiate and help the United States to achieve some of these objectives, there remains significant uncertainty on how this incipient trade war will pan out.

Tariffs, if implemented for an extended period would lead to slower economic growth and inefficiencies globally. Tariffs have also put into question the United States' exceptionalism. Investors may look to diversify away from the US which would also put pressure on the dollar. Valuations in EMs are also generally supportive. In tandem, valuations, currency and fund inflows should act as tailwinds for EMs.

In our view as long-term investors, we balance uncertainty with optimism in pockets of our investable universe. We continue to remain overweight on equities in Latin America; and in particular, Mexico and Brazil, as the region has been spared from the harshest tariffs. Mexico will also benefit due to its geographical proximity to the United States. The outlook for Brazilian equities looks to be on the mend as we expect Brazil to eventually reduce interest rates.

Slower global growth from tariffs and increased oil output from OPEC+ would likely result in an easing of energy prices. We remain underweight on the Middle East, due to its reliance on oil prices for economic growth.

Emerging Asia has its own strengths, which could help to buffer the negative impacts of tariffs. AI remains a strong growth area despite concerns on the monetisation of AI. This should be beneficial for South Korea and Taiwan, which are home to several large semiconductor companies which are key to driving the development of AI. This has flowed through to Chinese internet companies, which have benefitted as they progress with AI.

China is attempting to minimise the risks inherent in geopolitical tensions by keeping up with its policy support for its economy. While tariffs could further impact growth, valuations are supportive. Our approach towards Chinese equities is selective and our key holdings in internet companies give us a degree of comfort through their cash flows and shareholder returns, notwithstanding their growth potential resulting from AI developments.

India is probably better relatively positioned because of its large domestic market and limited dependence on trade exports. In addition, there no tariffs on services including the information technology sector. However, the recent escalation in tension between India and Pakistan has further added to global geopolitical uncertainty. Balancing what seems like a positive view on India is our selective approach as we maintain a watchful eye on valuations.

Reciprocal tariffs have been deferred and this provides a window of opportunity for trade negotiations. Most countries should be able to negotiate a trade deal, balancing between their national objectives and the demands of the United States.

Conclusion

While we do not know the exact impact of tariffs thus far, the portfolio is well positioned geographically, with an overweight positioning in Latin America and underweight positioning in the Middle East. The impact of tariffs on individual portfolio holdings will be clear only after the final tariff rates are announced.

The macroeconomic environment has been, and remains, decidedly tricky and intertwined with a multitude of headwinds and risks.

We have built considerable expertise in the emerging market equity asset class, which has guided us to outperform in a complex environment; and we hope that we have shown this throughout the course of this report. We continue to abide by our investment approach and seek opportunities across equity markets, focusing on companies that, in our assessment, have long-term earnings power. We find that this is especially crucial in the current circumstances.

Review of performance(a)

Emerging markets ('EMs') advanced over the 12 months ended 31 March 2025. While this may be interpreted positively, the year was marked by volatility and was a challenging period for equity investing. We credit our investment approach to steering the performance of TEMIT to deliver returns that were superior to the benchmark. Our investment philosophy is anchored in a bottom-up process to finding companies that our analysis indicates have sustainable earnings power and whose shares trade at a discount relative to their intrinsic worth. The MSCI Emerging Markets (Net Dividends) Index returned 5.8% in the 12-month period under review, while TEMIT delivered a net asset value total return of 8.8% (all performance figures are net total return in sterling terms)(b). Full details of TEMIT's performance can be found on page 4.

Three macro themes have triggered price movements:

Elections: Several EM countries such as India, Indonesia, Mexico, South Africa and Thailand held elections. Equities in India and Mexico fluctuated around the times of their elections. While Indian equities benefited as the incumbent prime minister won the elections and gave rise to expectations of policy continuity, elections in Mexico posed a drag on the prices of Mexican equities as the strong victory of its ruling party caught investors by surprise. This led to concerns over the potential for anti-market reforms. As the new United States President came into power concerns were raised over the potential imposition of import tariffs and the move by the United States government to become more isolationist and protectionist, which caused broad-based declines across markets. Volatility increased sharply immediately after our financial year-end and is discussed under Outlook below.

Artificial intelligence ('AI'); this investment theme was disrupted by concerns over the ability of companies to convert potential into profitable business over the long term and then by the emergence of lower cost alternative approaches in China. These factors led to increased volatility in the share prices of companies which had been seen to be beneficiaries of AI.

Geopolitics; these concerns remained a mainstay, where the conflict between Israel and Hamas militants and that between Russia and Ukraine continued unabated. EM equities could not escape pressures from concerns over a recession in the United States. However, the US Federal Reserve's eventual interest rate cut infused a bout of optimism globally, including in EMs.

By region as measured by the MSCI Emerging Markets Index, all regions advanced save for Latin America. The reasons behind each country's equity market performance are detailed below for TEMIT's largest-weighted country exposures.

China/Hong Kong

TEMIT's largest market exposure, although the portfolio remained underweight relative to the benchmark. Chinese equities rose by over 37% in sterling terms over the 12-month period. This outperformance was supported by the government's policies to boost the country's economic growth and equity market. The government announced measures that encompassed a programme for share buybacks and a swap facility to shore up the equity market. The release of Chinese startup DeepSeek's AI models, which have been reported to be on a par with or better and cheaper than other AI models, sparked a wave of interest in Chinese equities. Investors were impressed by China's ability to innovate despite efforts by the US to limit the development of sophisticated technology in the country. The Chinese government's renewed focus on technology as tabled in its government work plan announced in March 2025 and the President's high-profile meeting with some of the biggest names in China's technology sector were viewed as signs of support for the sector and sent technology stock prices even higher. Our approach towards Chinese equities continues to be selective. Whilst policy support has resulted in a return of investor interest, we are sceptical of the benefits of these policies in the longer term. Reviewing the macroeconomic background, we have not yet observed any meaningful change in demand; and the declining and ageing population remains a key structural challenge. Our Chinese exposure is largely to internet companies. Notwithstanding their growth potential from AI developments, Chinese internet companies give us an additional degree of comfort through their cash flows and shareholder returns.

(a) All benchmark performance as per the MSCI Emerging Markets (Net Dividends) Index. (b) See Glossary of Alternative Performance Measures on pages 114 and 115.

Taiwan

TEMIT's second-largest market exposure, where the portfolio was weighted on par versus the benchmark. The Taiwanese equity market performed satisfactorily and ended the 12-month period with a gain of over 2% in sterling terms. Expectations of higher earnings growth bolstered by AI lifted performance earlier in the period. This optimism was offset to an extent by uncertainties around monetisation of AI investments. Investment sentiment soured thereafter as investors braced for US tariffs. The portfolio's exposure to the country is concentrated in the island's semiconductor industry and TEMIT's largest portfolio holding, which is in Taiwan Semiconductor Manufacturing Company ('TSMC'). TSMC, despite its dominance in the semiconductor industry, is not immune to trade uncertainties. The company announced plans to increase its investment in the US amid tariff concerns. Using a longer-term lens, we remain positive on the semiconductor industry and believe that AI will continue to experience strong growth, which should benefit semiconductor companies as they make up a key component of the AI supply chain. Beyond AI, semiconductors are essential components used in a myriad of industries. We maintain a positive long-term view on both Taiwan's semiconductor industry and TSMC.

South Korea

TEMIT's third-largest market exposure, where the portfolio was overweight versus the benchmark. South Korean equities lost just under 23% in sterling terms during the reporting period, as the technologyheavy market struggled with near-term oversupply in the electronic memory market. Investor confidence in South Korean equites eroded over domestic political uncertainties, following declaration and subsequent lifting of Martial Law by the President in December 2024. The Korean won devalued. The market struggled as optimism on AI, which should benefit memory chips, was dampened by slowing demand growth for legacy memory products. The market decline was driven by the country's most valuable company, Samsung Electronics, as its share price was pressured over concerns of the company's perceived loss of technological leadership. We expect the supply-demand imbalance for memory chips to improve driven by supply tightness and demand for chips for the development of AI applications. Our overweight position in South Korea includes companies that are positioned to capture longer-term structural growth drivers in the form of semiconductors and artificial intelligence (Samsung Electronics and SK Hynix), the green transition (Samsung SDI and LG Corp) and dominant internet search platform integrating e-commerce, payments and digital content (NAVER).

India

TEMIT's fourth-largest market exposure. This was an equity market which saw tides change repeatedly in a relatively short period. First half gains were offset by second half losses to end the period flat. Indian equities started the first half of the period with an advance of more than 11% (in sterling terms), benefitting from positive economic data and expectations of policy continuity from the incumbent prime minister Narendra Modi's coalition party. The positive backdrop did not last for long and investment sentiment soured in the second half of the period with returns flat over the full 12-month period. Corporate earnings for the second and third quarters of the 2025 fiscal year were below investor expectations and gave rise to concerns on a probable growth slowdown. A slowdown in consumption was also experienced. While valuations are still a concern for us, recalling that our investment approach hinges on finding companies whose shares according to our analysis trade at a discount relative to their intrinsic worth, we continue to see attractive opportunities in India. While the country is one of TEMIT's largest absolute weighting allocations, it is still underweight relative to the benchmark.

Brazil

TEMIT's fifth-largest market exposure with equities in Brazil finishing the reporting period with losses of more than 15%. Defying the trajectory of most other central banks, Brazil started to raise interest rates to control the country's level of inflation as well as to protect its currency. We believe that the interest rate hikes should be a short-term phenomenon and rates should converge with the global interest rate cycle in due course.

Other Emerging Markets

There were initial signs of abatement in geopolitical conflicts which proved positive for emerging EMEA equities, but as of end of March 2025, these negotiations had stalled. South Africa's equity market experienced a rally following the country's elections. President Cyril Ramaphosa won a second successive term and formed a coalition government.

The Mexican equity market declined following the country's elections. Concerns regarding anti-market reforms and the signing of a controversial judicial reform into law pressured Mexican equities. Uncertainties on US tariffs also led to some market volatility towards the end of the period.

Investment strategy, portfolio changes and performance attribution

The following sections show how different investment factors (stocks, sectors and countries) accounted for TEMIT's performance over the 12-month period. We continue to emphasise our investment process that selects companies based on their individual attributes and ability to generate risk- adjusted returns for investors, rather than taking a high-level view of sectors, countries or geographic regions to determine our investment allocations.

Full details of our investment process, philosophy and approach are detailed on page 29.

Our well-resourced, locally based, teams remain a key competitive advantage and it has been particularly helpful having teams on the ground, in the benchmark-heavyweight countries of China, India and Brazil, to help us better understand these markets. This local presence allows us to understand business models, competitive dynamics and supply-chain issues. We have also managed to get insights into regulatory conversations and management capabilities, which are factored into our analysis. We view our locally based teams, which are armed with vast knowledge of the respective countries' macroeconomic issues and views on the ground, as vital sources of input into the investment process. This complements our global presence, which allows us to analyse short-term uncertainties and determine if these are reflective of cyclical or structural trends.

In the portfolio, we remain positioned in long-term themes including consumption premiumisation, digitalisation, health care and technology. We focus on companies reflecting our philosophy of owning good quality businesses, with long-term sustainable earnings power and share prices at a discount to intrinsic worth. We see high levels of leverage as a risk and continue to avoid companies with weak balance sheets.

Performance Attribution Analysis %

Year to 31 March
	2025	2024	2023	2022	2021
Net Asset Value Total Return(a)	8.8	7.9	0.8	(17.3)	54.5
Expenses Incurred	0.9	1.0	1.0	1.0	1.0
Gross Total Return(a)	9.7	8.9	1.8	(16.3)	55.5
Benchmark Total Return(a)	5.8	5.9	(4.9)	(7.1)	42.3
Excess return(a)	3.9	3.0	6.7	(9.2)	13.2
Stock Selection	2.7	0.3	7.3	(10.2)	6.0
Sector Allocation	1.6	2.1	(0.4)	0.8	6.5
Currency	(0.7)	0.3	(0.2)	0.2	0.6
Share Buyback Impact	1.2	0.5	0.2	0.0	0.3
Residual Return(a)	(0.9)	(0.2)	(0.2)	–	(0.2)
Total Contribution	3.9	3.0	6.7	(9.2)	13.2

This table sets out the results of a detailed analysis of the returns produced by the TEMIT portfolio, how this compares with the theoretical returns available from the benchmark index and factors affecting the comparison with the returns of the benchmark index.

Source: FactSet and Franklin Templeton.

(a) A glossary of alternative performance measures is included on pages 114 and 115.

Top 10 Contributors and Detractors to Relative Performance by Security (%)(a)

	Top Contributors	Contribution to portfolio relative to MSCI Emerging Markets Index	Top Detractors	Contribution to portfolio relative to MSCI Emerging Markets Index
Overweight	Prosus	1.3	Samsung SDI	(1.2)
(TEMIT holds more than the index weight)	Alibaba	1.3	LG Corp	(0.8)
	Genpact	0.9	Samsung Electronics	(0.7)
	China Merchants Bank	0.7	Grupo Financiero Banorte	(0.7)
	Discovery	0.7	Samsung Life Insurance	(0.4)
	Kasikornbank	0.5	Soulbrain	(0.4)
	Uni-President China	0.4	Banco Bradesco	(0.4)
	ICICI Bank	0.4
	WuXi Biologics	0.4
Underweight	Reliance Industries	0.5	Xiaomi	(0.9)
(TEMIT has no holding or			China Construction Bank	(0.4)
a holding smaller than the index weight)		BYD	(0.4)

This table sets out the results of a detailed analysis of the returns produced by individual securities in the TEMIT portfolio, and how this has affected the overall returns produced by the

benchmark index.

portfolio compared with theoretical returns available from the

An off benchmark holding in Prosus served the portfolio well. Prosus is a leading global investment company and the largest shareholder of Tencent (also held directly by TEMIT), a Chinese technology company. The company also has investments in several food delivery platforms in different parts of the world. Its share price tracked that of Tencent's stock, which rose on the company's release of its earnings results for several quarters, a slew of stimulus measures in China and investor enthusiasm for China's technology companies after breakthroughs in China's AI capabilities. Regular buybacks also aided the performance of Prosus in the period.

Also finishing higher over the 12-month period were shares of Chinese e-commerce company Alibaba. Its share price received support from investor expectations that the company could be included in the Hong Kong Stock Connect in late 2024 (which eventually happened), and that the company's new strategy to charge merchant service fees could potentially boost its revenue. China's stimulus measures to boost the country's economy and equity market, Alibaba's strong December quarter results announcement and the company's optimism and commitment to invest in AI boosted share price returns as well. Alibaba remains a key holding in the portfolio's China exposure. The company continues to generate strong cash flows, in our assessment, and we expect share-price appreciation to be supported by corporate actions, including share buybacks.

Another stock that the portfolio held outside of the index is Genpact, a US-listed technology services company that derives much of its earnings from services provided from India. Its share price rose on consistently strong earnings results for the last three quarters of 2024. The fourth-quarter results showed improved execution and progress on its strategic initiatives. (a) For the period 31 March 2024 to 31 March 2025.

South Korea-based Samsung SDI is a leading manufacturer of lithium-ion batteries for electric vehicles ('EVs'), energy storage, power tools and information technology products. Its share price declined due to its weak quarterly results. Utilisation of its key plants has been impacted by weak demand as well as loss of market share with its key clients. Concerns of a reduction in US tax credits under the new US Government also pressured its share price. The company also announced a rights issue to fund its capital expenditure plan. Fundamentals deteriorated significantly and the share price reacted accordingly. While the near term looks challenging, the company also owns a meaningful stake in Samsung Display, a manufacturer of OLED (organic light emitting diode) panels, and any monetisation there should help to crystallise value.

LG Corp is a South Korean holding company and owns stakes in several companies across various industries including electronics, chemicals, electric vehicle ('EV') batteries and household products. LG Corp's share performance has been impacted by weak earnings for its key holdings. By way of example, LG Chem, an associate of LG Corp, reported weak results due to a sluggish petrochemical sector, as well as slower-than-expected growth for the EV sector. Its share price continues to trade at significant discount to its net asset value (NAV). The company has been buying back shares, which should help narrow the discount to its NAV.

Samsung Electronics is one of the largest semiconductor memory manufacturers in the world. It also manufactures a wide range of consumer and industrial electronics and equipment. The company reported tepid results, which were impacted by a weaker memory cycle as well as a low share in high-margin high bandwidth memory ('HBM'). The company seems to have lost its technological leadership in the memory segment and is lagging in the advanced chips being used for AI servers. Nonetheless, it remains one of the key companies in the highly consolidated memory market and should benefit from the rise in demand for memory products which has been further accentuated by growth in AI models.

Contributors and Detractors to Relative Performance by Sector (%)(a)

	Top Contributors	Contribution to portfolio relative to MSCI Emerging Markets Index	Top Detractors	Contribution to portfolio relative to MSCI Emerging Markets Index
Overweight	Consumer Discretionary	1.7	Information Technology	(1.7)
(TEMIT holds more than the index weight)	Financials	0.6
	Industrials	0.3
Underweight	Consumer Staples	1.1	Communication Services	(0.4)
(TEMIT has no holding or a holding smaller than the index weight)	Energy	0.8
	Health Care	0.4
	Materials	0.4
	Utilities	0.2
	Real Estate	0.1

The table above shows the contribution of the overall portfolio returns of the different sectors within the TEMIT portfolio relative to the MSCI Emerging Markets Index.

Stock selection in the consumer discretionary, consumer staples and energy sectors were key drivers of these sectors' relative contribution, but allocations played a supporting role in boosting TEMIT's performance relative to the benchmark index during the 12-month period under review. Our bottom-up stock-picking process led to a slight overweight in consumer discretionary, and underweight exposures to consumer staples and energy. Within the consumer discretionary sector, Alibaba and Prosus (both described above) are examples of companies that aided relative returns. The contribution from the consumer staples sector was partially driven by our holding in Uni-President China, a manufacturer and retailer of beverages and instant noodles. Its share price received several boosts in the year, including from its full-year 2024 results where earnings growth proved steady.

In contrast, stock selection and allocations in the information technology (overweight) and communication services (underweight) sectors proved slightly detrimental for TEMIT's relative performance. The information technology sector was driven lower by holdings in Samsung SDI and Samsung Electronics (both described above). A lack of exposure to China-based consumer electronics, software and hardware designer Xiaomi weighed on TEMIT's performance relative to the sector. The weakness in the communication services sector was partially due to TEMIT's holding in NAVER, a South Korean internet search and advertising company with additional business interests in e-commerce, financial services and entertainment content. The share price weakened as a result of a combination of factors including weaker growth in the market, competition for both its advertisement and e-commerce business, an underwhelming response to its generative AI technology and uncertainty around benefits from AI investments. The company suffered a data leak in its messaging application Line in Japan and the potential implications of this also pressured the share price. While the company's share price recovered on the back of its third- and fourth-quarter 2024 earnings results, which marked better growth in advertising revenue and an improvement in cost controls, the stock still ended with a decline for the period.

Contributors and Detractors to Relative Performance by Country (%)(a)

	Top Contributors	Contribution to portfolio relative to MSCI Emerging Markets Index	Top Detractors	Contribution to portfolio relative to MSCI Emerging Markets Index
Overweight	Taiwan	1.5	South Korea	(3.1)
(TEMIT holds more than the index weight)	United States	0.8	Brazil	(0.2)
			Hungary	(0.1)
Underweight	India	2.6	United Arab Emirates	(0.2)
(TEMIT has no holding or a holding smaller than the index weight)	China/Hong Kong	0.7	Poland	(0.1)
	Indonesia	0.5

The table above shows the contribution of the overall portfolio returns by country relative to the MSCI Emerging Markets Index.

By markets, stock selection and allocations in India (underweight) and Taiwan (overweight) added to a positive contribution from stock selection in China. Our selective approach in India resulted in TEMIT owning several holdings in the financials sector that proved accretive, namely private sector banks ICICI Bank and HDFC Bank, and investment holding company Bajaj Holdings & Investment. Once again, TSMC aided relative returns in Taiwan. In China, Prosus and Alibaba were leading contributors.

Conversely, overweight allocations in both South Korea and Brazil led these markets to be among the top detractors from relative returns. Stock selection in South Korea also pressured the portfolio's relative performance. Samsung Electronics, LG Corp and Samsung SDI were key drivers of the portfolio's lacklustre performance in South Korea. In Brazil, the share prices of TEMIT's holdings in banks Banco Bradesco and Itaú Unibanco led detractions as they moved in tandem with the performance of the general Brazilian equity market. The United Arab Emirates was also a relative detractor, largely due to stock selection.

Top 10 Holdings

As at 31 March 2025

	Portfolio		Benchmark	Over/(Under)
Holding	£'000	%	%	weight %
TSMC The world's largest semiconductor foundry company, which is based in Taiwan. Optimism regarding the growth potential from AI and a recovery in the demand for technology products have been moderated by uncertainty about US policies, reports that TSMC might have to take a stake in Intel's factories, and its increased investment in the United States. TSMC still remains a key portfolio holding. Encouraged by the structural growth in demand for computing and the company's technology leadership, we remain confident in the resilience of the TSMC business model.	229,057	11.4	8.6	2.8
ICICI Bank A leading India-based private sector bank and the portfolio's second-largest holding. Its share price has seen sustained appreciation over the past years and the bank has been a key contributor to overall fund performance. This highlights the value of our longer-term, fundamentally driven investment process, which we continue to employ. We believe that the bank, with its strong franchise, remains well positioned to benefit from the India growth story.	105,274	5.3	1.1	4.2
Prosus A leading global investment company and the largest shareholder of Tencent, a Chinese technology company. We see Prosus as a good proxy for Tencent exposure and is available at a discount to its NAV. Besides Tencent, Prosus has a diversified portfolio of internet assets in areas such as food delivery, payment, education technology, e-commerce. Management's efforts to narrow the share price discount to NAV via share buybacks should also support returns.	98,029	4.9	–	4.9
Alibaba The leading e-commerce company in China. While intensified competition and a weak economy have impacted the growth outlook for its e-commerce business, its other businesses such as cloud, fintech, local commerce and international e-commerce have significant potential, in our view. We believe that these could offer either growth opportunities or the possibility for improvements in profitability. The share price had experienced a significant derating over the past couple of years, but its initial success in AI and plans for large investments in AI has sparked investor optimism. While this should drive growth, cash flows could be weaker in the near term. The company has a strong share buyback policy. We expect returns from here to be supported by such corporate actions.	93,128	4.7	3.4	1.3
Samsung Electronics One of the largest memory semiconductor manufacturers in the world, based in South Korea. It also manufactures a wide range of consumer and industrial electronics and equipment. The relatively weak share price reflects concerns around the company's loss of technology leadership. Nonetheless, it remains one of the key companies in the highly consolidated memory market, and should benefit from the rise in demand for memory products which has been further accentuated by growth in AI models.	75,492	3.8	2.4	1.4
SK Hynix A South Korean semiconductor company and a maker of memory chips used globally across a wide range of solutions. The company is the industry leader in HBM chips, which are expected to see strong demand growth for AI applications. We continue to maintain our conviction, largely due to its leadership position in the latest generation of the HBM market.	66,433	3.3	0.9	2.4

Holding		Portfolio		Over/(Under)
		%	Benchmark %	weight %
Tencent The largest gaming, communication and social entertainment platform in China. It has a major presence in online games, digital advertising, video, music and live-streaming, fintech, and other businesses such as cloud computing. We believe that the company should be a key beneficiary of AI across its business segments. Tencent also has significant public and private investments in China and globally. Trading at an attractive valuation, the company has been proactively undertaking share buybacks, which further enhances its earnings per share.	64,692	3.2	5.3	(2.1)
HDFC Bank India's leading private sector bank. It offers a wide range of banking services across retail banking, home loans and mortgages, and wholesale/corporate banking. HDFC Bank is a clear leader among Indian private sector banks with a strong liability franchise, market leadership across multiple retail asset categories and a comprehensive approach to digitalisation. It is well-positioned to benefit from the anticipated acceleration in credit growth and the increasing share of financial assets in household savings in India.	58,225	2.9	1.5	1.4
MediaTek MediaTek is a Taiwan-based chip designer for smartphones and other technology devices. These devices include televisions, wireless communications and optical storage. MediaTek has a solid position in mobile computing chips and we believe that it should benefit from growth in demand for chips from IoT ('Internet of Things'), automotive, industrial, and wi-fi applications. Its partnership with Nvidia (not a portfolio holding) to provide advanced automotive chips integrating Nvidia's graphic processors as well as opportunities in enterprise application specific chips should drive additional growth.	56,951	2.9	0.8	2.1
Petrobras Petrobras is a Brazilian energy company engaged in the exploration, production, and distribution of oil and gas. The company is recognised worldwide for its oil exploration technology in ultra-deep waters. With the unpredictability in oil prices, our investment in Petrobras hinges on its proactive policy of returning cash to shareholders. It remains our top pick in the oil and gas industry, given its large cash generation and high dividend yield.	50,502	2.5	0.4	2.1

Portfolio Changes by Country

						Total Return in Sterling
Country	31 March 2024 Market Value £m	Purchase £m	Sales £m	Market Movement £m	31 March 2025 Market Value £m	TEMIT %	MSCI Emerging Markets Index %
China/Hong Kong	490	129	(243)	173	549	42.3	37.2
Taiwan	358	8	(63)	32	335	9.5	2.3
South Korea	426	110	(88)	(116)	332	(25.0)	(22.6)
India	247	76	(70)	40	293	14.8	(0.4)
Brazil	186	23	(1)	(36)	172	(10.8)	(15.4)
United States	62	4	(12)	18	72	28.3	–
Thailand	49	11	(1)	5	64	14.2	(6.8)
South Africa	20	13	(3)	16	46	49.8	25.8
Mexico	48	13	–	(18)	43	(30.7)	(22.4)
Hungary	30	1	(5)	–	26	1.4	31.0
Others	79	11	(21)	2	71	–	–
Total Investments	1,995	399	(507)	116	2,003

Geographic Asset Allocation

As at 31 March 2025

Country Weightings vs Benchmark (%)(a)

TEMIT MSCI Emerging Markets Index

Sector Asset Allocation

As at 31 March 2025

Sector Weightings vs Benchmark (%)

TEMIT MSCI Emerging Markets Index

(a) Other countries included in the benchmark are Colombia, Czech Republic, Egypt, Greece, Kuwait, Malaysia, Poland, Qatar, Saudi Arabia and Turkey. (b) Countries not included in the MSCI Emerging Markets Index.

(c) All companies held by TEMIT in this country are valued at zero.

