GIM – GIM: Change Of Control Could Signal New Dawn For Investors

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The Templeton Global Income Fund (NYSE:GIM) is an underperforming global income fund that has delivered 10Yr average annual returns of -1.4%. It pays an unsustainably high distribution yield relative to the fund’s earnings.

Looking

GIM has low effective duration

Figure 1 – GIM has low effective duration (franklintempleton.com)

GIM geographical exposure

Figure 2 – GIM geographical exposure (franklintempleton.com)

GIM currency exposure

Figure 3 – GIM currency exposure (franklintempleton.com)

GIM is primarily invested in investment grade credits

Figure 4 – GIM is primarily invested in investment grade credits (franklintempleton.com)

GIM historical performance

Figure 5 – GIM historical performance (morningstar.com)

GIM has funded distribution out of ROC

Figure 6 – GIM has funded distribution out of ROC (GIM 2022 annual report)

GIM's NAV halved over a decade

Figure 7 – GIM’s NAV halved over a decade (morningstar.com)

GIM distributions have also significantly declined

Figure 8 – GIM distributions have also significantly declined (Seeking Alpha)

GIM trades at a 8.4% discount to NAV

Figure 9 – GIM trades at a 8.4% discount to NAV (cefconnect.com)

BRW annual returns

Figure 10- BRW annual returns (morningstar.com)