Fact sheet: Templeton Emerging Markets Smaller Companies

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
EMERGING MARKETS
Sector
FO Equity - Emerging Markets
Fund type
Offshore Fund
Primary aim
GROWTH
Why Money Observer Rates Templeton Emerging Markets Smaller Companies

Rated Fund 2016-2017. Backed by an experienced team

This fund won the Money Observer Best Emerging Markets Fund award in 2015, when times were tough for emerging markets, and it won again in 2016.

Legendary investment manager Mark Mobius is still on the team, as are Tom Wu and Dennis Lim, Templeton's director of research. They are supported by a large team of analysts based in Franklin Templeton's offices located across emerging markets.

The fund invests in companies with market capitalisations at the time of purchase within the range of those companies included in the MSCI Emerging Markets Small Cap index, currently averaging around $320 million (£260 million).

Mobius has attributed the fund's success to the investment team's value-oriented, long-term investment philosophy, and its focus on higher-quality companies with strong business models, little or no debt, strong management and good corporate governance.

He says the team is helped by the group's analysts, who conduct hundreds of company visits each year to identify small companies that might otherwise be overlooked. When choosing companies to buy, the managers follow Templeton's in-house investment process.

This starts with a screen of the company's master list of small company stocks. A regional review team then carries out in-depth research and scrutiny on prospects.

Mobius and his team believe economic conditions are improving and that emerging market smaller companies still offer strong growth potential. He says market inefficiencies, in part due to a lack of research coverage, provide attractive opportunities.

3 Year Performance
Fund Performance41.8%
Average of Rated Funds Group45.4%
Sector Performance20.4%
Fund information
Fund name
Templeton Emerging Markets Smaller Companies W Acc GBP
Fund manager company
Franklin Temp Intnl Serv SARL
Fund type
Offshore Fund
Fund managers
  • Chetan Sehgalsince 02/04/2017
Accolades
Winner - Global Emerging Markets
Fund objective
The Fund aims to achieve long-term capital appreciation by investing primarily in equity securities and depository receipts of small-cap companies registered or performing a substantial part of their business in emerging markets or holding a substantial part of their participations in small-cap companies registered in emerging markets. Emerging markets small cap companies are those having a market capitalisation at the time of initial purchase within the range of the market capitalisations of companies included in the MSCI Emerging Markets Small Cap Index (Index). If the market capitalisation of companies allowed by the Index falls below USD 2 billion, a security held by the Fund will only qualify for additional purchases if its market capitalisation does not exceed USD 2 billion.
Benchmark
  • MSCI Emerging Markets Small Cap Index (Total Return Net)
Investment style
Growth
Investment method
Shares
Quick stats
1 Year return
8.8%
1 Year rank in sector
-
Sector
FO Equity - Emerging Markets
Yield
-
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.66%
Fund size
£1,294m (£562m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
98
Top in this sector
Fund name1 Year
Van Eck Emg Mkts Eq UCITS41.8%
Schroder ISF BRIC41.1%
ACS Emg Mkts Eq41%
Templeton BRIC39.5%
Carnegie WrldEmrgMrktsEqts39%
...more in FO Equity - Emerging Markets

