TEPLX
Templeton Growth-A
Global Reach with Emerging Market Exposure
Templeton Growth-A (TEPLX) is designed to provide investors with long-term capital growth by investing in equity securities of companies located worldwide, including emerging markets. This global reach allows the fund to tap into diverse economic growth opportunities, making it an attractive option for investors seeking international diversification. The fund’s strategy includes investing up to 25% of its total assets in debt securities, providing a balanced approach to risk and return. This flexibility in asset allocation enables the fund to adapt to changing market conditions, potentially enhancing returns while managing risk.
At A Glance
Executive Summary
TEPLX offers global equity exposure with a 1.04% expense ratio, focusing on long-term growth. It stands out with a diverse portfolio and strong 1-year return.
Global diversification with emerging market exposure. Strong recent performance with 20.44% 1-year return. Managed by Franklin Templeton, a reputable firm.
Higher expense ratio compared to some peers. Limited bond exposure may not suit conservative investors. Potential volatility due to global market exposure.
Impressive Recent Performance
TEPLX has demonstrated strong performance, particularly over the past year, with a 1-year return of 20.44%. This outpaces its benchmark, the MSCI ACWI xUS DivAdj Index, which returned 17.25% over the same period. The fund’s ability to outperform its benchmark highlights its effective management and strategic asset allocation. Investors looking for a fund with a proven track record of delivering robust returns may find TEPLX appealing, especially given its focus on global equities, which have benefited from recent market trends.
Diverse Portfolio Composition
The fund’s portfolio is well-diversified across various sectors and geographies, with significant allocations in technology (19.54%), industrials (16.21%), and healthcare (15.08%). This sector diversification helps mitigate risks associated with any single industry, providing a more stable investment experience. Additionally, the fund’s top holdings include major global companies such as AstraZeneca, UnitedHealth Group, and Microsoft, which are leaders in their respective fields. This strategic selection of high-quality stocks contributes to the fund’s potential for long-term growth.
Competitive Comparison with Peers
When compared to similar funds, TEPLX holds its ground with a competitive 1-year return of 20.44%. While its expense ratio of 1.04% is higher than some peers like Nationwide Global Sustainable Equity-A (GGEAX) and BNY Mellon Global Stock-A (DGLAX), the fund’s strong performance may justify the cost for investors seeking superior returns. Additionally, TEPLX’s beta of 0.92 indicates a slightly lower volatility compared to the market, which can be appealing for investors looking for a balance between risk and return.
Risk Metrics and Volatility Management
TEPLX exhibits a beta of 0.92, suggesting it is slightly less volatile than the overall market. The fund’s alpha of 3.17% indicates its ability to generate returns above its benchmark, reflecting effective management. With a Sharpe ratio of 0.26, the fund offers a moderate risk-adjusted return, suitable for investors comfortable with some level of risk. The fund’s downside risk (UI) of 2.05 and max drawdown of -8.1% highlight its resilience in volatile markets, making it a viable option for those seeking growth with managed risk.
Sector and Market Cap Allocation
TEPLX’s sector allocation is heavily weighted towards technology, industrials, and healthcare, which are sectors poised for growth in the current economic climate. The fund’s market cap allocation is predominantly in large (47.46%) and extra-large (40.65%) companies, providing stability and potential for capital appreciation. This focus on larger, established companies can offer investors a degree of safety while still participating in the growth potential of global markets. The fund’s strategic allocation across sectors and market caps is designed to optimize returns while managing risk.
Suitability for Growth-Oriented Investors
TEPLX is particularly well-suited for growth-oriented investors seeking international exposure. Its focus on global equities, including emerging markets, provides opportunities for capital appreciation. The fund’s strong recent performance and strategic diversification make it an attractive option for those looking to enhance their portfolio with global growth potential. However, investors should be aware of the fund’s higher expense ratio and potential volatility due to its global market exposure, which may not align with more conservative investment strategies.
Conclusion: A Strong Contender for Global Growth
In conclusion, Templeton Growth-A (TEPLX) stands out as a strong contender for investors seeking global growth opportunities. Its impressive recent performance, diverse portfolio, and strategic sector allocation make it an appealing choice for those looking to diversify their investments internationally. While the fund’s higher expense ratio may be a consideration, its ability to deliver robust returns and manage risk effectively positions it as a valuable addition to a growth-oriented portfolio. Investors seeking international diversification with a focus on long-term capital growth should consider TEPLX as a viable option.
Similar Securities
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TQGEX: TRPrice Integrated Global Equity-Inv | Global Growth Fund
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JHISX: Janus Henderson VIT Global Sust Eq-Inst | Sustainable Growth Investment
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