In a statement to Citywire, a spokesperson for Franklin Templeton said: Given the smaller size of the merging sub-fund, the board believes it is no longer economically viable to run as an independent entity.
‘In addition, as both the merging sub-fund and the receiving sub-fund share similar investment objectives (capital appreciation), fees and expenses, and target investor profiles, the board is of the view that it is in the best interests of shareholders to merge these sub-funds and focus on a single portfolio.’
It added that the proposed change will provide better economies of scale for investors. The spokesperson added that Anderson and Perin Vinton remain at the firm with responsibility for other equity funds and mandates. Both managers are named on the Franklin Growth fund.
In terms of performance, the Franklin US Opportunities fund returned 64.9% in US dollar terms over the three years to the end of June, this is while the Franklin Select US Equity fund returned 34.8%. The average fund in the Equity – US sector returned 25% over the same period.