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Equity

Franklin International Growth Equity ADR SMA

Year to Date Returns (Net)
8.11%
As of 12/31/2025
Year to Date Returns (Pure Gross)
11.33%

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Overview

Product Facts

Strategy Description

The Franklin International Growth Equity ADR SMA 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.

Benchmark
MSCI EAFE Index-NR
Inception Date
12/31/2019
Asset Class
Equity

Average Annual Total Returns

View performance section for additional info As of 12/31/2025
  • 8.11%1 Year
  • 5.82%3 Years
  • -4.65%5 Years
  • 10 Years
  • 0.39%Since Inception
    12/31/2019

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Top Sectors

View portfolio section for additional info

As of 01/31/2026 % of Total (Updated Monthly)

Industrials22.43%
Health Care22.21%
Information Technology20.06%
Consumer Discretionary12.38%
Communication Services6.99%

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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

12/31/2025
  • Markets:  International equities made further solid gains overall in the fourth quarter of 2025, rounding off a year of strong returns for the asset class. Despite some mixed economic signals and concerns about stretched technology valuations during the quarter, investors remained broadly optimistic about artificial intelligence (AI) advancements and the potential for a continued easing of monetary policy.
  • Contributors:  Select holdings in the industrials sector bolstered returns relative to the MSCI EAFE Index-NR.
  • Detractors:  Stock selection in the information technology and consumer discretionary sectors held back relative returns.
  • Outlook:  Looking ahead, structural trends and innovation themes are shaping global growth opportunities. As markets transition from liquidity-driven rallies to fundamentals-led regimes, active management and disciplined investing will be critical.
Franklin Equity
[Patrick McKeegans avatar]

Managed Strategy Since 2021

[Don Hubers avatar]

Managed Strategy Since 2020

Portfolio Manager Profile
Years of Experience
Manager Location

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Composite Performance

Calendar Year Returns

As of 12/31/2025

Chart

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The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from -32.63 to 33.76.
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Franklin International Growth Equity ADR SMA - Net (%)
Franklin International Growth Equity ADR SMA - Pure Gross (%)
MSCI EAFE Index-NR (%)

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.   

Net Returns (NR) include income net of tax withholding when dividends are paid.

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.

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Portfolio

Positions

As of 01/31/2026 (Updated Monthly)

Number of Issuers
Portfolio
29
Benchmark
692

Portfolio Statistics

As of 01/31/2026 (Updated Monthly)

Historical 3 Years Sales Growth
Portfolio
18.40%
Benchmark
10.40%
Price to Earnings (12-Month Forward)
Portfolio
28.54x
Benchmark
17.01x
Weighted Average Market Capitalization (USD)
Portfolio
$84.33 Billion
Benchmark
$114.90 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 01/31/2026 % of Total (Updated Monthly)

Asset Type Portfolio
Equity
96.67%
Cash & Cash Equivalents
3.33%

 

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The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 3.32627 to 96.67373.
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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 01/31/2026 (Updated Monthly)

Holdings Portfolio
Lonza Group AG Unsponsored ADR
4.60%
DSV A/S Unsponsored ADR
4.35%
MTU Aero Engines AG Unsponsored ADR
4.19%
Cochlear Limited Unsponsored ADR
4.09%
VAT Group AG Unsponsored ADR
4.08%
Alcon AG
3.98%
AstraZeneca PLC Sponsored ADR
3.98%
argenx SE Sponsored ADR
3.95%
CTS Eventim AG & Co. KGaA Unsponsored ADR
3.90%
INTERROLL HOLDING AG
3.77%

 

Bar chart with 10 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 3.77385 to 4.59818.
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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
Name Download Add to Cart
Factsheet - Franklin International Growth Equity ADR SMADownload Document
Product Commentary - Franklin International Growth Equity ADR SMADownload Document
FTPPG Regulatory DisclosuresMailed hardcopies unavailable.Download Document

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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. 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. 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.

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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 MSCI EAFE Index is a free float-adjusted market capitalization-weighted index designed to measure developed market equity performance, excluding the U.S. and Canada.
Source: MSCI makes no warranties and shall have no liability with respect to any MSCI data reproduced herein. No further redistribution or use is permitted. This report is not prepared or endorsed by MSCI.

Net Returns (NR) include income net of tax withholding when dividends are paid.

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.