Fund Description

The fund seeks long-term capital growth by investing at least 80% of its net assets in equity securities of small and medium-sized companies, within the market capitalization ranges of the Russell 2500™ Index for small-sized companies and Russell Midcap® Index for medium-sized companies, at the time of purchase.

Strategy Statement

"We use a fundamental, bottom-up approach to investing in small and mid-cap companies that are leaders or emerging leaders in their industry and that meet our criteria of growth, quality and valuation."

Ed Jamieson


Ed Jamieson

Ed Jamieson

  • Joined Franklin Templeton in 1987
  • Managed Fund Since 1992
John Scandalios

John Scandalios

  • Joined Franklin Templeton in 1995
  • Managed Fund Since 2016
Michael McCarthy, CFA

Michael McCarthy, CFA®

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 1993
James Cross, CFA

James Cross, CFA®

  • Joined Franklin Templeton in 1998
  • Managed Fund Since 2005


Overall Morningstar Rating As of 04/30/2018

Rating Category: Mid-Cap Growth

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 04/30/2018

Years Ratings Funds
in category
2 Stars
2 Stars
3 Stars

Morningstar Style Box As of03/31/2018

Strategy, Benefits, Results


We use fundamental bottom-up research to find small- to mid-sized growth companies that are leaders or emerging leaders in their industry and that meet our criteria of:

  • Growth. Our team focuses on companies with the potential to produce sustainable earnings and cash-flow growth.
  • Quality. We seek high-quality companies with strong management teams and financial strength.
  • Valuation. We assess whether the growth opportunity is already reflected in the stock price.


  • Small-mid strategy gives managers the flexibility to hold onto small, emerging businesses as they mature into successful mid-cap enterprises.
  • Tenured and experienced portfolio management team.
  • Distinct research structure. Investment professionals organized into collaborative sector teams.

Selling The Fund

  1. Point out the tenure and experience of the fund’s management team.

  2. Explain the benefit of the small-mid approach—flexibility to continue investing in successful companies as they grow larger.

  3. Discuss the fund’s emphasis on small- to mid-sized companies that are leaders or emerging leaders in their industry.

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