Portfolio by Fair Value

Holding	Sector	Fair Value £'000	% of Portfolio
Brazil
Petrobras(a)	Energy	50,502	2.5
Itaú Unibanco(a)(b)	Financials	38,030	1.9
Banco Bradesco(a)(b)	Financials	26,910	1.4
Vale	Materials	20,720	1.0
TOTVS	Information Technology	10,414	0.5
XP	Financials	9,657	0.5
Hypera	Health Care	8,577	0.4
Oncoclinicas do Brasil Servicos Medicos	Health Care	7,141	0.4
		171,951	8.6
Cambodia
NagaCorp	Consumer Discretionary	3,684	0.2
		3,684	0.2
Chile
Banco Santander Chile(b)	Financials	20,319	1.0
		20,319	1.0
China/Hong Kong
Prosus	Consumer Discretionary	98,029	4.9
Alibaba(c)	Consumer Discretionary	93,128	4.7
Tencent	Communication Services	64,692	3.2
China Merchants Bank	Financials	38,371	1.9
Techtronic Industries	Industrials	35,988	1.8
Budweiser Brewing Company APAC	Consumer Staples	31,587	1.6
Baidu	Communication Services	24,136	1.2
Ping An Insurance	Financials	22,603	1.1
Kuaishou Technology	Communication Services	20,228	1.0
WuXi Biologics	Health Care	19,525	1.0
NetEase	Communication Services	18,274	0.9
Weichai Power	Industrials	17,728	0.9
Uni-President China	Consumer Staples	15,472	0.8
Haier Smart Home	Consumer Discretionary	12,858	0.6
JD.com	Consumer Discretionary	8,240	0.4
Daqo New Energy(b)	Information Technology	7,501	0.4
COSCO SHIPPING Ports	Industrials	6,193	0.3

Holding	Sector	Fair Value £'000	% of Portfolio
China/Hong Kong
H&H Group	Consumer Staples	5,042	0.2
Beijing Oriental Yuhong Waterproof Technology	Materials	3,780	0.2
Greentown Service Group	Real Estate	3,360	0.2
Weifu High-Technology	Consumer Discretionary	2,229	0.1
China Resources Building Materials Technology	Materials	331	0.0
		549,295	27.4
Hungary
Gedeon Richter	Health Care	23,706	1.2
Wizz Air Holdings	Industrials	2,043	0.1
		25,749	1.3
India
ICICI Bank	Financials	105,274	5.3
HDFC Bank	Financials	58,225	2.9
Swiggy	Consumer Discretionary	37,873	1.9
Infosys	Information Technology	18,179	0.9
Federal Bank	Financials	15,595	0.8
Zomato	Consumer Discretionary	13,862	0.7
ReNew Energy Global	Utilities	12,307	0.6
Bajaj Holdings & Investment	Financials	11,343	0.5
ACC	Materials	9,155	0.4
Brigade Enterprises	Real Estate	5,758	0.3
Niva Bupa Health Insurance	Financials	3,851	0.2
NATCO Pharma	Health Care	1,425	0.1
Hexaware Technologies	Information Technology	297	0.0
		293,144	14.6
Indonesia
Astra International	Industrials	11,460	0.6
		11,460	0.6
Mexico
Grupo Financiero Banorte	Financials	41,228	2.1
Nemak	Consumer Discretionary	2,034	0.1
		43,262	2.2

Holding	Sector	Fair Value £'000	% of Portfolio
Peru
Intercorp Financial Services	Financials	9,855	0.5
		9,855	0.5
Philippines
BDO Unibank	Financials	9,750	0.5
		9,750	0.5
Russia
LUKOIL(d)	Energy	0.0	0.0
Sberbank of Russia(d)	Financials	0.0	0.0
		0.0	0.0
South Africa
Discovery	Financials	31,049	1.6
Netcare	Health Care	14,901	0.7
		45,950	2.3
South Korea
Samsung Electronics	Information Technology	75,492	3.8
SK Hynix	Information Technology	66,433	3.3
NAVER	Communication Services	35,036	1.7
Samsung Life Insurance	Financials	31,215	1.6
LG Corp	Industrials	27,221	1.4
Delivery Hero	Consumer Discretionary	21,993	1.1
Doosan Bobcat	Industrials	20,961	1.0
Hyundai Motor	Consumer Discretionary	20,053	1.0
Samsung SDI	Information Technology	10,662	0.5
Fila	Consumer Discretionary	9,858	0.5
Soulbrain	Materials	5,654	0.3
LigaChem Biosciences(e)	Health Care	3,373	0.2
Hankook Tire	Consumer Discretionary	3,154	0.2
KT Skylife	Communication Services	1,031	0.0
		332,136	16.6

Holding	Sector	Fair Value £'000	% of Portfolio
Taiwan
TSMC	Information Technology	229,057	11.4
MediaTek	Information Technology	56,951	2.9
Hon Hai Precision Industry	Information Technology	36,522	1.8
Yageo	Information Technology	6,738	0.3
Lite-On Technology	Information Technology	5,865	0.3
		335,133	16.7
Thailand
Kasikornbank	Financials	33,692	1.7
Minor International	Consumer Discretionary	12,418	0.6
Kiatnakin Phatra Bank	Financials	6,836	0.3
Thai Beverage	Consumer Staples	6,624	0.3
Star Petroleum Refining	Energy	4,009	0.2
		63,579	3.1
United Arab Emirates
Emirates Central Cooling Systems	Utilities	10,007	0.5
Spinneys	Consumer Staples	5,319	0.3
		15,326	0.8
United States
Genpact(f)	Industrials	40,378	2.0
Cognizant Technology Solutions(f)	Information Technology	31,646	1.6
		72,024	3.6
Total Investments		2,002,617	100.0

(d) This company is fair valued at zero as a result of its trading being suspended on international stock exchanges.

(e) This company changed its name from LegoChem Biosciences.

⁽a) Preferred shareholders are entitled to dividends before ordinary shareholders.

⁽b) US listed American Depository Receipt.

⁽c) TEMIT holds in this company shares listed on the Hong Kong stock exchange and American Depository Receipts listed on the New York stock exchange.

⁽f) This company, listed on a stock exchange in a developed market, has significant exposure to operations from emerging markets.

Market Capitalisation Breakdown %	Less than £1.5bn	£1.5bn to £5bn	£5bn to £25bn	Greater than £25bn
31 March 2025	3.6	9.2	27.7	59.5
31 March 2024	4.6	12.6	23.3	59.5

Split Between Markets %(a)	31 March 2025	31 March 2024
Emerging Markets	96.2	95.8
Developed Markets(b)	3.6	4.0
Frontier Markets	0.2	0.2

In investment terminology, a developed market is a country that is most developed in terms of its economy and capital markets. To be classified as a developed market, the country must have a high average level of personal income, but this also includes openness to foreign ownership, ease of capital movement, and efficiency of market institutions. An emerging market is a market that has some characteristics of a developed market but does not fully meet its standards. This includes markets that may become developed markets in the future or were in the past. The term 'frontier market' is used for developing countries with smaller, riskier, or more illiquid capital markets than 'emerging'.

Chetan Sehgal Lead Portfolio Manager

6 June 2025

Source: FactSet Research System, Inc.

(a) Geographic split between 'Emerging markets', 'Frontier markets', 'Developed markets' are as per MSCI index classifications. (b) Developed market exposure represented by companies listed in United States which have significant exposure to operations in emerging markets.

The investment managers' process

Investment philosophy and approach

FTEME's long-term approach is driven by the 3 S's, seeking Structural growth opportunities in emerging markets, investing in businesses with Sustainable earnings power at a discount to intrinsic worth, and believing in responsible Stewardship of client capital. FTEME seeks to capture the growth potential of emerging market companies and believes that this is best achieved by employing a bottom-up and fundamental security selection process. FTEME conducts in-depth proprietary company research with a long-term and independent perspective. FTEME believes in the responsible stewardship of clients' capital and that governance and sustainability issues create risks and opportunities for companies. ESG analysis is therefore integrated as a key element of fundamental bottom-up analysis.

TEMIT's performance in different market environments

FTEME's approach aims for outperformance over the long term. The investment strategy tends to produce stronger performance when company fundamentals are the primary driver for stock returns, where a focus on stock selection should produce superior results. Performance may be less strong in highly sentiment-driven market environments, when investors focus more on the overall economic picture rather than company fundamentals.

This can also be the case when the market is overly short-term oriented, and rewards companies driven by what FTEME views as unsustainable factors such as short-term demand/supply imbalances or inorganic growth.

Investment process

The three broad stages of FTEME's investment process comprise: idea generation, stock research, and portfolio construction and management; with governance and sustainability considerations and risk management fully integrated at all stages.

Idea generation

1

The key source of idea generation is FTEME's team of over 70 analysts and portfolio managers located around the globe. Their experience and expertise allow them to identify trends which they may want to explore further through company research. In addition, FTEME's local presence, network and understanding of local dynamics may help to identify trends and opportunities that other market participants may filter out through standard quantitative screens. FTEME analysts speak the local language and are part of the local culture and fabric of the countries where they conduct research.

2

3 Stock research FTEME analysts conduct rigorous analysis to assess whether a company has sustainable earnings power, and to establish a proprietary estimate of its intrinsic worth. By integrating ESG analysis with traditional business and financial analysis, FTEME seeks to gain insights into the quality and risks of companies. FTEME's research platform currently has coverage of over 700 companies across emerging markets using a proprietary and rigorous bottom-up research approach, along with extensive knowledge of the wider investment universe.

FTEME's research analysts form detailed views of companies by collecting and analysing a variety of information. The team conducts detailed quantitative financial analysis by building in-depth company models to evaluate financial strength and profitability, and to project future earnings and cash flow. Industry demand and supply models are incorporated in the analysis, as well as country and currency macro considerations. FTEME has a strong emphasis on qualitative assessment.

The assessment of ability to sustain stable or growing economic profits over time is typically driven by a combination of factors, including (i) sound business models; (ii) sustainable competitive advantages; (iii) management foresight; and (iv) low debt levels. Earnings power is the demonstrable ability to generate sustainable economic profit into the future in areas which could be beyond the current scope of operations. The analysts look for real earnings growth by focusing on economic earnings and cash flows rather than reported earnings and differentiating between operational earnings and financial earnings. They evaluate internal versus external drivers to earnings and prefer companies with earnings which can be affected through management action.

A key element of earnings power is therefore quality, as signified by (i) products and services with low regulatory and macro risk; (ii) financial strength; and (iii) management strength.

Each research recommendation may incorporate several valuation methods extending typically over a three to five-year horizon. FTEME aims to clarify the risk/reward balance of a company by conducting sensitivity analysis, stress-testing, and scenario analysis. It seeks to identify what the market consensus expectations are for a stock and how the team's fundamental views may differ.

Portfolio construction

FTEME seeks to build a high-conviction stock-centric portfolio that is primarily driven by company-specific factors and focused on the long term. A bottom-up approach to stock selection is used, with country and sector allocations a residual of this process.

Portfolio style and characteristics

The strategy typically displays the following characteristics:

Core style

The strategy aims to deliver outperformance irrespective of market direction. The portfolio construction process leads to the majority of active risk being focused on stock selection, not style or currency factors.

Quality and growth but not at excessive valuation levels

The philosophy typically leads to a portfolio with higher quality and growth than the aggregate of the benchmark index.

High conviction portfolio

The top 10 holdings typically account for over 40% of the portfolio which overall is well-diversified across the market cap spectrum.

Low turnover

FTEME's high conviction and long-term approach means that the typical annual portfolio turnover is less than 20%.

Buy and sell discipline

FTEME's buy discipline is primarily designed to ensure that the portfolio managers buy when they have both conviction in a business and it is trading below its intrinsic value; FTEME's sell discipline is designed to capture the opposite. All holdings are regularly reviewed to ensure that analyst recommendations are up to date and accurately reflect any changes in company fundamentals. In this way, ongoing fundamental research drives all buy and sell decisions.

Investment risk management

Investment in emerging markets equities inevitably involves risk in a volatile asset class. Franklin Templeton uses a comprehensive approach to managing risks within its portfolios and this approach is inherent in all aspects of the investment process. Investment risks are to be identified and intentional, not minimised. Risk management is embedded through all stages of the investment process, in collaboration with dedicated resources from Franklin Templeton's Investment Risk Management Group, which is independent from the portfolio management team. Various risk management tools are used to predict and decompose the portfolio's active risk in order to understand and manage the portfolio's active risk profile.

For additional information with respect to the AIFM risk management framework, please read the Investor Disclosure Document on our website (www.temit.co.uk).

Stewardship

Templeton Emerging Markets Investment Trust ('TEMIT') seeks to capture the growth potential of emerging markets companies by employing a bottom-up security selection process with a long-term perspective. We aim to be a responsible steward of our clients' capital—that is why we integrate Environmental, Social and Governance ('ESG') factors into our investment research process to understand the financial risks and opportunities that stem from governance and sustainability issues.

Whilst governance and sustainability issues are analysed in our research, the findings are not binding on the stock selection process. TEMIT does not pursue any particular sustainable targets (e.g., carbon reduction) or objectives.

Being responsible stewards of our clients' capital is reflected in:

How we act as investors

• ESG integration
• Company engagement
• Policy advocacy

How we treat our clients

• Putting clients first
• Being responsible fiduciaries of our clients' capital

How we behave as a business

• Building relationships
• Achieving quality results
• Working with integrity

Integrating ESG factors

As part of TEMIT's stock research process, ESG factors are researched alongside other important factors, such as company earnings power, competitive positioning and management quality. These factors are likely to impact materially on the operating performance or financial conditions of a company. This deepens our understanding of the companies we research; it also guides us in our engagement activities over a range of issues, better informing our research insights, as we strive to protect shareholder value. Our proprietary three-pillar ESG research framework is an assessment tool that has further enhanced our ability to identify financial risk and opportunities.

Intentionality

Assessing companies' intentionality toward managing material ESG risks and their long term growth prospects and considering ESG factors in our valuation models.

Alignment

Assessing the alignment of companies' products and services to positive social and environmental outcomes.

Transition

Identifying companies' transition potential and monitoring their incremental progress, using our on-the-ground capabilities and experience as active owners to foster positive change.

Please find below a case study of a company's intentionality to manage the ESG footprint of its operating model from the full TEMIT Stewardship Report 2025 to give shareholders a snapshot of the typical intentionality analysis undertaken. Case studies of alignment and transition can also be found in the full TEMIT Stewardship Report 2025 at www.temit.co.uk.

Thai Beverage (ThaiBev)

One of Southeast Asia's largest beverage companies and the largest in Thailand.

ESG Topic: Water management

Materiality and Risk:

Companies in the Alcoholic Beverages industry require a large amount of clean water for production. They are potentially exposed to water supply disruptions that could significantly impact operations and increase costs. These risks can be managed by improving water management through increased efficiency and recycling, particularly in regions with baseline water stress

ESG Thesis:

ThaiBev places strong emphasis on sustainable water management. Recognising water as a critical resource, ThaiBev has implemented several initiatives to ensure efficient and responsible water use.

• ThaiBev aims to replenish 100% of water used in its Thai beverage products by 2040 and reduce water intensity by 7% by 2030, with a 5.33% reduction achieved as of 2024.(a)
• In 2024, ThaiBev reduced water usage by 8.8%, reused 2.7%, and recycled 4.7% of the total water withdrawn.(b)
• All ThaiBev production facilities are certified with the ISO 14001 environmental management standard.
• ThaiBev collaborates with suppliers in water-stressed areas to minimise water consumption, identifying 46% of key suppliers in high-stress regions.

Business Thesis:

ThaiBev holds a 90% share in Thailand's low-end spirits market and 40% in the beer market, benefiting from strong brand awareness and robust distribution. Despite limited pricing power, it maintains higher margins due to lower advertising and promotional (A&P) spending. ThaiBev controls 40% of Thailand's beer market but faces intense competition here, while significant A&P spending keeps margins relatively low. Overall, ThaiBev's strategic positioning and efficient operations underscore its market dominance and growth prospects.

(a) Source: Sustainability Report 2024, ThaiBev

(b) Ibid

TEMIT's research process includes a structured analysis of governance and sustainability issues. Whilst governance and sustainability issues are analysed in our research, the findings are not binding on the stock selection process. TEMIT does not pursue any sustainable targets (e.g., carbon reduction) or objectives.

Climate Change

Emerging market (EM) governments will need to adopt growth-enhancing fiscal and structural reforms that promote low-emission resilient investments, backed by productive and cost-effective climate policies, to achieve climate-compatible development. Against this backdrop, our objective to understand the climate commitments of our investee companies for company research incorporates both local and global perspectives, recognizing that the pace of decarbonization and the associated strategies will differ globally.

Our investment process incorporates top-down policy and industry studies, bottom-up company research and comprehensive ESG analysis including climate considerations,

Climate Risk

Weichai Power

Specialising in the production and sales of diesel engines, automobiles, and automobile components.

ESG Observations and Analysis:

• Weichai Power has launched several initiatives to enhance its environmental profile:
• Weichai Power invests in R&D to enhance engine technology, develop new energy industries, and optimize its industrial structure.
• In partnership with Bosch, Weichai launched the "Giving Everything to Protect the Blue Sky" campaign to reduce emissions and promote green development.
• Weichai is building a "National-Level Green Factory" to advance green and low-carbon transformation and implement sustainable practices.
• KION, Weichai's European subsidiary, targets a 4.2% annual reduction in Scope 1 and 2 GHG emissions and a 2.5% reduction in Scope 3 emissions by 2030, aiming for zero carbon emissions by 2050.

all of which help to deepen our research insights. Factoring material environmental issues into our company forecasts can lead to adjustments in growth projections, margin expectations or discount rates. In addition, as active stewards of our clients' capital, engagement is a key tool that enables us to understand and facilitate a company's sustainability journey, where financially material, which is supported by a local footprint and access to management.

We do not rule out investing in companies in carbon intensive sectors, such as cement, steel, industrials and extractive industries. As a material sustainability issue, carbon emissions management can impact a company's business model in various ways, including carbon taxes, technology upgrades and compliance costs.

ESG Thesis:

Weichai Power is committed to achieving carbon peaking by 2030 and carbon neutrality by 2060. As its ESG initiatives continue, we believe that Weichai Power is progressing well in achieving its emissions goals. The same commitment extends across the group. Subsidiaries of Weichai, such as Shaanxi Heavy Duty Automobile and KION Group, also have specific targets for reducing energy consumption and emissions.

Business Thesis:

Weichai Power, a leader in diesel and LNG engines, is diversifying into construction machinery, agricultural equipment, generator, and vessel engines, while pioneering hydrogen technology with fuel cell products and trucks. It plans to build an electric powertrain supply chain and launch electric and hybrid trucks. Synergies with its European subsidiary KION, a key player in forklifts and supply chain solutions, will enhance growth and efficiency in both markets.

Active ownership

As investors with a significant presence in emerging markets, FTEME's active ownership efforts are a key part of the overall approach to stewardship and sustainability. FTEME analysts conduct almost 2,000 company meetings a year across the investment platform using its industry-leading research footprint across emerging markets, where FTEME seek to gain a number of fundamental and sustainability insights. We believe that our engagement efforts are key to developing a detailed understanding of companies and improving outcomes for shareholders as well as stakeholders more broadly.

Effective engagement

In 2024, we redefined what we mean by engagement, distinguishing between seeking change at a company and a discussion with a company when it related to sustainability and governance issues. Our proprietary Emerging Markets Research Database (EMDB), where we document our research and record our company interactions, was adjusted accordingly. This enabled us to enhance our practice and outcomes; build more consistency and transparency; and improve reporting to our clients.

With this updated framework, we had 340 company meetings this past year, comprising discussions and engagement with management across a range of topics. This allowed us to better understand the businesses' intentions and initiatives. We also shared our views on the risks and opportunities that may affect the companies' long-term success. The following section details our discussions and engagement activities involving ESG topics over the year.

ESG Discussion ESG Engagement

This is a targeted interaction to gather material ESG information through a company call, meeting or a one-time short-term discussion.

Clarifying View Seeking Change or Improved Disclosure

This is a targeted interaction to influence change related to material ESG topics and risks, including improved ESG disclosures. Each ESG engagement must have a specific and clearly defined objective to measure progress against. This interaction entails a sustained, medium-to long-term dialogue.

To coordinate and oversee the engagement efforts of our platform of 70+ investment professionals across 13 countries, we also created the FTEME Engagement Group comprising seven regional coordinators from the research analyst team. This group includes a representative from each key region that will bring cross-border perspectives and provide guidance on best practices.

Engagement statistics

We focus our time and efforts on material issues that affect the sustainability of earnings, and a company's operating model, including strategy. Our analysts are in continual dialogue with companies on a range of topics, including operational performance, competition landscape, business outlook and company financials, to name a few. There are also companies which we identify where we believe that dedicated discussions and engagements on ESG topics can impact long-term performance. A full report on the nature and outcome of these

meetings, where relevant is available in the Stewardship Report available at www.temit.co.uk. Given our long-term outlook, we build strong relationships with our investee companies as co-owners on our clients' behalf.

For the 12 months ended 31 March 2025, of the 340 company engagements, there were 60 tagged ESG interactions, 22 ESG discussions and 38 ESG engagements, where detailed interactions were conducted with an investee company.

This table records the independent milestones to measure our process to an objective set in our ESG engagements.

Below is an ESG engagement example with an investee company in China.

Company:	Objectives:
WuXi Biologics A global leader in open-access biologics technology	We wrote to the board of WuXi Biologics to express our concern about the potential implications of the Biosecure Act in the US, which aims to prohibit contracting with certain biotechnology firms deemed national security risks, including WuXi AppTec and its subsidiaries such as WuXi Biologics. We urged the board to take proactive steps to alleviate the impact and put in place a suitable plan to safeguard stakeholder interests.
ESG engagement topic:	Outcome: Plan formulated
Corporate Governance – Strategic risk and communication	Our letter was followed by a call with WuXi Biologics' management, which shared plans to ensure normal business operation and protect shareholders' rights. This may entail changing its corporate governance structure to clear its association with WuXi AppTec and become a more global entity. Our engagement continued throughout 2024 as we monitored the steps taken

Proxy voting

In the year ended 31 March 2025, FTEME voted on over 1,000 management proposals at annual and special general meetings for TEMIT.

to mitigate the potential impact.

Of the voteable management proposals, we voted "For" proposals 91% of the time and "Against" in another 9%. By proposal category, as a percentage of votes within each category and where we had a total of 10 votes or more, our votes against were largely concentrated on capital structure, management compensation, company articles and strategic transactions.

Percentage figures rounded to the nearest whole number. Source: ISS

FTEME view votes against proposals as a formal way to communicate our views to management, and we undertake them based on our investment team's assessment of each motion, in line with our clients' best interests.

The number of resolutions proposed by shareholders (as distinct from a company's governing board) is increasing around the world, particularly on environmental and social issues, although they remain relatively uncommon in emerging markets. We encountered several governance-related shareholder proposals over the year. For TEMIT's portfolio, we voted "For" on 15 governance related shareholder proposals. These were across several categories, such as director elections and audit related. We will continue to closely examine the merits of views raised by fellow shareholders and vote accordingly.

We encourage you to download the full TEMIT Stewardship Report 2025 from www.temit.co.uk for further, detailed information.

Business review

Strategy and business model

Company purpose and objective

TEMIT's purpose is to provide both private and institutional investors with the opportunity for capital appreciation via a professionally managed vehicle focused on listed equity investments in emerging markets.

The objective of TEMIT is to provide long-term capital appreciation via exposure to global emerging markets, supported by a culture of both strong customer service and corporate governance.

Investment policy

The Company seeks long-term capital appreciation through investment in companies listed in emerging markets or companies which earn a significant amount of their revenues in emerging markets but are domiciled in, or listed on, stock exchanges in developed countries ('Emerging Markets Companies').

It is expected that the majority of investments will be in listed equities. However, up to 10% of the Company's assets may be invested in unlisted securities. In addition, while it is intended that the Company will normally invest in equity instruments, the Investment Managers may invest in equity-related investments (such as convertibles or derivatives) where they believe that it is advantageous to do so.

The portfolio may frequently be overweight or underweight in certain investments compared with the MSCI Emerging Markets (Net Dividends) Index (the 'Benchmark') and may be concentrated in a more limited number of sectors or geographical areas than the Benchmark. Investments may be made in Emerging Markets Companies outside the Benchmark that meet the investment criteria.

Whilst there are no specific restrictions on investment in any one sector or geographic area, the portfolio will be managed in a way which aims to spread investment risk. The portfolio may contain between 50 and 100 individual stocks but may, at times, contain fewer or more than this range. No more than 12% of the Company's assets will be invested in the securities of any one issuer at the time of investment, save that any investment in unlisted securities of any one issuer will be limited to no more than 2% of the Company's assets, measured at the time of investment.

The maximum borrowing will be limited to 20% of the Company's net assets, measured at the time of borrowing.

No more than 10%, in aggregate, of the value of the Company's assets will be invested in other listed closed-ended investment funds.

In accordance with the UK Listing Rules, the Company will not make any material change to its published investment policy without the prior approval of the UK's Financial Conduct Authority ('FCA') and the approval of its shareholders by ordinary resolution. Any material change would be announced by the Company through the London Stock Exchange.

Distribution policy

The Company will ensure that its total annual dividends will be paid out of the profits available for distribution under the provisions of the relevant laws and regulations and will be at least sufficient to enable it to qualify as an investment trust under the Corporation Tax Act 2010 and the ongoing requirements of The Investment Trust (Approved Company) (Tax) Regulations 2011. If the Company has received an exceptional level of income in any accounting year, the Board may elect to pay a special dividend. The primary focus of the investment policy is on generating capital returns, the Company does not target a particular level of income and there is no guarantee that dividend levels will be maintained from one year to the next.

The Company will normally pay two dividends per year, an interim dividend declared at the time when the half yearly results are announced, and a final dividend proposed at the time when the annual results are announced. The final dividend will be subject to shareholder approval at the AGM each year.

The Company may also distribute capital by means of share buybacks when the Board believes that it is in the best interests of shareholders to do so. The share buyback programme will be subject to shareholder approval at each AGM.

Business model

The Company has no employees and all of its Directors are non-executive. The Company delegates its day-to-day activities to third parties.

Since 1 October 2021, Franklin Templeton Investment Trust Management Limited ('FTITML', 'AIFM' or the 'Manager') has been the Company's AIFM and Company Secretary.

The Board is responsible for all aspects of the Company's affairs, including the setting of parameters for the monitoring of the investment strategy and the review of investment performance and policy. It also has responsibility for overseeing all strategic policy issues, namely dividend, gearing, share issuance and buybacks, share price and discount/premium monitoring, corporate governance matters and engagement with all the Company's stakeholders.

Strategy

The Company seeks to achieve its objective by following a strategy focused on the following:

Performance

At the heart of the strategy is the appointment and retention of capable investment management professionals, whose aim is to identify value and achieve superior long-term growth for shareholders. FTEME, under the leadership of Chetan Sehgal, continues to apply the same core investment philosophy that has driven TEMIT's performance since the Company's launch. The investment team aims to achieve long-term capital appreciation for shareholders seeking exposure to global emerging markets by investing in companies that they believe offer long-term sustainable growth and good value, combined with strong management and sound governance.

Investment Process and Environmental, Social and Governance ('ESG') Considerations

As part of TEMIT's stock research process, ESG factors are researched alongside other important factors, such as company earnings power, competitive positioning and management quality. These factors are likely to materially impact the operating performance or financial conditions of a company. This deepens our understanding of the companies we research; it also guides us in our engagement activities over a range of issues, better informing our research insights, as we strive to protect shareholder value.

As TEMIT is an investment trust, the key ESG consideration is the stewardship of its portfolio of investments. The Board has reviewed and fully supports FTEME's approach to stewardship, which is described under 'TEMIT's approach to stewardship' starting on page 31 of this report. It receives regular reports on Franklin Templeton's policies and controls.

TEMIT has no greenhouse gas emissions to report from the operations of the Company, as all of its activities are outsourced to third parties. While as an investment trust TEMIT is exempt from disclosures recommended by the Task Force on Climate-related Financial Disclosures ('TCFD'), Franklin Templeton continues to develop metrics for our carbon footprint. Further information on our approach to climate change can be found under 'TEMIT's approach to stewardship' above and in more detail in the full Stewardship Report, available on our website (www.temit.co.uk).

TEMIT has no employees and is not an organisation that provides goods or services as defined in the Modern Slavery Act 2015 and thus the Company considers that the Act does not apply. The Company's own supply chain consists predominantly of professional services advisers.

Culture and Values

The Board believes in a culture of openness and constructive challenge in its interactions with the Manager and other service providers. The Board aims to maintain open and regular communication with shareholders, as set out under Communication on page 39.

