Competitiveness of Franklin Templeton Fund Managers: Do the Fund Managers Exceed the Benchmark?
Zuzana Hajduova, Miroslav Klimek, Naqibullah Daneshjo, Olha Prokopenko
Klíčová slova
mutual funds, investments, portfolio, earnings, competitiveness, portfolio managers
Abstrakt:
Franklin Templeton Investments is a worldwide asset management company that provides services
to clients in more than 170 countries. Unlike investment funds, mutual funds do not have
legal personality, therefore they are merely baskets that associate assets. High past equity returns
are not a guarantee of future earnings. Individual funds are often praised for the positive results
they have achieved in the past, but even experienced portfolio managers cannot guarantee
future returns despite their past successes in the market. The main purpose of this paper is to
compare the competitiveness of Franklin Templeton fund managers. Among the time-tested
indicators and suitable markers for our research on the validation of an active mutual fund with
its benchmark index, the information ratio and sharp ratio have been included in the present
study. Recent studies suggest that fund managers cannot achieve better results than those set in
their benchmark. Managers do not utilize a simple set-up with a given portfolio, and thus their
competitiveness would seem to compare unfavorably to results achieved by so-called passive
investment. It can be noted that over the course of 15 years, the longest single time period that
was analyzed, out of 22 equity funds, only four sets of results exceeded the benchmark. However,
if regular fees are also taken into consideration to reflect more pragmatically the benefits for the
investor, none of the funds analyzed in the present study failed to overcome the set benchmark
during this period.
Celý článek ke stažení:
 Competitiveness of Franklin Templeton Fund Managers: Do the Fund Managers Exceed the Benchmark? [PDF soubor] [Velikost souboru: 1.01 MB]
 10.7441/joc.2019.03.05
Hajduova, Z., Klimek, M., Daneshjo, N., & Prokopenko, O. (2019). Competitiveness of Franklin
Templeton Fund Managers: Do the Fund Managers Exceed the Benchmark? Journal of Competitiveness,
11(2), 70–86. https://doi.org/10.7441/joc.2019.03.05
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