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On the lookout for an International Bond - Emerging fund? Starting with Franklin Emerging Market Debt Opportunity Adviser (FEMDX - Free Report) should not be a possibility at this time. FEMDX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify FEMDX in the International Bond - Emerging category, an area rife with many investment choices. International Bond - Emerging funds focus on fixed income securities from emerging nations from around the globe. This usually results in exposure to economies like China, Brazil, India, South Africa, and Indonesia, just to name a few. Funds here offer geographic diversification, but they can also introduce currency risk into the picture as well.
History of Fund/Manager
FEMDX finds itself in the Franklin Templeton family, based out of San Mateo, CA. Franklin Emerging Market Debt Opportunity Adviser made its debut in October of 2006, and since then, FEMDX has accumulated about $249.81 million in assets, per the most up-to-date date available. The fund is currently managed by Nicholas Hardingham who has been in charge of the fund since June of 2014.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1.52%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -1.82%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FEMDX's standard deviation over the past three years is 10.27% compared to the category average of 10.31%. Looking at the past 5 years, the fund's standard deviation is 9.16% compared to the category average of 9.57%. This makes the fund less volatile than its peers over the past half-decade.
FEMDX carries a beta of 0.28, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.1, which measures performance on a risk-adjusted basis.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FEMDX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.15%. From a cost perspective, FEMDX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1 million and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Franklin Emerging Market Debt Opportunity Adviser ( FEMDX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about FEMDX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is FEMDX a Strong Bond Fund Right Now?
On the lookout for an International Bond - Emerging fund? Starting with Franklin Emerging Market Debt Opportunity Adviser (FEMDX - Free Report) should not be a possibility at this time. FEMDX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify FEMDX in the International Bond - Emerging category, an area rife with many investment choices. International Bond - Emerging funds focus on fixed income securities from emerging nations from around the globe. This usually results in exposure to economies like China, Brazil, India, South Africa, and Indonesia, just to name a few. Funds here offer geographic diversification, but they can also introduce currency risk into the picture as well.
History of Fund/Manager
FEMDX finds itself in the Franklin Templeton family, based out of San Mateo, CA. Franklin Emerging Market Debt Opportunity Adviser made its debut in October of 2006, and since then, FEMDX has accumulated about $249.81 million in assets, per the most up-to-date date available. The fund is currently managed by Nicholas Hardingham who has been in charge of the fund since June of 2014.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 1.52%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -1.82%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FEMDX's standard deviation over the past three years is 10.27% compared to the category average of 10.31%. Looking at the past 5 years, the fund's standard deviation is 9.16% compared to the category average of 9.57%. This makes the fund less volatile than its peers over the past half-decade.
FEMDX carries a beta of 0.28, meaning that the fund is less volatile than a broad market index of fixed income securities. With this in mind, it has a positive alpha of 0.1, which measures performance on a risk-adjusted basis.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FEMDX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.15%. From a cost perspective, FEMDX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $1 million and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Franklin Emerging Market Debt Opportunity Adviser ( FEMDX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Want even more information about FEMDX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.