The Company is committed to acting professionally, fairly and with integrity in all of its business dealings and relationships. The Board has a zero-tolerance policy towards bribery and looks to ensure that its service providers and associated persons have effective policies and

(a) A glossary of alternative performance measures is included on pages 114 and 115.

procedures designed to actively prevent bribery which are proportionate, and risk based. In relation to the corporate offence of failing to prevent tax evasion, it is the Company's policy to conduct all business in an honest and ethical manner. The Company takes a zero-tolerance approach to any facilitation of tax evasion whether under UK law or under the law of any foreign country. The Board notes that the Manager has a robust whistleblowing policy in place.

Information on the Company's approach to Diversity is set out in the Directors' Report on pages 52 and 53.

Liquidity

The shares issued by the Company are traded on the London and New Zealand stock exchanges. The Company has engaged Winterflood Securities and JP Morgan as joint financial advisers and stockbrokers.

Gearing

Fixed Term Loan

On 31 January 2020, the Company entered into a five-year £100 million loan at a fixed rate of 2.089% with Scotiabank Europe plc. The loan was repaid in full at its maturity on 31 January 2025. The fixed term loan was denominated in pounds sterling. Full details of the loan are set out in Note 10 of the Notes to the Financial Statements on pages 94 and 95.

Revolving Credit Facility

On 31 January 2025, the Company entered into a one-year £122 million multi-currency revolving loan facility with The Bank of Nova Scotia, London Branch. Drawings may be in sterling, US dollars or Chinese renminbi ('CNH'). As at 31 March 2025, £80 million was drawn down from this facility in sterling. Further details of the facility are set out in Note 10 of the Notes to the Financial Statements on pages 94 and 95.

The Company has no other debt as at 31 March 2025. The net gearing position was 0.2% (net of cash in the portfolio) at the year-end (2024: 0.0%)(a).

The Board continues to monitor the level of gearing and currently considers borrowing of up to 20% of net assets to be appropriate, measured at the time of borrowing.

Affirmation of Shareholder Mandate

In accordance with the Company's Articles of Association, the Board must seek shareholders' approval every five years for TEMIT to continue as an investment trust. This allows shareholders the opportunity to decide on the long-term future of the Company. The last continuation vote took place at the AGM on 11 July 2024, when 99.30% of the votes cast were registered as votes in favour. The next continuation vote will take place at the 2029 AGM.

Stability – Share Buybacks and Conditional Tender Offer

The Company has powers to buy back its shares as a discount control mechanism and when this is in the best interests of the Company's shareholders and has a Conditional Tender Offer. The share price discount to net asset value is discussed under Key Performance Indicators on page 43.

Under the Conditional Tender Offer, if over the five-year period from 31 March 2024 to 31 March 2029 the Company's net asset value total return fails to exceed the benchmark total return, the Board will put forward proposals to shareholders to undertake a tender offer for up to 25 per cent of the issued share capital of the Company, at the discretion of the Board.

Any such tender offer will be at a price equal to the then prevailing net asset value less two per cent (and less the costs of the tender offer). There will be no tender offer if the Company's net asset value total return exceeds the benchmark total return (MSCI Emerging Markets (Net Dividends) Index) over the five-year period. Any tender offer would take place following the Company's 2029 AGM and will also be conditional on shareholders approving the continuation vote in 2029 which is described under 'Affirmation of Shareholder Mandate' above.

A key point in the Investment Managers' mandate is to take a long-term view of investments and one of the advantages of a closed-end fund is that the portfolio structure is not disrupted by large inflows or outflows of cash. However, the Board and the

Investment Managers recognise that the returns experienced by shareholders are in the form of movements in the share price, which are not directly linked to NAV movements, and the shares may trade at varying discounts or premiums to NAV. Many shareholders, both professional and private investors, have expressed a view that a high level of volatility in the discount is undesirable and that the Company should continue its active share buyback programme. A less volatile discount, and hence share price, is seen as important to investors. For this reason, TEMIT uses share buybacks selectively with the intention of limiting volatility in the share price. Details of the share buybacks are included in the following table. All shares bought back in the year were cancelled, with none being placed in treasury. In addition, the Company cancelled 43,825,895 shares which were previously held in treasury, and as at 31 March 2025, the Company held 60,000,000 shares in treasury (2024: 103,825,895 shares in treasury).

Discount management is reviewed regularly by the Board to ensure that it remains effective in the light of prevailing market conditions. The Conditional Tender Offer will not affect the Board's current approach to discount management. The Board will continue to exercise the Company's right to buy back shares when it believes this to be in shareholders' interests and with the aim of reducing volatility in the discount.

	2025	2024
Shares Bought Back and Cancelled During the Year	89,989,892	44,319,755
Proportion of Share Capital Bought Back and Cancelled	8.1%	3.8%
Total Cost of Share Buybacks	£149.2m	£65.9m
The Benefit to NAV	£23.7m	£10.6m
The Percentage Benefit to NAV	1.16%	0.54%

Share Price Discount to NAV

TEMIT Share Price Discount, based on a 7 day moving average

Communication

The Board and Manager aim to ensure that investors are kept updated regularly about the performance of TEMIT and of emerging markets through clear communication and updates as detailed in this section. The Board is fully committed to TEMIT's marketing and communications programme. There is a substantial annual marketing and communication budget, and expenditure by TEMIT is matched by a contribution to costs from the Manager.

TEMIT has received AIC Shareholder Communication awards for its 'Your Future is Emerging' campaigns in 2022, 2023 and 2024. Through innovative use of broadcast media and direct marketing, TEMIT's profile has been elevated, showcasing the Company's benefits and conveying the dynamic growth story of emerging markets to a wider audience. This follows a rebrand in January 2022, when TEMIT unveiled a fresh corporate identity, establishing a unique brand for the Company for the first time.

TEMIT seeks to keep shareholders updated on performance and investment strategy through its Annual and Half Yearly Reports, along with monthly factsheets and manager commentaries, which are available on the Company's website - temit.co.uk - offering a wealth of updates, stock story videos, articles, portfolio details, and essential documents. Connect with @TEMIT on Twitter / X for ongoing updates and announcements as we expand our social media presence.

The Board encourages registration to our monthly email that keeps subscribers appraised of the latest performance, insights and announcements.

In addition, TEMIT has an active communications programme. Our Investment Managers provide topical and informative comments to journalists, host media briefings and events and publish articles on issues relevant to investing in emerging markets. The Investment Managers meet regularly with professional investors and analysts and host interactive webinars. At each AGM the Investment Managers make a presentation with the opportunity for all shareholders to ask questions.

The Chairman regularly meets major shareholders to discuss investment performance and developments in corporate governance. We try to engage with a wide spectrum of our shareholders and aim to address their concerns as far as practically possible. Shareholders are welcome to contact the Chairman or the Senior Independent Director at any time via temitcosec@frankl intempleton.com.

Section 172 Report – Promoting the success of the Company

The Companies (Miscellaneous Reporting) Regulations 2018 require directors to explain how they have discharged their duties under Section 172(1) of the Companies Act 2006 in promoting the success of their companies for the benefit of 'members as a whole' and having regard for all stakeholders.

Section 172 Matter	1. The likely consequences of any decision in the long term.
	2. The interests of the Company's employees.
	3. The need to foster the Company's business relationships with suppliers, customers and others.
	4. The impact of the Company's operations on the community and the environment. 5. The desirability of the Company maintaining a reputation for high standards of business conduct.
	Board's Statement	1. The Board is focused on promoting the long-term success of the Company and regularly reviews the Company's long-term strategic objectives, including consideration of the impact of the Investment Managers' actions on the marketability and reputation of the Company and the likely impact on the Company's stakeholders of the Company's strategy.
2. The Company has no direct employees.
3. The Board's approach to its key stakeholders is set out below.
4. The Board's approach is set out in the section on Investment Process and ESG Considerations under Strategy and Business Model on page 37.
5. The Board's approach is set out in 'Culture and Values' on page 37.
	6. The Board's approach to its key stakeholders is set out below.

In addition to the primary focus of the Board, and with due regard to its obligations under Section 172 of the Companies Act 2006, the following important matters were considered at Board meetings during the year:

• Recruitment of Sarika Patel as a non-executive Director;
• Changes to the risk matrix, monitoring such changes carefully and introducing alternative mitigating controls where necessary and practicable to support the operation of an effective control environment;
• Review of the marketing plan with the Manager;
• Review of the share buyback programme;
• Review of the dividend policy; and
• Review of the gearing facility and in particular the decision to enter into a new revolving credit facility.

The Board considers the main stakeholders in the Company to be its shareholders and its service providers, the principal one of which is its Manager, along with its investee companies. A summary of the key areas of engagement undertaken by the Board with its main stakeholders in the year under review and how Directors have acted upon this to promote the long-term success of the Company are set out in the following table.

Stakeholders	Area of Engagement	Consideration	Engagement	Outcome
Shareholders and Potential Investors	Company Objective	Delivering on the Company's objective to shareholders over the long term.	The Company's objective and investment policy are set out on page 36.	The Investment Managers' commentary commencing on page 12 gives a full commentary on the Company's portfolio as well as on the approach and considerations undertaken by the Investment Managers for stock selection within the portfolio.
			The Company's performance against its objective is regularly reviewed by the Board, taking account of views expressed by shareholders.
			The Company holds a continuation vote every five years to allow shareholders to decide on the long-term future of the Company.	A continuation vote took place at the 2024 AGM, with 99.30% of votes cast in favour. The next continuation vote is scheduled to take place at the 2029 AGM.
Shareholders and Potential Investors	Dividend	The objective of the Company is to provide long term capital appreciation, however, the Board recognises the importance of dividend income to many shareholders.	The Board reviews regularly the level of dividends, taking account of the income generated by the Company's portfolio and the availability of reserves.	Dividend payments are discussed in the Chairman's Statement on page 10.
			In considering the sustainability of the dividend and of the Company, the Board reviews the models supporting the going concern assessment and viability statement.
Shareholders and Potential Investors	Communication with Shareholders	The Board understands the importance of communication with its shareholders and maintains open channels of communication with shareholders.	Working closely with the Manager, the Board ensures that there is a variety of regular	Full details of all Board and Manager communication are included on page 111.
			communication with shareholders.	Shareholders are invited to submit questions for the Board to address at the Company's AGM.

Stakeholders	Area of Engagement	Consideration	Engagement	Outcome
Shareholders and Potential Investors	Discount Management	To smooth the volatility in the discount.	The Board monitors the discount closely and discusses discount strategy with the Investment Managers and the Company's joint stockbrokers at every regular Board meeting. The stockbrokers provide a summary of the discount and market conditions to the Board and Investment Managers at the close of each trading day in London. The Board also meets with the Investment Managers to discuss the Company's marketing strategy to ensure effective communication with existing shareholders and to consider strategies to create additional demand for the Company's shares.	TEMIT continues to adopt an active buy back policy and has a Conditional Tender Offer. Details of these can be found under 'Stability – Share Buybacks and Conditional Tender Offer' on page 38. Further details of the current discount and discount management are detailed in the Chairman's Statement under 'Share price rating' on page 10.
Manager	Communication Between the Board and the Manager	The Board's oversight of the Manager is very important.	The Manager attends all regular Board meetings where it reviews and discusses performance reports, changes in the portfolio composition and risk matrix. The Board receives timely and accurate information from the Manager and engages with the Investment Managers and the Company Secretary between meetings as well as with other representatives of the Manager as and when it is deemed necessary.	The Board operates in a supportive and open manner, challenging the activity of the Manager and its results. The Board believes that the Company is well managed and the Board places great value on the experience of the Investment Managers to deliver superior long-term returns from investments and on the other functions of the Manager to fulfil their roles effectively.
Third-party Service Providers	Engagement with Service Providers	The Board acknowledges the importance of ensuring that the Company's service providers are delivering a suitable level of service, that the service level is sustainable and that they are fairly remunerated for their service.	As an investment company all services are outsourced to third-party providers. The Board considers the support delivered by service providers including the quality of the service, succession planning and any potential interruption of service or other potential risks.	The Manager maintains the overall day-to-day relationship with the service providers and the Board undertakes an annual review of the performance of the Company's service providers. This review also includes the level of fees paid. The Board meets with service providers as and when considered necessary.
Investee Companies	Engagement with Investee Companies	The relationship between the Company and the investee companies is very important.	On behalf of the Company the Investment Managers engage with investee companies implementing corporate governance principles and discuss the portfolio with the Board on a quarterly basis.	The Investment Managers have a dedicated research team that is employed in making investment decisions and when voting at shareholder meetings of investee companies.

Key performance indicators

The Board considers the following to be the key performance indicators ('KPIs') for the Company:

• Net asset value and share price total return over various periods, compared to its benchmark;
• Share price discount to net asset value;
• Dividend and revenue earnings; and
• Ongoing charges ratio.

The 10 Year Record of the KPIs is shown on page 8.

Net asset value and share price total return(a)

Net asset value and share price total return data is presented within the Financial Highlights on page 4 along with the 10 Year Record on page 8.

The Chairman's Statement on pages 9 to 11 and the Investment Managers' Report on pages 13 to 28 include further commentary on the Company's performance.

Performance of the Company's portfolio is measured in pounds sterling (GBP) against the MSCI Emerging Markets (Net Dividends) Index.

Share price discount to net asset value(a)

Details of the Company's share price discount to net asset value are presented within the Financial Summary on page 7. On 16 May 2025, the latest practicable date for which information was available, the discount was 15.7%.

The Company has powers to buy back its shares as a discount control mechanism when it is in the best interests of the Company's shareholders and has a Conditional Tender Offer mechanism. These are described under 'Stability – Share Buybacks and Conditional Tender Offer' on page 38.

Dividend and revenue earnings

Total income earned in the year was £70.4 million (2024: £71.9 million) which translates into net revenue earnings of 5.41 pence per share (2024: 5.18 pence per share), an increase of 4.4% over the prior year.

The Company paid an interim dividend of 2.00 pence per share on 31 January 2025. The Board is proposing a final dividend of 3.25 pence per share, making total ordinary dividends for the year of 5.25 pence per share.

Ongoing charges ratio(a) ('OCR')

The OCR reduced to 0.95% for the year ended 31 March 2025, compared to 0.97% in the prior year. This was largely driven by the AIFM fee reduction as detailed within the Chairman's Statement on page 10 and an uplift in the average net assets over the year. The OCR has been calculated in line with the Association of Investment Companies ('AIC') recommended methodology.

Costs associated with the purchase and sale of investments are taken to capital and are not included in the OCR. Transaction costs are disclosed in Note 8 of the Notes to the Financial Statements on page 93.

Principal and emerging risks

At least quarterly, the Board reviews with the AIFM and the Investment Managers a wide range of risk factors that may impact the Company. A full review of risks and internal controls is held every September by the Audit and Risk Committee. These reviews include a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. These are summarised in the table below.

Further explanation of the monitoring of risk and uncertainties is covered within the Report of the Audit and Risk Committee on page 70. Information on the risks that TEMIT is subject to, including additional financial and valuation risks, are also detailed in Note 15 of the Notes to the Financial Statements.

Due to the nature of the Company's business, investment risk is a key focus and is reviewed on an ongoing basis by the Investment Managers as part of every investment decision. Further information on this process is detailed on page 31.

	Principal Risk	Mitigation
Market, Geopolitical and Investment	Market risk arises from volatility in the prices of the Company's investments, from the risk of volatility in global markets arising from macroeconomic and geopolitical circumstances and conditions. Many of the companies in which TEMIT invests are, by reason of the locations in which they operate, exposed to the risk of political or economic change. In addition, sanctions, exchange controls, tax or other regulations introduced in any country in which TEMIT invests may affect its income and the value and the marketability of its investments. Emerging markets can be subject to greater price volatility than developed markets. Geopolitical risk was highlighted by moves by the United States to impose widespread tariffs on imports, the continuing Russian war on Ukraine, the escalating trade war between the United States and China and military tensions over the Taiwan Strait, the continuing conflict between Israel and Hamas and the recent spike in tension between India and Pakistan. All of these factors have depressed investor sentiment and the Russian invasion of Ukraine has impacted global trade posed by supply shocks, sanctions, higher levels of inflation and volatility in asset prices. Investment risk refers to the possibility that an investment's actual returns may differ from the expected returns, potentially resulting in financial loss. As well as market and geopolitical risk, this risk is impacted by the decisions made by portfolio managers regarding sector,	The Board reviews regularly and discusses with the Investment Managers the portfolio, the Company's investment performance and the execution of the investment policy against the long-term objectives of the Company. The Manager's independent risk team performs systematic risk analysis, including country and industry specific risk monitoring, as well as stress testing of the portfolio's resilience to geopolitical shocks. The Manager's legal and compliance team monitors sanctions. Where TEMIT is affected, adherence to all sanctions and restrictions is ensured by this team. The Board also regularly reviews reports from the Manager's risk, legal and compliance teams.
Technology	country allocation, and stock selection. Failure or breach of the security of information	The Company benefits from Franklin Templeton's
	technology systems of the Company's service providers may entail risk of financial loss, disruption to operations or damage to the reputation of the Company.	technology framework designed to mitigate the risk of a cyber security breach.
		For key third-party providers, the Audit and Risk Committee receives regular independent reports on their technology control environment.
Concentration	Concentration risk arises from investing in relatively few holdings, few sectors or a restricted geographic area. NAV performance may be more volatile and dividend payment less predictable, than with a greater number of securities.	The Board reviews regularly the portfolio composition/ asset allocation and discusses related developments with the Investment Managers and the independent risk management team. The Investment Compliance team of the Investment Managers monitors concentration limits and highlights any concerns to portfolio management for remedial action.

	Principal Risk	Mitigation
Key Personnel	The ability of the Company to achieve its objective is significantly dependent upon the expertise of the Investment Managers and their ability to attract and retain suitable staff.	The Manager endeavours to ensure that the principal members of its management teams are suitably incentivised, participate in strategic leader programmes and monitor key succession planning metrics. The Board meets privately with the key personnel at least twice a year. The Board discusses this risk regularly with the Manager.
Foreign Currency	Currency exchange rate movements may affect TEMIT's performance. In general, if the value of sterling increases compared with a foreign currency, an investment traded in that foreign currency will be worth less in sterling terms. This can have a negative effect on the Company's performance.	The Board monitors currency risk as part of the regular portfolio and risk management oversight. TEMIT does not hedge currency risk.
Discount Risk	The discount/premium at which the Company's shares trade relative to its net asset value can change. The risk of a widening discount, and/or related volatility, could reduce shareholder returns and confidence in the Company.	The Board monitors the level of discount/premium at which the shares trade and has an active investor relations programme. The Company has authority to buy back its existing shares when deemed by the Board to be in the best interests of the Company and its shareholders.
Regulatory	The Company is an Alternative Investment Fund ('AIF') and is listed on both the London and New Zealand stock exchanges. The Company operates in an increasingly complex regulatory environment and faces numerous regulatory risks. Breaches of regulations could lead to a number of detrimental outcomes and reputational damage.	The Board, with the assistance of the Manager, ensures that the Company complies with all applicable laws and regulation and its internal risk and control framework reduces the likelihood of breaches happening.
Sustainability and Climate Change	The Company's portfolio, and also the Company's service providers and the Investment Managers, are exposed to risks arising from governance and sustainability issues, including climate change. To the extent that such a risk occurs, or occurs in a manner that is not anticipated by the Investment Managers, there may be a sudden, material negative impact on the value of an investment, and the operations or reputation of the Investment Managers.	The Investment Managers consider that sustainability risks are relevant to the returns of the Company. The Manager has implemented a policy in respect of the integration of sustainability and climate change risks in its investment decision making process. The Board receives regular reports on the policies and controls in place on ESG considerations. The Board has reviewed and fully supports the Franklin Templeton Stewardship Statement and its Sustainable Investing Principles and Policies.
Operational and Custody	Like many other investment trust companies, TEMIT has no employees. The Company therefore relies upon the services provided by third parties and is dependent upon the control systems of the Investment Managers and of the Company's other service providers. The security, for example, of the Company's assets, dealing procedures, accounting records and maintenance of regulatory and legal requirements depends on the effective operation of these systems.	The Manager's systems are regularly tested and monitored and an internal controls report, which includes an assessment of risks together with an overview of procedures to mitigate such risks, is prepared by the Manager and reviewed by the Audit and Risk Committee. J.P. Morgan Europe Limited is the Company's depositary. Its responsibilities include cash monitoring, safe keeping of the Company's financial instruments, verifying ownership and maintaining a record of other assets and monitoring the Company's compliance with investment limits and borrowing requirements. The depositary is liable for any loss of financial instruments held in custody and will ensure that the custodian and any sub-custodians segregate the assets of the Company. The depositary oversees the custody function performed by JPMorgan Chase Bank. The custodian provides a report on its key controls and safeguards (SOC 1/ SSAE 16/ ISAE 3402) that is independently reported on by its auditor, PwC. The Board reviews regular operational risk management reporting provided by the Investment Managers.

Emerging risks

The key emerging risk faced by the Company during the year under review was the possible effects of the United States moving to a more protectionist and isolationist stance in its relations with the rest of the world. The Board and Investment Managers continue to monitor the investment strategy response, along with the continuing ramifications of the Russian invasion of Ukraine, and tensions between the United States and China, as noted under the market and geopolitical risk above. The Board also continues to monitor the potential risks on the portfolio and investee companies posed by the dramatic progress of Artificial Intelligence ('AI').

Viability statement

The Board considers viability as part of its continuing programme of monitoring risk. In preparing the Viability Statement, in accordance with the UK Corporate Governance Code and the AIC Corporate Governance Code, the Directors have assessed the prospects of the Company over a longer period than the 12 months required by the 'Going Concern' provision.

The Board has considered the Company's business and investment cycles and is of the view that five years is a suitable time horizon to consider the continuing viability of the Company, balancing the uncertainties of investing in emerging markets securities against having due regard to viability over the longer term.

In assessing the Company's viability, the Board has performed a robust assessment of controls over the principal risks. The Board considers, on an ongoing basis, each of the principal and emerging risks as noted above and set out in Note 15 of the Notes to the Financial Statements. The Board evaluated various scenarios of possible future circumstances including a material increase in expenses and a continued significant and prolonged fall in emerging equity markets. The Board also considered the latest assessment of the portfolio's liquidity. The Board monitors income and expense projections for the Company, with the majority of the expenses being predictable and modest in comparison with the assets of the Company.

The Company foresees no issues with meeting interest payments and current liabilities relating to the £122 million multi-currency revolving credit facility which matures on 30 January 2026. A significant proportion of the Company's expenses is the ad valorem AIFM fee, which would naturally reduce if the market value of the Company's assets were to fall.

Considering the above, and with careful consideration given to the current market situation, the ramifications of continuing geopolitical tensions and the challenges posed by climate change, the Board has concluded that there is a reasonable expectation that, assuming that there will be a successful continuation vote at the 2029 AGM, the Company will be able to continue to operate and meet its liabilities as they fall due over the next five years.

Future strategy

The Company was founded, and continues to be managed, based on a long-term investment strategy that seeks to generate superior returns from investments, principally in the shares of carefully selected companies in emerging markets.

The Company's results will be affected by many factors including political decisions, economic factors, the performance of investee companies and the ability of the Investment Managers to choose investments successfully as well as the current challenges.

The Board and the Investment Managers continue to believe in investment with a long-term horizon in companies that are undervalued by stock markets, but which are fundamentally strong and growing. It is recognised that, at times, extraneous political, economic and company-specific and other factors will affect the performance of investments, but the Company will continue to take a long-term view in the belief that patience will be rewarded.

By order of the Board

Angus Macpherson 6 June 2025

02. Governance

47 Templeton Emerging Markets Investment Trust plc TEMIT.co.uk

Supporting charitable causes

Over the past two years we have undertaken extensive research into our shareholder ownership, part of which was to establish 'dormant shareholders' for whom the Company has no record other than name and address and for whom any correspondence from TEMIT is returned 'unknown'.

With our AIFM and Registrar an extensive shareholder tracing exercise was undertaken. The exercise included mailings, social media searches, telephone calls and even house visits to those shareholders with whom loss of contact was pre-2008. We were successful in re-uniting over 50 shareholders with their holdings.

For the remaining unidentified shareholdings, we commenced a legal forfeiture and disposal exercise. The registration and servicing costs of maintaining these shares are now saved. 40% of the realised value will be held in the Company for three years in case of any verified ownership is established in the future. The remaining 60%, as per the UK Government backed Dormant Assets Scheme, has been unlocked for important UK social and environmental initiatives.

Your Board researched a number of charities for which a donation from TEMIT would have a real impact. Four beneficiaries were selected.

Protecting species and ecosystems:

Rainforest Concern protects threatened natural habitats through land purchase, legal protection and registration of indigenous territories. They fund environmental education and work with local communities to develop sustainable Iivelihoods. Research and monitoring helps develop conservation strategy and support legal cases. TEMIT's

donation is specific to the Neblina Reserve in NW Ecuador.

Accessing mental health support: Mental Health Innovations uses data-driven analysis, clinical expertise and technology to develop digital products and services to improve mental health in the UK. The main activity is the Shout 85285 text service, the UK's first and only free, confidential, 24/7, national text messaging mental health support service.

Sustaining unpaid home care: Carefree provides unpaid home carers with time away from their caring responsibilities. Unpaid carers are disproportionally overworked, isolated, financially stressed and physically and mentally challenged. Carefree is a digital charity partnering with social services and with hotel groups willing to donate vacant rooms for carer stays.

Cancer research: The Nottingham Breast Cancer Research Centre has a number of projects focused on treating breast cancer early, stopping it spreading and personalised treatments. TEMIT is funding equipment which is distinctly unglamorous but massively important to improve research precision, reliability, speed and cost.

www.rainforestconcern.org www.mentalhealthinnovations.org

www.carefreespace.org www.nottingham.ac.uk/research/groups/ nottinghambreastcancerresearchcentre

Directors' report

The Board is responsible for framing and executing the Company's strategy and for monitoring risks closely. The Board endeavours to run the Company in a manner which is responsible, honest, transparent and fully accountable. In the Board's view, good governance means managing the Company's business well and engaging effectively with investors and other stakeholders. The Board considers the practice of good governance to be an integral part of the way that it manages the Company and it is committed to maintaining the highest standards of financial reporting, transparency and business integrity.

The Directors submit their Annual Report, together with the Financial Statements of the Company, for the year ended 31 March 2025.

Board of Directors

Angus Macpherson (Chairman of Board, Chairman of Management Engagement Committee and Chairman of Nomination and Remuneration Committee: 1 January 2024)

Date of appointment: 6 October 2023

Simon Jeffreys (Chairman of the Audit and Risk Committee: 13 July 2017, Senior Independent Director: 14 July 2022)

Date of appointment: 15 July 2016

David Graham Date of appointment: 1 September 2016 Angus is chairman of Noble and Company (UK) Limited, an independent boutique Scottish corporate finance business. He was based in Asia between 1995 and 2004 in Singapore and Hong Kong, latterly as head of capital markets and financing for Merrill Lynch for Asia. He was previously Chairman of Pacific Horizon Investment Trust and of Henderson Diversified Income Trust. Angus brings to the Board extensive experience in corporate finance in Europe and in Asia and is an experienced chairman of investment trusts.

Other Current Appointments:

• Schroder Japan Growth Fund plc (Non-Executive Director)
• Hampden & Co plc (Non-Executive Director)
• Noble and Company (UK) Limited (Chairman)

Angus is an independent Director.

Simon has extensive experience in audit and he has a wide-ranging understanding of the business. He draws on previous experience across internal audit, finance and compliance, as well as technical knowledge, relevant to his role. He was a senior audit partner in PricewaterhouseCoopers for most of his professional career, where he was the global leader of the firm's investment management and real estate practice. Simon was the Chief Administrative Officer for Fidelity International, and then the Chief Operating Officer of The Wellcome Trust. Simon was Chair of the Audit Committee and a member of the Remuneration, Nominations and Risk Committees of St James's Place plc until 18 May 2023 and Chair of the Audit and Risk Committee of SimCorp A/S until 3 November 2023. Simon is stepping down from the Board at the conclusion of the AGM on 10 July 2025. Other Current Appointments:

• Mitsui Sumitomo Insurance Company (Europe) Limited (Chairman)
• Amlin Underwriting Limited (Chairman of the Board)
• Post Office Limited (Chair of Audit, Risk and Compliance Committee)

Simon is an independent Director.

