Fund Description

The fund seeks capital appreciation by investing predominantly in the equity securities of mid-and large capitalization companies outside the U.S. with long-term growth potential.

Strategy Statement

"Our experienced investment team utilizes a disciplined investment process for managing a fund of what we believe are the most attractive high-quality sustainable growth companies."

Don Huber, CFA®

Management

John Remmert

John Remmert

  • Joined Franklin Templeton in 2002
  • Managed Fund Since 2018
Don Huber, CFA

Don Huber, CFA®

  • Joined Franklin Templeton in 2002
  • Managed Fund Since 2014

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

INVESTMENT STRATEGY

Research-Driven Portfolio

  • Concentrated portfolio of approximately 35-40 holdings
  • Benchmark indifferent

Long-Term Investment Horizon

  • Investment horizon of 3 to 5 years
  • Typical holding period of 4+ years

Seek to Manage Risk by Limiting Economic Overlap Among Holdings

  • Select companies whose earning streams are not highly correlated
  • Has typically resulted in a diversified portfolio across MSCI Global Industry Classification Standard (GICS) sectors and industries

Global Opportunity Set

  • Search without borders
  • Average allocation to emerging markets of less than 10%

stock selection discipline

Growth

Free cash flow analysis to assess:

  • Sustainable business model
  • Long-term competitive advantage
  • Value generating reinvestment record

Quality

Framework to assess:

  • Financial transparency and accounting quality
  • Corporate governance including share, board and management structure and compensation metrics
  • Environmental management, social and labor practices

Valuation

Common discount cash flow/divident model to assss

  • Relative attractiveness of company
  • Valuation support under different scenarios

Rating

Overall Morningstar Rating As of 10/31/2019

Rating Category: Foreign Large Growth

Morningstar
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 10/31/2019

Years Ratings Funds
in category
3
4 Stars
397
5
4 Stars
339
10
3 Stars
247

Morningstar Style Box As of09/30/2019

Strategy, Benefits, Results

Strategy

  • We are long-term, bottom-up investors looking to buy companies with strong business models and sustainable future growth potential.
  • We look anywhere in the world for potential investment opportunities, seeking mid- and large-cap companies capable of the most growth.
  • Our investment team strives to understand each company's business model, profitability and future growth prospects.

Benefits

  • International Expertise. Our experienced investment team has extensive international investment experience.
  • Global Diversification. Foreign investments may provide additional portfolio diversification as international markets often move out of step with the U.S. market.
  • International Opportunity. Many of the world's most prominent corporations are headquartered overseas, and investors who add international holdings to their portfolios can take advantage of a broader array of opportunity.
  • Multinational Company Exposure. We invest in mid- and large-cap international companies that have a presence in multiple countries and regions around the world, making these companies less likely to be as affected by adverse economic or political situations in any given country.

Selling The Fund

  1. Point out the experienced portfolio management team and expertise in international investing.
  2. Highlight that the fund seeks capital appreciation by investing predominantly in mid- and large-capitalization companies outside the U.S. with strong growth potential.
  3. Discuss the international opportunity set the fund offers through global diversification and multinational company exposure.