Templeton Global Smaller Companies A (TEMGX) shows weak performance and high fees, making it a less attractive option for investors right now
TEMGX is part of the Global – Equity category, which includes a lot of different investment options. These funds usually invest in big markets like the U.S., Europe, and Japan, but they can go anywhere in the world to find good returns.
The fund has been around since June 1981 and is managed by Franklin, based in San Mateo, California. It has about $738.24 million in assets, but its performance has been pretty lackluster. Over the last five years, it only managed a 3.14% annualized return, which puts it in the bottom third of its peers. If you look at the three-year return, it’s even worse at -3.62%.
One thing to keep in mind is that the fund’s returns might not show all the fees involved, which could lower what you actually earn. The fund has a standard deviation of 20.3% over the last three years, making it more volatile than others in its category.
Investors should also be aware that TEMGX has a beta of 1.08, meaning it’s likely to be more volatile than the overall market. Plus, it has a negative alpha of -10.29 over the past five years, indicating that the fund managers have struggled to pick winning stocks.
When it comes to costs, TEMGX has an expense ratio of 1.31%, which is higher than the category average of 1.02%. The minimum initial investment is $1,000, but there’s no minimum for subsequent investments.
In summary, with its low ranking, weak performance, and higher fees, Templeton Global Smaller Companies A doesn’t seem like a great choice for investors right now. If you want to explore more about mutual funds, check out Zacks for additional insights and tools to help you analyze your options.
