Equity

Franklin Growth Opportunities SMA

Year to Date Returns (Net)
6.81%
As of 09/30/2025
Year to Date Returns (Pure Gross)
9.19%

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Overview

Product Facts

Strategy description

The Franklin Growth Opportunities SMA seeks capital appreciation by investing substantially in equity securities of companies demonstrating accelerating growth, increasing profitability, or above average growth or growth potential as compared with the overall economy.

Benchmark
Russell 3000 Growth Index
Inception Date
06/30/2015
Asset Class
Equity

Average Annual Total Returns

View performance section for additional info As of 10/31/2025
  • 10.48%1 Year
  • 20.94%3 Years
  • 8.10%5 Years
  • 10.38%10 Years
  • 9.98%Since Inception
    06/30/2015

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 10/31/2025 % of Total (Updated Monthly)

Information Technology46.07%
Communication Services15.12%
Consumer Discretionary11.97%
Industrials8.59%
Health Care7.51%

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Manager and Commentary

About the Team

Franklin Equity Group

Growth equity managers with a focus on in-depth fundamental research, we offer expertise in managing global, U.S. and sector-specific strategies across the market capitalization spectrum. Our center of gravity in Silicon Valley allows us to follow companies across their private to public life cycles, developing deeper insights into future industry trends and identifying potential disruptors.

Commentary Highlights

September 30, 2025
  • Markets: US equities delivered strong performance over the third quarter of 2025, buoyed, in part, by easing trade tensions and optimism surrounding artificial intelligence (AI). The US Federal Reserve’s (Fed’s) interest-rate cut in September also supported market sentiment, as did generally robust corporate earnings. Both the S&P 500 Index and the Nasdaq Composite Index ended the quarter at new record highs, while returns for the Dow Jones Industrial Average were more muted. In this environment, growth investing surpassed value in the large-capitalization tier, while it was the reverse in the mid- and small-capitalization segments, with small-cap stocks overall performing better than their large-and mid-cap counterparts.
  • Detractors: Both stock selection and allocation decisions worked against us relative to the Russell 3000 Growth Index benchmark. Stock selection and an overweight in the industrials sector; stock selection and an underweight in the information technology (IT) sector; and stock selection in the communication services sector were leading drivers of negative relative performance.
  • Contributors: Stock selection in the real estate sector offered modest relative returns, while the majority of positive relative returns were at the individual stock level.
  • Outlook: While headline risks continue to influence market sentiment, we think the bigger story for investors is technological innovations, particularly in artificial intelligence (AI). Advances in AI and related technologies are transforming industries and, in our view, creating growth potential for long-term investors. Innovative companies in sectors and industries across the economy are harnessing AI in their efforts to expand profit margins and drive revenue growth. We are seeing this in industries that deliver health care, manage logistics and more.
Franklin Equity Group
[Grant Bowerss avatar]

Managed Strategy Since 2015

[Sara Araghis avatar]

Managed Strategy Since 2015

[Anthony J. Hardys avatar]

Managed Strategy Since 2024

Portfolio Manager Profile
Years of Experience
Manager Location

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Skipped to Performance Section Content

Composite Performance

Calendar Year Returns

As of 09/30/2025

Chart

Bar chart with 3 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from -38.27 to 48.24.
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Franklin Growth Opportunities SMA - Net (%)
Franklin Growth Opportunities SMA - Pure Gross (%)
Russell 3000 Growth 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” (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.

Skipped to Portfolio Section Content

Portfolio

Positions

As of 10/31/2025 (Updated Monthly)

Number of Issuers
Portfolio
61
Benchmark
1,486

Portfolio Statistics

As of 10/31/2025 (Updated Monthly)

Historical 3 Years Sales Growth
Portfolio
20.89%
Weighted Average Market Capitalization (USD)
Portfolio
$1,630.05 Billion
Price to Earnings (12-Month Forward)
Portfolio
38.21x

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

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

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 1

As of 10/31/2025 % of Total (Updated Monthly)

Sector % of Total
Benchmark
Information Technology
46.07%50.06%
Communication Services
15.12%11.52%
Consumer Discretionary
11.97%13.63%
Industrials
8.59%6.67%
Health Care
7.51%7.93%
Financials
4.87%6.17%
Consumer Staples
1.86%2.37%
Materials
1.76%0.45%
Real Estate
0.45%0.48%
Energy
0.40%
Utilities
0.32%
Cash & Other Net Assets
1.80%

Chart

Bar chart with 2 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 0 to 50.05982.
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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 10/31/2025 (Updated Monthly)

Holdings Portfolio
NVIDIA Corporation
10.21%
Microsoft Corporation
7.10%
Broadcom Inc.
5.98%
Meta Platforms Inc Class A
5.69%
Amazon.com, Inc.
5.49%
Apple Inc.
5.19%
Alphabet Inc. Class A
3.54%
Mastercard Incorporated Class A
2.57%
Tesla, Inc.
2.50%
Netflix, Inc.
2.45%

 

Bar chart with 10 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 2.45294 to 10.21042.
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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. 

Skipped to Documents Section Content

Documents

Product Documents
Name Download Add to Cart
Factsheet - Franklin Growth Opportunities SMADownload Document
Product Commentary - Franklin Growth Opportunities 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. 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.

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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 Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values.
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.