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MUTUAL SERIES FUNDS'
MICHAEL PRICE ET AL.
(continued from preceding
page)
The result: our historical performance with less risk.
Price: That three-pronged approach has given us the
performance and the lower volatility we've had. And, I
think, if we keep doing it right, it entails less risk than the
market in general....
BUT I'M GOING TO BE WATCHING.
Shareholder: There's been a lot of speculation ... that you would be leaving in one or two years. But you're sort of indicating that you intend to remain in charge of the fund for five years. Is that correct?
Price: Well, I have a five-year contract. And I'm also required to be there investment-wise with a lot of money in the funds. So I'm certainly going to pay attention. And, third, there's an earnings incentive to stay. So I have three reasons involving my contract and money to stay. Plus, ... you just don't walk away from a place you've been [at for] 21 or 22 years.
Shareholder: Can you opt out of your contract with Franklin? And can Franklin terminate your contract?
Price: No. It's a no-cut contract.
Shareholder: And can you sell your shares?
Price: No. I've committed to invest a huge amount of money in ... all the Mutual Series funds for a 5-year period.
My associates will do more and more. I'll do less and less.
Price: And standing at this desk are the people who really run Mutual day-to-day - Larry Sondike, Jeff Altman, Ray Garea, Peter Langerman and Rob Friedman. Rob's stationed in London this year. He'll come back in the next year and maybe someone else will go over. These are the people - with another 11 who are the analysts - who work on the situations, call and visit the companies, talk to the traders and do all of the day-in and day-out work. And we all sit and talk and have a good time doing it.
Peter and Jeff have been here since '86, Larry probably from '84, and the others from '88 or '89. So everybody's been here 6, 8, 10 years - 12 years. And they're all staying. I'm staying. It'll be this team in the future the way it's been in the past....
And these guys are chomping at the bit to do more and more. And over this five-year period, they'll do more and I'll do somewhat less. And I'll watch how well they do. I have all of the confidence in the world in them. So that's the transition.
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