Fund Description

The fund 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.

Strategy Statement

"We seek to invest in rapidly growing small-capitalization companies, targeting companies with pricing power, cost advantages, sustainable competitive advantages or innovative products or services. "

Michael McCarthy, CFA®

Management

Michael McCarthy, CFA

Michael McCarthy, CFA®

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 2000
Brad Carris, CFA

Brad Carris, CFA®

  • Joined Franklin Templeton in 2000
  • Managed Fund Since 2004

Rating

Overall Morningstar Rating As of 11/30/2019

Rating Category: Small Growth

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 11/30/2019

Years Ratings Funds
in category
3
3 Stars
566
5
3 Stars
506
10
4 Stars
382

Morningstar Style Box As of10/31/2019

Strategy, Benefits, Results

Strategy

We use fundamental, bottom-up research to find rapidly growing, small-capitalization companies that meet our criteria of:

  • Growth. We focus on companies with the potential to produce sustainable earnings and cash-flow growth.
  • Quality. We seek high-quality companies with strong management teams and financial strength.
  • Valuation. We assess whether the growth opportunity is already reflected in the stock price.

Benefits

  • Higher growth rate potential of smaller companies compared to larger, more established companies.
  • Tenured and experienced portfolio management team.
  • Distinct research structure. Investment professionals organized into collaborative sector teams.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • Smaller, mid-sized and relatively new or unseasoned companies can be particularly sensitive to changing economic conditions, and their prospects for growth are less certain than those of larger, more established companies. Historically, these securities have experienced more price volatility than larger company stocks, especially over the short-term.
  • Growth stock prices reflect projections of future earnings or revenues, and can, therefore, fall dramatically if the company fails to meet those projections.
  • To the extent the fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments.
  • From time to time, the trading market for a particular security or type of security in which the fund invests may become less liquid or even illiquid.
  • These and other risks are described more fully in the fund’s prospectus.

Minimum Investment

See Prospectus

How Financial Advisors Help You

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