Posted inHead To Head, News

HEAD-TO-HEAD: Capital Group versus Franklin Templeton

FSA compares two flexible global fixed income products: The Capital Group Global High Income Opportunities Fund and the Templeton Global Bond Fund.
by Francis Nikolai Acosta

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Conclusion

The Capital Group fund receives a five-star Morningstar rating and an analyst rating of Bronze, while the Templeton fund gets two stars and a Silver analyst rating.

Morningstar’s star rating looks at historically-adjusted performance and the analyst rating is based on forward-looking analysis.

Ge believes both funds are good options for investors looking at global fixed income funds.

“But given these challenging times, when markets are unpredictable and volatile, I would give a slight edge to Templeton,” Ge said.

“Just based on the team and the investment process, we have great confidence in Hasenstab and Ho”, to outperform peers in this market environment, he said.

That said, investors should be aware that the Templeton fund’s performance can largely deviate from peer funds both in the short- and long-term.

“The fund is more suitable for more patient investors who are willing to stick with some short-term volatility and are able to withstand Templeton’s see-sawing performance,” he said.

Meanwhile, investors who prefer more predictable performance should consider the Capital Group fund.

“Given that it is an income product, the Capital Group fund is an attractive option for investors who are looking for higher yields in a low yielding environment.”

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