Templeton Emerging Markets FundFind Ratings Reports
- Last Ratings Update:03/31/2021
- Price as of 03/31/2021 :$19.10
- Net Assets:$285.67 Million
- Peer Rank:18 of 90
- Investment Rating:C
We rate Templeton Emerging Markets Fd at C. Positive factors that influence this rating include a greater than above average total return and low price volatility. The fund invests approximately 81% of its assets in stocks and may be considered for investors seeking an Emerging Market Equity strategy.
POSITIVES AND RISKS
Total return ranks above peers over the last three years. The Templeton Emerging Markets Fd has returned an annual rate of 11.28% since inception. More recently, the fund has generated a total return of 6.57% in the last five years, 4.60% in the last three years, and -1.30% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 70% of them. It has also outpaced 65% of its competitors on a three year basis and 53% of them over the last year for the period ending 3/31/2021. On a year to date basis, EMF has returned -10.07%.
Downside risk has been below average. EMF has a draw down risk of -31.51%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 23.1%. This fund has experienced a high level of volatility in its monthly performance over the last 36 months. As of 3/31/2021, the fund was trading at a price of $19.10, which is 5.4% below its 52-week high of $20.18 and 3.1% above its 52-week low of $18.53.
High expense ratio hinders performance. On total assets of $285.67 million, EMF maintains a high expense ratio compared to its Emerging Market Equity peers of 1.50% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As EMF is a closed end fund, it has no front end or back end load.
Manager lacks tenure but performance is a net positive. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Templeton Emerging Markets Fd has been managed by Chetan Sehgal for only 4 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 78% of other fund managers.