Managed Strategy Since 2020
Franklin Equity Income SMA
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Overview
Product Facts
Strategy Description
The Franklin Equity Income SMA seeks to maximize total return by emphasizing high current income and long-term capital appreciation, consistent with reasonable risk. The strategy is to invest in a portfolio of equity securities, predominantly common stocks, that the investment manager considers to be financially strong, with a focus on “blue chip” companies.
- Benchmark
- Russell 1000 Value Index
- Inception Date
- 03/31/2020
- Asset Class
- Equity
- Number of Issuers
As of 09/30/2026 (Updated Quarterly) - 68
Average Annual Total Returns As of 08/31/2026
- 17.09%1 Year
- 15.32%3 Years
- 8.88%5 Years
- —10 Years
- 15.70%Since Inception
03/31/2020
The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.
Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (3.0% is the maximum anticipated wrap fee for equity and balanced portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.
For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236.
Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Top Sectors
As of 09/30/2026 % of Total (Updated Monthly)
Financial Services11.28% | |
Capital Goods10.20% | |
Pharmaceuticals, Biotechnology & Life Sciences7.45% | |
Software & Services6.80% | |
Consumer Discretionary Distribution & Retail6.58% |
Manager and Commentary
About the Team
Franklin Equity understands innovation from every angle—our decades of experience investing in complex change fuels a differentiated perspective on how public and private companies accelerate growth and unlock value. Leveraging fundamental depth and quantitative precision, we identify catalysts for transformation that reshape companies and industries. Our expertise, spanning from growth to value, brings together diverse perspectives that help us spot opportunities ahead of the market.
Commentary Highlights
June 30, 2026- Markets: US equities rebounded strongly during the second quarter of 2026, recovering from a weak start to the year as investor confidence improved despite ongoing geopolitical uncertainty. Sentiment was supported by robust corporate earnings, particularly from companies exposed to AI infrastructure, with continued increases in capital expenditure reinforcing confidence that the AI investment cycle remained intact. At its two meetings during the quarter, the US Federal Reserve left interest rates on hold. The easing of Middle East tensions and a decline in oil prices helped alleviate inflation concerns, encouraging a broad recovery in risk assets. The Nasdaq Composite Index outperformed the S&P 500 Index and Dow Jones Industrial Average. By investment style, growth investing surpassed value in each cap segment, while across the market as a whole, small-cap stocks performed better than their large- and mid-cap counterparts.
- Contributors: On an absolute basis, the information technology (IT) sector was the strongest contributor to positive Fund performance, as the AI boom lifted companies across the sector. The industrials sector was also strong during the quarter, as the surge in spending around AI benefitted several companies in the sector while others saw stronger demand for industrial equipment. The financials sector was also a contributor, driven by strong earnings from banks and investment managers.
- Detractors: The energy sector fell over the period, driven by lower oil prices, as geopolitical risks eased during the quarter. Our holdings in the consumer discretionary sector also held back returns.
- Outlook: We continue to believe that overall macroeconomic conditions, favorable tax policy and attempts to lower regulations to spur activity are supportive broad market participation across industries in 2026, similar to last year. While technology companies have driven most of the market gains in the past few years, we have seen strong performances across several sectors. Outside of the technology sector, we believe there are compelling opportunities within industrials, health care, financials and utilities.
Latest Insights
September 30, 2026
September 21, 2026
September 17, 2026
September 15, 2026
Composite Performance
Average Annual Total Returns
As of 08/31/2026
- 1 Year
- 17.09
- 3 Years
- 15.32
- 5 Years
- 8.88
- Since Inception(03/31/2020)
- 15.70
- 1 Year
- 20.56
- 3 Years
- 18.74
- 5 Years
- 12.13
- Since Inception(03/31/2020)
- 19.13
- 1 Year
- 29.72
- 3 Years
- 19.77
- 5 Years
- 11.84
- Since Inception(03/31/2020)
- 18.39
The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.
Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (3.0% is the maximum anticipated wrap fee for equity and balanced portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.
For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236.
Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Portfolio
Positions
As of 09/30/2026 (Updated Monthly)
- Portfolio
- 68
- Benchmark
- 869
Portfolio Statistics
As of 09/30/2026 (Updated Monthly)
- Portfolio
- 9.07%
- Benchmark
- —
- Portfolio
- 19.20x
- Benchmark
- —
- Portfolio
- 23.17x
- Benchmark
- 20.61x
- Portfolio
- 13.41x
- Benchmark
- 17.63x
- Portfolio
- 3.81x
- Benchmark
- 4.35x
- Portfolio
- 1.62%
- Benchmark
- 1.64%
- Portfolio
- $869.93 Billion
- Benchmark
- —
Based on a representative account. Individual accounts within the composites may vary due to a variety of factors, such as account size, the specific investment guidelines and restrictions applicable to an account, and the inception date of the account.
Sector Allocation 2
As of 09/30/2026 % of Total (Updated Monthly)
| Sector | % of Total | Benchmark |
|---|---|---|
Financial Services | 11.28% | 9.13% |
Capital Goods | 10.20% | 6.93% |
Pharmaceuticals, Biotechnology & Life Sciences | 7.45% | 8.72% |
Software & Services | 6.80% | 8.61% |
Consumer Discretionary Distribution & Retail | 6.58% | 7.75% |
Banks | 6.50% | 6.06% |
Technology Hardware & Equipment | 6.42% | 8.93% |
Health Care Equipment & Services | 6.19% | 4.61% |
Energy | 5.94% | 6.20% |
Utilities | 5.71% | 3.39% |
Semiconductors & Semiconductor Equipment | 4.81% | 3.05% |
Food, Beverage & Tobacco | 3.46% | 3.56% |
Equity Real Estate Investment Trusts (REITs) | 2.81% | 3.20% |
Consumer Staples Distribution & Retail | 2.40% | 2.42% |
Materials | 2.12% | 3.43% |
Household & Personal Products | 1.70% | 1.35% |
Transportation | 1.25% | 2.21% |
Real Estate Management & Development | 0.93% | 0.18% |
Media & Entertainment | 0.92% | 1.93% |
Telecommunication Services | 0.70% | 1.47% |
Consumer Services | 0.47% | 1.19% |
Consumer Durables & Apparel | 0.31% | 0.78% |
Insurance | — | 3.10% |
Commercial & Professional Services | — | 1.34% |
Automobiles & Components | — | 0.45% |
Cash & Other Net Assets | 5.02% | — |
Based on a representative account. Individual accounts within the composites may vary due to a variety of factors, such as account size, the specific investment guidelines and restrictions applicable to an account, and the inception date of the account.
Top Equity Issuers
As of 09/30/2026 (Updated Monthly)
| Holdings | Portfolio |
|---|---|
MICROSOFT CORP | 5.78% |
AMAZON.COM INC | 4.89% |
JPMORGAN CHASE & CO | 3.66% |
APPLE INC | 3.38% |
JOHNSON & JOHNSON | 3.16% |
BANK OF AMERICA CORP | 2.85% |
CISCO SYSTEMS INC | 2.28% |
MORGAN STANLEY | 2.21% |
CHEVRON CORP | 2.16% |
PHILIP MORRIS INTERNATIONAL INC | 2.07% |
Based on a representative account. Individual accounts within the composites may vary due to a variety of factors, such as account size, the specific investment guidelines and restrictions applicable to an account, and the inception date of the account.
Holdings of the same issuers have been combined. All data is subject to change. The information provided is not a recommendation to purchase, sell, or hold any particular security. The portfolio manager reserves the right to withhold release of information with respect to holdings that would otherwise be included. Weightings as percent of total. Percentage may not total 100% due to rounding.
Documents
Product Documents
Risks
All investments involve risks, including possible loss of principal. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. Equity securities are subject to price fluctuation and possible loss of principal. Distributions are not guaranteed and are subject to change. Active management does not ensure gains or protect against market declines. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated.
Important Information
Separately Managed Accounts (SMAs) are investment services provided by Franklin Templeton Private Portfolio Group, LLC (FTPPG), a federally registered investment advisor. Client portfolios are managed based on investment instructions or advice provided by affiliated subadvisors of Franklin Templeton. Management is implemented by FTPPG, the designated subadvisor or, in the case of certain programs, the program sponsor or its designee.
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Franklin Templeton (FT) is not undertaking to provide impartial advice. Nothing herein is intended to provide fiduciary advice. FT has a financial interest.
Important data provider notices and terms available at www.franklintempletondatasources.com.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe.
Source: FTSE.
All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.