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Fixed Income

Franklin Intermediate Investment Grade Credit SMA

Year to Date Returns (Net)
5.89%
As of 12/31/2025
Year to Date Returns (Pure Gross)
7.47%

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Overview

Product Facts

Strategy Description

The investment management team manages portfolios composed primarily of Investment Grade Corporate/Credit issues. Using a bottom-up, relative value strategy, we seek to provide capital appreciation with a high level of current income.

Benchmark
Bloomberg US Intermediate Credit Index
Inception Date
01/31/2009
Asset Class
Fixed Income
Yield to WorstAs of 02/28/2026 (Updated Monthly)
4.15%
Effective DurationAs of 02/28/2026 (Updated Monthly)
3.82 Years

Average Annual Total Returns

View performance section for additional info As of 02/28/2026
  • 5.27%1 Year
  • 4.46%3 Years
  • 0.49%5 Years
  • 1.64%10 Years
  • 2.75%Since Inception
    01/31/2009

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 12/31/2025 % of Total (Updated Quarterly)

Investment Grade Credit98.20%

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-driven approach means maintaining portfolio and risk exposures that align with client expectations.

Commentary Highlights

December 31, 2025
  • Markets  : Market sentiment improved across the fourth quarter of 2025 (Q4) due to the resolution of the US federal government shutdown through mid-November, partial resolution of some of the outstanding trade policy concerns and two 25-basis points (bps) rate cuts by the US Federal Reserve (Fed), which was well received by the market. The median Federal Open Market Committee (FOMC) projection currently suggests one more 25 bp rate cut in 2026, though there are outliers within the FOMC and delays in government data has created some uncertainty. Fixed income spread markets performed well as corporate bond spreads remained near multidecade lows by the end of the quarter. The benchmark 10-year US Treasury (UST) note rose by 15 basis points to end the quarter at 4.17%.
  • Detractors  : Security selection in BBB and BBB+ rated bonds. Security selection in technology-related issues.
  • Contributors  : Security selection in A rated bonds and overweight allocation to BBB+ rated bonds.
  • Outlook  : Spreads in corporate credit sectors remain stretched. We are still focusing on the short-end of the yield curve which can provide current high levels of yield and income while limiting exposure to widening spreads.
Franklin Templeton Fixed Income
[Jacob K. Chus avatar]

Managed Strategy Since 2019

[Marc Kremers avatar]

Managed Strategy Since 2024

Portfolio Manager Profile
Years of Experience
Manager Location

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Composite Performance

Calendar Year Returns

As of 02/28/2026

Chart

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The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from -9.1 to 9.52.
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Franklin Intermediate Investment Grade Credit SMA - Net (%)
Franklin Intermediate Investment Grade Credit SMA - Pure Gross (%)
Bloomberg US Intermediate Credit Index (%)

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” (1.5% is the maximum anticipated wrap fee for fixed income 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.

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Portfolio

Portfolio Statistics

As of 01/31/2026 (Updated Monthly)

Yield to Worst 1
Portfolio
4.27%
Weighted Average Price
Portfolio
97.83
Average Weighted Maturity
Portfolio
4.24 Years
Effective Duration
Portfolio
3.65 Years
Yield to Maturity 2
Portfolio
4.31%
Weighted Average Coupon 3
Portfolio
4.10%

The portfolio characteristics listed are based on the model portfolio, which is representative of the investment strategy. The model portfolio represents the expected allocation that would be used for new accounts. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, changes in the purchase and sell list during the course of a quarter, general market conditions, and factors specific to each existing account due to client considerations. The securities used in developing this model portfolio do not reflect actual purchases in an account and may not reflect the impact that material economic and market factors might have had on decision making if the portfolio manager was actually managing the account. 

Source: FactSet.

Sector Allocation 4

As of 12/31/2025 % of Total (Updated Quarterly)

Sector % of Total
Investment Grade Credit
98.20%
Cash & Cash Equivalents
1.80%

Chart

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The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 1.8029 to 98.1971.
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The portfolio characteristics listed are based on the model portfolio, which is representative of the investment strategy. The model portfolio represents the expected allocation that would be used for new accounts. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, changes in the purchase and sell list during the course of a quarter, general market conditions, and factors specific to each existing account due to client considerations. The securities used in developing this model portfolio do not reflect actual purchases in an account and may not reflect the impact that material economic and market factors might have had on decision making if the portfolio manager was actually managing the account. 

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Documents

Product Documents
Name Download Add to Cart
Factsheet - Franklin Intermediate Investment Grade Credit SMADownload Document
Product Commentary - Franklin Intermediate Investment Grade Credit SMADownload Document
FTPPG Regulatory DisclosuresMailed hardcopies unavailable.Download Document

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. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. Active management does not ensure gains or protect against market declines. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the performance and result in greater fluctuation in value. 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 Bloomberg U.S. Intermediate Credit Index consist of the intermediate-term component of the U.S. Credit Index, which includes investment grade, U.S. dollar-denominated, fixed-rate, taxable corporate and non-corporate (non-U.S. agencies, sovereigns, supranationals and local authorities) debt. Source: Bloomberg Indices.

All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.

Footnotes

  1. Yield to Worst is calculated without the deduction of fees and expenses. 

  2. Yield to Maturity is calculated without the deduction of fees and expenses.

  3. Average Coupon is calculated without the deduction of fees and expenses.

  4. Figures shown are based on the model portfolio, which is representative of the investment strategy. The model portfolio represents the expected allocation that would be used for new accounts. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, changes in the purchase and sell list during the course of a quarter, general market conditions, and factors specific to each existing account due to client considerations. The securities used in developing this model portfolio do not reflect actual purchases in an account and may not reflect the impact that material economic and market factors might have had on decision making if the portfolio manager was actually managing the account.

  5. Credit Quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by S&P Global Ratings, Moody's Investors Service and/or Fitch Ratings, Inc. and typically range from AAA (highest) to D (lowest), or an equivalent and/or similar rating. For this purpose, the manager assigns each security the middle rating from these three agencies. When only two agencies provide ratings, the lower of the two ratings will be assigned. When only one agency assigns a rating, that rating will be used. Foreign government bonds without a specific rating are assigned a country rating, if available. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the portfolio does not apply to the stability or safety of the portfolio. The methodology used for the calculation of credit quality ratings displayed may differ from the methodology for monitoring investment limits, if applicable. Please note, the portfolio itself has not been rated by an independent rating agency.

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