TEMWX
Templeton World-A
Global Diversification with a Focus on Growth
Templeton World-A (TEMWX) is a mutual fund designed to provide investors with long-term capital growth by investing primarily in equity securities of companies located worldwide, including emerging markets. The fund mandates that at least 65% of its total assets be invested in issuers from at least three different countries, including the U.S. This global diversification strategy allows investors to benefit from growth opportunities across various markets, reducing reliance on any single economy. The fund’s focus on large-cap equities, with 54.25% of its holdings in extra-large market cap companies, provides a stable foundation for growth, making it an attractive option for investors seeking to diversify their portfolios internationally.
At A Glance
Executive Summary
TEMWX offers global diversification with a focus on large-cap equities, boasting a 32.91% 1-year return and a 1.05% expense ratio.
Global diversification with exposure to emerging markets. Strong recent performance with a 32.91% 1-year return. Focus on large-cap equities for stability.
Higher expense ratio compared to some peers. Limited yield at 0.52% may not suit income-focused investors. Potential volatility due to global market exposure.
Impressive Recent Performance
TEMWX has demonstrated impressive performance over the past year, with a 1-year return of 32.91%, significantly 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 high-performing sectors such as technology, which comprises 28.68% of its portfolio. The fund’s top holdings, including Amazon, Microsoft, and Alphabet, have been key contributors to its success. This performance highlights the fund’s ability to capitalize on market trends and deliver substantial returns to its investors.
Sector Allocation and Top Holdings
The sector allocation of TEMWX is heavily weighted towards technology, which accounts for 28.68% of the portfolio, followed by financials and healthcare at 14.69% and 14.59%, respectively. This allocation reflects the fund’s strategy to invest in sectors with strong growth potential. The top holdings include major tech giants like Amazon, Microsoft, and Alphabet, which together make up a significant portion of the fund’s assets. This focus on technology and other growth sectors positions the fund to benefit from ongoing technological advancements and innovations, providing investors with exposure to some of the most dynamic areas of the global economy.
Risk Metrics and Volatility
TEMWX exhibits a relatively low beta of 0.91, indicating that it is less volatile than the overall market. The fund’s standard deviation of 4.03% further underscores its stability, making it a suitable choice for investors who are risk-averse but still seek growth. The Sharpe ratio of 1.12 suggests that the fund offers a favorable risk-adjusted return, while the Treynor ratio of 17.21 indicates efficient risk management relative to its benchmark. Despite a maximum drawdown of -8.3%, the fund’s quick recovery time of just one month demonstrates its resilience in volatile market conditions.
Comparative Analysis with Similar Funds
When compared to similar funds, TEMWX holds its ground with a strong 1-year return of 32.91%. However, it faces stiff competition from funds like Janus Henderson Global Research-A (JDWAX) and JOHCM Global Select-Inst (JOGIX), which have slightly higher returns of 35.88% and 34.86%, respectively. Despite its higher expense ratio of 1.05%, TEMWX’s focus on large-cap equities and global diversification offers a unique value proposition. Investors should weigh the fund’s strong performance and strategic asset allocation against its higher costs when considering it alongside its peers.
Expense Ratio and Cost Considerations
The expense ratio of TEMWX stands at 1.05%, which is higher than some of its peers, such as Neuberger Berman Focus-Inv (NBSSX) and JOHCM Global Select-Inst (JOGIX), both of which have expense ratios below 1%. While this may be a consideration for cost-conscious investors, the fund’s strong performance and strategic global diversification may justify the higher fees. Investors should consider whether the potential for high returns and exposure to diverse markets outweighs the cost of investment when evaluating TEMWX as part of their portfolio.
Suitability for Different Investor Profiles
TEMWX is particularly well-suited for investors seeking global diversification and exposure to large-cap equities. Its focus on growth sectors like technology and healthcare makes it an attractive option for those looking to capitalize on long-term market trends. However, the fund’s relatively low yield of 0.52% may not appeal to income-focused investors. Additionally, its higher expense ratio could be a deterrent for those prioritizing cost efficiency. Overall, TEMWX is ideal for growth-oriented investors who are comfortable with its global exposure and are seeking to enhance their portfolio’s potential for capital appreciation.
Conclusion: A Strong Contender for Global Growth
In conclusion, Templeton World-A (TEMWX) stands out as a robust option for investors seeking global equity exposure with a focus on long-term growth. Its impressive recent performance, strategic sector allocation, and emphasis on large-cap equities make it a compelling choice for growth-oriented investors. While the fund’s higher expense ratio and modest yield may be considerations for some, its ability to deliver strong returns and provide diversification across multiple markets positions it as a valuable addition to a well-rounded investment portfolio. Investors should consider their individual goals and risk tolerance when deciding if TEMWX aligns with their investment strategy.
Similar Securities
PGGAX: American Funds Global Growth-A | Global Growth Investment
PGGAX offers global growth with a 0.81% expense ratio, outperforming its benchmark with a 28.71% 1-year return.
OPPAX: Invesco Global-A | Global Growth Investment
Invesco Global-A (OPPAX) excels with a 27.94% 1-year return, focusing on tech and communication sectors, offering a unique global growth strategy.
JHISX: Janus Henderson VIT Global Sust Eq-Inst | Sustainable Growth Investment
JHISX stands out with a focus on sustainable growth, investing in companies aligned with environmental and social megatrends, offering a 27.61% 1-year return.
CFIPX: Franklin Global Equity-A | Global Growth Investment
CFIPX offers global exposure with a focus on established companies, boasting a 36.3% 1-year return and a 1.3% expense ratio.
TQGEX: TRPrice Integrated Global Equity-Inv | Global Growth Fund
TQGEX offers strong growth with a 30.79% 1-year return, focusing on large-cap equities with a competitive 0.74% expense ratio.
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