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International Bond - Developed fund seekers should not consider taking a look at Templeton Global Bond A (TPINX - Free Report) at this time. TPINX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of International Bond - Developed funds is an area filled with different choices, like TPINX. International Bond - Developed funds focus on fixed income securities from developed nations besides the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. Funds here offer geographic diversification, but they can also introduce currency risk into the picture as well.
History of Fund/Manager
Franklin is based in San Mateo, CA, and is the manager of TPINX. Templeton Global Bond A debuted in September of 1986. Since then, TPINX has accumulated assets of about $1.56 billion, according to the most recently available information. The fund is currently managed by Michael Hasenstab who has been in charge of the fund since December of 2001.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -2.23%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -1.36%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. TPINX's standard deviation over the past three years is 12.7% compared to the category average of 12.62%. The standard deviation of the fund over the past 5 years is 10% compared to the category average of 12.23%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, and is a metric that's a good way to judge how fixed income securities will respond in a shifting rate environment.
If you believe interest rates will rise, this is an important factor to look at. TPINX has a modified duration of 6.03, which suggests that the fund will decline 6.03% for every hundred-basis-point increase in interest rates.
TPINX carries a beta of 1.02, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.09, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, TPINX has 28.11% in high quality bonds rated at least 'AA' or higher, while 38.17% are of medium quality, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 20.66%, giving TPINX an average quality of BBB. This means that it focuses on medium quality securities.
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, TPINX is a load fund. It has an expense ratio of 0.96% compared to the category average of 0.92%. TPINX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Templeton Global Bond A ( TPINX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on TPINXin the International Bond - Developed category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is TPINX a Strong Bond Fund Right Now?
International Bond - Developed fund seekers should not consider taking a look at Templeton Global Bond A (TPINX - Free Report) at this time. TPINX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of International Bond - Developed funds is an area filled with different choices, like TPINX. International Bond - Developed funds focus on fixed income securities from developed nations besides the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. Funds here offer geographic diversification, but they can also introduce currency risk into the picture as well.
History of Fund/Manager
Franklin is based in San Mateo, CA, and is the manager of TPINX. Templeton Global Bond A debuted in September of 1986. Since then, TPINX has accumulated assets of about $1.56 billion, according to the most recently available information. The fund is currently managed by Michael Hasenstab who has been in charge of the fund since December of 2001.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of -2.23%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -1.36%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. TPINX's standard deviation over the past three years is 12.7% compared to the category average of 12.62%. The standard deviation of the fund over the past 5 years is 10% compared to the category average of 12.23%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, and is a metric that's a good way to judge how fixed income securities will respond in a shifting rate environment.
If you believe interest rates will rise, this is an important factor to look at. TPINX has a modified duration of 6.03, which suggests that the fund will decline 6.03% for every hundred-basis-point increase in interest rates.
TPINX carries a beta of 1.02, meaning that the fund is more volatile than a broad market index of fixed income securities. With this in mind, it has a negative alpha of -0.09, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, TPINX has 28.11% in high quality bonds rated at least 'AA' or higher, while 38.17% are of medium quality, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 20.66%, giving TPINX an average quality of BBB. This means that it focuses on medium quality securities.
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, TPINX is a load fund. It has an expense ratio of 0.96% compared to the category average of 0.92%. TPINX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Templeton Global Bond A ( TPINX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on TPINXin the International Bond - Developed category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.