“This will assuage some concerns about the stock,” Chetan Sehgal (pictured), senior managing director and director of portfolio management for Templeton Global Investments-Emerging Markets Equity , told this news service in an interview yesterday. “Volatility in the market should reduce if companies increase returns to shareholders.” However, he believes that there will be more muted gains from artificial intelligence for the rest of the year, with increasing returns from more diverse sources.  

Sehgal said the firm has reduced TEMIT’s exposure to South Korea from 8 per cent to less than 5 per cent, although it remains overweight in the country. He is also neutral on Taiwan. Taiwan Semiconductor Manufacturing Company (TSMC) is TEMIT’s largest holding, as well as South Korea’s Samsung Electronics and SK Hynix, the world’s second largest maker of memory chips and supplier of semiconductors. He is still optimistic about the outlook for these stocks.

Seghal has also boosted his exposure to China from an underweight to slightly overweight position, remaining heavily exposed to the country. In particular, he has added to Chinese manufacturing multinational BYD, a top 10 holding of TEMIT. BYD subsidiaries include BYD Auto and BYD Electronics, which produce automotive components and electric vehicle batteries.

Chinese companies are at the forefront of the renewable energy trend, Seghal said, producing more than 80 per cent of all solar photovoltaic panels, half of the world’s leading electric vehicles and a third of its wind power. The conflict between the US and Iran, which has boosted oil prices, has also accelerated the move towards electric and hybrid vehicles, Sehgal said. Chinese electric vehicle manufacturers are using their technological advantages to gain international market share, a trend that is anticipated to continue through 2026.

Sehgal has also reduced his underweight exposure to India as he believes that valuations are more reasonable. He added to India’s HDFC bank, in particular, with TEMIT’s top 10 holdings including India’s ICICI Bank

TEMIT, which was highly exposed to the AI supply chain at the start of the year, reported very strong financial results in the year ending March 2026, with a net asset value (NAV) total return of +41.3 per cent and a share price total return of +48.6 per cent. These returns were well ahead of the MSCI EM Index of +26.8 per cent. Over five and 10 years, TEMIT has produced NAV total returns of +38.2 per cent and +220.3 per cent respectively, in both cases beating the benchmark returns which were +12.8 per cent and +89.3 per cent.

London-listed TEMIT, which is significantly ahead of the MSCI EM Index, aims to provide long-term capital appreciation through investment in companies 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.

Similarly, a number of wealth managers, such as  is also positive about emerging markets excluding China; it is keeping an overweight exposure to technology. The volatility in South Korean equities, and other market turbulence, also arguably raises the attractions of active asset management, as this news analysis suggests.