Templeton Emerging Markets (TEM) has announced that, following a review, the management fee arrangements with Franklin Templeton are changing and shareholders will benefit from a modest fee reduction. The current annual management fee is 1% of net assets up to £1 billion and 0.85% of net assets above that level. With effect from 1 July 2020, the fee rate will remain at 1% of net assets up to £1 billion but will be reduced to 0.80% of net assets above that level.
Comments from Paul Manduca, chairman of Templeton Emerging Markets
“This reduction in management fee ensures that the fee arrangements remain competitive, provides a saving for our existing shareholders and should make TEMIT more attractive for investors”.
[QD comment: As at 4th June 2020, TEM’s total unaudited cum-income net asset value was £2,091m, representing a NAV of 868.41 pence per share. This suggests a total fee saving to shareholders in the region of £545k per annum, equivalent to 0.23p per annum per share. We welcome fee reductions such as these, but wonder if it is really enough to move the dial?]
About Templeton Emerging Markets
Templeton Emerging Markets seeks long-term capital appreciation through investment in companies operating in emerging markets or whose stocks are listed on the stock markets of such countries. This may include companies which have a significant amount of their revenues in emerging markets but are listed on stock exchanges in developed countries.
