Franklin Templeton Shifts Strategy as Emerging Market Tech Rebounds

Sehgal, who oversees the Templeton Emerging Markets Investment Trust (TEMIT), is recalibrating his portfolio to navigate a more complex landscape for artificial intelligence stocks. While tempering expectations for immediate AI-driven gains, he remains optimistic about the long-term outlook for major holdings like TSMC, Samsung Electronics, and SK Hynix. TEMIT has trimmed its South Korean exposure from 8 percent to under 5 percent, though the fund maintains an overweight position in the region.

Strategic pivots extend beyond the semiconductor sector. Sehgal has moved to a slightly overweight position in China, increasing his stake in BYD. He points to China’s dominance in renewable energy—specifically its control over 80 percent of solar panel production—as a primary driver for growth. Rising oil prices, exacerbated by geopolitical tensions, are further accelerating the global shift toward Chinese electric vehicles. Additionally, the fund has reduced its underweight stance on India, citing more reasonable valuations for financial stalwarts such as HDFC Bank and ICICI Bank.

Performance metrics reflect the success of these shifts. For the year ending March 2026, TEMIT reported a net asset value total return of 41.3 percent, significantly outpacing the MSCI EM Index’s 26.8 percent. This consistency is mirrored in long-term data; the fund has delivered a 220.3 percent return over the last decade, dwarfing the benchmark’s 89.3 percent gain. Other major players, including Pictet Asset Management and Aberdeen Investments, maintain a similarly constructive outlook on emerging market technology, betting that diverse revenue sources will sustain growth despite ongoing market swings.