David is a Chartered Accountant whose career was in investment management, firstly as an Asian fund manager with Lazard and then building businesses across Asia Pacific, Europe, Middle East and Africa for BlackRock and predecessor firms (Merrill Lynch Investment Managers and Mercury Asset Management). David has worked in Hong Kong, Tokyo and Sydney and has been a Representative Director in domestic, joint venture, fund management companies in India, China, Thailand and Taiwan. David contributes extensive experience of Asia and other emerging markets.

Other Current Appointments:

• Fidelity Japan Trust plc (Chairman)
• JPMorgan China Growth & Income plc (Chair of the Audit Committee)
• Jio-Blackrock Asset Management Private Limited (Non-executive Director) David is an independent Director.

Board of Directors

Magdalene Miller Date of appointment: 10 May 2021

Sarika Patel Date of appointment: 1 January 2025

Abigail Rotheroe

Date of appointment: 1 November 2022

Charlie Ricketts Date of appointment: 12 July 2018

a trustee for an educational endowment fund and participates in volunteering work.

Other Current Appointments:

• Baillie Gifford China Growth Trust plc (Non-Executive Director)

Magdalene is an independent Director.

Sarika is an experienced business leader having worked as a senior corporate professional at Zeus Caps (a principal investment and advisory platform focused on infrastructure and related sectors operating in India, Europe and the Middle East) and Grant Thornton. She is a Chartered Accountant and a Chartered Marketer. She also is a Bachelor in Law (LLB) and a Bachelor in Commerce (BCom). Sarika will assume the role of Chair of the Audit Committee when Simon Jeffreys retires at the conclusion of this year's AGM.

Other Current Appointments:

• abrdn Equity Income Trust plc (Chair)
• SDCL Energy Efficiency Income Trust plc (Chair of Audit and Risk Committee)
• Action for Children (Chair)

Sarika is an independent Director.

With over 30 years' experience in the investment trust sector, Charlie brings a wealth of experience to the Board. He was Head of Investment Funds at Cenkos Securities for 8 years and prior to that was Managing Director, Head of Investment Companies at UBS Investment Bank. Since leaving full-time employment in 2014 Charlie has pursued both charitable and business interests including a now completed senior non-executive director appointment at Asia Dragon Trust plc and a present directorship with Cyclico, a board performance review company. Charlie has a wide-ranging understanding of the investment companies sector and draws on previous experience across corporate finance, corporate broking, marketing and risk management.

Other Current Appointments:

• Cyclico Limited (Director)
• Carefree (Chair)

Charlie is an independent Director.

Abigail has over 20 years of investment experience, most recently as the Investment Director at Snowball Impact Management, a sustainable and impact-focused asset manager. Previously Abigail has managed retail and institutional Asia Pacific portfolios in Hong Kong and London for Schroders, HSBC Asset Management Hong Kong and Columbia Threadneedle Investments. She is a CFA Charterholder and has experience in manager selection, sustainability, and impact measurement.

Other Current Appointments:

• Baillie Gifford Shin Nippon plc (Non-Executive Director)
• HydrogenOne Capital Growth plc (Non-Executive Director)
• Greencoat UK Wind plc (Non-Executive Director)

Abigail is an independent Director.

Details of the fees earned by each Director can be found on page 62. The Directors' interests in the Company's shares are noted on page 64.

Appointment and re-election of Directors

Directors are initially appointed by the Board after a rigorous selection process and each Director is then subject to annual re-election by the shareholders. At the first AGM following appointment a Director is subject to election by the shareholders. Thereafter, a Director's reappointment is subject to a performance evaluation carried out each year and the approval of shareholders at each AGM, in accordance with corporate governance best practice. When making a recommendation, the Board considers the ongoing requirements of the UK Corporate Governance Code (the 'Code'), including the need to refresh the Board and its Committees.

The terms and conditions of the Directors' appointments are set out in their Letters of Appointment, which are available for inspection on request at the registered office of the Company and at the AGM. The terms of appointment provide that a Director will be subject to re-election at each AGM. A Director may be removed from office following three months' notice. The Board has agreed that the Directors should stand down after nine years from their initial appointment other than in exceptional circumstances. Directors are prepared to resign or take steps that could lead to a loss of office at any time in the interests of long-term shareholder value. The continuation of an appointment is contingent on satisfactory annual performance evaluation. A Director may resign by notice in writing to the Board at any time and there is no notice period for resignation.

The Board

The primary focus of the Directors at regular Board meetings is the consideration of investment performance and outlook, market activity, discount management mechanisms including share buybacks, gearing, marketing, shareholder register analysis, investor relations, peer group information, top risks and investment risk management, regulatory updates, corporate governance and industry issues.

The Board has reviewed the effectiveness of the Company's system of internal controls for the year ended 31 March 2025. During its review the Board has not identified or been advised of any significant failings or weaknesses relating to the Company.

Further details of the Directors' responsibilities can be found in the Statement of Directors' Responsibilities on page 71.

Board evaluation

The Board undertakes an annual evaluation of its own performance and that of its Committees and individual Directors including the Chairman. The Board has also considered the independence of each Director, including the Chairman.

As required under corporate governance best practice of FTSE 350 companies a formal performance evaluation of the Board, its Committees and the individual Directors is undertaken with an external agency every third year. In the year under review, the annual performance process was facilitated by the company secretary. The process included the completion of questionnaires. The company secretary prepared summary reports which were discussed by the Directors. The independence of each Director was checked considering the provisions of the Code. The experience, balance of skills, diversity, time commitment, tenure of each director, openness, spirit of debate and knowledge of the Board were considered as well as Board effectiveness, role and structure.

The Chairman confirms that, following the annual performance evaluation, each Director's performance continues to be effective, demonstrating commitment to their role and each independent Director is recommended for re-election at the AGM. Sarika Patel is subject to election by shareholders as this is the first AGM of the Company since her appointment on 1 January 2025. The Chairman also confirms that each Committee's performance continues to be effective in fulfilling its responsibilities and duties. Formal Board performance evaluations will continue to take place at least annually with the appointment of an external facilitator every three years.

Diversity

TEMIT's aim is to have an appropriate level of diversity in the boardroom.

The Nomination and Remuneration Committee considers diversity generally when making recommendations for appointments to the Board, considering gender, social and ethnic backgrounds, thought, experience and qualification. The prime responsibility, however, is the strength of the Board and the overriding aim in making any new appointments is always to select the best candidate based on objective criteria and merit.

In all the Board's activities, there has been and will be no discrimination on the grounds of gender, race, ethnicity, religion, sexual orientation, age or physical ability.

The Board has made a commitment to consider diversity when reviewing the composition of the Board and notes the new UK Listing Rules requirements (UKLR 6.6.6 R (9)) regarding the targets on board diversity:

• At least 40% of individuals on the Board are women;
• At least one senior Board position (chairman, chief executive officer ('CEO'), senior independent director or chief financial officer ('CFO')) is held by a woman; and

• At least one individual on the Board is from a minority ethnic background, defined to include those from an ethnic group other than a white ethnic group, as specified in categories recommended by the Office for National Statistics.

As required by the UK Listing Rules the reporting for TEMIT against these targets is set out in the tables below in the prescribed format. The data was collected on a self-identifying basis. The Board notes that as at 31 March 2025 it does not currently meet the targets in relation to the number of senior Board positions which should be held by a woman. The Board notes that as an externally managed investment trust there is no CEO or CFO and the Board considers the Chairman of the Company, the Chairman of any of the Company's Committees and the Senior Independent Director to be senior positions. Simon Jeffreys is stepping down from the Board at the conclusion of the AGM on 10 July 2025 and Sarika Patel will take on the role of Chair of the Audit Committee. Following the conclusion of the AGM (i) the Board will consist of 3 men and 3 women, (ii) 4 Board members will be White British and 2 Board members will be Asian British and (iii) one woman will hold a senior position on the Board.

Sex	Number of Board Members	Percentage of the Board	Number of Senior Positions on the Board
Men	4	57%	2
Women	3	43%	–
Not Specified/Prefer Not to Say	–	–	–

Ethnic Background	Number of Board Members	Percentage of the Board	Number of Senior Positions on the Board
White British or Other White (Including Minority White Groups)	5	71%	2
Mixed/Multiple Ethnic Groups	–	–	–
Asian/Asian British	2	29%	–
Black/African/Caribbean/Black British	–	–	–
Other Ethnic Group, Including Arab	–	–	–
Not Specified/Prefer Not to Say	–	–	–

Diversity at the Manager

The Board also takes a close interest in diversity, equity and inclusion ('DEI') at the Manager. Franklin Templeton is committed to building a workforce that respects, includes, and values all of its employees, who span across generations, genders, preferences, capabilities, and cultural identification. The firm's culture embraces the individual differences and wealth of perspectives within its global workforce. This is at the forefront of Franklin Templeton's mission both to attract and retain the best talent and to drive innovation and provide better client outcomes.

The firm has allocated dedicated resources to achieve and support these goals, including the establishment of a global governance structure and the implementation of researchbased inclusion policies and procedures. In order to localise its global strategy and approach, the firm also formed three Regional Executive Inclusion Councils in the Americas, EMEA and APAC. The firm also partners with organizations that seek to promote principles of inclusion. In the UK, partnerships have continued with organisations like Black Professionals UK and the Business Disability Forum, the leading business membership organisation in disability inclusion. The firm remains an active partner and supporter of several organisations that promote inclusion and social mobility in the UK, such as the Diversity Project, 10,000 Interns Foundation, the Robertson Trust, Leonard Cheshire and Career Ready.

Additionally, Franklin Templeton sponsors thousands of volunteer activities each year through its global Involved programme which helps to provide better outcomes for local communities.

Succession planning and recruitment

When considering succession planning, the Nomination and Remuneration Committee bears in mind the tenure, balance of skills, knowledge, experience and diversity existing on the Board.

The recruitment process which led to the appointment of Sarika Patel was led by Angus Macpherson as Chairman and commenced in May 2024, the process was facilitated by Odgers Berndtson as the appointed external agency. Odgers Berndtson does not undertake any other services for TEMIT and has no connection with any of the Directors. The list of candidates identified was discussed by the Nomination and

Remuneration Committee and the preferred candidates were invited for interviews. The Nomination and Remuneration Committee recommended that the Board appoint Sarika Patel after assessing the candidates against objective criteria and with due regard to the benefits of diversity (including gender, social, ethnic backgrounds) as well as cognitive and personal strengths and time available to discharge their responsibilities fully and effectively. Sarika Patel was appointed as a non-executive Director of the Company, with effect from 1 January 2025.

The succession plan agreed by the Nomination and Remuneration Committee includes an emergency succession plan identifying contingency arrangements.

The Nomination and Remuneration Committee also reviews and recommends to the Board the reappointment of the Directors. The recommendation is not automatic and will follow a process of evaluation of each Director's performance and consideration of the Director's independence. The Nomination and Remuneration Committee also considers the mix of skills and experience of the current Board members.

Meetings and committees

The Board delegates certain responsibilities and functions to committees. Six Directors are members of all committees. The Chairman is not a member of the Audit and Risk Committee, but he attends the Audit and Risk Committee meetings by invitation.

The table below details the number of Board and Committee meetings attended by each Director. During the year, there were five Board meetings, three Audit and Risk Committee meetings, one Management Engagement Committee meeting and one formal Nomination and Remuneration Committee meeting.

	Board	Audit and Risk Committee	Management Engagement Committee	Nomination and Remuneration Committee
David Graham	5/5	3/3	1/1	1/1
Simon Jeffreys	5/5	3/3	1/1	1/1
Angus Macpherson(a)	5/5	3/3	1/1	1/1
Magdalene Miller	5/5	3/3	1/1	1/1
Sarika Patel(b)	1/1	0/0	1/1	1/1
Charlie Ricketts	5/5	3/3	1/1	1/1
Abigail Rotheroe	5/5	3/3	1/1	1/1

The Audit and Risk Committee is chaired by Simon Jeffreys. The formal Report of the Audit and Risk Committee is on pages 65 to 70.

The Management Engagement Committee is chaired by the Chairman of the Board and all Directors are members of the committee. The primary role of the committee is to review the performance of, and the contractual arrangements with, the Manager. The Management Engagement Committee held one meeting during the year and undertook a formal review of the Manager and of the Investment Managers.

The review considered investment strategy, investment process, performance and risk, and was carried out through meetings between the Management Engagement Committee and members of the investment and risk management teams of the Manager. When assessing the performance of the Manager and of the Investment Managers, the committee believes that it is appropriate to make this assessment over a medium to long-term timeframe, which is in accordance with the long-term approach taken to investment. As a result of the evaluation process performed by the Management Engagement Committee, the Board confirms that it is satisfied that the continuing appointment of the Manager is in the interests of shareholders as a whole.

The Nomination and Remuneration Committee is chaired by the Chairman of the Board and all Directors are members of the committee. The Nomination and Remuneration Committee held one formal meeting during the year and discussed the annual evaluation process for the Board, the individual Directors and the Chairman and succession planning. The role of the Nomination and Remuneration Committee is to regularly review the Board structure, size and composition and make recommendations to the Board with regard to any adjustments that seem appropriate, to consider the rotation and renewal of the Board, approve the candidate specification for all Board appointments, approve the process by which suitable candidates are identified and short-listed, and to nominate candidates for consideration by the full Board, whose responsibility it is to make appointments. The Nomination and Remuneration Committee also considers the effectiveness of individual Directors and makes recommendations to the Board in respect of re-elections. The Nomination and Remuneration Committee keeps under review the balance of skills, independence, knowledge of the Company and experience and length of service of the Directors.

During the year under review, the Nomination and Remuneration Committee managed the recruitment process which led to the appointment of Sarika Patel.

The Nomination and Remuneration Committee annually reviews the level of fees paid to the Chairman, the Chairman of the Audit and Risk Committee, the Senior Independent Director and other Directors relative to other comparable companies and in the light of the Directors' responsibilities. The Committee may engage independent external advisors if it considers this to be necessary.

The terms of reference for the Audit and Risk Committee, Management Engagement Committee and Nomination and Remuneration Committee are available to shareholders on the TEMIT website (www.temit.co.uk) or upon request via email to temitcosec@franklintempleton.com.

(b) Appointed to the Board on 1 January 2025.

⁽a) Attended three out of three meetings of the Audit and Risk Committee by invitation including when the Annual Report and Half Yearly Report were being drafted and the Company's risk matrix was being reviewed.

Conflicts of interest

The Company maintains a register of Directors' interests which has been disclosed to, and approved by, the Board. The list of interests of each Director is reviewed at every Board meeting. Directors who have potential conflicts of interest will not take part in any discussions which relate to that particular conflict. The Board confirms that at 31 March 2025 and the date of this report there were no conflicts of interest.

Charlie Ricketts, a director of TEMIT, is both a donor to and unpaid Chair of Carefree.

Indemnification and insurance

The Company has entered into deeds of indemnity with each of the Directors. These are qualifying third-party indemnity provisions and are in force as at the date of this report. This information is disclosed in accordance with Sections 236(2) and 236(3) of the Companies Act 2006. The Company maintains appropriate insurance cover in respect of legal action against the Directors.

The Company

Principal activity and investment company status in the UK

The Company is a public limited company in terms of the Companies Act 2006 and is an investment company under Section 833 of the Companies Act 2006.

The Company has been accepted as an approved investment trust by HM Revenue & Customs for accounting periods commencing on or after 1 April 2012, subject to continuing to meet the eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing requirements of The Investment Trust (Approved Company) (Tax) Regulations 2011. The Directors are satisfied that the Company intends to direct its affairs to ensure its continued approval as an investment trust.

Results and dividends

The capital profit for the year was £95.8 million (2024: profit of £81.5 million) and the revenue profit was £57.9 million (2024: £58.9 million).

The full results for the Company are disclosed in the Statement of Comprehensive Income on page 81.

The Directors propose a final ordinary dividend of 3.25 pence per share. Including the interim dividend of 2.00 pence per share, which was paid by the Company on 31 January 2025, this represents an annual ordinary dividend of 5.25 pence per share (2024: 5.00 pence per share) and, if approved by shareholders at the AGM on 10 July 2025, the final dividend will be payable on 31 July 2025 to shareholders on the register at close of business on 27 June 2025.

Financial

Share capital and gearing

Changes in the share capital of the Company are set out in Note 12 of the Notes to the Financial Statements.

As part of the Company's objective and current investment policy, the Company may borrow up to 20% of its net assets. The current gearing is discussed in the Business Review on page 37.

Share buybacks

The Board is again seeking shareholder permission to continue its programme of share buybacks as outlined under 'Stability – Share Buybacks and Conditional Tender Offer' on page 38.

Auditor

Ernst & Young LLP was appointed in 2019 as the Company's auditor. Ernst & Young LLP has expressed a willingness to continue in office as auditor and a resolution proposing its reappointment will be submitted at the AGM. Further details on the assessment of the auditor can be found within the Report of the Audit and Risk Committee on page 68.

The Directors who held office at the date of approval of this Directors' Report confirm that, so far as they are each aware, there is no relevant information of which the Company's auditor was unaware and that each Director had taken all steps that they ought to have taken as a Director to make themselves apprised of any relevant audit information and to establish that the Company's auditor was notified of that information. This confirmation is given, and should be interpreted in accordance with, the provisions of Section 418 of the Companies Act 2006.

Substantial shareholdings

As at 16 May 2025, 31 March 2025 and 31 March 2024, the Company had been notified that the following were interested in 3% or more of the issued share capital of the Company.

Name	16 May 2025 Number of Shares	%	31 March 2025 Number of Shares	%	31 March 2024 Number of Shares	%
City of London Investment Management Company Limited	254,027,170	25.0	284,423,711	27.8	278,767,061	25.0
Lazard Asset Management LLC Group	91,828,495	9.0	97,872,005	9.6	108,523,992	9.7
Rathbone Brothers PLC	62,392,578	6.1	32,144,309	3.1	97,372,049	8.7
Allspring Global Investments, LLC	58,792,578	5.8	77,574,353	7.6	79,262,342	7.1
Evelyn Partners	42,082,300	4.1	41,145,053	4.0	30,119,252	2.7
RBC Brewin Dolphin	40,239,385	4.0	44,937,794	4.4	49,814,378	4.5
Quilter Cheviot Investment Management (previously Old Mutual Plc)	39,168,368	3.9	40,393,918	3.9	41,942,497	3.8
Investec Wealth & Investment Limited (formerly Rensburg Sheppards)	7,758,269	0.8	64,902,503	6.3	61,700,274	5.5

Principal service providers

Alternative Investment Fund Manager, Secretary and Administrator

FTITML is the Alternative Investment Fund Manager, Secretary and Administrator with the role of investment management delegated to FTIML and TAML. Portfolio Managers from FTIML and TAML form part of the wider FTEME as mentioned on page 12.

The main secretarial duties involve compliance with statutory and regulatory obligations which the Company must observe. All Directors have access to the advice of the Company Secretary, who is responsible for advising the Board on all governance matters. The appointment of the Company Secretary was discussed and approved by the Board and the secretarial activity is reviewed on an annual basis.

With effect from 1 July 2024 the annual fee rate for the services provided by FTITML, including investment management, risk management, secretarial and administration services, was reduced to:

• 1% of the first £1 billion of net assets;
• 0.7% of net assets between £1 billion and £2 billion; and
• 0.5% of net assets over £2 billion.

The previous fee structure was 1% of net assets up to £1 billion, 0.75% of net assets between £1 billion and £2 billion, and 0.5% of net assets over £2 billion.

With effect from 1 July 2025 the fee rate for assets between £1 billion and £2 billion will be 0.6% and then with effect from 1 July 2026 the fee for all assets above £1 billion will be 0.5%.

The agreement between the Company and FTITML may be terminated by either party giving one year's notice, but in certain circumstances the Company may be required to pay compensation to FTITML of an amount up to one year's fee in lieu of notice. No compensation is payable if at least one year's notice of termination is given.

Details of the remuneration policy of the AIFM and amounts attributable to the Company are available to existing shareholders upon request at the registered office of the Company. FTITML's remuneration disclosures are set out on page 106.

The Board considers the arrangements for the provision of investment management services to the Company on an ongoing basis, and a formal review is conducted annually by the Management Engagement Committee. In the opinion of the Directors, the continuing appointment of FTITML is in the best interests of the shareholders as a whole.

Depositary and custodian

J.P. Morgan Europe Limited performs the role of depositary and JPMorgan Chase Bank performs the role of custodian. The agreements in place may be terminated by either party giving the other 90 days' notice.

A detailed list of service providers, along with addresses, can be found in the General Information section on page 112.

Corporate governance

The Company is committed to high standards of corporate governance. The Board is accountable to the shareholders for good governance and this statement describes how governance principles have been applied.

Association of investment companies code of corporate governance

The Board has considered the Principles and Provisions of the 2019 AIC Code of Corporate Governance ('AIC Code'). The AIC Code addresses the Principles and Provisions set out in the 2018 UK Corporate Governance Code (the UK Code), as well as setting out additional provisions on issues that are of specific relevance to the Company as an investment company.

The Board considers that reporting against the Principles and Provisions of the AIC Code, which has been endorsed by the FRC, provides the relevant information to shareholders.

The Company has complied with the Principles and Provisions of the AIC Code which also meets the obligations under the UK Code (and associated disclosure requirements under paragraph 6.6.6 R of the UK Listing Rules). The AIC Code is available on the AIC website (www.theaic.co.uk). It includes

an explanation of how the AIC Code adapts the Principles and Provisions set out in the UK Code to make them relevant for investment companies.

A statement explaining TEMIT's compliance with the AIC Code principles can be found at www.temit.co.uk.

Additional information for New Zealand shareholders

As a result of a requirement for Overseas Issuers listed on the New Zealand Stock Exchange, the following should be noted by New Zealand shareholders:

• The corporate governance rules and principles in TEMIT's home exchange jurisdiction of the United Kingdom may materially differ from the New Zealand Stock Exchange ('NZX') corporate governance rules and the principles of the NZX Corporate Governance Code;
• Investors may find more information about the corporate governance and principles of TEMIT's home exchange in the United Kingdom in the above Corporate Governance statement and online at www.frc.org.uk/corporate/ ukcgcode.cfm;
• The Company relies on the Financial Markets Conduct (Overseas FMC Reporting Entities) Exemption Notice 2021, issued by the New Zealand Financial Markets Authority, which exempts it from certain financial reporting obligations under the Financial Markets Conduct Act 2013; and
• The Company relies on the Financial Markets Conduct (Climate-related Disclosures for Foreign Listed Issuers) Exemption Notice 2024, which exempts it from Part 7A of the New Zealand Financial Markets Conduct Act 2013 such that the Company is exempt from climate-related disclosure requirements under New Zealand law. Any climate statements prepared by the Company from time to time are made available, free of charge, on the Company's website at www.temit.co.uk.

Schedule of Reserved Matters

The Board has formally adopted a Schedule of Reserved Matters, which details the matters which the Board has agreed are specifically reserved for its collective decision. These matters include, inter alia, approval of the Half Yearly and Annual Financial Statements, the approval of interim and special dividends, recommendation of the final dividend, approval of any preliminary results announcements of the Company, approval of any proposed changes to the Company's objective and/or investment policy, appointment or removal of the Company's Manager or Investment Managers, gearing, Board membership and Board committee membership and any major changes to the objective, philosophy or investment policy of the Company, other than any such changes delegated to the Investment Managers under the Investment Management Agreement.

The day-to-day investment management of the portfolio of the Company is delegated to the Investment Managers, who manage the portfolio in accordance with the objectives of the Company as set by the Board.

Articles of association

The Company may change its Articles of Association by special resolution of its shareholders.

Internal control

Details of the Company's system of internal controls can be found on page 70.

Annual General Meeting

The AGM will be held on Thursday 10 July 2025 at the offices of Franklin Templeton, Cannon Place, 78 Cannon Street, London, EC4M 6HL. Further details regarding the AGM are set out in the Notice of Meeting on page 108.

Whether you intend to attend the meeting in person or not, you are strongly encouraged to submit your votes on the AGM resolutions in advance of the meeting. Submitting votes by proxy does not preclude you attending the meeting or changing your vote if you attend the AGM, but your votes will be counted if you are unable to attend the AGM.

Ordinary business

The formal business of the Meeting will begin with resolution 1 which seeks shareholders' approval to receive and adopt the Directors' and Auditor's Reports and Financial Statements for the year ended 31 March 2025.

Resolution 2 seeks shareholders' approval of the Directors' Remuneration Report for the year ended 31 March 2025. Approval of the Directors' Remuneration Report is sought at each AGM and this year's report is set out in full on pages 60 to 64 of the 2025 Annual Report.

Resolution 3 seeks shareholders' approval to declare a final ordinary dividend of 3.25 pence per share, payable on 31 July 2025 to shareholders on the register as at close of business on 27 June 2025.

Resolutions 4.1 to 4.5 seek shareholders' approval to re-elect Abigail Rotheroe, Charlie Ricketts, David Graham, Magdalene Miller, and Angus Macpherson as Directors. Simon Jeffreys is not seeking re-election and is stepping down from the Board at the conclusion of the AGM on 10 July 2025.

Resolution 4.6 seeks shareholders' approval to elect Sarika Patel as a Director.

The Board recommends that each director is re-elected or elected as appropriate, as set out under Board Evaluation on page 51.

In accordance with the provisions of the UK Corporate Governance Code, all independent Directors will offer themselves for election at the first AGM following their appointment and for re-election at each subsequent AGM.

Resolutions 5 and 6 seek shareholders' approval to re-appoint Ernst & Young LLP as auditor of the Company, and to authorise the Directors to determine the auditor's remuneration. Following the recommendation of the Company's Audit and

Risk Committee, shareholders will be asked to approve the re-appointment of Ernst & Young LLP as the Company's auditor, to hold office until the conclusion of the Company's 2026 Annual General Meeting. Shareholders will be asked to grant authority to the Board to determine the remuneration of the auditor.

Special business

The Special Business to be dealt with at the AGM is:

Authority for the Allotment of New Shares

The resolutions to allot shares are set out in resolutions 7 (ordinary resolution) and 8 (special resolution) in the Notice of Annual General Meeting. These resolutions, if passed, will give your Directors power to allot for cash equity securities of the Company and/or to sell equity securities held as treasury shares up to a maximum aggregate nominal amount of £2,542,000 (being an amount equal to 5% of the issued share capital of the Company as at 16 May 2025) as if Section 561 of the Companies Act 2006 ('the 2006 Act') did not apply (this section requires, when shares are to be allotted for cash or shares held as treasury shares are sold, that such shares first be offered to existing shareholders in proportion to their existing holdings of shares, this entitlement being known as 'pre-emption rights'). The authorities contained in resolutions 7 and 8 will continue until the AGM of the Company in 2026 and your Directors envisage seeking the renewal of this authority in 2026 and in each succeeding year. Such authorities will only be used when your Directors believe that it would be in the best interests of the Company to do so and only at a price which is at or above the prevailing NAV per share at the time of issue.

(i) Authority to Purchase Own Shares

At the AGM of the Company held on 11 July 2024, a Special Resolution was passed authorising the Company to purchase its shares in the market, limited to a maximum of 14.99% of the shares in issue on 11 July 2024 equivalent to 163,081,606 shares. The present authority expires at the conclusion of the AGM on 10 July 2025.

