Templeton, already suffering relatively poor returns because of its entrenched value investment appr...
Templeton, already suffering relatively poor returns because of its entrenched value investment approach, has received a further blow with the resignation of fund manager and head of research Sandy Nairn.
Nairn, who had been with the company since 1990, ran the $585m Global Growth fund and the Euro 545m Global Growth (Euro) fund. Both Luxembourg-based funds were run using a bottom-up, value-based philosophy.
A Templeton spokesman said the funds would probably be managed from the US in future. Templeton has over 200 investment professionals based in the US and most of the SICAV funds are already run from there.
Nairn leaves to take up a position as Chief Investment Officer at Scottish Widows Investment Partnership, replacing Orie Dudley who will join Northern Trust in Chicago.
Templeton's poor performance recently was highlighted by the release of figures for its flagship Emerging Markets Investment Trust. In the 12-month period to April 30 2000 it returned just 3.31%, compared with the MSCI Emerging Markets Free Index return of 25.7%.
Nevertheless the company has denied that it will change its investment process or that its lead fund manager, Dr Mark Mobius, might modify his approach.
The Templeton spokesman said Mobius' commitment to searching out value stocks and an avoidance of the technology stock 'bubble' were the reasons for recent underperformance. "The Templeton style is and has always been to look for the best value around the world. We have a pure focus on companies.
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