Franklin Templeton has made a series changes to a number of its US equity value strategies, in a move which will see some high profile portfolio managers step back from funds, two leave the firm, teams relocated and two products merged into one.
At the end of June the asset manager will move the four members of the Franklin Rising Dividends strategy team, including Donald Taylor, from Ridgefield Park, New Jersey, to New York City, where they will work more closely with the wider Franklin Equity Group (FEG).
As part of the same reorganization the nine members of FEG’s more traditional US value strategies team, who work on the Franklin Balance Sheet Investment, MicroCap Value, MidCap Value and Small Cap Value funds, will relocate to from Ridgefield Park, New Jersey, to Short Hills, New Jersey, to work more closley with the Franklin Mutual Series division.
A spokeswoman for Franklin said: ‘This move will foster integration and partnership with the Franklin Mutual Series team, with whom they share a similar valued-oriented investment philosophy. By bringing these teams together, we believe the shared and expanded resources will benefit clients across strategies.’
In total five funds, accounting for over $23 billion of assets, will be affected in some way by the changes.
As a result of these moves, there will be a number of changes to the management line-up of some the funds mentioned above.
He has been on the Rising Dividends fund since its inception in 1987.
He will continue to manage the $318.5 million Franklin MicroCap Value fund, now as sole manager due to further personnel changes.
Taylor will, however, step down from a number of the other funds, whose teams are moving to a new location in New Jersey.
- the Franklin Balance Sheet Investments fund
- the Franklin MicroCap Value fund
- the $2.8 billion Franklin Small Cap Value fund
- the $190.9 million Franklin MidCap Value fund
Taylor was previoulsy CIO of US value, a title he will swap for CIO of rising dividend strategies. The nine members of the value team joining Franklin's Mutual Series group will report to Peter Langerman, who is chief executive and chairman of the division.
Following Taylor’s move, Daniel Perrin will be added to the Balance Sheet Investment fund, on which Grace Hoefig remains lead manager.
The MidCap Value fund is set to be merged away into the larger Small Cap Value fund at the end of 2017, subject to shareholder approval.
Raineri and Meeker will remain on the Small Cap fund, which will ultimately absorb the Mid Cap fund.
Kerner and Stipanov will leave Franklin following the changes.