Under Resolution 9, the Directors are seeking renewal of the authority to purchase the Company's shares in the market, limited to a maximum of 14.99% of the Company's issued ordinary share capital, excluding treasury shares, at the date of the passing of this resolution (equivalent to 152,419,101 ordinary shares of 5 pence per share as at 16 May 2025).

Any shares purchased pursuant to this authority may be cancelled or held in treasury pursuant to the Companies (Acquisition of own shares) (Treasury Shares) Regulations 2003. Purchases will only be made for cash, provided that:

(a) the maximum price which may be paid is the higher of:

• 5% above the average market value of the shares for the five business days before the purchase is made;
• the higher of the last independent trade price and the highest current independent bid price on the London Stock Exchange;
• (b) the minimum price payable for the shares will be the nominal value of 5 pence per share; and
• (c) shares will only be purchased at a price which is at a discount to the prevailing net asset value per share at the time of purchase.

The authority to purchase shares (whether for cancellation or to be held in treasury) will only be exercised if to do so would be in the best interests of shareholders generally and would result in an increase in net asset value per share for the remaining shareholders. The purpose of holding some shares in treasury is to allow the Company to re-issue those shares quickly and cost-effectively, thus providing the Company with flexibility in the management of its capital base. Whilst in treasury, no dividends are payable on, or voting rights attach to, these shares. No shares will be purchased by the Company during periods when the Company would be prohibited from making such purchases by the rules of the FCA. As at the date of this report, there are no warrants or options outstanding to subscribe for equity shares in the Company.

The Directors envisage seeking the renewal of the relevant authority in 2026 and in each succeeding year.

(ii) Notice period for general meetings

At the AGM of the Company held on 11 July 2024, a Special Resolution was passed authorising the Company to call general meetings (other than Annual General Meetings) on 14 days' clear notice, up to the conclusion of the AGM in 2025. The Directors are seeking renewal under Resolution 10 of the authority to call general meetings (other than Annual General Meetings) on 14 days' clear notice.

This resolution is required to reflect the 2006 Act which requires that all general meetings must be held with at least 21 days' notice unless shareholders agree to a shorter notice period.

The Directors only intend to call a general meeting on less than 21 days' notice where the proposals are time sensitive, and the short notice would clearly be in the best interests of the shareholders as a whole.

The approval will be effective until the Company's AGM in 2026, when it is intended that a similar resolution will be proposed. The Company will also be required to meet the requirements for electronic voting under the Directive before it can call a general meeting on 14 clear days' notice.

Recommendation

The Directors believe that all the resolutions proposed are in the best interests of the Company and the shareholders as a whole and recommend that all shareholders vote in favour of all the resolutions.

The results of the votes on the resolutions at the AGM will be published on the Company's website.

Going concern

The Company's assets consist of equity shares in companies listed on recognised stock exchanges and in most circumstances are realisable within a short timescale. Having made suitable enquiries, including considerations of the Company's objective, the nature of the portfolio, net current assets, current liabilities relating to the £122 million multi-currency revolving credit loan facility which matures 30 January 2026, expenditure forecasts, the compliance with loan covenants, the principal and emerging risks and uncertainties described within the Annual Report and the continuation vote in July 2024, the Directors are satisfied that the Company has adequate resources to continue to operate as a going concern for the period to 31 March 2027, which is at least 12 months from the date of approval of these Financial Statements, and are satisfied that the going concern basis is appropriate in preparing the Financial Statements.

By order of the Board

Angus Macpherson 6 June 2025

Directors' remuneration report

This report has been prepared in accordance with the requirements of Section 420-422 of the Companies Act 2006, with subsequent amendments. The Directors' Remuneration Policy is subject to a triennial binding shareholder vote and the Directors' Remuneration Report is subject to an annual shareholder vote, both as ordinary resolutions.

The law requires the Company's auditor to audit certain of the disclosures provided. Where disclosures have been audited, they are indicated as such. The auditor's opinion is included in its report on pages 73 to 80.

All Directors are non-executive, appointed under the terms of Letters of Appointment, and none has a service contract. These letters are available for inspection by shareholders at the Company's registered address or at the AGM. The Directors' Report includes, on page 51, details of the Directors' terms of appointment.

The Company has no employees. Details of the Nomination and Remuneration Committee can be found on page 54 within the Directors' Report.

Directors' remuneration policy

This Policy provides details of the remuneration policy for the Directors of the Company.

A resolution proposing the approval of the Directors' remuneration policy was put to the shareholders at the 2023 AGM and passed by 748,951,673 (99.95%) of shareholders voting in favour of the resolution, 404,878 (0.05%) voting against and 156,977 abstaining from voting.

The Policy as set out below will apply until 14 July 2026 (being three years from the date of shareholder approval of the policy) unless renewed, varied or revoked by shareholders at a general meeting.

The Board's policy, which has been designed to support the Company's strategy and promote long-term sustainable success, is that the remuneration of non-executive Directors should reflect the responsibilities of the Board, Directors' time spent on the Company's business, the experience of the Board as a whole, and be fair and comparable to that of other investment trusts similar in size, capital structure and objective. The Chairman of the Board, Chairman of the Audit and Risk Committee (who is also the Senior Independent Director) are paid higher fees than the other Directors, reflecting the greater amount of time spent on the Company's business.

The review process involves an analysis of fees paid to Directors of other companies having similar profiles to that of the Company. This review is submitted to the Nomination and Remuneration Committee and the Directors' fees are agreed for the next year. The Company has no Chief Executive Officer and no employees and therefore there was no consultation of employees and there is no employee comparative data to provide, in relation to the setting of the remuneration policy for Directors.

Directors' and Officers' liability insurance cover is maintained by the Company, at its expense.

Directors' remuneration is not linked to the performance of the Company and Directors are not eligible for bonuses, pension benefits, share options, long-term incentive schemes or other benefits.

The independent non-executive Directors are entitled to reclaim reasonable expenses incurred to perform their duties as non-executive Directors for the Company. Directors are not entitled to payment for loss of office and may be removed from office by the Company on three months' notice.

The Nomination and Remuneration Committee considers any comments received from shareholders on the remuneration policy on an ongoing basis and takes account of those views.

Directors' remuneration implementation report

The Directors' Remuneration Report, which includes details of the Directors' Remuneration Policy and its implementation, is subject to an annual shareholders' vote and an ordinary resolution to approve the Remuneration Policy will be put to shareholders at the forthcoming AGM. A review was carried out during the financial year to 31 March 2025 and this review recommended increases in fees as set out in the table below for the forthcoming financial year. These changes to remuneration are in line with the Directors' Remuneration Policy as set out above. The involvement of remuneration consultants has not been deemed necessary as part of this year's review.

Role	Component	Current Annual Fee	Proposed Annual Fee
Independent Directors	Annual Fee	£42,000	£43,000
Chairman	Additional Fee	£32,500	£33,000
Chairman of the Audit and Risk Committee	Additional Fee	£15,500	£16,000
Senior Independent Director	Additional Fee	£3,000	£3,500

Directors' fees for the year

Fees paid to each Director for the financial year to 31 March 2025 are set out below. A non-binding ordinary resolution proposing adoption of the Directors' Remuneration Report was put to shareholders at the Company's AGM held on 11 July 2024 and was passed by 657,196,869 (99.96%) of shareholders voting in favour of the resolution, 276,176 (0.04%) voting against and 197,986 abstaining from voting.

The Directors who served during the year received the following fees, which represented their total remuneration from the Company:

		2025		2024
Audited Information	Annual Fee £	Taxable Benefits(a) £	Total £	Annual Fee £	Taxable Benefits(a) £	Total £
David Graham	42,000	–	42,000	41,000	–	41,000
Simon Jeffreys	60,500	738	61,238	58,500	357	58,857
Angus Macpherson(b)	74,500	4,498	78,998	27,943	–	27,943
Magdalene Miller	42,000	3,787	45,787	41,000	2,747	43,747
Charlie Ricketts	42,000	6,741	48,741	41,000	2,755	43,755
Abigail Rotheroe	42,000	57	42,057	41,000	241	41,241
Sarika Patel(c)	10,500	–	10,500	–	–	–
Paul Manduca(d)	–	–	–	54,750	277	55,027
Total	313,500	15,821	329,321	305,193	6,377	311,570

Annual percentage change in Directors' fees

The table below shows the annual percentage change in Directors' fees over the five financial years preceding the year to 31 March 2025:

	Component	2025 £	% Change from 2024 to 2025	2024 £	% Change from 2023 to 2024	2023 £	% Change from 2022 to 2023	2022 £	% Change from 2021 to 2022	2021 £	% Change from 2020 to 2021	2020 £
Independent Directors	Annual fee 42,000		2.4	41,000		2.5 40,000		2.6 39,000		2.6 38,000	2.7	37,000
Chairman	Additional fee 32,500			1.6 32,000	3.2	31,000		3.3 30,000		3.4 29,000		3.6 28,000
Chairman of the Audit and Risk Committee	Additional fee	15,500	3.3	15,000	11.1	13,500	3.8	13,000	4.0	12,500	4.2	12,000
Senior Independent Director	Additional fee	3,000	20.0	2,500	–	2,500	–	2,500	100	–	–	–

(a) Taxable benefits relate to the reimbursement of expenses incurred in connection with the performance of the Directors' duties and attendance at Board and Committee meetings. The figures are shown gross of relevant taxes.

(b) Joined the Board on 6 October 2023 and took over as Chairman on 1 January 2024.

(c) Joined the Board on 1 January 2025.

(d) Retired from the Board on 31 December 2023. Chairman of the Board up to date of retirement.

Performance graph(a)

The line graph below details TEMIT's share price total return against TEMIT's benchmark, the MSCI Emerging Markets (Net Dividends) Index total return over the past 10 years.

Relative cost of Directors' fees

The table below shows the Company's expenditure on Directors' fees compared to distributions to shareholders:

	2025 £'000	2024 £'000
Directors' Remuneration(b)	344	333
Distribution to Shareholders:
Dividends	54,027(c)	55,381
Share Buybacks	149,230	65,929

The items detailed in the above table are as required by the Large and Medium-size Companies and Groups (Accounts and Reports) 2013.

(a) Figures rebased to 100 at 31 March 2015.

(b) Directors' Remuneration comprises Directors' fees of £313,500 and Employer National Insurance Contributions of £30,411 for the financial year 2025 (2024: £305,193 and £28,158 respectively). (c) Based on a proposed final dividend of 3.25 pence per share calculated using shares in issue as at 16 May 2025 and the interim dividend of 2.00 pence per share paid 31 January 2025.

Statement of Directors' shareholdings

The Directors' interests (including any family interests) existing as at 31 March in the Company's shares were as follows:

Audited Information	2025 Number of Shares	2024 Number of Shares
David Graham	110,737	109,180
Simon Jeffreys	26,960	26,960
Angus Macpherson	68,000	68,000
Magdalene Miller	20,000	7,000
Sarika Patel	–	n/a
Charlie Ricketts	25,000	25,000
Abigail Rotheroe	27,110	27,110

On 9 April 2025 Sarika Patel bought 7,089 shares in the Company. The Company has not received any other notifications of changes in the above interests as at 16 May 2025.

Approval

The Directors' Remuneration Report was approved by the Board of Directors on 6 June 2025.

Angus Macpherson 6 June 2025

Report of the audit and risk committee

As Chairman of the Audit and Risk Committee, I am pleased to present this report to shareholders. The report contains details of the Audit and Risk Committee's activities and responsibilities along with the evaluation of effectiveness of the external and internal audit process for the year ended 31 March 2025.

Composition

As of 31 March 2025, the Audit and Risk Committee comprised Simon Jeffreys (Chairman), David Graham, Magdalene Miller, Sarika Patel, Charlie Ricketts and Abigail Rotheroe, all independent non-executive Directors. Simon Jeffreys is stepping down from the Board at the conclusion of the AGM on 10 July 2025 and Sarika Patel will take on the role of Chair of the Audit and Risk Committee.

The Board considers that the members of the Audit and Risk Committee have sufficient recent and relevant financial experience for it to perform its functions effectively, noting in particular that the Audit and Risk Committee Chairman is a Chartered Accountant and former senior audit partner. David Graham and Sarika Patel are also Chartered Accountants. The Directors' biographies are given on pages 49 and 50.

Role and responsibilities

The Audit and Risk Committee plays an important role in the appraisal and supervision of key aspects of the Company's business. The Committee carried out the following activities to accomplish its principal objectives and reported to the Board on how it discharged its responsibilities:

• Provided advice to the Board on whether the Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable, and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy;
• Monitored the integrity of the Financial Statements including the review of and agreeing the appropriateness of the Company's accounting policies, accounting estimates and judgements, treatment and disclosures of tax, alternative performance measures and compliance with the appropriate reporting requirements;
• Oversaw the relationship with the external auditor, including monitoring of any non-audit services in accordance with the policy;
• Reviewed and monitored the external auditor's effectiveness, objectivity and independence, and the effectiveness of the audit process, taking into consideration relevant UK professional and regulatory requirements;
• Monitored, reviewed and confirmed the effectiveness of the internal financial controls and internal controls and risk management systems on which the Company is reliant;
• Reviewed the effectiveness of the internal audit function of Franklin Templeton and its reports, and was satisfied with the results;
• Reviewed the internal and external audit plans and the findings of the audits, including the external Auditor's Report;
• Reviewed and confirmed that the value and quality of services provided to the Company by third parties were satisfactory;
• Reviewed in detail the contents of the Company's risk matrix;
• Received regular updates from the Manager's tax team on ongoing claims for recoverable taxes; and
• Reviewed other ad hoc items referred to the Audit and Risk Committee by the Board.

This report summarises how the Committee discharged its role and responsibilities, the work carried out by the Committee and the conclusions reached.

Activities during the year

The Committee met formally three times during the year. Also, while in India, the Committee visited Franklin Templeton's office and met with representatives of the portfolio, research and dealing teams.

The Chairman and other members of the Committee, also:

• Reviewed and challenged the scenarios presented by the Manager to support the use of the going concern basis and the ongoing viability assessment. Upon review and discussion with the Manager the Committee concluded that the scenarios were appropriate to support the use of the going concern basis and the ongoing viability statement;
• Met with the Manager to discuss its approach to ESG considerations including the continued evolution of the Stewardship Report for TEMIT;
• Held meetings with the Manager to discuss with those responsible all relevant matters relating to financial reporting, company secretarial, taxation, internal audit and risk and control framework;
• Discussed with the investment and risk teams the ongoing geopolitical tensions and their impacts on the portfolio as well as any potential restrictions on the ability to invest in certain companies;
• Reviewed the Manager's fair valuation process for the holding in Swiggy, which was unlisted from the date of purchase to 13 November 2024;
• Discussed with the Manager the classification of the special dividends received throughout the year and agreed the capital and revenue split. The Committee concluded that the treatment applied in the Statement of Comprehensive Income was appropriate and therefore no significant judgement was required; and
• Reviewed the historic allocation of the AIFM fee and finance costs and recommended to the Board that the split be updated from 70% to 75% for the allocation to the capital account, with the remainder being allocated to revenue.

The Committee maintains a programme of agenda items to ensure that its workload is balanced across the year and that matters are addressed at appropriate times.

Performance evaluation

The Board undertakes an annual evaluation of performance of the Audit and Risk Committee and of its individual Directors, further details of this review can be found on page 51. The Board is satisfied with the performance and effectiveness of the Audit and Risk Committee.

Annual Report and Financial Statements

A primary responsibility of the Audit and Risk Committee is to review the appropriateness of the Annual and Half Yearly Reports. During the year, the work of the Committee included the following significant activities in relation to the Financial Statements:

Portfolio Valuation	The Directors received regular portfolio reports, liquidity information and presentations from the Manager and the Investment Managers. The Committee reviewed valuation reports from the Manager and is satisfied that valuations are compliant with the accounting policies commencing on page 86. In particular, the Committee reviewed, challenged and agreed with the Manager on the basis of valuation for Swiggy.
Misappropriation of Assets and Counterparty Risk	The Committee considered the risk of counterparty failure. The Company has appointed an independent custodian (JPMorgan Chase Bank) to hold its investments. The Manager reconciled the investment portfolio to the custodian's records on a regular basis and any material variances are reported to the Committee. In addition, the Committee received from the Manager an annual review evaluating JPMorgan Chase Bank's global custody and sub-custody network including the results of an ISAE 3402 report by PricewaterhouseCoopers. The results were satisfactory.
Going Concern and Viability	The Committee considered that the Company's assets consist of equity shares in companies listed on recognised stock exchanges which in most circumstances are realisable within a short timescale. Having made suitable enquiries, including consideration of the Company's objective, the nature of the portfolio, net current assets, current liabilities relating to the £122 million multi-currency revolving credit facility which will mature on 30 January 2026, expenditure forecasts, the compliance with loan covenants, the principal and emerging risks and uncertainties described within the Annual Report, the Committee is satisfied that the Company has adequate resources to continue to operate as a going concern for the period to 31 March 2027, which is at least 12 months from the date of approval of these Financial Statements. The Committee therefore concludes that it is appropriate to prepare the Financial Statements on a going concern basis and makes its recommendations to the Board. The scenarios considered include the liquidity of the portfolio, a sustained increase in the value of the portfolio (which would result in an increase in running costs, particularly the AIFM fee), a significant drop in value of the assets and a similar decrease in dividend income and confirms that the Company could continue as a going concern. The Committee also considered such scenarios over a five-year period, including for this purpose the continuation vote due to be held in 2029, to support the Company's ongoing viability as noted in the Viability Statement on page 46.
Recognition of Investment Income	Each quarter the Committee received and reviewed annual income forecast reports which detail the income received and the estimated income due to be received in the financial year. These forecasts included details of material variances compared with prior forecasts. The Committee is satisfied with these analyses.
Compliance with Section 1158 of the Corporation Tax Act 2010	The Company has been accepted as an approved investment trust by HM Revenue & Customs for accounting periods commencing on or after 1 April 2012, subject to continuing to meet the eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing requirements of The Investment Trust (Approved Company) (Tax) Regulations 2011. The Committee is satisfied that the Company complies with these conditions and intends to direct its affairs to ensure its continued approval as an investment trust.

Areas of audit focus

The Committee reviewed and agreed the external audit plan including the level of audit materiality which it challenged and concluded was appropriate. The external auditor determined the scope of their work and the Committee also discussed with them key matters which they wanted to be covered and which included the following:

• Ownership and valuation of the portfolio given that the majority of the Company's assets are invested in its portfolio companies. The external auditor validated the ownership and valuations to its independent sources and concluded that the results of their procedures did not identify any material misstatements;
• Income recognition to confirm that income has been correctly recorded and received. The external auditor recalculated all dividend income from independent sources and tested a sample to bank statements, and assessed the the classification of special dividends as revenue or capital items in the Statement of Comprehensive Income. The external auditor concluded that the results of their procedures did not identify any material misstatements; and
• Although not a key audit matter as determined by the external auditor the Committee focused on Compliance with S1158 regulations in order to ensure that the Company is meeting its minimum distribution obligations. The external auditor concluded that the Company was in compliance with S1158 regulations as at the balance sheet date.

The Committee notes that there was no significant accounting judgement required in relation to the classification of special dividends received.

Further information on these key audit matters and the external auditor's observations reported to the Committee are detailed within their audit report on pages 73 to 80. The Committee reviewed and were satisfied with the conclusions presented by the external auditor for each of these matters.

Conclusion

As a result of the work undertaken by the Committee as noted on page 67 and from the conclusions presented by the external auditor, the Committee has concluded that the Financial Statements for the year ended 31 March 2025, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy, and has reported on these findings to the Board. The Board's conclusions in this respect are set out in the Statement of Directors' Responsibilities on page 71.

External auditor

Assessment of effectiveness and independence of the external audit process

To assess the effectiveness and independence of the external audit process, the auditor is asked, on an annual basis, to set out the steps that it has taken to ensure objectivity and independence. The auditor's performance, behaviour and effectiveness during the exercise of its duties are monitored during the year by the Audit and Risk Committee. The Audit and Risk Committee considered an annual independent Audit Quality Review report by the FRC, that monitors audit quality of the major audit firms in the UK and discussed with the external auditor the results of its own quality control review and 2024 Transparency Report. Ernst & Young LLP presented its detailed audit plan for the 2025 financial year end at the November 2024 Audit and Risk Committee meeting. The Audit and Risk Committee also reviewed Ernst & Young LLP's policies and procedures including quality assurance procedures and independence and concluded that they were satisfactory.

The outcome of these reviews and discussions with the Senior Statutory Auditor were that the Committee is satisfied that Ernst & Young LLP has a suitable culture, control environment and risk framework to enable it to deliver a high-quality audit.

In assessing the quality of the audit, the Committee considered areas where the auditor had demonstrated professional scepticism and challenged management.

They noted that this had been demonstrated around the valuation of Swiggy as at 30 September 2024 for the Half Yearly Report and how the auditor had challenged management, the Committee noting these discussions and concluding that the pricing model applied was appropriate. In addition, the Committee held meetings with the external auditor in private and worked closely with the Manager during the audit process.

Taking into consideration all the above and its review and discussions with the key parties the Committee concluded that the external auditor had delivered a quality audit for the financial year ended 31 March 2025.

Auditor rotation

The regulations on mandatory auditor rotation require an audit tender to take place every ten years. An audit tender took place during 2019 and shareholders approved the appointment of Ernst & Young LLP as the Company's external auditor at the Annual General Meeting held on 11 July 2019. The year ended 31 March 2025 was the third year for which Ashley Coups (Senior Statutory Auditor) has served.

Non-audit services

Performance of any non-audit services by the external auditor must be approved in advance by the Committee and must comply with the guidelines set out in the FRC's Revised Ethical Standard 2019. The Committee concluded that the non-audit service fees were appropriate relative to fees paid for audit services. An engagement letter is issued for all non-audit work and is reviewed by the Committee to ensure that the independence and objectivity of the auditor is safeguarded.

During the year, Ernst & Young LLP was engaged to perform a review of the Half Yearly Report. This is assurance related and the Committee believes that Ernst & Young LLP is best placed to provide this service for the shareholders.

The fees paid to the Auditor in the year were as follows:

Audited Information	2025	2024
Audit Services	£56,200	£54,600
Non-Audit Services
- Review of Half Yearly Report	£10,850	£10,500
Percentage of Audit Services	16.2%	19.2%

The Committee therefore confirms that the non-audit work undertaken by the auditor satisfies and does not compromise the tests of the auditor's independence, objectivity, effectiveness, resources and qualification.

Internal control

The Committee monitors the risk management and system of internal controls on an ongoing basis and engages Franklin Templeton's internal audit function to carry out a review of specific areas that the Audit and Risk Committee considers appropriate.

Internal audit is carried out by the internal audit department of Franklin Templeton.

The Committee met representatives of the Manager and Investment Managers, including its internal auditor, risk manager and its compliance officer, who reported as to the proper conduct of business in accordance with the regulatory environment in which both the Company and the Manager operate. Certain meetings held with the internal auditors are conducted on a private basis, with no representation from the Manager.

The Committee reviewed the Company's risk matrix that explains in detail the key risks identified by the Company, assessing the likelihood of each risk materialising and the impact that this would have on the Company. The Committee also confirmed the effectiveness of the key operational procedures and oversight by the Manager and the Board.

Other areas

TEMIT is able to rely on the Financial Markets Conduct (Overseas FMC Reporting Entities) Exemption Notice 2021, that exempts it from requirements to prepare audited Financial Statements in accordance with the New Zealand Financial Market Conduct Act 2013. This exemption recognises that companies with a primary listing in the United Kingdom prepare Financial Statements and are audited in accordance with UK requirements. This exempts TEMIT from the New Zealand requirement that firms be audited by a New Zealand unlimited liability entity.

TEMIT is in compliance with the provisions of 'The Statutory Audit Services for Large Companies Market Investigation' (Mandatory Use of Competitive Tender Processes and Audit Committee Responsibilities) Order 2014 as issued by the Competition & Markets Authority.

Simon Jeffreys Audit and Risk Committee Chairman

6 June 2025

Statement of directors' responsibilities

In respect of the Annual Report and the Financial Statements

The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations. Details of the Directors and members of the committees are reported on pages 49 to 54.

Company law requires the Directors to prepare Financial Statements for each financial year. Under that law the Directors are required to prepare the Financial Statements in accordance with UK adopted International Accounting Standards.

Under company law the Directors must be satisfied that the Financial Statements give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for the period.

In preparing these Financial Statements, International Accounting Standard 1 requires that Directors:

• Properly select and apply accounting policies;
• Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
• Provide additional disclosures when compliance with the specific requirements of UK adopted International Accounting Standards are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
• Assess the Company's ability to continue as a going concern.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website (www.temit.co.uk). Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

Responsibility statement

Each of the Directors, who are listed on pages 49 and 50, confirms that to the best of their knowledge:

• The Financial Statements, which have been prepared in accordance with UK adopted International Accounting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company for the year ended 31 March 2025; and
• The Chairman's Statement, Strategic Report and the Report of the Directors include a fair review of the information required by 4.1.8R to 4.1.11R of the FCA's Disclosure Guidance and Transparency Rules; and
• The Annual Report and Audited Financial Statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy, and include a description of the principal risks and uncertainties.

By order of the Board

Angus Macpherson 6 June 2025

03. Financial Review

72 Templeton Emerging Markets Investment Trust plc TEMIT.co.uk

74

Independent auditor's report

to the members of Templeton Emerging Markets Investment Trust plc

Opinion

We have audited the Financial Statements of Templeton Emerging Markets Investment Trust plc (the 'Company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows, and the related notes 1 to 21 to the Financial Statements, including material accounting policy information.

The financial reporting framework that has been applied in their preparation is applicable law and UK adopted International Accounting Standards.

In our opinion, the Financial Statements:

• give a true and fair view of the Company's affairs as at 31 March 2025 and of its profit for the year then ended;
• have been properly prepared in accordance with UK adopted international accounting standards; and
• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

03.

Financial

Review

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the Financial Statements in the UK, including the FRC's Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

The non-audit services prohibited by the FRC's Ethical Standard were not provided to the Company and we remain independent of the Company in conducting the audit.

Conclusions relating to going concern

In auditing the Financial Statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the Financial Statements is appropriate. Our evaluation of the Directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:

• Confirming our understanding of the Company's going concern assessment process by engaging with the Directors and the Company Secretary to determine if all key factors were considered in their assessment.
• Inspecting the Directors' assessment of going concern, including the revenue forecast, for the period to 31 March 2027 which is at least 12 months from the date the Financial Statements were authorised for issue. In preparing the revenue forecast, the Company has concluded that it is able to continue to meet its ongoing costs as they fall due.
• Review of the factors and assumptions, including the impact of the current economic environment, as applied to the revenue forecast and the liquidity assessment of the investments. We considered the appropriateness of the methods used to calculate the revenue forecast and the liquidity assessment and determined, through testing of the methodology and calculations, that the methods, inputs and assumptions utilised were appropriate to be able to make an assessment for the Company.
• In relation to the Company's borrowing arrangements, we inspected the Directors' assessment of the risk of breaching the debt covenants as a result of a reduction in the value of the Company's portfolio. We recalculated the Company's compliance with debt covenants in the scenarios assessed by the Directors and reviewed the Directors' reverse stress testing in order to identify and challenge the factors which would lead to the Company breaching the financial covenants.
• Reviewing the Company's going concern disclosures included in the Annual Report in order to assess that the disclosures were appropriate and in conformity with the reporting standards.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period assessed by the Directors, being the period to 31 March 2027 which is at least 12 months from when the Financial Statements were authorised for issue.

In relation to the Company's reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the Directors' statement in the Financial Statements about whether the Directors considered it appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company's ability to continue as a going concern.

