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Franklin Templeton to merge two US equity funds available in SA

The move will see the group merge away a long-running strategy managed by a AA-rated portfolio manager.

Franklin Templeton to merge two US equity funds available in SA

Franklin Templeton has decied to merge away a US equity fund overseen by Citywire AA-rated Serena Perin Vinton (pictured) and her co-manager Chris Anderson, Citywire has learned.

The Franklin Select US Equity fund, which was launched as a Luxembourg-domiciled vehicle and has $352m in assets, will be rolled into the Franklin US Opportunities fund on 13 November.

The receiving fund is overseen by the duo of Grant Bowers and Sara Araghi. It is also Luxembourg-domiciled, having been launched in 2000, and has grown to $5.25bn in assets under management.

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.

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Related Fund Managers

Sara Araghi
Sara Araghi Average Total Return:
134.24%
5/19 in Equity - US (Performance over 3 years)
Grant Bowers
Grant Bowers Average Total Return:
134.24%
6/19 in Equity - US (Performance over 3 years)
Chris Anderson
Chris Anderson Average Total Return:
99.28%
7/19 in Equity - US (Performance over 3 years)
Serena Perin Vinton
Serena Perin Vinton Average Total Return:
53.99%
8/21 in Equity - US (Performance over 24 months)
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