Franklin Templeton changes reassure investors as Paul Spencer retires

Franklin Templeton UK equity veteran Paul Spencer is retiring later this year, but fund buyers are reassured about the continuity of the funds he is a named manager on because of the franchise’s team-based management approach.

Spencer will step back from all portfolio management responsibilities on 30 June before retiring on 30 September after 14 years at the firm, Franklin Templeton said on Tuesday.

He joined Franklin Templeton in 2006 as a member of the Leeds-based UK small-mid cap (Smid) team and is lead manager on the Franklin UK Mid Cap fund and co-lead manager on the Franklin UK Managers’ Focus and Franklin UK Smaller Companies funds.

Bullas to take over mid cap fund

Richard Bullas (pictured) will become lead manager on the UK Mid Cap fund on 30 June, supported by Mark Hall, Daniel Green and Marcus Tregoning as portfolio managers.

Bullas joined Franklin Templeton in January 2000 as a member of the UK Smid team. He is currently portfolio manager on the UK Mid Cap fund and co-lead on the UK Managers’ Focus and UK Smaller Companies funds.

Colin Morton will continue to lead the eight-strong UK equity team based in Leeds. He said naming Bullas as lead portfolio manager on the mid cap fund is a “natural transition” as he has worked very closely with Spencer for the past 14 years and they have been co-managing funds since 2012.

Team-based approach is reassuring

AJ Bell holds the mid cap and small cap funds on its favourite funds list. Head of active portfolios Ryan Hughes said while it is disappointing to see such an experienced manager in Spencer retire, it is reassuring the funds are all managed with a team-based approach.

“What’s really important with this team is exactly that, they’re a team and run the funds as such,” he said. “We have become familiar with Richard over a good number of years given we use a small cap fund, so for us it seems like continuity, notwithstanding the fact that they are losing someone with so much experience.”

He added: “When you’ve done small cap for as long as Richard has, small-cap companies become mid-cap companies, so those managers end up knowing the companies in the mid-cap space very well. So, I think there’s lots of natural crossover and they’ve spent lots of time working together so they understand how each other thinks.”

Fairview Consulting investment consultant Ben Yearsley said: “The team has worked together for many years and I think being out of London probably helps avoid lots of noise. It is natural for Richard Bullas to take over but I assume at some point they will recruit to replace.”

Bullas, Green, Morton and Ben Russon will become co-lead managers on UK Managers’ Focus from 30 June with Mark Hall as a portfolio manager. The UK Smaller Companies fund will have Bullas and Green as co-lead managers and Hall and Tregoning as portfolio managers (see table below).

Current and future portfolio team lineups