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Equity

Franklin Small Cap Growth SMA

Year to Date Returns (Net)
3.57%
As of 09/30/2026
Year to Date Returns (Pure Gross)
5.89%

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Overview

Product Facts

Strategy Description

The Franklin Small Cap Growth SMA seeks long-term capital growth by investing at least 80% of its net assets in the equity securities of companies with market capitalizations of generally less than $1.5 billion, or the highest market capitalization in the Russell 2000® Index, whichever is greater, at the time of purchase.

Benchmark
Russell 2000 Growth Index
Inception Date
12/31/1997
Asset Class
Equity

Average Annual Total Returns

View performance section for additional info As of 09/30/2026
  • 8.62%1 Year
  • 12.12%3 Years
  • 0.04%5 Years
  • 8.47%10 Years
  • 8.45%Since Inception
    12/31/1997

Prior to January 1, 2020, net-of-fee returns were based on actual fee and non-fee paying accounts used a model wrap fee. 

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.

Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). Due to the integration of GIPS firms, predecessor firms may have a different claim of compliance date. Performance presented prior to January 1, 2004 is not in compliance. 

Top Sectors

View portfolio section for additional info

As of 09/30/2026 % of Total (Updated Monthly)

Health Care31.53%
Information Technology20.33%
Industrials19.07%
Financials8.24%
Consumer Discretionary6.24%

Manager and Commentary

About the Team

Franklin Equity

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

September 30, 2026
  • Markets:  US equities rose in the third quarter, with market leadership shifting from large-cap growth and semiconductor stocks towards value shares before reversing in September. Strong corporate earnings supported sentiment, although market breadth narrowed and small-cap stocks weakened late in the period.
  • Detractors:  Stock selection and an overweight in the industrials sector detracted from relative performance. Stock selection in the consumer discretionary and health care sectors also hampered relative returns.
  • Contributors:  Stock selection was beneficial during the quarter. Selection in the information technology (IT) and materials sectors contributed to performance.
  • Outlook:  We have a constructive outlook on US small‑cap stocks and believe the environment may become more supportive as earnings growth accelerates, interest-rate cuts ease financing pressures and economic activity broadens beyond mega‑cap companies.
Franklin Equity
[John Scandalioss avatar]

Managed Strategy Since 2026

[JJ Swartzs avatar]

Managed Strategy Since 2025

Portfolio Manager Profile
Years of Experience
Manager Location

[products.skip-performance]

Composite Performance

Risk/Return Profile (%)

Based on a 10 year period ending Sep-30-2026

Chart
Scatter chart with 3 data series.
The chart has 1 X axis displaying Risk (Annualized Standard Deviation) (%). Data range: 1.5299999999999976 categories.
The chart has 1 Y axis displaying Annualized Return (%). Data ranges from 8.47 to 11.14.
End of interactive chart.

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.

Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). Due to the integration of GIPS firms, predecessor firms may have a different claim of compliance date. Performance presented prior to January 1, 2004 is not in compliance. 

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Portfolio

Positions

As of 09/30/2026 (Updated Monthly)

Number of Issuers
Portfolio
115
Benchmark
1,120

Portfolio Statistics

As of 09/30/2026 (Updated Monthly)

Historical 3 Years Sales Growth
Portfolio
27.97%
Price to Earnings (12-Month Forward)
Portfolio
21.13x
Weighted Average Market Capitalization (USD)
Portfolio
$7.39 Billion

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. 

Asset Allocation 1

As of 09/30/2026 % of Total (Updated Monthly)

Asset Type Portfolio
Equity
97.25%
Cash & Cash Equivalents
2.75%
 
Bar chart with 2 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 2.74652 to 97.25348.
End of interactive chart.

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 Quarterly)

Holdings Portfolio
SiTime Corporation
2.09%
JFrog Ltd.
2.00%
Lattice Semiconductor Corporation
1.84%
RBC Bearings Incorporated
1.83%
Guardant Health, Inc.
1.79%
BWX Technologies, Inc.
1.69%
Onto Innovation, Inc.
1.69%
Repligen Corporation
1.67%
Granite Construction Incorporated
1.64%
Cactus, Inc. Class A
1.59%
 
Bar chart with 10 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 1.59383 to 2.0878.
End of interactive chart.

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. 

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Documents

Product Documents

Factsheet - Franklin Small Cap Growth SMA
Product Commentary - Franklin Small Cap Growth SMA
FTPPG Regulatory Disclosures
Mailed hardcopies unavailable.
Pitchbook - Franklin Small Cap Growth SMA Composite
Mailed hardcopies unavailable.

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. The investment style may become out of favor, which may have a negative impact on performance. Active management does not ensure gains or protect against market declines. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. 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.

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 2000 Growth Index measures the performance of the small-cap growth 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.

Footnotes

  1. 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.

  2. Capitalization Rate is calculated without the deduction of fees and expenses.

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