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Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerPaul Tracy believes Templeton Emerging Markets (NYSE: EMF) is a buy due to the emerging market expertise of its manager, Mark Mobius. Here's the latest from his from The ETF Authority.
"Emerging markets can dangerous waters for U.S. investors. These markets often have little to no analyst coverage and can be highly inefficient.
"As such, this is an area where expert active management can be well worth the higher price tag. And despite charging 1.55% in annual expenses, the Templeton Emerging Markets Fund certainly falls into that category.
"Given the potential pitfalls, it's reassuring to know that this fund is overseen by Dr. Mark Mobius -- a battle-tested veteran with decades of experience dealing with these uncertain stocks.
"While most funds have no discretion when it comes to making tactical decisions, Mobius and his team have the flexibility to steer clear of troubled regions or sectors -- and overweight those that look particularly promising.
"At the moment, China, Brazil, South Korea and Turkey account for roughly half of the portfolio, while the remainder is scattered throughout more than a dozen other markets. Its five top holdings are Petrobras, Companhia Vale do Rio Doce, Aluminum Corp. of China, PetroChina, and Akbank.
"Shareholders gain a balanced exposure to all of the world's emerging economies, while limiting the potential damage of a downturn in any one country.
"Mobius maintains a strict focus on finding fundamentally sound companies trading at steep discounts to the value of their underlying assets and cash flows. And it's hard to argue with the results. EMF has delivered NAV gains of 25% or better for five straight years.
"The fund has also outpaced its peer group in six of the past eight years. In addition, its currently trades at an attractive discount of 8.8%."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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