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International Bond - Emerging fund seekers should consider taking a look at Franklin Emerging Market Debt Opportunity Adviser (FEMDX - Free Report) . FEMDX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that FEMDX is a International Bond - Emerging option, which is loaded with different choices. International Bond - Emerging funds focus on fixed income securities from a variety of emerging international markets. Typically, investors can expect exposure to economies like China, Brazil, India, South Africa, Indonesia, and many others. These funds are appealing because of their geographic diversification, but this can also mean that currency risk is a factor.
History of Fund/Manager
Franklin is based in San Mateo, CA, and is the manager of FEMDX. The Franklin Emerging Market Debt Opportunity Adviser made its debut in October of 2006 and FEMDX has managed to accumulate roughly $132.34 million in assets, as of 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
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 8.17%, and is 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 16.43%, which places it in the top 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. Compared to the category average of 7.49%, the standard deviation of FEMDX over the past three years is 6.9%. Looking at the past 5 years, the fund's standard deviation is 8.69% compared to the category average of 8.79%. 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, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
If you believe interest rates will rise, this is an important factor to look at. FEMDX has a modified duration of 4.21, which suggests that the fund will decline 4.21% for every hundred-basis-point increase in interest rates.
With a beta of -0.04, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FEMDX has a positive alpha of 8.01 , 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 1.00% compared to the category average of 0.92%. Looking at the fund from a cost perspective, FEMDX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1.00 million, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
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 higher fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the International Bond - Emerging, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is FEMDX a Strong Bond Fund Right Now?
International Bond - Emerging fund seekers should consider taking a look at Franklin Emerging Market Debt Opportunity Adviser (FEMDX - Free Report) . FEMDX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that FEMDX is a International Bond - Emerging option, which is loaded with different choices. International Bond - Emerging funds focus on fixed income securities from a variety of emerging international markets. Typically, investors can expect exposure to economies like China, Brazil, India, South Africa, Indonesia, and many others. These funds are appealing because of their geographic diversification, but this can also mean that currency risk is a factor.
History of Fund/Manager
Franklin is based in San Mateo, CA, and is the manager of FEMDX. The Franklin Emerging Market Debt Opportunity Adviser made its debut in October of 2006 and FEMDX has managed to accumulate roughly $132.34 million in assets, as of 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
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 8.17%, and is 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 16.43%, which places it in the top 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. Compared to the category average of 7.49%, the standard deviation of FEMDX over the past three years is 6.9%. Looking at the past 5 years, the fund's standard deviation is 8.69% compared to the category average of 8.79%. 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, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
If you believe interest rates will rise, this is an important factor to look at. FEMDX has a modified duration of 4.21, which suggests that the fund will decline 4.21% for every hundred-basis-point increase in interest rates.
With a beta of -0.04, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, FEMDX has a positive alpha of 8.01 , 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 1.00% compared to the category average of 0.92%. Looking at the fund from a cost perspective, FEMDX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1.00 million, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
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 higher fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the International Bond - Emerging, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.