BEGRX
Franklin Mutual Beacon-Z
Introduction to Franklin Mutual Beacon-Z
Franklin Mutual Beacon-Z (BEGRX) is a mutual fund designed to provide investors with capital appreciation and income through a value-focused investment strategy. Managed by Franklin Templeton Investments, the fund primarily invests in equity securities of both U.S. and foreign companies that are believed to be undervalued. This approach aims to capitalize on market inefficiencies by purchasing stocks at prices below their intrinsic value. With a focus on growth and income, BEGRX is categorized under World Large Value, making it an attractive option for investors seeking diversified global exposure with a value tilt.
At A Glance
Executive Summary
BEGRX offers global value equity exposure with a 0.77% expense ratio, strong 1-year return of 22.29%, and a focus on growth and income.
Global equity exposure with value focus; Strong 1-year return of 22.29%; Managed by Franklin Templeton Investments.
Higher expense ratio compared to some peers; Limited bond exposure; Moderate yield of 1.79%.
Performance Highlights and Benchmark Comparison
BEGRX has demonstrated impressive performance, particularly over the past year, with a 1-year return of 22.29%, outperforming its benchmark, the MSCI ACWI xUS DivAdj Index, which returned 17.25% over the same period. This strong performance can be attributed to the fund’s strategic allocation in undervalued equities, which has allowed it to capitalize on market opportunities. The fund’s alpha of 5.03% indicates its ability to generate excess returns relative to the benchmark, while a beta of 0.81 suggests lower volatility compared to the market. These metrics highlight BEGRX’s effectiveness in delivering superior risk-adjusted returns.
Portfolio Composition and Sector Allocation
The portfolio of BEGRX is diversified across various sectors, with significant allocations in Health Care (22.17%), Financials (20.88%), and Industrials (19.09%). This sector allocation reflects the fund’s strategy of investing in industries with strong growth potential and stable income streams. Notably, the fund has no exposure to Utilities, indicating a focus on sectors with higher growth prospects. The top holdings include prominent companies such as Haleon PLC, JPMorgan Chase & Co, and Medtronic PLC, which collectively contribute to the fund’s robust performance. This diversified sector and stock selection strategy is designed to mitigate risks while maximizing returns.
Risk Metrics and Volatility Analysis
BEGRX exhibits a favorable risk profile, with a standard deviation of 3.08% and a Sharpe Ratio of 0.47, indicating a balanced approach to risk and return. The fund’s beta of 0.81 suggests that it is less volatile than the broader market, providing a cushion against market fluctuations. Additionally, the Treynor Ratio of 6.20 highlights the fund’s efficiency in generating returns per unit of risk. The maximum drawdown of -5.1% and quick recovery period further underscore the fund’s resilience in adverse market conditions. These risk metrics make BEGRX a compelling choice for investors seeking stability alongside growth.
Comparative Analysis with Similar Funds
When compared to similar funds such as BNY Mellon Global Stock-I (DGLRX) and Columbia Global Value-A (IEVAX), BEGRX holds its ground with a competitive 1-year return of 22.29%. While some peers like Goldman Sachs Enhanced Div Glbl Eq-Inst (GIDGX) have slightly higher returns, BEGRX’s expense ratio of 0.77% is relatively moderate, offering a balance between cost and performance. The fund’s yield of 1.79% is also competitive, providing a steady income stream for investors. This comparative analysis highlights BEGRX’s strong positioning within the World Large Value category, making it a viable option for value-focused investors.
Market Capitalization and Asset Allocation
BEGRX’s asset allocation is predominantly in equities, with 56.11% in U.S. equities and 43.55% in non-U.S. equities, reflecting its global investment strategy. The fund’s market capitalization allocation is skewed towards large-cap (38.14%) and extra-large-cap (36.74%) stocks, which are typically more stable and less volatile. This focus on larger companies aligns with the fund’s objective of providing growth and income through investments in established, financially sound businesses. The minimal allocation to small-cap stocks (2.44%) indicates a conservative approach, prioritizing stability and long-term growth over high-risk, high-reward opportunities.
Expense Ratio and Cost Efficiency
With an expense ratio of 0.77%, BEGRX offers a cost-effective investment option within its category. While some similar funds may have lower expense ratios, BEGRX’s fee structure is justified by its strong performance and strategic asset allocation. The fund’s management by Franklin Templeton Investments, a reputable firm with a history of successful fund management, further adds to its value proposition. Investors seeking a balance between cost and performance will find BEGRX’s expense ratio competitive, especially given its robust returns and diversified portfolio. This cost efficiency makes it an attractive choice for long-term investors.
Conclusion: Suitability for Investors
Franklin Mutual Beacon-Z (BEGRX) stands out as a compelling investment option for those seeking global equity exposure with a value focus. Its strong performance, competitive expense ratio, and diversified portfolio make it suitable for investors looking for growth and income. The fund’s strategic sector allocation and risk management further enhance its appeal, providing stability in volatile markets. However, investors should consider their risk tolerance and investment goals, as the fund’s moderate yield and higher expense ratio compared to some peers may not align with all investment strategies. Overall, BEGRX is well-suited for value-oriented investors seeking a balanced approach to growth and income.
Similar Securities
PRAFX: TRPrice Real Assets-Inv | Real Asset Growth Fund
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DODWX: Dodge & Cox Global Stock-I | Global Value Investment
DODWX offers global equity exposure with a 0.62% expense ratio and strong 1-year return of 21.41%, focusing on value stocks for long-term growth.
PRIGX: TRPrice Global Value Equity-I | Global Diversification & Value Focus
PRIGX offers global exposure with a focus on undervalued equities, boasting a 26.89% 1-year return and a competitive 0.69% expense ratio.
MDISX: Franklin Mutual Global Discovery-Z | Global Value Investment
MDISX offers global value equity exposure with a 0.96% expense ratio and strong 1-year return of 17.36%, outperforming its benchmark.
BABDX: BlackRock Global Dividend-InvA | High Global Dividend Yields
BABDX offers high global dividend yields with a focus on large-cap equities, outperforming its benchmark with a 22.44% 1-year return.
Futher Reading
https://finance.yahoo.com/quote/BEGRX/”>Yahoo: Franklin Mutual Beacon-Z
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