Templeton China World Fund (TCWAX)

As one of emerging markets, China can provide an opportunity for investor to invest. To invest in Chinese companies, investor can invest through mutual funds. One of the best China Region stock fund is Templeton China World fund. The fund review is described below.

Templeton China World A (MUTF: TCWAX)

The Templeton China World fund seeks long-term capital appreciation. The fund typically invests most of net assets (>80%) in securities of China companies. This Franklin Templeton fund may also invest <20% of net assets in securities that do not qualify as China company securities, but whose issuers, in the judgment of the investment manager, are expected to benefit from developments in the economy of China. This Templeton fund is non-diversified.

TCWAX Fund Details
Templeton China World fund details
  • Fund Inception Date: September 8, 1993
  • Ticker Symbol: TCWAX
  • CUSIP: 88018X201
  • Beta (3yr): 0.86
  • Rank in category (YTD): 5
  • Category: China Region
  • Distribution: 0.86%
  • Net Assets: $ 1.21 billion
  • Sales Load: 5.75%
  • Expense Ratio: 2.02%
  • Capital Gains: N/A
  • Number of Years Up: 11 years
  • Number of Years Down: 6 years
Updated on 9/14/2011

This Franklin Templeton fund has a 2.02% annual expense ratio. This fee is a bit higher than the average expense fee in the China Region category which is 1.92%. Mark J. Mobius has been the fund's manager since the fund’s inception date on September 8, 1993. This fund also has a 12b1 fee of 0.30% and a front-end sales load fee of 5.75%. This stock fund has total net assets of $1.21 billion.

As one of the best fund in US News, this TCWAX fund also receives five stars rating (i.e. the highest rated fund) from Morningstar. This top fund has returned 18.07% over the past decade, 13.74% over the past 5 years and 14.84% over the past year. This best rated fund has its best performance year in 2003 with 67.78%. Its worst performance return occurred in 2008 with -44.69%. This Franklin Templeton fund has 3.31% YTD return and 15.10% of 5-year average return. The benchmark of this fund is MSCI Golden Dragon Index. The annual holding turnover rate as of August 5, 2011 is 9.94%. This is much lower compared to the average in the category (75.77%).

For investing in the regular brokerage account of this fund, you will need $1,000 minimum balance and $250 for IRA account. There is no minimum subsequent investment. This fund is available to many investors. Investors can purchase this fund through 88 brokerages. They are JP Morgan, Vanguard, Merrill Lynch, Edward Jones, Scottrade Load, E Trade Financial, Morgan Stanley Advisors Firstrade, ETrade No Load Fee, Hartford RK Plus, etc. Please check with your investment broker for details.

The other classes of this China stock mutual fund are Class Advisor (TACWX), Class B (TCWBX) and Class C (TCWCX). The C Class has annual expense ratio of 2.71%. Interested in other great funds, please check my website.

The top 10 holdings of this TCWAX investment fund as of June 2011 are CNOOC Ltd (7.64%), Dairy Farm International Holdings Ltd (6.93%), China Petroleum & Chemical Corp (Sinopec) (5.77%), Yanzhou Coal Mining Company Ltd (5.73%), PetroChina Company Ltd (5.24%), Taiwan Semiconductor Manufacturing Company Ltd (3.54%), China Shenhua Energy Company Ltd (3.34%), Bank of China Ltd (3.22%), Jiangxi Copper Company Ltd (2.89%) and China Mobile Ltd (2.80%). The top five industry of this fund are Energy (28.58%), Food & Staples Retailing (10.44%), Banks (9.36%), Automobiles & Components (6.26%) and Technology Hardware & Equipment (5.53%).

Investing in this Templeton China World fund involves Principal Risks such as Foreign Securities, Region Focus, Market risk, Smaller Companies risk, Non-Diversification risk, Value Style Investing, Management risk, etc. More details can be found in the fund’s prospectus.

Disclosure: No Position

Other Interesting Mutual Funds:


Post a Comment