![[Jacob K. Chus avatar]](https://franklintempletonprod.widen.net/content/emizeh4tf8/webp/Chu_Jacob_500x500.png){kind=avatar}
Managed Strategy Since 2019
Fixed Income
Franklin Intermediate Investment Grade Credit SMA
Popular Documents
Year to Date Returns (Net)
-0.05%
As of 06/30/2026
Year to Date Returns (Pure Gross)
0.69%
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 Worst
As of 06/30/2026 (Updated Monthly) - 4.59%
- Effective Duration
As of 06/30/2026 (Updated Monthly) - 3.91 Years
Average Annual Total Returns As of 06/30/2026
- 2.18%1 Year
- 3.61%3 Years
- 0.30%5 Years
- 1.23%10 Years
- 2.64%Since Inception
01/31/2009
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.
Top Sectors
As of 06/30/2026 % of Total (Updated Quarterly)
Investment Grade Credit97.57% |
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
June 30, 2026- Markets : Some of the risk aversion that had characterized financial markets at the end of the previous quarter eased during the second quarter, although geopolitical developments remained a key focus. The Middle East conflict continued to drive sentiment through the quarter, with markets reacting to shifting news around negotiations, before the United States and Iran signed a 14-point Memorandum of Understanding (MOU) in late June. The MOU formalized a ceasefire, established a 60-day negotiation framework and included provisions to restore shipping through the Strait of Hormuz. The US dollar was modestly stronger over the quarter, appreciating against most other currencies. The US Federal Reserve (Fed) left the fed funds rate unchanged at 3.50% - 3.75% at both its April and June 2026 Federal Open Market Committee (FOMC) meetings. The June FOMC meeting was the first held under new Fed Chair Kevin Warsh, who took office during May. Although the Committee left the policy rate unchanged, the meeting delivered a notable split: the “dot plot” and Summary of Economic Projections turned more hawkish and the statement removed the prior easing guidance, while Chair Warsh's press conference leaned dovish. Fixed income volatility measures eased during the quarter as risk aversion retreated somewhat. The benchmark 10-year UST yield rose by 15 basis points to 4.47% over the quarter.
- Contributors : Underweight positions in supranational, government agency guaranteed, AAA, AA- and AA rated bonds. Overweight positions in insurance and BBB+ rated bonds.
- Detractors : Selection in BBB+, BBB, consumer cyclical, consumer non-cyclical, insurance, communications, energy and technology sectors. Underweight positions in sovereign, financial company and BBB- rated bonds. Overweight positions in communication services and A rated bonds. Yield curve positioning.
- Outlook : US growth remained resilient but uneven. While geopolitical developments and supply-side risks continue to warrant close monitoring, the greater near-term focus is on whether inflation pressures prove persistent enough to shift the Fed away from its current hold.
Franklin Templeton Fixed Income
![[Marc Kremers avatar]](https://franklintempletonprod.widen.net/content/qlvdqgpevm/webp/Kremer_Marc_500x500.png){kind=avatar}
Managed Strategy Since 2024
Latest Insights
July 17, 2026
July 16, 2026
July 6, 2026
June 18, 2026
Composite Performance
Average Annual Total Returns
As of 06/30/2026
Selected Month June 2026
Franklin Intermediate Investment Grade Credit SMA - Net (%)
Month End
As of 06/30/2026
- 1 Year
- 2.18
- 3 Years
- 3.61
- 5 Years
- 0.30
- 7 Years
- 1.06
- 10 Years
- 1.23
- 15 Years
- 1.70
- Since Inception(01/31/2009)
- 2.64
Franklin Intermediate Investment Grade Credit SMA - Pure Gross (%)
Month End
As of 06/30/2026
- 1 Year
- 3.71
- 3 Years
- 5.16
- 5 Years
- 1.81
- 7 Years
- 2.54
- 10 Years
- 2.54
- 15 Years
- 2.85
- Since Inception(01/31/2009)
- 3.76
Bloomberg US Intermediate Credit Index (%)
Month End
As of 06/30/2026
- 1 Year
- 4.03
- 3 Years
- 5.75
- 5 Years
- 1.80
- 7 Years
- 2.59
- 10 Years
- 2.71
- 15 Years
- 3.13
- Since Inception(01/31/2009)
- 4.13
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.
Portfolio
Portfolio Statistics
As of 05/31/2026 (Updated Monthly)
Effective Duration 1 2 3
- Portfolio
- 3.79 Years
- Portfolio
- 4.46 Years
- Portfolio
- 4.62%
- Portfolio
- 4.61%
- Portfolio
- 4.18%
- Portfolio
- 96.05
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 06/30/2026 % of Total (Updated Quarterly)
| Sector | % of Total |
|---|---|
Investment Grade Credit | 97.57% |
Cash & Cash Equivalents | 2.43% |
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.
Documents
Product Documents
Factsheet - Franklin Intermediate Investment Grade Credit SMA
Product Commentary - Franklin Intermediate Investment Grade Credit SMA
FTPPG Regulatory Disclosures
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.
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.
You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.
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.