Templeton Global Income Fund (NYSE:GIM) announced its monthly dividend of $0.025 per share which would be payable on December 31st, 2015. Templeton Global Fund is a subsidiary of larger Franklin Templeton Investments. The shares of the company are currently trading at around $6.50 and have remained in that range for the last 3 months or so. In the past year the shares of the company have shown periodic stability before falling. The shares had a 52 week high of over $7.80 almost a year back.
The performance of Templeton Global can be linked to its parent company which has had one of the worst years on record with over $33 billion in outflows since January. Franklin Templeton fell out of the top 20 ranking for the largest fund houses and the assets under its management shrunk by 11%. The shares of the parent company have fallen by over 25% this year which is nothing short of a plunge.
To make matters worse several senior staff of Franklin Templeton has left the company signaling a loss in confidence. There have also been reports that the company was overexposed to Ukraine and other emerging economies which did not perform well this past year. Most importantly the profits of the parent company fell by 44% in one quarter due to large withdrawal of money from the mutual fund.
The stock performance of Templeton Global Income Fund (NYSE:GIM) should therefore be seen in the context on horrible performance by the parent company and in that regard its performance is not that bad. In fact the price has rebounded after a fall few months ago and has remained largely stable since then.
It is hard to tell based on the available data whether which way the share of Templeton global Funds will move though the company did give a return of 2% last month which puts it in the top 1% performer among similar funds.