Templeton seeks 85m pounds

(First Edition)

TEMPLETON Emerging Markets Investment Trust (Temit) is to raise a further pounds 85m to invest in Brazil, the Philippines and other developing economies, writes Paul Durman.

Since the pounds 160m trust first announced its plans to raise more money a month ago, its advisers have conditionally placed pounds 85m of shares and accompanying warrants. Existing shareholders are being offered about a quarter of the new shares through an open offer. They are guaranteed at least one offer unit for every three shares they hold.

Like rival emerging markets trusts, Temit has been able to raise new money because its shares have generally traded above net asset value. Temit's shares fell by 3p yesterday to 262p - above diluted NAV of 259p a share at the end of last month, though below latest estimates of around 266p.

Temit's NAV rose by 19.2 per cent over the year to the end of February, outstripping a 13.6 per cent rise in the FTA All-Share index but underperforming the Morgan Stanley world index.