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There are plenty of choices in the International Bond - Emerging category, but where should you start your research? Well, one fund that might be worth investigating is Franklin Emerging Market Debt Opportunity Adviser (FEMDX - Free Report) . FEMDX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FEMDX is part of the International Bond - Emerging section, a segment that boasts an impressive array of other possible selections. International Bond - Emerging funds offer a unique type of geographic diversification by focusing on fixed income securities from emerging nations around the globe. With these funds, investors can expect exposure to economies such as China, Brazil, India, South Africa, and Indonesia, just to name a few. While this can be appealing, these funds can also introduce currency risk.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of FEMDX. Franklin Emerging Market Debt Opportunity Adviser debuted in October of 2006. Since then, FEMDX has accumulated assets of about $103.50 million, according to the most recently available information. 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. FEMDX has a 5-year annualized total return of 6.21% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 4.06%, which places it in the middle 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 11.96% compared to the category average of 12.13%. Looking at the past 5 years, the fund's standard deviation is 9.65% compared to the category average of 9.94%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.28, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FEMDX has a positive alpha of 4.51, 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 1.12%. From a cost perspective, FEMDX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1 million; each subsequent investment has no minimum amount.
Bottom Line
Overall, Franklin Emerging Market Debt Opportunity Adviser ( FEMDX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Franklin Emerging Market Debt Opportunity Adviser ( FEMDX ) looks like a good potential choice for investors right now.
Your research on the International Bond - Emerging segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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?
There are plenty of choices in the International Bond - Emerging category, but where should you start your research? Well, one fund that might be worth investigating is Franklin Emerging Market Debt Opportunity Adviser (FEMDX - Free Report) . FEMDX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
FEMDX is part of the International Bond - Emerging section, a segment that boasts an impressive array of other possible selections. International Bond - Emerging funds offer a unique type of geographic diversification by focusing on fixed income securities from emerging nations around the globe. With these funds, investors can expect exposure to economies such as China, Brazil, India, South Africa, and Indonesia, just to name a few. While this can be appealing, these funds can also introduce currency risk.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of FEMDX. Franklin Emerging Market Debt Opportunity Adviser debuted in October of 2006. Since then, FEMDX has accumulated assets of about $103.50 million, according to the most recently available information. 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. FEMDX has a 5-year annualized total return of 6.21% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 4.06%, which places it in the middle 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 11.96% compared to the category average of 12.13%. Looking at the past 5 years, the fund's standard deviation is 9.65% compared to the category average of 9.94%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.28, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FEMDX has a positive alpha of 4.51, 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 1.12%. From a cost perspective, FEMDX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1 million; each subsequent investment has no minimum amount.
Bottom Line
Overall, Franklin Emerging Market Debt Opportunity Adviser ( FEMDX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Franklin Emerging Market Debt Opportunity Adviser ( FEMDX ) looks like a good potential choice for investors right now.
Your research on the International Bond - Emerging segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.