Fund Evaluator:
Franklin Emerging Market Debt Opps (FEMDX)
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Best Performing in Emerging Markets Bond Over the Last Year
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Fund Details
Franklin Emerging Market Debt Opps Overview
Franklin Emerging Market Debt Opps (FEMDX) is an actively managed Taxable Bond Emerging Markets Bond fund. Franklin Templeton Investments launched the fund in 2006.
The investment seeks high total return. The fund invests at least 80% of its net assets in debt securities of "emerging market countries." It invests mainly in debt securities issued by sovereign and subsovereign government entities, including securities issued by political subdivisions, local authorities, government agencies, government owned, controlled, sponsored or guaranteed corporations and supranationals located in emerging market countries. The fund may invest up to 100% of its assets in debt securities that are rated below investment grade. It may also invest up to 15% of its net assets in defaulted debt securities.
About Franklin Emerging Market Debt Opps (FEMDX)
There are 2 members of the management team with an average tenure of 11.42 years: Nicholas Hardingham (2014), Stephanie Ouwendijk (2015). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg Global Aggregate TR USD index with a weighting of 100% and JPM EMBI Global Diversified TR USD index with a weighting of 100%. Franklin Emerging Market Debt Opps has 147 securities in its portfolio. The top 10 holdings constitute 22.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Franklin Emerging Market Debt Opps is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Franklin Emerging Market Debt Opps has 85.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 85.3% (0.0% domestic bond, 85.3% foreign bond and 0.0% convertible bond). Franklin Emerging Market Debt Opps has 12.5% of the portfolio in cash.
Assets Under Management
The fund has $158 million in total assets, which is below the $325 million average for the Emerging Markets Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FEMDX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin Emerging Market Debt Opps expense ratio is high compared to funds in the Emerging Markets Bond category. Franklin Emerging Market Debt Opps has an expense ratio of 1.02%, which is 1% higher than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin Emerging Market Debt Opps has a portfolio turnover rate of 39%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 83% for the Emerging Markets Bond category.
Recently, in the month of July 2026, Franklin Emerging Market Debt Opps returned 0.4%, which earned it a grade of A, as the Emerging Markets Bond category had an average return of -0.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Franklin Emerging Market Debt Opps has a trailing yield of 5.96%, which is below the 5.99% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Franklin Emerging Market Debt Opps Grades
Year to date, the fund has returned 8.8%, 6.3 percentage points better than the category, which translates into a grade of A. The fund has returned 17.3% over the past year (grade of A), 14.3% over the past three years (grade of A) and 7.8% per year over the past five years (grade of A) and 6.8% per year over the past 10 years (grade of A).
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FEMDX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FEMDX Return (NAV) | 0.4% | 3.6% | 17.3% | 14.3% | 7.8% | 6.8% |
| FEMDX Grade | A | A | A | A | A | A |
| +/- Category | 1.3% | 2.9% | 8.3% | 5.2% | 5.0% | 3.2% |
| Emerging Markets Bond Avg | -0.9% | 0.6% | 9.0% | 9.1% | 2.8% | 3.6% |
| FEMDX Tax Cost Ratio | na | na | 2.5% | 1.9% | 1.8% | 1.7% |
FEMDX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FEMDX Return (NAV) | 8.8% | 15.7% | 11.8% | 15.5% | -8.9% | 1.6% | 3.9% | 9.9% | -1.2% | 11.7% | 12.4% |
| FEMDX Grade | A | B | A | A | A | A | D | F | A | C | C |
| +/- Category | 6.3% | 1.9% | 5.5% | 3.9% | 6.0% | 4.5% | -1.6% | -3.2% | 4.2% | 0.4% | 0.6% |
| Emerging Markets Bond Avg | 2.5% | 13.8% | 6.4% | 11.6% | -14.9% | -2.9% | 5.5% | 13.1% | -5.4% | 11.2% | 11.9% |
| Risk Measures | |
| Standard Deviation: | 5.8% |
| Total Risk Index: | 0.47 - Below Average |
| Category Risk Index: | 0.92 - Below Average |
| Category Risk Grade: | B (22% Rank) |
| Beta: | 0.64 |
| R-Squared: | 39% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Value |
| Bond Investment Style: | Low Quality Moderate Sensitivity |
| Yield: | 6.0% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $158 Mil |
| Fund Total Assets: | $ 159 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 39% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 12.2 years | |||
| Average Tenure: 11.4 years | |||
| Managers (Year): Hardingham Nicholas (2014), Ouwendijk Stephanie (2015) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 147 |
| % in Top 10 Holdings: | 22.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 85.3% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 85.3% |
| Convertible Bond: | 0.0% |
| Other: | 2.2% |
| Cash: | 12.5% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-342-5236 |
| Website: | www.franklintempleton.com |
| Status: | Open |
| Inception Date: | May 24, 2006 |
| Min. Initial Purchase: | $1,000,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 1.02% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.01% |
| Share Class: | Franklin Emerging Market Debt Opps |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
