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M* Review of Hassenstab's Global Bond Fund

Kenster1_GlobalValue
edited August 2011 in Fund Discussions
http://news.morningstar.com/articlenet/article.aspx?id=392954

Will Templeton Global Bond Conquer China Next?

The world's biggest global bond fund takes its one-of-a-kind show to Asia.

One mutual fund has emerged in recent years as investors' go-to choice for global-bond exposure. Since flows into world-bond funds turned positive in May 2009, Templeton Global Bond (TPINX) has taken in $41.3 billion in new money according to Morningstar's estimates, which represents nearly 60% of total flows into the world-bond category during this stretch. The $61.5 billion Templeton Global Bond now accounts for 40% of the total assets in the world-bond category.

Comments

  • Sven
    Thank you. Good article.
  • BobCBobC
    For all of us who have hired Mr. Hasenstab, say a little prayer for his continued good health. He is the reason for the fund's success. Yes, Templeton has a good shop to assist him, but it is his insight and leadership that has resulted in the terrific numbers for shareholders. My question is always "How big is too big?"
  • [Deleted User]
    The user and all related content has been deleted.
  • fundly
    Folks may also wish to evaluate/buy GIM, a CEF,which I own, Templeton Global Income, managed also by Hassenstab ,almost like TPINX, with similiar excellent results.
  • Kenster1_GlobalValue
    I own GIM too and boy it was great back in say early 2009 or just before that to get in on some nice discount. Since then it's generally been trading at a premium for the most part including right now. 2-3 weeks ago during the volatile down week we had, GIM did flatten out close to a 0% premium but it's back up again.

  • fundly
    True, but you avoid the load if you have to pay it on TPINX. A small premium would be much better vs the load.
  • MikeMMikeM
    https://www.franklintempleton.com/retail/app/product/views/fund_page.jsf?fundNumber=816

    FWIW, I guess I didn't realize the global income fund could be bought without a load, at least in my T Rowe Price 401k account. The ticker is FGBRX. Expenses are .5% higher than the load version.

    I've wished this fund was available to me in the past. Now that I see it is I may have to consider, even with a $35 transaction fee.
  • msf
    Unfortunately, you're still paying a load in the form of a 12b-1 fee that goes into the broker's (TRP's) pocket, year after year, just like "C" shares. Not sure the 0.5% comes from; the "A" shares cost 0.92%/yr, while the "R" shares (your class) cost 1.17%/yr. The difference comes from the higher 12b-1 fee (0.50% vs 0.25%). All per prospectus 1/1/2011.

    The expenses are 0.5% higher than the noload version - TGBAX. You used to be able to get that at WellsTrade, but I believe that's no longer possible (can someone confirm?).

    Personally, though it's a great fund, I have trouble swallowing even 0.92% (the "A" share fee), especially given they charge "only" 0.67% for the Advisor Class shares (TGBAX), and 0.74% for the clone GIM.
  • MikeMMikeM
    Reply to @msf:

    Isn't the total expenses the net expense ratio + the 12b-1 fee? That would be .92+.25=1.17 for TPINX and 1.17+.5 =1.67 for FGBRX. That's where I got the .5% difference.


  • msf
    The 12b-1 fees are included in the net expense ratio - so you wound up double-counting them.

    The idea is that net expense ratio gives you a sense of all predictable periodic charges. So it excludes front end loads and back end loads (each a one-time payment), and also the fund's trading commissions (the omission of which I personally consider unjustified - but that's the rule). But net expense ratio does includes 12b-1, which is a crystal clear periodic charge.
  • amateur
    edited September 2011
    What companies specifically can sell (TGBAX), the Advisor Class shares?
  • beebee
    Reply to @amateur:

    Hi Ama,

    Here's a link to a list of brokers that offer TGBAX.

    http://finance.yahoo.com/q/pi?s=TGBAX+Purchase+Info
  • [Deleted User][Deleted User]
    Bought in today at 10.65. Just a small nibble. I told myself to lock the computer, go away, come back after apocalypse, but 5% got the better of me.
    Greed. Nothing but greed:)
    Best everyone in these trying times,
    hawk
  • [Deleted User][Deleted User]
    Sorry. That was GIM, M Hasenstab's CEF at 1.65 today.
  • amateur
    Reply to @bee:

    Hi Bee,

    Thank you very much for the link.
  • rmt
    edited September 2011
    Reply to @amateur: Some brokerages used to give access to the Advisor class funds like TGBAX for a low min in tax deferred accounts.But as of now ,they are only in Hold or Sell mode.You cannot add anymore.The only other option is to exchange Mutual Series funds like MDISX to any Templeton fund at NAV (example TPINX at NAV).Or,go for the C class shares.
  • kevindowkevindow
    I recently called Firstrade, and the representative stated that I could definitely transfer my shares of TGBAX and TTRZX to their brokerage and add to my positions. All other brokerages have these funds listed as a "hold or sell."

    Kevin
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