Another day like yesterday where GIM (now developed mkt 50%, EM debt 50% based latest Feb holding list) dips even though its sister TEI(100% EM debt) is up a couple of %.
Since both run by Templeton one must assume same EM debt being picked (have not checked yet). They both hoover around the same 5% discount.
GIM now yields 5.5% and the developed part is in very safe and short bonds.
I declare GIM a buy at current price levels and if one believes (like Warren Buffett) that the USD has worse times ahead it is just an extra bonus.
Some will argue that the 5% is around the historical avg. of discount - and it could get worse as it has before - but for a fund with this good management and e/r+super diversification (now 50/50% developed/EM) I doubt we will see that. Nomatter what I get 5.5% in return while waiting for the gains.
Cheers!
Disclaimer: just bought myself!
Since both run by Templeton one must assume same EM debt being picked (have not checked yet). They both hoover around the same 5% discount.
GIM now yields 5.5% and the developed part is in very safe and short bonds.
I declare GIM a buy at current price levels and if one believes (like Warren Buffett) that the USD has worse times ahead it is just an extra bonus.
Some will argue that the 5% is around the historical avg. of discount - and it could get worse as it has before - but for a fund with this good management and e/r+super diversification (now 50/50% developed/EM) I doubt we will see that. Nomatter what I get 5.5% in return while waiting for the gains.
Cheers!
Disclaimer: just bought myself!
I still like it a lot and may buy