Overview of our audit approach

Key audit matters

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• Risk of incomplete or inaccurate revenue recognition, including the classification of special dividends as revenue or capital items in the Statement of Comprehensive Income
• Risk of incorrect valuation or ownership of the investment portfolio

Materiality

• Overall materiality of £19.85m (2024: £20.35m) which represents 1% (2024: 1%) of shareholders' funds.

An overview of the scope of our audit

Tailoring the scope

Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope for the Company. This enables us to form an opinion on the Financial Statements. We take into account size, risk profile, the organisation of the Company and effectiveness of controls, the potential impact of climate change and changes in the business environment when assessing the level of work to be performed. All audit work was performed directly by the audit engagement team.

Climate change

Stakeholders are increasingly interested as to how climate change will impact companies. The Company has determined that the impact of climate change could affect the Company's portfolio. This is explained in the principal and emerging risks section on page 45, which forms part of the "Other information," rather than the audited Financial Statements. Our procedures on these disclosures therefore consisted solely of considering whether they are materially inconsistent with the Financial Statements or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated.

Our audit effort in considering climate change was focused on the adequacy of the Company's disclosures in the Financial Statements as set out in note 1(a) and conclusion that there was no further impact of climate change to be taken into account as the investments are valued based on market pricing as required by UK adopted International Accounting Standards. In line with UK adopted International Accounting Standards, investments are valued at fair value, which for the Company are quoted bid prices for investments in active markets. Investments which are designated as level 3 are priced using market-based valuation approaches. All investments therefore reflect the market participants' view of climate change risk on the investments held by the Company. We also challenged the Directors' considerations of climate change in their assessment of viability and associated disclosures.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.

Incomplete or inaccurate revenue recognition, including classification of special dividends as revenue or capital items in the Statement of Comprehensive Income (as described on page 68 in the Report of the Audit and Risk Committee and as per the accounting policy set out on page 87).

The total income for the year to 31 March 2025 was £74.34m (2024: £78.45m) consisting primarily of dividend income from listed investments of £69.30m and other income in the form of interest on cash and short-term deposits of £5.04m.

The Company received special dividends amounting to £8.6 million (2024: £8.2 million) of which £3.9 million (2024: £6.6 million) was classified as capital and £4.7 million (2024: £1.6 million) was classified as revenue.

There is a risk of incomplete or inaccurate revenue recognition through the failure to recognise proper income entitlements or to apply an appropriate accounting treatment.

The Directors may be required to exercise judgement in determining whether income receivable in the form of special dividends should be classified as 'revenue' or 'capital'.

As such, there is a manual and judgmental element in classifying special dividends between revenue and capital.

Risk Our response to the risk

We have performed the following procedures:

We obtained an understanding of the processes and controls surrounding revenue recognition, including the classification of special dividends, by performing walkthrough procedures.

For 100% of dividends received and accrued, we recalculated the dividend income by multiplying the investment holdings at the ex-dividend date, traced from the accounting records, by the dividend per share, which we agreed to an independent data vendor. We agreed a sample of dividend receipts to bank statements.

For 100% of dividends accrued, we reviewed the investee Company announcements to assess whether the dividend entitlements arose prior to 31 March 2025.

To test completeness of recorded income, we verified that expected dividends for each investee Company held during the year had been recorded as income with reference to investee Company announcements obtained from an independent data vendor.

For 100% of investments held during the year, we reviewed the type of dividends paid with reference to an external data vendor to identify those which were special.

The Company received six special dividends in the period. For the two special dividends above our testing threshold, we assessed the appropriateness of management's classification by reviewing the underlying rationale of the distributions.

Key observations communicated to the Audit Committee

The results of our procedures identified no material misstatement in relation to the risk of incomplete or inaccurate revenue recognition, including incorrect classification of special dividends as revenue or capital items in the Statement of Comprehensive Income.

Incorrect valuation or ownership of the

investment portfolio (as described on page 68 in the Report of the Audit and Risk Committee and as per the accounting policy set out on pages 88 and 89).

The valuation of the portfolio at 31 March 2025 was £2,002.62m (2024: £1,995.23m) consisting of level 1 listed investments, and two nil valued Russian securities designated as level 3 investments (2024: two nil valued Russian securities).

The fair value of financial instruments at the year-end date is, ordinarily, based on the latest quoted bid price at, or before, the US market close (without deduction for any of the estimated future selling costs), if the instrument is held in active markets.

For all financial instruments not traded in an active market or where market price is not deemed representative of fair value, valuation techniques are employed to determine fair value.

Risk Our response to the risk

We performed the following procedures:

We obtained an understanding of the Administrator's processes and controls surrounding investment pricing and legal title by performing walkthrough procedures.

For the Russian securities we have assessed the reasonableness and appropriateness of them being designated as level 3. We have reviewed the appropriateness of valuing the remaining Russian securities (Sberbank and Lukoil) at nil.

For 100% of investments in the portfolio, we verified the market prices and exchange rates to an independent pricing vendor and recalculated the investment valuations as at the year-end.

We confirmed with the Administrator that there were no investments with stale prices as at the year-end and therefore no stale pricing report produced.

We compared the Company's investment holdings at 31 March 2025 to independent confirmations received directly from the Company's Custodian and Depositary.

Key observations communicated to the Audit Committee

The results of our procedures identified no material misstatement in relation to the risk of incorrect valuation or ownership of the investment portfolio.

Our application of materiality

We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit and in forming our audit opinion.

Materiality

The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic decisions of the users of the Financial Statements. Materiality provides a basis for determining the nature and extent of our audit procedures.

We determined materiality for the Company to be £19.85 million (2024: £20.35 million), which is 1% (2024: 1%) of shareholders' funds. We believe that shareholders' funds provides us with materiality aligned to the key measurement of the Company's performance.

Performance materiality

The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.

On the basis of our risk assessments, together with our assessment of the Company's overall control environment, our judgement was that performance materiality was 75% (2024: 75%) of our planning materiality, namely £14.89m (2024: £15.26m). We have set performance materiality at this percentage due to our past experience of the audit that indicates a lower risk of misstatements, both corrected and uncorrected.

Given the importance of the distinction between revenue and capital for investment trusts we also applied a separate testing threshold for the revenue column of the Statement of Comprehensive Income of £3.13m (2024: £3.21m) being 5% (2024: 5%) of profit before tax.

Reporting threshold

An amount below which identified misstatements are considered as being clearly trivial.

We agreed with the Audit and Risk Committee that we would report to them all uncorrected audit differences in excess of £0.99m (2024: £1.02m), which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds.

We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant qualitative considerations in forming our opinion.

Other information

The other information comprises the information included in the Annual Report other than the Financial Statements and our auditor's report thereon. The Directors are responsible for the other information contained within the Annual Report.

Our opinion on the Financial Statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the Financial Statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion the part of the Directors' remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the strategic report and the Directors' report for the financial year for which the Financial Statements are prepared is consistent with the Financial Statements; and
• the strategic report and Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• the Financial Statements and the part of the Directors' Remuneration Report to be audited are not in agreement with the accounting records and returns; or
• certain disclosures of Directors' remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.

Corporate Governance Statement

We have reviewed the Directors' statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating to the Company's compliance with the provisions of the UK Corporate Governance Code specified for our review by the UK Listing Rules

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit:

• Directors' statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set out on page 59;
• Directors' explanation as to its assessment of the Company's prospects, the period this assessment covers and why the period is appropriate set out on page 46;
• Director's statement on whether it has a reasonable expectation that the group will be able to continue in operation and meets its liabilities set out on page 59;
• Directors' statement on fair, balanced and understandable set out on page 68;
• Board's confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages 44 to 46;
• The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems set out on page 70; and;
• The section describing the work of the Audit and Risk Committee set out on pages 65 and 66.

Responsibilities of Directors

As explained more fully in the Directors' responsibilities statement set out on page 71, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error.

In preparing the Financial Statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Company and management.

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are UK Adopted International Accounting Standards, the Companies Act 2006, the UK Listing Rules, the UK Corporate Governance Code and the AIC Corporate Governance, the Statement of Recommended Practice for the Financial Statements of Investment Trust Companies as issued by the Association of Investment Companies, Section 1158 of the Corporation Tax Act 2010, and The Companies (Miscellaneous Reporting) Regulations 2018.
• We understood how the Company is complying with those frameworks through discussions with the Audit and Risk Committee and Company Secretary, review of the board and committee minutes and review of papers provided to the Audit and Risk Committee.
• We assessed the susceptibility of the Company's Financial Statements to material misstatement, including how fraud might occur by considering the key risks impacting the Financial Statements. We identified a fraud risk with respect to the incomplete or inaccurate revenue recognition through incorrect classification of special dividends as revenue or capital items in the Statement of Comprehensive Income. Further discussion of our approach is set out in the section on key audit matters above.
• Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved review of the reporting to the Directors with respect to the application of the documented policies and procedures and review of the Financial Statements to ensure compliance with the reporting requirements of the Company.

A further description of our responsibilities for the audit of the Financial Statements is located on the Financial Reporting Council's website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters we are required to address

• Following the recommendation from the audit committee, we were appointed by the Company on 11 July 2019 to audit the Financial Statements for the year ending 31 March 2020 and subsequent financial periods.

The period of total uninterrupted engagement including previous renewals and reappointments is six years, covering the years ending 31 March 2020 to 31 March 2025.

• The audit opinion is consistent with the additional report to the audit committee.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Ashley Coups (Senior Statutory Auditor) for and on behalf of Ernst & Young LLP, Statutory Auditor London

6 June 2025

Statement of comprehensive income

For the year ended 31 March 2025

	Note	Year Ended 31 March 2025			Year Ended 31 March 2024
		Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Net Gains/(Losses) on Investments and Foreign Exchange
Net Gains on Investments at Fair Value	8	–	115,856	115,856	–	94,636	94,636
Net Losses on Foreign Exchange		–	(403)	(403)	–	(817)	(817)
Income
Dividends	2	65,353	3,944	69,297	65,350	6,560	71,910
Other Income	2	5,038	–	5,038	6,536	–	6,536
		70,391	119,397	189,788	71,886	100,379	172,265
Expenses
AIFM Fee	3	(4,792)	(12,620)	(17,412)	(5,130)	(11,970)	(17,100)
Other Expenses	4	(2,294)	–	(2,294)	(1,774)	–	(1,774)
		(7,086)	(12,620)	(19,706)	(6,904)	(11,970)	(18,874)
Profit Before Finance Costs and Taxation		63,305	106,777	170,082	64,982	88,409	153,391
Finance Costs	5	(700)	(1,885)	(2,585)	(751)	(1,747)	(2,498)
Profit Before Taxation		62,605	104,892	167,497	64,231	86,662	150,893
Tax Expense	6	(4,682)	(9,119)	(13,801)	(5,366)	(5,201)	(10,567)
Profit for the Year		57,923	95,773	153,696	58,865	81,461	140,326
Profit Attributable to Equity Holders of the Company		57,923	95,773	153,696	58,865	81,461	140,326
Earnings per Share	7	5.41p	8.95p	14.36p	5.18p	7.17p	12.35p

• Under the Company's Articles of Association, the capital element of return is not distributable.

• The total column of this statement represents the profit and loss account of the Company.

• The accompanying notes on pages 86 to 103 are an integral part of the Financial Statements.

Statement of financial position

As at 31 March 2025

	Note	As at 31 March 2025 £'000	As at 31 March 2024 £'000
Non-Current Assets
Investments at Fair Value Through Profit or Loss	8	2,002,617	1,995,232
Current Assets
Trade and Other Receivables	9	8,374	10,759
Cash and Cash Equivalents		75,549	145,736
Total Current Assets		83,923	156,495
Current Liabilities
Bank Loan	10	(80,000)	(100,000)
Other Payables	10	(4,406)	(6,401)
Provisions	11	(416)	–
Total Current Liabilities		(84,822)	(106,401)
Net Current (Liabilities)/Assets		(899)	50,094
Non-Current Liabilities
Capital Gains Tax Provision	6	(16,276)	(10,463)
Total Assets Less Liabilities		1,985,442	2,034,863
Share Capital and Reserves
Equity Share Capital	12, 1(j)	54,241	60,932
Capital Redemption Reserve	1(j)	28,428	21,737
Capital Reserve	1(j)	1,334,729	1,388,186
Special Distributable Reserve	1(j)	433,546	433,546
Revenue Reserve	1(j)	134,498	130,462
Equity Shareholders' Funds		1,985,442	2,034,863
Net Asset Value Pence per Share(a)		193.7	182.5

The accompanying notes on pages 86 to 103 are an integral part of the Financial Statements.

The Financial Statements of Templeton Emerging Markets Investment Trust plc (company registration number SC118022) on pages 81 to 103 were approved for issue by the Board and signed on 6 June 2025.

Angus Macpherson Chairman

Simon Jeffreys Director

Statement of changes in equity

For the year ended 31 March 2025

	Note	Equity Share Capital £'000	Capital Redemption Reserve £'000	Capital Reserve £'000	Special Distributable Reserve £'000	Revenue Reserve £'000	Total £'000
Balance at 31 March 2023		63,148	19,521	1,372,654	433,546	128,634	2,017,503
Profit for the Year		–	–	81,461	–	58,865	140,326
Equity Dividends	13	–	–	–	–	(57,037)	(57,037)
Purchase and Cancellation of Own Shares	12	(2,216)	2,216	(65,929)	–	–	(65,929)
Balance at 31 March 2024		60,932	21,737	1,388,186	433,546	130,462	2,034,863
(Loss)/Profit for the Year		–	–	95,773	–	57,923	153,696
Equity Dividends	13	–	–	–	–	(53,887)	(53,887)
Purchase and Cancellation of Own Shares	12	(4,500)	4,500	(149,230)	–	–	(149,230)
Cancellation of Treasury Shares	12	(2,191)	2,191	–	–	–	–
Balance at 31 March 2025		54,241	28,428	1,334,729	433,546	134,498	1,985,442

The accompanying notes on pages 86 to 103 are an integral part of the Financial Statements.

Statement of cash flows

For the year ended 31 March 2025

Note	For the Year to 31 March 2025 £'000	For the Year to 31 March 2024 £'000
Cash Flows From Operating Activities
Profit Before Taxation	167,497	150,893
Adjustments to Reconcile Profit Before Taxation to Cash Used in Operations:
Bank and Deposit Interest Income Recognised	(5,015)	(6,518)
Dividend Income Recognised	(69,297)	(71,910)
Finance Costs	2,585	2,498
Net Gains on Investments at Fair Value 8	(115,856)	(94,636)
Net Losses on Foreign Exchange	403	817
Decrease/(Increase) in Debtors	85	(23)
Increase/(Decrease) in Creditors	10	(29)
Cash Used in Operations	(19,588)	(18,908)
Bank and Deposit Interest Received	5,089	6,434
Dividends Received	69,421	71,024
Bank Overdraft Interest Paid	(2)	(2)
Tax Paid	(7,614)	(9,945)
Net Realised Losses on Foreign Currency	(82)	(435)
Net Cash Inflow From Operating Activities	47,224	48,168
Cash Flows From Investing Activities
Purchases of Non-Current Financial Assets	(402,009)	(463,750)
Sales of Non-Current Financial Assets	509,268	553,641
Net Cash Inflow From Investing Activities	107,259	89,891
Cash Flows From Financing Activities
Equity Dividends Paid 13	(53,887)	(57,037)
Purchase and Cancellation of Own Shares	(149,034)	(65,784)
Repayment of Fixed Term Loan	(100,000)	–
Drawdown of Revolving Credit Facility	80,000	–
Interest and Fees Paid on Bank Loans	(2,165)	(2,490)
Proceeds from Share Forfeiture	821	–
Refund of Unclaimed Dividends	220	–
Charity Donations	(625)	–
Net Cash Outflow From Financing Activities	(224,670)	(125,311)
Net (Decrease)/Increase in Cash	(70,187)	12,748
Cash at the Start of the Year	145,736	132,988
Net Unrealised Gains/(Losses) on Foreign Currency Cash and Cash Equivalents	0	0
Cash at the End of the Year	75,549	145,736

The accompanying notes on pages 86 to 103 are an integral part of the Financial Statements.

Reconciliation of Liabilities Arising From Bank Loans

	Liabilities as at 31 March 2024 £'000	Cash Flows £'000	Profit & Loss £'000	Liabilities as at 31 March 2025 £'000
Revolving Credit Facility	–	80,000	-	80,000
- Interest and Fees Payable	–	(71)	838	767
Fixed Term Loan	100,000	(100,000)	-	-
- Interest and Fees Payable	349	(2,094)	1,745	-
Total Liabilities From Bank Loans	100,349	(22,165)	2,583	80,767

	Liabilities as at 31 March 2023 £'000	Cash Flows £'000	Profit & Loss £'000	Liabilities as at 31 March 2024 £'000
Revolving Credit Facility	–	–	–	–
- Fees Payable	–	(401)	401	–
Fixed Term Loan	100,000	–	–	100,000
- Interest and Fees Payable	343	(2,089)	2,095	349
Total Liabilities From Bank Loans	100,343	(2,490)	2,496	100,349

Notes to the financial statements

As at 31 March 2025

Accounting Policies 1

Basis of preparation (a)

The Financial Statements of the Company have been prepared in accordance with UK adopted International Accounting Standards. The Financial Statements have also been prepared in accordance with the Statement of Recommended Practice ('SORP') for investment trusts issued by the Association of Investment Companies ('AIC') and updated in July 2022 insofar as the SORP is compatible with International Accounting Standards.

The Financial Statements have been prepared on the historical cost basis, except for the measurement at fair value of certain financial instruments. All financial assets and financial liabilities are recognised (or derecognised) on the date of the transaction using 'trade date accounting'. The principal accounting policies adopted are set out below.

Adoption of new and revised Accounting Standards

At the date of authorisation of these Financial Statements, the following standards were assessed to be relevant and are effective for annual periods beginning on or after 1 January 2024:

• IAS 1 Amendments: Classification of Liabilities as Current or Non-Current. This amendment is designed to help preparers determine whether debt and other liabilities in the statement of financial position with an uncertain settlement date should be classified as current or non-current.

The amendments listed above did not have any impact on the amounts recognised in the current reporting period.

At the date of authorisation of these Financial Statements, the following standards and interpretations which have not been applied in these Financial Statements were in issue but not yet applicable:

IAS 21 Amendments: Lack of Exchangeability 1 January 2025

Accounting Standards Effective Date for Annual Periods Beginning On or After

The Directors expect that the amendments listed above will have either no impact or that any impact will not be material to the Financial Statements of the Company in the next reporting periods.

Going concern

The Directors have a reasonable expectation that the Company has sufficient resources to continue in operational existence for the period to 31 March 2027, which is at least 12 months from the date of the approval of these Financial Statements. The Directors reviewed income forecasts covering the next two financial years, including interest and fees arising from the revolving credit loan facility. The Directors considered the principal and emerging risks and uncertainties disclosed on pages 44 to 46.

At 31 March 2025, the Company had net current liabilities of £899,000 (31 March 2024: net current assets of £50,094,000). In addition, the Company holds a portfolio of largely liquid assets that, if required, can be sold to maintain adequate cash balances to meet its expected cash flows, including current liabilities relating to the loans under the £122 million multi-currency revolving credit facility which will mature on 30 January 2026. The Directors also reviewed scenarios of a significant drop in value of the assets and noted that in those scenarios they would still be significantly higher than the Company's liabilities. They have also confirmed the resiliency of the Company's key service providers and are satisfied that their contingency plans and working arrangements are sustainable.

The Board has established a framework of prudent and effective controls performed periodically by the Audit and Risk Committee, which enable risks to be assessed and managed. Therefore, the going concern basis has been adopted in preparing the Company's Financial Statements. The Going Concern statement is set out on page 59.

Functional currency

As the Company is a UK investment trust, whose share capital is issued in the UK and denominated in sterling, the Directors consider that the functional currency of the Company is sterling.

Estimates, assumptions and judgements

There have been no significant estimates, assumptions or judgements for the year.

In preparing these Financial Statements, the Directors have considered the impact of climate change as a principal risk as set out on page 45 and have concluded that there was no further impact of climate change to be considered as the investments are valued based on

market pricing. In line with UK adopted International Accounting Standards the investments are valued at fair value, which for the Company are the bid prices quoted on the relevant stock exchange at the date of the Statement of Financial Position and therefore reflect market participants' views of climate change risk on the investments held.

Presentation of statement of comprehensive income (b)

To reflect accurately the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented within the Statement of Comprehensive Income. In accordance with the Company's Articles of Association, net capital profits may not be distributed by way of dividend. Additionally, the net revenue is the measure that the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Section 1158 of the Corporation Tax Act 2010.

Income (c)

Dividends receivable on equity shares are treated as revenue for the year on an ex-dividend basis. Where no ex-dividend date is available, dividends are recognised on their due date. Provision is made for any dividends not expected to be received.

Where the Company has elected to receive its dividends in the form of additional shares rather than in cash, the amount of the cash dividend is recognised in the revenue column of the Statement of Comprehensive Income. Any excess in the value of the shares received over the amount of the cash dividend forgone is recognised in the capital column of the Statement of Comprehensive Income.

Special dividends receivable are treated as repayment of capital or as revenue depending on the facts of each particular case. Interest on bank deposits is recognised on an accrual basis.

Stock lending income is shown gross of associated costs and recognised in revenue as earned.

Expenses (d)

All expenses are accounted for on an accrual basis and are charged through the revenue and capital sections of the Statement of Comprehensive Income according to the Directors' expectation of future returns except as follows:

• Expenses relating to the purchase or disposal of an investment are treated as capital. Details of transaction costs on purchases and sales of investments are disclosed in Note 8; and
• Expenses are treated as capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. From 1 October 2024, the allocation of the annual AIFM fee to the capital account was changed from 70% to 75%, with the remainder being allocated to revenue. The Board believes that this is more reflective of the expected long-term split of returns between capital and revenue.

Finance costs (e)

Finance costs relating to bank loans are accounted for on an accrual basis using the effective interest method in the Statement of Comprehensive Income according to the Directors' expectations of future returns. Finance costs relate to interest and fees on bank loans and overdrafts. From 1 October 2024, the allocation of finance costs to the capital account, except for interest and fees on overdrafts, was changed from 70% to 75%. The Board believes that this is more reflective of the expected long-term split of returns between capital and revenue.

Taxation (f)

The tax expense represents the sum of current and deferred tax. Tax receivables will be recognised when it is probable that the benefit will flow to the entity and the benefit can be reliably measured. In line with the recommendations of the SORP, the allocation method used to calculate tax relief on expenses presented against capital returns in the supplementary information in the Statement of Comprehensive Income is the 'marginal basis'. Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue return column of the Statement of Comprehensive Income, then no tax relief is transferred to the capital return column.

Deferred taxation is recognised in respect of all taxable temporary differences that have originated but not reversed at the year-end date, where transactions or

events that result in an obligation to pay more tax in the future or rights to pay less tax in the future have occurred at the year-end date.

This is subject to deferred tax assets only being recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Deferred tax assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise.

Due to the Company's status as an investment trust company, and its intention to continue to meet the eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing requirements of The Investment Trust (Approved Company) (Tax) Regulations 2011, the Company has not provided deferred tax in respect of UK corporation tax on any capital gains and losses arising on the revaluation or disposal of investments. Where appropriate, the Company provides for deferred tax in respect of overseas taxes on any capital gains arising on the revaluation of investments.

The carrying amount of deferred tax assets is reviewed at each year-end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Investments held at fair value through profit or loss (g)

The Company classifies its equity investments based on their contractual cash flow characteristics and the Company's business model for managing the assets. The Company's business is investing in financial assets with a view to profiting from their total return in the form of revenue and capital growth. This portfolio of financial assets is managed, and its performance evaluated on a fair value basis, in accordance with a documented investment strategy, and information about the portfolio is provided internally on that basis to the Company's Directors and other key management personnel. Equity investments do not meet the contractual cash flows test so are measured at fair value. Accordingly, upon initial recognition, all the Company's non-current asset investments are held at 'fair value through profit or loss'. They are included initially at fair value, which is taken to be their cost excluding expenses incidental to the acquisition.

Subsequently, the investments are valued at 'fair value', which is measured as follows:

The fair value of financial instruments at the year-end date is, ordinarily, based on the latest quoted bid price at, or before, the US market close (without deduction for any of the estimated future selling costs), if the instrument is held in active markets. This represents a Level 1 classification under IFRS 13. For all financial instruments not traded in an active market or where market price is not deemed representative of fair value, valuation techniques are employed to determine fair value. Valuation techniques include the market approach (i.e. using recent arm's length market transactions adjusted as necessary and reference to the market value of another instrument that is substantially the same) and the income approach (i.e., discounted cash flow analysis making use of available and supportable market data as possible).

Gains and losses arising from changes in fair value are included in the net profit or loss for the period as a capital item in the Statement of Comprehensive Income.

Foreign currencies (h)

Transactions involving foreign currencies are translated to sterling (the Company's functional currency) at the spot exchange rates ruling on the date of the transactions. Assets and liabilities in foreign currencies are translated at the rates of exchange at the year-end date. Foreign currency gains and losses are included in the Statement of Comprehensive Income and allocated as capital or income depending on the nature of the transaction giving rise to the gain or loss.

Financial instruments (i)

Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of changes in value.

Bank loans are classified as financial liabilities at amortised cost. They are initially measured as the proceeds net of direct issue costs and subsequently measured at amortised cost. Interest payable on the bank loan is accounted for on an accrual basis in the Statement of Comprehensive Income. The amortisation of direct issue costs is accounted for on an accrual basis in the Statement of Comprehensive Income using the effective interest method.

Share capital and reserves (j)

Equity Share Capital – represents the nominal value of the issued share capital. This reserve is not distributable.

Capital Redemption Reserve – represents the nominal value of shares repurchased and cancelled. This reserve is not distributable.

Capital Reserve – gains and losses on realisation of investments; changes in fair value of investments which are readily convertible to cash, without accepting adverse terms; realised exchange differences of a capital nature; changes in the fair value of investments that are not readily convertible to cash, without accepting adverse terms; and the amounts by which other assets and liabilities valued at fair value differ from their book value are within this reserve. Additionally, from 1 October 2024 75% (prior to 1 October 2024: 70%) of the annual AIFM fee and finance costs are charged to this reserve in accordance with accounting policies 1(d) and 1(e). Purchases of the Company's own shares are funded from the realised component of the Capital Reserve. The Company's Articles of Association preclude it from making any distribution of capital profits by way of dividend. If treasury shares are subsequently cancelled, the nominal value is transferred out of Equity Share Capital and into the Capital Redemption Reserve.

Special Distributable Reserve – reserve created upon the transfer of the balances of the Share Premium Account and of the Capital Redemption Reserve in December 2008. This reserve is fully distributable.

Revenue Reserve – represents net income earned that has not been distributed to shareholders. This reserve is fully distributable.

Income recognised in the Statement of Comprehensive Income is allocated to applicable reserves in the Statement of Changes in Equity.

Income 2

	2025			2024
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Dividends(a)
International Dividends	65,234	3,944	69,178	64,489	6,560	71,049
UK Dividends	119	–	119	861	–	861
	65,353	3,944	69,297	65,350	6,560	71,910
Other Income
Bank and Deposit Interest	5,015	–	5,015	6,518	–	6,518
Stock Lending Income	23	–	23	18	–	18
	5,038	–	5,038	6,536	–	6,536
Total	70,391	3,944	74,335	71,886	6,560	78,446

AIFM Fee 3

	2025		2024
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
AIFM Fee	4,792	12,620	17,412	5,130	11,970	17,100

The AIFM fee is paid monthly and based on the month end total net assets of the Company. From 1 July 2024, the AIFM fee was reduced to 1% of the first £1 billion of net assets, 0.70% of net assets between £1 billion and £2 billion, and 0.50% of net assets over £2 billion. The previous fee structure was 1% of the first £1 billion of net assets, 0.75% of net assets between £1 billion and £2 billion, and 0.50% of net assets over £2 billion.

