I've been holding GIM for a while to provide income. I'm wondering if I'd be better off switching it for the other Templeton emerging market income fund, TEI, for a better yield although more volatility. Any thoughts?
Well, I'm no expert but I'll give you my two cents. Both funds have Hasenstab so you know you have superior management. But Ukrainian and Iraqi government bonds (6% and 3% of the portfolio) would be too much excitement for me. (I know gim has some of the Ukrainian paper but it's only 1% and slightly shorter duration than the tei position.) I'm not sure the extra credit risk is worth the extra yield. But it's a great question. I hope someone with better knowledge than me is able to respond!
I guess that helps explain the higher yield and higher volatility. I just sold off my FAX which was mostly Australian bonds. So much for trying to figure out stability. The problem there was a resurgence of the US dollar which seems to be a problem now in all these sovereign bond funds.