HEAD-TO-HEAD: Capital Group versus Franklin Templeton

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Manager review

The Capital Group fund is managed by Robert Neithart, which manages the emerging markets debt sleeve, and New York-based David Daigle, who looks after the high yield debt sleeve, according to Ge.

Both managers are experienced, with Neithart having spent 31 years with Capital Group and Daigle 24 years at the firm.

The duo works with Arjun Madan, who has 21 years of investment experience and focuses on the weighting of the fund’s sleeves.

“Both Neithart and Daigle have spent their entire careers in Capital Group, so we don’t really see the risk of them leaving the firm,” Ge said.

He added that the duo is supported by nine high yield analysts and nine emerging market analysts – four of which joined this year.

“So they have been growing the team. The firm also hires only experienced individuals, with each analyst having an average of 13 years of experience.”

Turning to the Templeton fund, Ge said the product is led by Michael Hasenstab, who is also the chief investment officer of the firm’s global macro group and “the face of Templeton’s fixed income franchise”, he said.

Co-managing the fund is Calvin Ho, who was promoted to his current role in 2018, according to Ge. Ho has worked with Hasenstab from 2005 and was the first macro researcher that Hasenstab hired at the time.

Both managers are supported by five analysts, each with an average of 10 years of experience.

Ge has no concerns over the Capital Group and Templeton teams, as the managers are experienced and backed by stable supporting teams.

However, he noted that Morningstar is monitoring Templeton’s announcement this year that it acquired Legg Mason, a firm that runs an affiliate model with an assortment of subsidiary asset management shops.

“We haven’t heard of any decisions on how they are going to change the line-up or if they are merging teams, but we are monitoring this closely.

“I think overall, it is a positive, as it will help Templeton diversify some of its fixed income AUM from just Hasenstab’s strategies, which make up a huge portion of Templeton’s fixed income AUM.”

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