Posted inHead To Head

HEAD-TO-HEAD: Ashmore vs Templeton

FSA compares two global emerging market bond funds: the Ashmore Sicav Emerging Markets Total Return Fund and the Templeton Emerging Markets Bond Fund.
by Francis Nikolai Acosta
Conclusion

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Broussard said there are no key issues with either fund, as both of them offer a flexible and dynamic high-conviction approach.

However, of the two she prefers the Ashmore fund, as it has historically provided a consistently higher level of outperformance during market rallies.

She added that since many investors will invest in emerging markets only when they are positive on the asset class, they will tend to favour the Ashmore fund as it has exhibited a greater level of outperformance during a bull market.

She noted that the Templeton fund may be suitable for investors who like to invest in total return or absolute return strategies.

“But the problem is, those people that definitely want an absolute return-type of strategy are going to be disappointed with Hasenstab, because he does have years where he is negative, and [the fund] is not an absolute return fund, it’s like somewhere in-between [total return and absolute return].”

That said, she believes both funds “are fantastic, and for somebody owning the Templeton fund, I won’t say get out of it. I just think the Ashmore fund is much more consistent and offers better risk-adjusted returns over time”.

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