I don't know how many of you invest with MICHAEL HASENSTAB and his funds at Templeton.
I never did get an opportunity as their funds are loaded. With his CEF funds available on discount now, Isn't it a good time to invest in his funds, either GIM or TEI. I hold MAINX from Mathews and it focusses on just Asia ex-Japan.
Thinking of switching to TEI or GIM (not same category but still a good fund) by selling MAINX.
What do you guys think ?
Comments
GIM: 1.5% with target allocation of 4-5% (waiting for some cash from a 401k rollover, Merrill Lynch is SLOW)
TEI: 3%
MAINX: 2%
If you can stomach the volatility and understand CEFs, TEI & GIM look attractive at ~$14 and ~$8. Personally would, and actually am, keeping MAINX
Regards,
Ted
GIM: http://www.cefconnect.com/Details/SummaryPrint.aspx?print=true&ticker=GIM
TEI: http://www.cefconnect.com/Details/SummaryPrint.aspx?print=true&ticker=TEI
Among the MH managed funds, my preference would also be the Templeton Global Total Return fund, and among the various classes, TTRZX would be my top choice. However, this class is only available at Firstrade by test trade, and is not available without an advisory account at Wellstrade, Fidelity, TDA and Scottrade. The next best option would be TGTRX-LW which is available at Schwab. I would advise caution with regards to CEFs, due to fluctuating discounts and premiums to NAV, and would make certain you are comfortable owning them.
Thanks for your kind words on the Vanguard thread. And the past is long gone, and we are here to help each other.
Kevin
I have verified that TTRZX (and TGBAX) are available at Firstrade, as Kevin stated.
But, while Schwab shows TGTRX as NTF, Schwab only offers these shares to institutional investors. When I try to find a world bond fund from F-T available to retail investors, Schwab just comes back with TPINX (with front end load), TEGBX (with a level load, and limited to redemptions), and Class C of Templeton Total Global Return (also with a level load). That last one is worth highlighting, because sometimes Schwab using its own internal tickers for funds. Here it is using TTR1Z instead of the standard TTRCX. Perhaps Schwab also has its own symbol for the TGTRX shares that it sells to retail customers?
Just as C shares are level loads, apparently so are the R (retirement) class shares FGBRX. These charge so much in 12b-1 fees, that like C shares, they must be called load funds. Those extra fees likely go to paying the retirement plan provider, so that the employer sponsoring the plan doesn't have to pay for the plan. (They're also offered in 529 plans and HSAs, where the fees would similarly go to the provider of the plan.)
So as near as I can see, the only way right now to get access (at the retail level) to noload open end versions of Hasenstab funds is to go through Firstrade. (They're in Flushing, Queens for anyone who wants to walk in.)
USAA brokerage offer TTRZX NTF, but at a $50K initial minimum.
Since we're bringing up what may be "limited access' methods of buying the fund without a load, legacy Mutual Series investors have a back door available. If you've owned Mutual Series funds continuously since 1996 (now Z shares), you're grandfathered in. You can purchase any Mutual Series fund Z shares (no load), and then exchange at NAV into the A shares of the Templeton bond funds such as TGTRX.
(I've always been curious whether you could try an exchange without the continuous ownership - e.g. buy MDISX at Scottrade, and then exchange some of the shares A shares at NAV. It shouldn't work, but F-T has rewritten the rules so many times that this may now slip through.)
Update: Here it is:
It looks like everything except auto and property insurance services are available to non-military audience.
https://www.usaa.com/inet/pages/why_choose_usaa_main?showtab=legacyPassDown
Expand "Other Individuals". It says:
The main difference between Templeton Global Bond and Templeton Global Total Return is the latter's ability to own non-government (sovereign) foreign bonds. Because of this, it has a slightly longer duration and average maturity. And it currently has almost 40% in "cash", about double the cash in Global Bond. Given what has happened with most foreign bonds and currencies this year, Hasenstab's numbers are mighty impressive.
https://awrd.morningstar.com/SB/USAASB/USAAScreener.asp?module=FVF#
Reply to @ron: Was going back and forth a couple years ago on both of those holdings (already had invested in TGBAX) and whether or not to split the EM bond holdings between the two, before finally settling on on TGEIX due to some underperformance by FNMIX at the time.
Contemplated the same thing recently and would like to increase exposure to TGBAX in one account and for this most recent one the target allocation for GIM is much higher than EM. However, because I'm using CEF's, some of the EM exposure I do have is invested in TEI which is managed by Michael Hasenstab. My thinking is that emerging markets are undervalued right now relative to the rest of the market.