Fund Description

The fund seeks long-term capital growth by investing at least 80% of its net assets in equity securities of small and medium-sized companies, within the market capitalization ranges of the Russell 2500™ Index for small-sized companies and Russell Midcap® Index for medium-sized companies, at the time of purchase.

Strategy Statement

"We use a fundamental, bottom-up approach to investing in small and mid-cap companies that are leaders or emerging leaders in their industry and that meet our criteria of growth, quality and valuation."

Management

John Scandalios, CFA

John Scandalios, CFA®

  • Joined Franklin Templeton in 1995
  • Managed Fund Since 2016
Michael McCarthy, CFA

Michael McCarthy, CFA®

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 1993

Rating

Overall Morningstar Rating As of 02/28/2019

Rating Category: Mid-Cap 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 02/28/2019

Years Ratings Funds
in category
3
3 Stars
552
5
2 Stars
491
10
3 Stars
350

Morningstar Style Box As of01/31/2019

Strategy, Benefits, Results

Strategy

We use fundamental bottom-up research to find small- to mid-sized growth companies that are leaders or emerging leaders in their industry and that meet our criteria of:

  • Growth. Our team focuses 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

  • Small-mid strategy gives managers the flexibility to hold onto small, emerging businesses as they mature into successful mid-cap enterprises.
  • 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.
  • Growth stock prices reflect projections of future earnings or revenues, and can, therefore, fall dramatically if the company fails to meet those projections.
  • 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.
  • 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

$1,000.00

How Financial Advisors Help You

Speak to your advisor about whether this fund is appropriate for you.

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