From 1 October 2024, 75% of the annual AIFM fee has been allocated to the capital account, with the remainder being allocated to revenue. The previous allocation was 70%.

⁽a) The Company received special dividends amounting to £8.6 million (2024: £8.2 million) of which £3.9 million (2024: £6.6 million) was classified as capital and £4.7 million (2024: £1.6 million) was classified as revenue.

Other Expenses 4

	2025 £'000	2024 £'000
Custody Fees	502	432
Marketing Fees	352	344
Directors' Remuneration	344	333
Membership Fees	205	171
Tax Advisory Fees/(Tax Advisory Fees Net of Refund)	175	(98)
Registrar Fees	172	117
Depository Fees	169	166
Auditor's Remuneration - Audit of the Annual Financial Statements - Review of the Half Yearly Report	56 11	55 10
Broker Fees	43	40
Printing and Postage Fees	23	17
Other Expenses	242	187
Total	2,294	1,774

5 Finance Costs

	2025			2024
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Fixed Term Loan	488	1,257	1,745	629	1,466	2,095
Revolving Credit Facility	210	628	838	120	281	401
Bank Overdraft Interest	2	–	2	2	–	2
Total	700	1,885	2,585	751	1,747	2,498

6 Tax on Ordinary Activities

		2025			2024
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Irrecoverable Overseas Withholding Tax	4,682	–	4,682	5,366	–	5,366
Capital Gains Tax Paid	–	3,306	3,306	–	4,482	4,482
Total Current Tax	4,682	3,306	7,988	5,366	4,482	9,848
Capital Gains Tax Provision	–	5,813	5,813	–	719	719
Total	4,682	9,119	13,801	5,366	5,201	10,567
			2025 £'000			2024 £'000
Profit Before Taxation			167,497			150,893
Theoretical Tax at UK Corporation Tax Rate of 25%			41,874			37,723
Effects of:
- Capital Element of (Profit)/Loss			(29,849)			(25,095)
- Irrecoverable Overseas Withholding Tax		4,682		5,366
- Excess Management Expenses		2,733		2,224
- Overseas Capital Gains Tax Paid		3,306		4,482
- Dividends Not Subject to Corporation Tax		(14,543)			(14,421)
- Movement in Overseas Capital Gains Tax Liability		5,813			719
- UK Dividends			(30)			(215)
- Overseas Tax Expensed			(185)			(216)
Actual Tax Charge			13,801			10,567

As at 31 March 2025 the Company had unutilised management expenses and non-trade deficits of £315.3 million carried forward (2024: £304.4 million). These balances have been generated because a large part of the Company's income is derived from dividends which are not taxed. Based on current UK tax law, the Company is not expected to generate taxable income in a future period in excess of deductible expenses for that period and, accordingly, is unlikely to be able to reduce future tax liabilities by offsetting these excess management expenses. These excess management expenses are therefore not recognised as a deferred tax asset of £78.8 million (2024: £76.1 million) based on a prospective corporation tax rate of 25% (2024: 25%). The UK corporation tax rate is currently 25%.

Movement in Provision for Capital Gains Tax(a)

	2025 £'000	2024 £'000
Balance Brought Forward	10,463	9,744
Charge For the Year	9,119	5,201
Capital Gains Tax Paid	(3,306)	(4,482)
Balance Carried Forward	16,276	10,463

(a) A provision for deferred capital gains tax has been recognised in relation to unrealised gains for holdings in India.

Earnings per Share 7

	2025			2024
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Earnings	57,923	95,773	153,696	58,865	81,461	140,326
		2025			2024
	Revenue pence	Capital pence	Total pence	Revenue pence	Capital pence	Total pence
Earnings per Share	5.41	8.95	14.36	5.18	7.17	12.35

The earnings per share is based on the profit attributable to equity holders and on the weighted average number of shares in issue, excluding shares held in treasury, during the year of 1,070,018,105 (year to 31 March 2024: 1,136,517,365).

8 Financial Assets - Investments

	2025 £'000	2024 £'000
Opening Investments
Book Cost	1,740,112	1,705,635
Net Unrealised Gains	255,120	287,140
Opening Fair Value	1,995,232	1,992,775
Movements in the Year
Additions at Cost	399,390	463,628
Disposals Proceeds	(507,861)	(555,807)
Net Gains on Investments at Fair Value	115,856	94,636
	2,002,617	1,995,232
Closing Investments
Book Cost	1,710,894	1,740,112
Net Unrealised Gains	291,723	255,120
Closing Investments	2,002,617	1,995,232

All investments have been recognised at fair value with gains and losses recorded through the Statement of Comprehensive Income. Transaction costs for the year on purchases were £404,000 (2024: £546,000) and transaction costs for the year on sales were £978,000 (2024: £1,210,000). The aggregate transaction costs for the year were £1,382,000 (2024: £1,756,000).

	2025 £'000	2024 £'000
Net Gains/(Losses) on Investments at Fair Value Comprise:
Net Realised Gains on Sale of Investments at Fair Value	79,253	126,656
Net Movement in Unrealised Gains/(Losses)	36,603	(32,020)
Net Gains on Investments at Fair Value	115,856	94,636

9 Trade and Other Receivables

	2025 £'000	2024 £'000
Dividends Receivable	8,153	8,277
Overseas Tax Recoverable	142	516
Sales Awaiting Settlement	55	1,783
Other Debtors	24	183
Total	8,374	10,759

Current Payables 10

	2025 £'000	2024 £'000
Revolving Credit Facility Payable	80,000	–
AIFM Fee	1,446	1,369
Purchase of Investments for Future Settlement	1,048	3,667
Interest and Fees on Revolving Credit Facility	767	–
Amounts Owed for Share Buybacks	658	462
Accrued Expenses	487	554
Fixed Term Loan	–	100,000
Interest and Fees on Fixed Term Loan	–	349
Total	84,406	106,401

Fixed term loan

On 31 January 2020, the Company entered into a term loan (the 'term loan') for a period of five years with Scotiabank Europe plc for £100 million. With effect from 28 September 2022, the term loan was transferred by novation from Scotiabank Europe plc to The Bank of Nova Scotia, London Branch. All other contractual terms and conditions remained the same. The term loan was fully repaid upon its maturity on 31 January 2025.

The term loan incurred interest at the fixed rate of 2.089%. Under the conditions of the term loan, the net assets were not to be less than £1,015 million and the adjusted net asset coverage to all borrowings was not to be less than 3.5:1.

The facility was shown at amortised cost. From 1 October 2024, interest costs were charged to capital (75%) and revenue (25%). This is in accordance with the Company's revised accounting policies. Previously, interest costs were charged to capital (70%) and revenue (30%). The Board believes that this is more reflective of the expected long-term split of returns between capital and revenue.

Revolving credit facility

On 31 January 2025, the Company entered into a £122 million multi-currency unsecured revolving credit facility (the 'facility') for a period of one year with The Bank of Nova Scotia, London Branch.

The fee on unutilised commitments is a flat fee of 0.40% per annum.

Under the facility balances can be drawn down in GBP, USD or CNH. The interest margin is 1.10% as follows: USD drawdowns incur interest at 1.10% per annum over the daily secured overnight financing rate ('SOFR') administered by the Federal Reserve Bank of New York, GBP drawdowns incur interest at 1.10% per annum over the daily sterling overnight index average ('SONIA') published by the Bank of England and CNH drawdowns incur interest at 1.10% per annum over the Hong Kong Interbank Offered Rate ('HIBOR') as quoted by the Hongkong and Shanghai Banking Corporation Limited.

Under the terms of the facility, the net assets cannot be less than £1,015 million and the adjusted net asset coverage to all borrowings cannot be less than 3.5:1.

On 31 January 2025, the Company drew down £80 million in GBP from the revolving credit facility, of which £40 million is repayable within three months. The remaining £40 million is repayable within six months. Facility drawdowns are shown at amortised cost and revalued for exchange rate movements. Any gain or loss arising from changes in exchange rates is included in the capital reserves and shown in the capital column of the Statement of Comprehensive Income. Interest costs are charged to capital (75%) and revenue (25%) in accordance with the Company's accounting policies.

Provisions 11

	2025 £'000	2024 £'000
Provision for claims arising from share forfeitures	416	–
Total	416	–

The Company completed a shareholder tracing exercise for unidentified shareholdings and completed a legal forfeiture and disposal exercise. This resulted in £821,000 and £220,000 being returned to the Company for forfeited shares and unclaimed dividends, respectively. A donation of £625,000 was subsequently made by the Company to four charities selected by the Board. The remaining £416,000 will be kept for a period of 3 years in the case that verified ownership is established. Further details can be found on page 48.

Equity Share Capital 12

	2025		2024
Ordinary Shares In Issue	£'000	Number	£'000	Number
Opening Ordinary Shares of 5 Pence	55,741	1,114,818,617	57,957	1,159,138,372
Purchase and Cancellation of Own Shares	(4,500)	(89,989,892)	(2,216)	(44,319,755)
Closing Ordinary Shares of 5 Pence	51,241	1,024,828,725	55,741	1,114,818,617
	2025		2024
Ordinary Shares Held In Treasury	£'000	Number	£'000	Number
Opening Ordinary Shares of 5 Pence	5,191	103,825,895	5,191	103,825,895
Cancellation of Shares	(2,191)	(43,825,895)	–	–
Closing Ordinary Shares of 5 Pence	3,000	60,000,000	5,191	103,825,895
Total Ordinary Shares In Issue and Held In Treasury at the End of the Year	54,241	1,084,828,725	60,932	1,218,644,512

The Company's shares (except those held in treasury) have unrestricted voting rights at all general meetings, are entitled to all of the profits available for distribution by way of dividend and are entitled to repayment of all of the Company's capital on winding up. During the year, 89,989,892 shares were bought back for cancellation at a cost of £149,230,200 (2024: 44,319,755 shares were bought back for cancellation at a cost of £65,929,000). All shares bought back in the year were cancelled, with none being placed in treasury (2024: no shares were placed into treasury).

On 25 March 2025, 43,825,895 shares held in Treasury were cancelled. Following cancellation, 60,000,000 shares remained in Treasury.

Dividends 13

	2025		2024
	Rate (pence)	£'000	Rate (pence)	£'000
Declared and Paid in the Financial Year
Dividend on Shares:
Final Dividends for the Years Ended 31 March 2024 and 31 March 2023	3.00	32,906	3.00	34,562
Interim Dividends for the Six-Month Periods Ended 30 September 2024 and 30 September 2023	2.00	20,981	2.00	22,475
Total	5.00	53,887	5.00	57,037
Proposed for Approval at the Company's AGM
Dividend on Shares:
Final Dividend for the Year Ended 31 March 2025	3.25	33,046	3.00	33,138

Dividends are recognised when the shareholders' right to receive the payment is established. In the case of the final dividend, this means that it is not recognised until approval is received from shareholders at the AGM. The proposed final dividend of 3.25 pence per share will be funded from the revenue reserve and the payment of this dividend will not threaten the going concern or viability of the Company.

Related Party Transactions 14

There were no transactions with related parties, other than the fees paid to the Directors and the AIFM during the financial years ended 31 March 2025 and 31 March 2024 respectively, which have a material effect on the results or the financial position of the Company. Details of fees paid to the Directors are included on page 62 and details of the fee paid to the AIFM are included on page 90.

Risk Management

15

In pursuing the Company's objective, as set out on page 36 of this Annual Report, the Company holds a number of financial instruments which are exposed to a variety of risks that could result in either a reduction in the Company's net assets or a reduction in the profits available for dividends.

The main risks arising from the Company's financial instruments are investment and concentration risk, market risk (which comprises market price risk, foreign currency risk and interest rate risk), liquidity risk and counterparty and credit risk.

The objectives, policies and processes for managing these risks, and the methods used to measure the risks, are set out below. These policies have remained unchanged since the beginning of the year to which these Financial Statements relate.

Investment and concentration risk

The Company may invest a greater portion of its assets than the benchmark in the securities of one issuer, securities of a particular country, or securities within one sector. As a result, there is the potential for an increased concentration of exposure to economic, business, political or other changes affecting similar issues or securities, which may result in greater fluctuation in the value of the portfolio. Investment risk and a certain degree of concentration risk is a known and necessary effect of the stated investment approach in line with the investment policy. The Directors regularly review the portfolio composition and asset allocation and discuss related developments with the Investment Managers. Security, country, and sector concentrations are monitored by the Manager's risk and compliance teams on a regular basis and any concerns are highlighted to the Investment Managers for remedial action and brought to the attention of the Directors.

Market price risk

Market risk arises mainly from uncertainties about future prices of financial instruments held. It represents the potential loss that the Company might suffer through holding market positions in the face of price movements.

The Directors meet quarterly to consider the asset allocation of the portfolio and to discuss the risks associated with particular securities, countries or sectors. The Investment Managers select securities in the portfolio in accordance with the investment policy, and the overall asset allocation parameters described above, and seek to ensure that individual stocks also meet the intended risk/reward profile.

The Company does not use derivative instruments to hedge the investment portfolio against market price risk.

100% (2024: 100%) of the Company's investment portfolio is listed on stock exchanges. If share prices as at 31 March 2025 had decreased by 30% (2024: 30% decrease) with all other variables remaining constant, the Statement of Comprehensive Income capital return and the net assets attributable to equity shareholders would have decreased by £600,785,000 (2024: £598,570,000). A 30% increase (2024: 30% increase) in share prices would have resulted in a proportionate equal and opposite effect on the above amounts, on the basis that all other variables remain constant.

Foreign currency risk

Currency translation movements can significantly affect the income and capital value of the Company's investments, as the majority of the Company's assets and income are denominated in currencies other than sterling, which is the Company's functional currency.

The Investment Managers have identified three principal areas where foreign currency risk could affect the Company:

• Movements in rates affect the value of investments;
• Movements in rates affect short-term timing differences; and
• Movements in rates affect the income received.

The Company does not hedge the sterling value of investments that are priced in other currencies. The Company may be subject to short-term exposure to exchange rate movements, for instance where there is a difference between the date on which an investment purchase or sale is entered into and the date on which it is settled.

The Company receives income in currencies other than sterling and the sterling values of this income can be affected by movements in exchange rates. The Company converts all receipts of income into sterling on or near the date of receipt. However, it does not hedge or otherwise seek to avoid rate movement risk on income accrued but not received.

The fair value of the Company's items denominated in a foreign currency as at 31 March are shown below:

2025

Currency	Trade and Other Receivables £'000	Cash at Bank £'000	Trade, Bank Loans, and Other Payables £'000	Total Net Foreign Currency Exposure £'000	Investments at Fair Value Through Profit or Loss £'000
Hong Kong dollar	51	–	–	51	390,136
Taiwan dollar	1,165	–	(406)	759	335,133
Korean won	5,373	–	–	5,373	310,143
Indian rupee	–	–	(16,312)	(16,312)	280,837
US dollar	889	–	(609)	280	198,907
Euro	–	–	–	–	132,880
Other	872	48	(1)	919	352,538

2024

Currency	Trade and Other Receivables £'000	Cash at Bank £'000	Trade, Bank Loans, and Other Payables £'000	Total Net Foreign Currency Exposure £'000	Investments at Fair Value Through Profit or Loss £'000
Korean won	–	–	–	–	426,407
Hong Kong dollar	1,783	1	–	1,784	371,454
Taiwan dollar	516	–	–	516	358,245
Indian rupee	–	–	–	–	246,587
US dollar	–	–	–	–	183,034
Other	–	99	(3,667)	(3,568)	382,705

The above tables are based on the currencies of the country where shares are listed rather than the underlying currencies of the countries where the companies earn revenue.

As at 31 March 2025, 70.2% (2024: 69.3%) of investments denominated in US dollar, Hong Kong dollar and Euro are Chinese companies with exposure to the Chinese yuan. The total exposure to Chinese yuan was £549.3 million (2024: £490.3 million), out of which £42.2 million (2024: £33.0 million) were investments denominated in Chinese yuan.

Foreign currency sensitivity

The following table illustrates the foreign currency sensitivity on the revenue and capital return. The revenue return impact represents the impact on total income (which is mainly comprised of dividend income) had sterling strengthened relative to all currencies by 10% throughout the year.

The capital return impact represents the impact of the financial assets and liabilities of the Company if sterling had strengthened by 10% relative to all currencies on the reporting date. With all other variables held constant, the revenue and capital return would have decreased by the below amounts.

	2025		2024
	Revenue Return £'000	Capital Return £'000	Revenue Return £'000	Capital Return £'000
Hong Kong Dollar	72	39,013	655	37,324
Taiwan Dollar	888	33,589	1,253	35,876
Korean Won	789	31,552	853	42,641
Indian Rupee	243	26,452	237	24,659
US Dollar	54	19,979	789	18,303
Other	4,482	48,633	2,663	37,914
Total	6,528	199,218	6,450	196,717

A 10% weakening of sterling against all currencies would have resulted in an equal and opposite effect on the above amounts.

Interest rate risk

The Company is permitted to invest in interest bearing securities. Any change to the interest rates relevant to particular securities may result in income either increasing or decreasing, or the Investment Managers being unable to secure similar returns on the expiry of contracts or the sale of securities. In addition, changes to prevailing rates or changes in expectations of future rates may result in an increase or decrease in the value of the securities held and the interest payable on bank loans when interest rates are reset.

The fixed term loan incurred a fixed rate of interest and was carried at amortised cost rather than fair value. Hence, movements in interest rates would not affect net asset values, as reported under the Company's accounting policies.

Interest rate risk profile

The exposure of the financial assets and liabilities to floating interest rate risks at 31 March is shown below:

	2025 £'000	2024 £'000
Cash	75,549	145,736
Bank loans – Revolving Credit Facility	(80,000)	–
Net Exposure at Year End	(4,451)	145,736

Exposures vary throughout the year as a consequence of changes in the make-up of the net assets of the Company. Cash balances are held on call deposit and earn interest at the bank's daily rate. The Company's net assets are sensitive to changes in interest rates on borrowings. There was no exposure to fixed interest investment securities during the year or at the year end.

Interest rate sensitivity

If the above level of cash and revolving credit facility were maintained for a year and interest rates were 100 basis points higher or lower, the net profit after taxation would be impacted by the following amounts:

	2025		2024
	100 Basis Points Increase in Rate £'000	100 Basis Points Decrease in Rate £'000	100 Basis Points Increase in Rate £'000	100 Basis Points Decrease in Rate £'000
Revenue	555	(555)	1,457	(1,457)
Capital	(600)	600	–	–
Total	(45)	45	1,457	(1,457)

Liquidity risk

The Company's assets comprise mainly securities listed on the stock exchanges of emerging economies. Liquidity can vary from market to market and some securities may take a significant period to sell. As a closed ended investment trust, liquidity risks attributable to the Company are less significant than for an open-ended fund.

The risk of the Company not having sufficient liquidity at any time to meet its obligations associated with financial liabilities is considered by the Board to be mitigated, given the large number of quoted investments held in the portfolio and the liquid nature of the portfolio of investments.

The Investment Managers review liquidity at the time of making each investment decision and monitor the evolving liquidity profile of the portfolio regularly.

The below table details the maturity profile of the Company's financial liabilities as at 31 March 2025, based on the earliest date on which payment can be required and current exchange rates as at the balance sheet date:

As at 31 March 2025	In One Year or Less £'000	More Than One Year and Not Later Than Two Years £'000	More Than Two Years and Not Later Than Three Years £'000	More Than Three Years £'000	Total £'000
Revolving Credit Facility	84,596	–	–	–	84,596
Fixed Term Loan	–	–	–	–	–
Other Payables	4,055	–	–	–	4,055
Total	88,651	–	–	–	88,651

As at 31 March 2024	In One Year or Less £'000	More Than One Year and Not Later Than Two Years £'000	More Than Two Years and Not Later Than Three Years £'000	More Than Three Years £'000	Total £'000
Revolving Credit Facility	–	–	–	–	–
Fixed Term Loan	102,095	–	–	–	102,095
Other Payables	6,052	–	–	–	6,052
Total	108,147	–	–	–	108,147

Counterparty and credit risk

Certain transactions in securities that the Company enters into expose it to the risk that the counterparty will not deliver the investment (purchase) or cash (in relation to sale or declared dividend) after the Company has fulfilled its responsibilities. The Company only buys and sells through brokers which have been approved by the Investment Managers as an acceptable counterparty. Limits are set as to the maximum exposure to any individual broker that may exist at any time. Total exposure is compared to monetary limits that vary based on the size and creditworthiness of the counterparty. Counterparty spreads and capital ratios are reviewed periodically. The amounts under trade and other receivables and cash and cash equivalents shown in the Statement of Financial Position represent the maximum credit risk exposure at the year end.

The Company has an ongoing contract with its custodian (JPMorgan Chase Bank) for the provision of custody services.

As part of the annual risk and custody review, the Company reviewed the custody services provided by JPMorgan Chase Bank and concluded that, while there are inherent custody risks in investing in emerging markets, the custody network

employed by TEMIT has appropriate controls in place to mitigate those risks, and that these controls are consistent with recommended industry practices and standards.

Securities held in custody are held in the Company's name or to its accounts. Details of holdings are received and reconciled monthly. Cash is actively managed by Franklin Templeton and is typically invested in overnight time deposits in the name of TEMIT with an approved list of counterparties. Any excess cash not invested will remain in a JPMorgan Chase interest bearing account. There is no significant risk on debtors and accrued income or tax at the year end.

During the year, the Company participated in a securities lending programme through JPMorgan as the lending agents. All securities on loan are Level 1 financial instruments, and their value is determined by reference to the trading prices on the stock market. As at 31 March 2025, the market value of the securities on loan and the corresponding collateral received were as follows:

	31 March 2025		31 March 2024
Counterparty	Market Value of Securities on Loan £'000	Market Value of Collateral Received £'000	Market Value of Securities on Loan £'000	Market Value of Collateral Received £'000
Merrill Lynch International	–	–	3,831	5,082
UBS	–	–	211	276
Total	–	–	4,042	5,358

The maximum aggregate value of securities on loan at any time during the year was £3,887,541 (2024: £5,892,895). Full details of the collateral received is noted on page 104.

Fair value

Fair values are derived as follows:

• Where assets are denominated in a foreign currency, they are converted into the sterling amount using period-end rates of exchange;
• Investments held by the Company on the basis set out in the accounting policies included in Note 1; and
• Other financial assets and liabilities at the carrying value which is a reasonable approximation of the fair value.

The tables below analyse financial instruments carried at fair value by valuation method. The different levels have been defined as follows:

• Quoted prices (unadjusted) in active markets for identical assets and liabilities; Level 1.
• Inputs other than quoted prices included with level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices); and Level 2.
• Inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 3.

The hierarchy valuation of listed investments through profit and loss is shown below:

	31 March 2025			31 March 2024
	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Listed Investments	2,002,617	–		– (a) 2,002,617	1,995,232	–		–(a) 1,995,232

The following table presents the movement in Level 3 investments for the year ended:

	31 March 2025 £'000	31 March 2024 £'000
Opening Balance	–	–
Additions at Cost – Purchase of Level 3 Assets	37,952(b)	–
Transfers From Level 3 Into Level 1	(55,095)(b)	–
Disposal Proceeds – Sale of Level 3 Assets	–	(7,766)(c)
Net Gains on Investments at Fair Value	18,122	7,766
Net Losses on Foreign Exchange	(979)	–
Level 3 Closing Balance	–	–

The fixed term loan was shown at amortised cost within the Statement of Financial Position. If the fixed term loan was shown at fair value the impact would be:

	31 March 2025 £'000	31 March 2024 £'000
Fixed Term Loan at Amortised Cost	–	100,000
Fixed Term Loan at Fair Value	–	96,770
Increase in Net Assets	–	3,230

The fair value of the fixed term loan included in the table above was calculated by aggregating the expected future cash flows which was discounted at a rate comprising the sum of the SONIA rate plus a spread. The fixed term loan at fair value was classed as Level 2. The fixed term loan matured on 31 January 2025.

⁽a) As at 31 March 2025 investments in Russian securities, LUKOIL and Sberbank of Russia, continue to be fair valued at zero and classified as Level 3 due to the inability of the Company to access the local Moscow equity markets and the very limited access to the over-the-counter market. The fair value of these investments is based on a liquidity discount of 100% to the last traded price for an exit price of zero.

⁽b) Represents the investment in Swiggy which was acquired during the year and initially classified as Level 3 due to its unlisted status. Following an initial public offering and its subsequent listing on 13 November 2024, the holding in Swiggy was transferred from Level 3 to Level 1.

⁽c) Represents the sale of the holding in Yandex on 23 May 2023 for £7,766,000.

Significant Holdings in Investee Undertakings 16

As at 31 March 2025, TEMIT had no significant holdings of 3% or more of the issued class of security within the portfolio whose shares are admitted to trading. As at 31 March 2024, TEMIT held 3% or more of the issued class of security in the following portfolio holding whose shares are admitted to trading:

	31 March 2025		31 March 2024
Holding	% of Issued Security Class Held by TEMIT	Fair Value £'000	% of Issued Security Class Held by TEMIT	Fair Value £'000
Haier Smart Home	–	–	3.0	9,072

21

Contingent Liabilities 17

No contingent liabilities existed as at 31 March 2025 or 31 March 2024.

Contingent Assets 18

No contingent assets existed as at 31 March 2025 or 31 March 2024.

Financial Commitments 19

No financial commitments existed as at 31 March 2025 or 31 March 2024.

Capital Management Policies and Procedures 20

The Company's objective is to provide long-term capital appreciation for private and institutional investors seeking exposure to global emerging markets, supported by a culture of both strong customer service and corporate governance.

The Board monitors and regularly reviews the structure of the Company's capital on an ongoing basis. This review includes the investment performance and outlook, discount management mechanisms including share buybacks, gearing and the extent to which revenue in excess of that which is required to be distributed under the investment trust rules should be retained.

The Company's investment policy allows borrowing of up to 20% of net assets, measured at the time of borrowing.

As at 31 March 2025, the Company had share capital and reserves of £1,985,442,000 (31 March 2024: £2,034,863,000). The Company's policies and procedures for managing capital are consistent with the previous year.

Events After the Reporting Period

The £40m tranche of debt matured on 30 April 2025, this was partly replaced by borrowing CNH 300million, equivalent to £30.9 million at the time of drawdown.

The proposed final dividend, which is disclosed in Note 13.

Securities financing transactions – unaudited

The Company engages in Securities Financing Transactions (as defined in Article 3 of Regulation (EU) 2015/2365) as a result of its stock lending programme. In accordance with Article 13 of the Regulation, the Company's involvement in and exposures related to SFT for the accounting period ended 31 March 2025 are detailed below.

Amount of securities on loan

The total value of securities on loan as a proportion of the Company's total lendable assets, as at the balance sheet date, was 0.0%. Total lendable assets represent the aggregate value of assets forming part of the Company's securities lending programme.

Collateral

The following table sets out details of the non-cash collateral received by the Company by way of title transfer collateral arrangements in securities lending transactions as at the balance sheet date:

Issuer	Type and Quality of Collateral(a)	Currency	Maturity Tenor	31 March 2025 £000	31 March 2024 £000
Kingdom of Belgium Government	Sovereign	Euro	More than 1 year	–	276
United Kingdom Government	Sovereign	Sterling	More than 1 year	–	5,082
Total Non-Cash Collateral Received				–	5,358

Re-use of collateral

Non-cash collateral received by way of title transfer collateral arrangements in relation to securities lending transactions cannot be sold, re-invested or pledged. The Company has the right to sell or re-pledge non-cash collateral received in circumstances such as default.

Collateral received

All collateral received by the Company in respect of securities lending transactions is held at the Company's custodian, JPMorgan Chase Bank.

