HEAD-TO-HEAD: Franklin versus MFS

123456

Manager review

At the Franklin fund, Katrina Dudley, who has been a comanager since 2007, took the lead in May 2018 when its previous skipper retired. Mandana Hormozi, another long-standing member of the group, joined Dudley as comanager in January 2018.

“Both are well experienced,” said Caquineau. Todd Ostrow is the third manager, and was promoted from the analyst team in 2019.

“Concerns here related to the changes in the broad group with some people leaving in 2020 as part of a reorganization,” said Caquineau. “The direct impact on these three managers have been limited though, which is reassuring.”

The MFS fund is run very differently, according to Caquineau.

It is managed by a 10-analyst team based in London led by Christopher Jennings and David Shindler, who have been at the firm since 2004 and 2006, respectively. Named portfolio manager Gabrielle Gourgey chairs the team meetings and provides risk oversight and cash flow facilitation, but doesn’t make investment decisions.

“Most analysts are seasoned and show detailed knowledge of their sector and stock picks,” said Caquineau. The analysts are members of global sector teams, which allows them to compare companies in a broader context.

“One concern, however, is changes in the team in recent years,” he added. Since 2019, three analysts have been promoted to portfolio manager roles internally, one left the firm and one retired.

“To the firm’s credit, all departures have been replaced, sometimes well in advance. MFS’ strong research framework also helps in training less experienced analysts and in ensuring smooth handover of sector responsibilities, but we would like to see more stability, said Caquineau.

123456