Performance snapshot

Holdings snapshot

  • Others23%
    India19.4%
    China12.3%
    Money Market11.9%
    Korea10.3%
  • Cyclical Consumer Goods19.9%
    Information Technology15.1%
    Financials12.9%
    Money Market11.9%
    Health Care11.7%
  • International Equities23%
    Indian Equities19.4%
    Chinese Equities12.3%
    Money Market11.9%
    South Korean Equities10.3%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-3.9%-0.4%0.5%8.8%41.8%71.3%
Sector-2.1%4.8%9.6%20.5%20.4%17.4%
Rank within sector------
Quartile
Calendar performance
 YTD - 20182017201620152014
Fund-2.9%20.5%24%0.3%20.6%
Sector1.2%28.4%10.7%-14.3%-1.4%
Rank within sector-----
Quartile
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
7.53
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.64
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.72
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
12.87
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
10.61
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.4
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.45
Price movement
52 week high22.21
52 week low19.36
Current bid price-
Current offer price-
Current mid price21.12
Region
1Others22.97%
2India19.44%
3China12.33%
4Money Market11.91%
5Korea10.3%
6Taiwan7.33%
7Vietnam4.57%
8Turkey3.72%
9Brazil2.9%
Industry sector
1Cyclical Consumer Goods19.91%
2Information Technology15.12%
3Financials12.89%
4Money Market11.91%
5Health Care11.65%
6Non-Cyclical Consumer Goods8.7%
7Industrials8.03%
8Basic Materials7.94%
9Property2.02%
Asset type
1International Equities22.97%
2Indian Equities19.44%
3Chinese Equities12.33%
4Money Market11.91%
5South Korean Equities10.3%
6Taiwanese Equities7.33%
7Asia Pacific Emerging Equities4.57%
8Turkish Equities3.72%
9Brazilian Equities2.9%
Individual holdings
1BAJAJ HLDGS & INVESTMENT LTD3.27%
2BAJAJ HLDGS & INVESTMENT LTD3.27%
3APOLLO TYRES LTD2.8%
4APOLLO TYRES LTD2.8%
5Federal Bank Ltd.2.04%
6HOA PHAT GROUP JSC2.04%
7BALKRISHNA INDUSTRIES1.73%
8BALKRISHNA INDUSTRIES1.73%
9TATA CHEMICALS1.67%
Management
Fund manager group
Franklin Templeton
Fund manager company
Franklin Temp Intnl Serv SARL
Fund type
Offshore Fund
Fund objective
The Fund aims to achieve long-term capital appreciation by investing primarily in equity securities and depository receipts of small-cap companies registered or performing a substantial part of their business in emerging markets or holding a substantial part of their participations in small-cap companies registered in emerging markets. Emerging markets small cap companies are those having a market capitalisation at the time of initial purchase within the range of the market capitalisations of companies included in the MSCI Emerging Markets Small Cap Index (Index). If the market capitalisation of companies allowed by the Index falls below USD 2 billion, a security held by the Fund will only qualify for additional purchases if its market capitalisation does not exceed USD 2 billion.
Benchmark
  • MSCI Emerging Markets Small Cap Index (Total Return Net)
Investment style
Growth
Investment method
Shares
Fund managers
NameSinceBiography
Chetan Sehgal02/04/2017Chetan Sehgal is an executive vice president and the Director of Global Emerging Markets/ Small Cap Strategies for the Templeton Emerging Markets Group. In this capacity, he is responsible for strengthening the overall Global Emerging Markets and Small Cap strategies, providing guidance and thought leadership, coordinating appropriate resources and coverage, and leveraging the group's expertise to add value across products within the strategies. Prior to joining Franklin Templeton, Mr. Sehgal was a senior ratings analyst for the Credit Rating Information Services of India, Ltd. Mr. Sehgal earned a B.E. mechanical (honors) from University of Bombay and a post-graduate diploma in management from the Indian Institute of Management in Bangalore, where he specialized in finance and business policy and graduated as an institute scholar. Mr. Sehgal speaks English and Hindi and is a Chartered Financial Analyst (CFA) charterholder.
Compliance
Transparent for Austrian Tax, Transparent for Swiss Tax, IA Recognised, Offshore, Reporting Fund Status, UCITS V Compliant, MAS Unrestricted Scheme
Domicile
No data available.
Fund for sale in
Austria, Belgium, Switzerland, Chile, Cyprus, Czech Republic, Germany, Denmark, Spain, Estonia, Finland, France, United Kingdom, Gibraltar, Greece, Guernsey, Hong Kong, Hungary, Ireland, Italy, Jersey, Republic Of Korea, Liechtenstein, Lithuania, Luxembourg, Latvia, Macau, Netherlands, Norway, Offshore, Peru, Poland, Portugal, Singapore, Slovakia, Sweden, Turkey, Taiwan - Province Of China, South Africa
Templeton Emerging Markets Smaller Companies A Acc EUR
Initial charge5.75%
Annual charge1.6%
Min single investment£5,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)2.51%
Total expense ratio (TER)2.48%
Bid price-
Offer price-
Mid price14.9
CurrencyEUR
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeA9L1
Templeton Emerging Markets Smaller Companies A Acc USD
Initial charge5.75%
Annual charge1.6%
Min single investment£5,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)2.51%
Total expense ratio (TER)2.48%
Bid price-
Offer price-
Mid price13.03
CurrencyUSD
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeA9L2
Templeton Emerging Markets Smaller Companies A H1 Acc EUR
Initial charge5.75%
Annual charge1.6%
Min single investment£5,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)2.5%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price10.64
CurrencyEUR
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeO9SL
Templeton Emerging Markets Smaller Companies A YDis GBP
Initial charge5.75%
Annual charge1.6%
Min single investment£5,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)2.51%
Total expense ratio (TER)2.47%
Bid price-
Offer price-
Mid price18.09
CurrencyGBP
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeA9L3
Templeton Emerging Markets Smaller Companies A YDis USD
Initial charge5.75%
Annual charge1.6%
Min single investment£5,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)2.5%
Total expense ratio (TER)2.48%
Bid price-
Offer price-
Mid price12.47
CurrencyUSD
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeA9L4
Templeton Emerging Markets Smaller Companies C Acc USD
Initial charge-
Annual charge1.6%
Min single investment£5,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)3.09%
Total expense ratio (TER)3.06%
Bid price-
Offer price-
Mid price13.64
CurrencyUSD
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeBDR2
Templeton Emerging Markets Smaller Companies I Acc EUR
Initial charge-
Annual charge1.1%
Min single investment£5,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)1.44%
Total expense ratio (TER)1.42%
Bid price-
Offer price-
Mid price16.65
CurrencyEUR
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeA9L5
Templeton Emerging Markets Smaller Companies I Acc USD
Initial charge-
Annual charge1.1%
Min single investment£5,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)1.44%
Total expense ratio (TER)1.42%
Bid price-
Offer price-
Mid price14.56
CurrencyUSD
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeA9L6
Templeton Emerging Markets Smaller Companies N Acc USD
Initial charge3%
Annual charge1.6%
Min single investment£5,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)3.01%
Total expense ratio (TER)2.97%
Bid price-
Offer price-
Mid price12.38
CurrencyUSD
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeA9L7
Templeton Emerging Markets Smaller Companies W Acc EUR
Initial charge-
Annual charge1.25%
Min single investment£3,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)1.51%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price9.83
CurrencyEUR
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeOELS
Templeton Emerging Markets Smaller Companies W Acc GBP
Initial charge-
Annual charge1.25%
Min single investment£3,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)1.66%
Total expense ratio (TER)1.62%
Bid price-
Offer price-
Mid price21.12
CurrencyGBP
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeG27H
Templeton Emerging Markets Smaller Companies W Acc USD
Initial charge-
Annual charge1.25%
Min single investment£3,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)1.65%
Total expense ratio (TER)1.63%
Bid price-
Offer price-
Mid price15.57
CurrencyUSD
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeFDPS
Templeton Emerging Markets Smaller Companies W H1 YDis EUR
Initial charge-
Annual charge1.1%
Min single investment£100,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price9.64
CurrencyEUR
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeOQCT
Data provided by

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