Counterparties

The following table provides details of the counterparties (based on gross volume of outstanding transactions) in respect of securities lending transactions as at the balance sheet date and their country of incorporation.

Counterparty	Country of Incorporation	31 March 2025 £000	31 March 2024 £000
Merrill Lynch International	United Kingdom	–	3,831
UBS	Switzerland	–	211
Total Gross Volume of Outstanding Transactions		–	4,042

(a) Quality of collateral pertaining to bond instruments has been assessed and reported in accordance with whether they are considered investment grade or below investment grade. Investment grade securities are those issued by an entity with a minimum investment grade credit rating from at least one globally recognised credit rating agency.

Maturity tenor of securities on loan

The following table provides an analysis of the maturity tenor of securities on loan outstanding as at the balance sheet date.

	31 March 2025 £'000	31 March 2024 £'000
Open Maturity	–	4,042
Total Securities on Loan	–	4,042

The above maturity tenor analysis has been based on the respective transaction contractual maturity date. Open maturity transactions are those transactions that are recallable or terminable on a daily basis.

AIFMD report on remuneration - unaudited

Although FTITML does not directly employ staff it does utilise the services and employees of Franklin Templeton Global Investors Limited ('FTGIL') and its subsidiaries ('FTGIL Group') and as such the following remuneration disclosure relates to the FTGIL Group.

The purpose of this Disclosure is to provide investors with quantitative disclosures of FTGIL Group Remuneration (as it applies to FTITML and its activities relating to TEMIT) in accordance with the provisions in the UK implementing the Alternative Investment Fund Managers Directive ('AIFMD'), the European Commission Delegated Regulation implementing AIFMD and the "Guidelines on sound remuneration policies under the AIFMD" issued by the European Securities and Markets Agency.

The total remuneration disclosed below relates to those staff within the FTGIL Group who are fully or partly involved in the activities of TEMIT and includes those individuals within the FTGIL Group who perform risk and portfolio management functions in respect of TEMIT.

The remuneration indicated reflects the estimated proportion of total remuneration for these individuals that is attributable to the activities of FTTIML in respect of TEMIT.

Total amount of fixed remuneration paid by the FTGIL Group to relevant staff during the year ended 30 September 2024 as it relates to the activities of FTITML in respect of TEMIT.(a)	£329,000
Total amount of variable remuneration paid by the FTGIL Group to relevant staff during the year ended 30 September 2024 as it relates to the activities of FTITML in respect of TEMIT.(a)	£969,000
Number of staff of the FTGIL Group who have a material impact on the risk profile of the Group as at 30 September 2024.	24
Total amount of compensation paid by the FTGIL Group to senior managers during the year ended 30 September 2024 as it relates to the activities of FTITML in respect of TEMIT.(a)	£79,000
Total amount paid by the FTGIL to other members of staff who have a material impact on the risk profile of the Company during the year ended 30 September 2024 as it relates to the activities of FTITML in respect of TEMIT.(a)	£495,000

(a) Total amount of compensation paid to the relevant FTGIL Group staff has been allocated to TEMIT based on its pro rata share of net assets of the AIFM for the year ended 30 September 2024.

Investor Information 04.

107 Templeton Emerging Markets Investment Trust plc TEMIT.co.uk

Notice of meeting

Notice is hereby given that the Annual General Meeting ('AGM') will be held on Thursday 10 July 2025 at 12 noon at Franklin Templeton, Cannon Place, 78 Cannon Street, EC4M 6HL.

The AGM will transact the following business: To consider and, if thought fit, to pass the following resolutions. Resolutions 1 to 7 will be proposed as ordinary resolutions and resolutions 8 to 10 will be proposed as special resolutions.

Ordinary Business

• 1. To receive and adopt the Directors' and Auditor's Reports and Financial Statements for the year ended 31 March 2025.
• 1. To approve the Directors' Remuneration Report for the year ended 31 March 2025.
• 1. To declare a final dividend of 3.25 pence per share for the year ended 31 March 2025.
• 1. To appoint the Directors:
  2. 4.1. To re-elect Abigail Rotheroe as a Director.
  3. 4.2. To re-elect Charlie Ricketts as a Director.
  4. 4.3. To re-elect David Graham as a Director.
  5. 4.4. To re-elect Magdalene Miller as a Director.
  6. 4.5. To re-elect Angus Macpherson as a Director.
  7. 4.6. To elect Sarika Patel as a Director.
• 1. To re-appoint Ernst & Young LLP as auditor of the Company, to act until the conclusion of the next general meeting of the Company at which audited accounts are laid before the members.
• 1. To authorise the Directors to determine the auditor's remuneration.

Special Business Ordinary Resolution

1. That, in substitution for any existing authority, the Directors be generally and unconditionally authorised to allot equity securities (as defined in Section 560 of the Companies Act 2006 (the 'Act')) pursuant to Section 551 of the Act, up to an aggregate nominal amount of £2,542,000 (being an amount equal to 5% of the existing issued share capital of the Company as at 16 May 2025, being the latest practicable date before the date of this notice), provided that this authority shall, unless renewed, varied or revoked by the Company, expire on 30 September 2026 or, if earlier, the conclusion of the Company's AGM to be held in 2026 save that the Company may, before such expiry, make offers or agreements which would or might require equity securities to be allotted and the Directors may allot equity securities in pursuance of such offer or agreement notwithstanding that the authority conferred by this resolution has expired.

Special Resolutions

• 1. That, in substitution for any existing authority, subject to the passing of resolution 7, the Directors be given the general power pursuant to sections 570 and 573 of the Act to allot equity securities (as defined by Section 560 of the Act) for cash pursuant to the authority conferred by resolution 8, and/or to sell equity securities held as treasury shares for cash pursuant to Section 727 of the Act, in each case as if Section 561(1) of the Act did not apply to any such allotment or sale, provided that this power shall be limited to:
  2. (a) any such allotment and/or sale of equity securities in connection with an offer or issue by way of rights or other pre-emptive offer or issue, open for acceptance for a period fixed by the directors, to holders of ordinary shares (other than the Company) on the register on any record date fixed by the directors in proportion (as nearly as may be) to the respective number of ordinary shares deemed to be held by them, subject to such exclusions or other arrangements as the directors may deem necessary or expedient in relation to fractional entitlements, legal or practical problems arising in any overseas territory, the requirements of any regulatory body or stock exchange or any other matter whatsoever;
  3. (b) any such allotment and/or sale, otherwise than pursuant to sub paragraph (a) above, of ordinary shares having an aggregate nominal value, not exceeding the sum of £2,542,000 (being an amount equal to 5% of the Company's existing issued share capital, excluding treasury shares, as at 16 May 2025, being the latest practicable date before the date of this notice); and

(c) any allotment pursuant to sub-paragraph (b) above being at a price which is at or above the prevailing NAV per share at the time of issue.

The power granted by this resolution will expire on 30 September 2026 or, if earlier, at the conclusion of the Company's AGM to be held in 2026 (unless renewed, varied or revoked by the Company prior to or on such date) save that the Company may, before such expiry, make offers or agreements which would or might require equity securities to be allotted or equity securities held as treasury shares to be sold after such expiry and the Directors may allot and/or sell equity securities and equity securities held as treasury shares in pursuance of any such offer or agreement notwithstanding that the power conferred by this resolution has expired.

• 1. That in substitution for any existing authority, the Company be and is hereby authorised in accordance with Section 701 of the Companies Act 2006 to make market purchases (within the meaning of Section 693(4) of the Companies Act 2006), of its ordinary shares in issue, provided that:
  2. (i) the maximum number of ordinary shares hereby authorised to be purchased shall not exceed 14.99% of the Company's issued ordinary share capital, excluding treasury shares, at the date of the passing of this resolution;
  3. (ii) the minimum price which may be paid for a share shall be the nominal value of an ordinary share (excluding expenses);
  4. (iii) the maximum price which may be paid (excluding expenses) for a share shall not be more than the higher of: (a) an amount equal to 105 per cent of the average of the closing mid-market price for the ordinary shares (as derived from the Daily Official List of the London Stock

Exchange) for the five business days immediately preceding the date of purchase; and (b) the higher of the last independent trade price and the highest current independent purchase bid price on the trading venue where the purchase is carried out;

• (iv) unless renewed, the authority hereby conferred shall expire 15 months after the date of passing of this resolution or, if earlier, at the conclusion of the Company's AGM to be held in 2026, save that the Company may, and prior to such expiry, enter into a contract to purchase shares which will or may be completed wholly or partly after such expiry; and
• (v) shares will only be purchased at a price which is at a discount to the prevailing NAV per share at the time of purchase.
• 1. That a general meeting, other than an AGM, may be called on not less than 14 clear days' notice, such authority to expire at the conclusion of the AGM in 2026.

By order of the Board

Angus Macpherson 6 June 2025

Registered Office: 5 Morrison Street, Edinburgh, EH3 8BH

Notes:

• 1. THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt as to what action you should take, you are recommended to seek your own financial advice from your stockbroker or other independent financial adviser authorised under the Financial Services and Markets Act 2000.
• 1. If you have sold or transferred all of your shares in the Company, please forward this document, together with the accompanying documents, as soon as possible either to the purchaser or transferee or to the person who arranged the sale or transfer so that they can pass these documents to the person who now holds the shares.
• 1. The Company specifies that only those members registered on the Company's register of members at 6.30 pm on 8 July 2025 shall be entitled to vote at the annual general meeting (the 'Meeting').
• 1. A member of the Company entitled to vote at the Meeting may appoint a proxy or proxies to vote thereat instead of him. A proxy need not be a member of the Company.
• 1. A member may appoint more than one proxy provided that each proxy is appointed to exercise rights attached to different shares held by that member. A member may not appoint more than one proxy to exercise rights attached to one share. Please contact the Company's registrar Equiniti, at Aspect House, Lancing, West Sussex BN99 6DA to appoint more than one proxy. In the case of joint holders, the vote of the senior holder who tenders a vote shall be accepted to the exclusion of the votes of the other joint holders. Seniority is determined by the order in which the names of the joint holders appear in the Company's register of members in respect of the joint holding (the first named being the most senior).
• 1. The right to appoint a proxy does not apply to persons whose shares are held on their behalf by another person and who have been nominated to receive communications from the Company in accordance with Section 146 of the Companies Act 2006 ('nominated persons'). Nominated persons may have a right under an agreement with the registered shareholder who holds the shares on their behalf to be appointed (or to have someone else appointed) as a proxy. Alternatively, if nominated persons do not have such a right, or do not wish to exercise it, they may have a right under such an agreement to give instructions to the person holding the shares as to the exercise of voting rights.
• 1. A proxy form is enclosed with copies of this Report which are sent to registered shareholders. A member can only appoint a proxy using the procedures set out in these notes and the notes to the proxy form.
• 1. A proxy form must be returned to the Company's registrar, Equiniti, Aspect House, Lancing, West Sussex BN99 6DA to arrive not later than 12 noon on 8 July 2025. New Zealand registered shareholders must return a proxy form to Computershare, Private Bag 92119, Victoria Street West, Auckland 1142, New Zealand (if sent by post) or to Computershare, Level 2, 159 Hurstmere Road, Takapuna, Auckland 0622, New Zealand (if delivered in person or by courier) to arrive not later than 5.00pm on 7 July 2025 (New Zealand time).
• 1. A corporation which is a member can appoint one or more corporate representatives who may exercise, on its behalf, all of its powers as a member provided that no more than one corporate representative exercises powers over the same share.
• 1. As at 16 May 2025, the Company's issued share capital was 1,016,805,213 shares of 5 pence each. Each share carries the right to vote at an annual general meeting of the Company and, therefore, the total number of voting rights in the Company as at 16 May 2025 was 1,016,805,213.
• 1. Copies of the letters of appointment of the Directors of the Company and the Articles of Association are available for inspection at the Company's registered office at 5 Morrison Street, Edinburgh, EH3 8BH, and online at www.temit.co.uk until the close of the meeting and at the Meeting (for 15 minutes prior to the Meeting and during the Meeting).
• 1. Electronic proxy appointment for CREST members (for UK only). CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the Meeting and any adjournment(s) thereof by using the procedures described in the CREST Manual which can be viewed at www.euroclear.com. CREST Personal Members or other CREST sponsored members, and those CREST members who have appointed a voting service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf. In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message (a 'CREST Proxy Instruction') must be properly authenticated in accordance with Euroclear UK & Ireland Limited's ('EUI') specifications and must contain the information required for such instructions, as described in the CREST Manual. The message, regardless of whether it constitutes the appointment of a proxy or an amendment to the instruction given to a previously appointed proxy must, in order to be valid, be transmitted so as to be received by the issuer's agent (RA19) by the latest time(s) for receipt of appointments specified in the Notice of Meeting or, in the event of an adjournment of the Meeting, 48 hours before the adjourned meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp applied to the message by the CREST Applications Host) from which the issuer's agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time any change of instructions to proxies appointed through CREST should be communicated to the appointee through other means. CREST members and, where applicable, their CREST sponsors or voting service providers should note that EUI does not make available special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions. It is the

responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member or sponsored member or has appointed a voting service provider(s), to procure that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system and timings. The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5) (a) of the Uncertificated Securities Regulations 2001.

1. Electronic proxy appointment for non-CREST members (for UK only). Shareholders who prefer to register the appointment of their proxy electronically via the Internet can do so through the Equiniti website at www.shareview.co.uk where full instructions on the procedure are given. You will need to create an online portfolio using your Shareholder Reference Number printed on your Form of Proxy. Alternatively, shareholders who have already registered with Equiniti's on-line portfolio service, Shareview, can appoint their proxy electronically by logging on to their portfolio at www.shareview.co.uk using their user ID and password. Once logged in, click 'View' on the 'My Investments' page, click on the link to vote then follow the on screen instructions.

A proxy appointment made electronically will not be valid if sent to any address other than those provided or if received after 12 noon on 8 July 2025. Please note that any electronic communication found to contain a computer virus will not be accepted.

• 1. Proxymity Voting if you are an institutional investor you may be able to appoint a proxy electronically via the Proxymity platform, a process which has been agreed by the Company and approved by the Registrar. For further information regarding Proxymity, please go to www.proxymity.io. Your proxy must be lodged by 12 noon on 8 July 2025 in order to be considered valid. Before you can appoint a proxy via this process you will need to have agreed to Proxymity's associated terms and conditions. It is important that you read these carefully as you will be bound by them and they will govern the electronic appointment of your proxy.
• 1. Electronic proxy appointment for New Zealand registered shareholders. New Zealand registered investors who prefer to register the appointment of their proxy electronically via the Internet can do so through the Computershare website at www.investorvote.co.nz, and enter the control number 104860 where full instructions on the procedure are given. Your CSN (Common Shareholder Number) and postal code will be required to use this electronic proxy appointment system. A proxy appointment made electronically will not be valid if sent to any address other than that provided or if received after 5.00pm (New Zealand time) on 7 July 2025. Please note that any electronic communication found to contain a computer virus will not be accepted. New Zealand registered investors cannot appoint more than one proxy when registering the appointment of their proxy electronically.
• 1. A member of the Company may make a request in accordance with Section 527 of the Companies Act 2006 to have a statement published on the Company's website setting out an audit concern. This allows a member or members having a right to vote at the Meeting and holding at least 5% of the total voting rights of the Company, or at least 100 members having a right to vote at the Meeting and holding, on average, at least £100 of the paid up share capital, to make a request so that the Company must publish on its website a statement setting out any matter that such members propose to raise at the Meeting relating to the audit of the Company's accounts (including the auditor's report and the conduct of the audit) that are to be laid before the Meeting. Where the Company is required to publish such a statement on its website: (i) it may not require the members making the request to pay any expenses incurred by the Company in complying with the request; (ii) it must forward the statement to the Company's auditor no later than the time at which the statement is made available on the Company's website; and (iii) the statement may be dealt with as part of the business of the Meeting. A member wishing to request publication of such a statement on the Company's website must send the request to the Company in hard copy form to the Company Secretary or by email to enquiries@ franklintempleton.co.uk. The request must either set out the statement in full or, if supporting a statement sent by another member, clearly identify the statement which is being supported and be received by the Company at least one week before the Meeting. Please note that any electronic communication found to contain a computer virus will not be accepted.
• 1. Any member has the right to ask questions. Pursuant to Section 319A of the Companies Act 2006, the Company must provide an answer to any question which is put by a member relating to the business being considered, except if a response would not be in the interests of the Company or for the good order of the Meeting or if to do so would involve the disclosure of confidential information. The Company may, however, elect to provide an answer to a question within a reasonable period of days after the conclusion of the Meeting. The answers to questions raised by shareholders will be provided on our website.
• 1. In accordance with Section 311A of the Companies Act 2006, the contents of this Notice of Meeting, details of the total number of shares in respect of which members are entitled to exercise voting rights at the Meeting and, if applicable, any members' statements, members' resolutions or members' matters of business received by the Company after the date of this notice will be available on the Company's website, www.temit.co.uk.
• 1. You may not use any electronic address provided either in this Notice of Meeting or any related documents (including the Form of Proxy) to communicate with the Company for any purposes other than those expressly stated.

Shareholder communications

Our website

The Board and Manager aim to keep shareholders informed and release the following information on the Company's website www.temit.co.uk.

The website offers a wealth of information and updates on TEMIT and emerging markets and is a comprehensive resource for shareholders:

• Factsheets and commentary
• Portfolio Manager updates
• Stock story videos
• Latest research
• Investment performance
• Useful insights and guides
• Corporate announcements

Subscribe to our monthly newsletter

Receive all the latest information direct to your email inbox every month. Our newsletter provides you with all the updates, announcements and information on emerging markets like our stock story and manager update videos, factsheets and insights.

Join our mailing list at www.temit.co.uk today

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• LinkedIn www.linkedin.com/company/franklin-templeton/
• YouTube Templeton Emerging Markets Investment Trust (TEMIT)

Website www.temit.co.uk

General information

REGISTERED OFFICE

5 Morrison Street Edinburgh EH3 8BH UK (Registered No. SC118022)

www.temit.co.uk

REGISTRAR – UK

Equiniti Limited Aspect House Spencer Road Lancing West Sussex BN99 6DA UK

www.shareview.co.uk Tel +44 (0)371 384 2505

REGISTRAR – NEW ZEALAND

Computershare Investor Services Limited Level 2, 159 Hurstmere Road Takapuna Auckland 0622 New Zealand

enquiry@computershare.co.nz Tel +649 488 8777

ALTERNATIVE INVESTMENT FUND MANAGER AND COMPANY SECRETARY

Franklin Templeton Investment Trust Management Limited 5 Morrison Street Edinburgh EH3 8BH UK

JOINT FINANCIAL ADVISER AND STOCKBROKER

Winterflood Securities Limited Riverbank House 2 Swan Lane London EC4R 3GA UK

JOINT FINANCIAL ADVISER AND STOCKBROKER

JPMorgan Cazenove Limited 25 Bank Street Canary Wharf London E14 5JP UK

SOLICITOR

CMS Cameron McKenna Nabarro Olswang LLP Saltire Court 20 Castle Terrace Edinburgh EH1 2EN UK

SOLICITOR

Buddle Findlay HSBC Tower Level 18, 188 Quay Street PO Box 1433 Auckland 1140 New Zealand

CUSTODIAN

JPMorgan Chase Bank 25 Bank Street London E14 5JP UK

DEPOSITARY

J.P. Morgan Europe Limited 25 Bank Street London E14 5JP UK

AUDITOR

Ernst & Young LLP 25 Churchill Place Canary Wharf London E14 5EY UK

Shareholder information

How to invest

There are three main ways to invest in TEMIT:

1. Through an investment platform. A number of fund supermarkets or investment platforms allow you to buy, hold and sell shares in investment trusts such as TEMIT quickly and easily at a low cost. Many have no minimum investment requirements. There are a number of companies that offer these services and may also allow you to include TEMIT as an investment in an Individual Savings Account ('ISA') or Self-Invested Pension Plan ('SIPP'). Some of the most popular include Hargreaves Lansdown, Interactive Investor, Fidelity, Charles Stanley Direct and AJ Bell.

Please note that this is not a complete list of ISA or SIPP providers, and you should not consider this list to be a recommendation of the services which these providers offer.

The Association of Investment Companies ('AIC') provides an independent analysis of platform costs and charges on their website in the 'Ready to Invest' section.

• 1. Directly through the stock market. You can invest directly in TEMIT by purchasing shares in the stock market through a stockbroker or authorised Financial Adviser.
• 1. Through Equiniti, the Registrar, which offers an online or telephone service where you can buy shares in TEMIT as part of an Investment Account or an ISA.

Financial advice

We strongly recommend that you take independent financial advice before making any investment. If you have a financial adviser, then they will advise you on the best way to invest in TEMIT. If you currently do not have a financial adviser, there are a number of resources online to help you. For investors based in the UK, websites such as www.unbiased.co.uk or www.vouchedfor.co.uk will provide you with details of financial advisers in your area.

NAV publication and reference codes

The NAV is released every London Stock Exchange business day through the London and New Zealand stock exchanges. It is also published on our website: www.temit.co.uk and published in the Financial Times.

Codes

Ticker	TEM
ISIN	GB00BKPG0S09
SEDOL	BKPG0S0

Dividend Reinvestment Plan ('DRIP')

If you are a UK shareholder and your shares are held in your own name on the Company's share register, you can request that any dividend payments are used to purchase further shares in the Company. You can download and complete the relevant application forms through Equiniti's secure website www.shareview.co.uk/info/drip or you can contact Equiniti by phone on +44 (0)371 384 2505.

If you invest through a nominee or investment platform and wish to reinvest dividends you will need to contact them directly to find out what arrangements they offer.

Financial calendar

Final Dividend Ex-Date	26 June 2025
Final Dividend Record Date	27 June 2025
AGM	10 July 2025
Final Dividend Payment Date	31 July 2025
Half Year End	30 September 2025
Half Yearly Report Published	December 2025
Interim Dividend Record Date	December 2025
Year End	31 March 2026

Glossary of alternative performance measures

Net asset value total return

A measure showing how the net asset value ('NAV') per share has performed over a period of time, considering both capital returns and dividends paid to shareholders in sterling terms. Total return measures allow shareholders to compare performance between investment trusts where the dividend yield may differ.

To calculate total return, it is assumed that dividends are reinvested into the assets of the Company at the prevailing NAV on the day that the shares first trade ex-dividend (see page 4). The NAVs include income for the current period ('cum-income') and the debt at fair value to be consistent with the daily NAV released to the stock exchange and with common market practice and the requirements of statistics agencies.

NAV Total Return Calculation	2025	2024
a) Opening NAV (As at 31 March 2024/2023) (see following table)	182.8	174.5
b) Closing NAV (As at 31 March 2025/2024) (see following table)	193.7	182.8
c) Dividends Paid(a)	5.0	5.0
d) Effect of Dividend Reinvestment	0.1	0.4
e) Adjusted Closing NAV e = (b+c+d)	198.8	188.2
NAV Total Return (e-a)/a	8.8%	7.9%

The following table sets out the difference between NAV with debt at cost and NAV with debt at fair value:

	2025 £'000	2024 £'000	2023 £'000
a) Net Assets per the Statement of Financial Position	1,985,442	2,034,863	2,017,503
b) Difference Between Debt at Cost and Debt at Fair Value (Note 15)	–	3,230	5,530
c) Number of Ordinary Shares in Issue	–	1,114,818,617	1,159,138,372
NAV Pence per Share with Debt at Fair Value (a+b)/c	–	182.8	174.5

Share price total return

A measure showing how the share price has performed over a period of time, considering both capital returns and dividends paid to shareholders in sterling terms. Total return measures allow shareholders to compare performance between investment trusts where the dividend yield may differ.

To calculate total return, it is assumed that dividends are reinvested into the shares of the Company at the prevailing share price on the day that the shares first trade ex-dividend (see page 4).

Share Price Total Return Calculation	2025	2024
a) Opening Share Price (as at 31 March 2024/2023)	154.4	152.2
b) Closing Share Price (as at 31 March 2025/2024)	169.6	154.4
c) Dividends Paid(a)	5.0	5.0
d) Effect of Dividend Reinvestment	0.3	0.3
e) Adjusted Closing Share Price e = (b+c+d)	174.9	159.7
Share Price Total Return (e-a)/a	13.3%	4.9%

Share price discount to net asset value ('NAV')

A measure showing the relationship between the share price and the NAV (cum-income), which is expressed as a percentage of the NAV per share (see page 7). As at 31 March 2025 the Company's share price was 169.6 pence and the NAV per share was 193.7 pence, therefore the discount was (169.6 - 193.7)/193.7 = 12.4% (31 March 2024: 15.4%).

If the share price is lower than the NAV per share, the shares are said to be trading at a discount. If the share price is higher than the NAV per share, the shares are said to be trading at a premium.

The average share price discount to NAV over the year is calculated using the daily NAV and market close share price.

(a) Dividends assumed to be reinvested on ex-date. 2025: Final dividend of 3.00p relating to financial year 2024 first traded ex-dividend on 20 June 2024 and interim dividend of 2.00p for financial year 2025 first traded ex-dividend 19 December 2024 (2024: Final dividend of 3.00p relating to financial year 2023 first traded ex-dividend on 22 June 2023 and interim dividend of 2.00p for financial year 2023 first traded ex-dividend 14 December 2023).

Gearing/net gearing

A term used to describe the process of borrowing money for investment purposes in the expectation that the returns on the investments purchased using the borrowings will exceed the costs of those borrowings.

For example, a figure of 5% means that the shareholder funds are exposed to NAV returns by an additional 5%, positive or negative, as a result of borrowings (see page 7).

A net gearing figure of 0.0% means that the cash held in the Company is equal to or higher than the total bank loans.

Net Gearing Calculation	2025 £'000	2024 £'000
a) Bank Loans	80,000	100,000
b) Cash Held	75,549	145,736
c) Net Assets (Excluding Loans)	2,065,442	2,134,863
Total Gearing (a-b)/c	0.2%	0.0%

Ongoing charges ratio

The OCR represents the annualised ongoing charges (excluding finance costs, transaction costs and taxation) divided by the average daily net asset values of the Company for the period and has been prepared in accordance with the AIC's recommended methodology. Ongoing charges reflect expenses likely to recur in the foreseeable future. As at 31 March 2025 the OCR was 0.95% (31 March 2024: 0.97%).

Ongoing Charges Calculation	2025 £'000	2024 £'000
a) Total AIFM Fee and Other Expenses	19,439	18,874
b) Average Net Assets	2,042,653	1,954,521
Ongoing Charges (a/b)	0.95%	0.97%

Gross total return

Gross total return is net asset value total return before the deduction of expenses (see page 16).

Excess return

The difference between the gross total return of TEMIT and the benchmark total return (see page 16).

Residual return

A measure representing the difference between the actual excess return and the excess return explained by the attribution model. This amount results from several factors, most significantly the difference between the actual trade price of securities included in actual performance and the end of day price used by the benchmark indices and hence to calculate attribution (see page 16).

Benchmark return

The Company's benchmark is the MSCI Emerging Markets (Net Dividends) Index.

The benchmark is a recognised index of stocks which should not be taken as wholly representative of the Company's investment universe. The Company's investment strategy does not track this index and, consequently, there may be material divergence between the Company's performance and that of the benchmark.

Although not an alternative performance measure, total return of the benchmark is calculated on a closing market value to closing market value basis, assuming that all dividends net of local taxes received were reinvested into the shares of the relevant companies at the time at which the shares were quoted ex-dividend (see page 4).

Returns are converted by the index provider into pounds sterling at prevailing exchange rates.

Benchmark performance source: MSCI.

Notes

Templeton Emerging Markets Investment Trust plc 5 Morrison Street, Edinburgh, EH3 8BH, UK temitcosec@franklintempleton.com www.temit.co.uk

Annual Report and Accounts to 31 March 2025