Overview
Investment Overview
Franklin Small Cap Growth aims to provide clients to equity securities of companies that are generally less than $1.5 billion or the highest market capitalization in the Russell 2000 Index, whichever is greater, at the time of purchase. The strategy seeks to invest in small-cap companies with sustainable growth opportunities over a multi-year time horizon. The team uses fundamental research to evaluate competitive structures of entire industries, and targets companies with strong and improving competitive positions in attractive markets.
Investment Philosophy
We believe attractive risk-adjusted returns can result from identifying companies with strong prospects for sustainable growth that is not already reflected in their current stock prices.
Investment Approach
Within a collaborative environment, our team utilizes fundamental, bottom-up research to focus on companies that we believe have sustainable growth characteristics—meeting our criteria of growth potential, quality and valuation. Our analysis includes an assessment of any material environmental, social and governance (“ESG”) factors on the long-term risk and return profile of a company.
Growth:
- Focus on companies with potential to produce sustainable earnings and cash flow growth
- Evaluate the long-term market opportunity and competitive structure of the industry to target current and emerging leaders
Quality:
- Seek companies with strong and improving competitive positions in attractive markets
- Identify experienced and talented management teams as well as financial strength reflected in the capital structure, gross and operating margins, free cash flow generation and returns on capital
Valuation:
- Consider a range of potential outcomes based on an assessment of multiple scenarios
- Consider whether or not security prices fully reflect the balance of the sustainable growth opportunities relative to the business and financial risks
Portfolio Managers
Performance
- Average Annual Total Returns
- Calendar Year Returns
- Cumulative Total Returns
- Risk/Return Profile
- Risk Measures
Average Annual Total Returns
Average Annual Total Returns
2025
Chart
Quarter End As of 09/30/2025 | 1 Year | 3 Years | 5 Years | 7 Years | 10 Years | 15 Years | 20 Years | 25 Years | Since Inception 12/31/1997 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Franklin Small Cap Growth SMA - Net (%) | 4.92 | 14.28 | 3.78 | 5.50 | 9.12 | 9.62 | 8.03 | 8.03 | 8.13 | |
| Franklin Small Cap Growth SMA - Pure Gross (%) | 7.16 | 16.70 | 6.00 | 7.75 | 11.44 | 11.95 | 10.34 | 10.34 | 10.43 | |
| Russell 2000 Growth Index (%) | 13.56 | 16.68 | 8.41 | 6.62 | 9.91 | 11.01 | 8.78 | 6.42 | 7.07 |
Past performance is no guarantee of future results. 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.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Fees: Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross Composite performance of the portfolio reduced by an annual fee of 2.14 %, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Separately Managed Accounts 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.
Calendar Year Returns
Calendar Year Returns
Chart
Quarter End As of 09/30/2025 | YTD | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | Performance Inception Date | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Franklin Small Cap Growth SMA - Net (%) | 1.90 | 10.91 | 27.03 | -30.30 | -2.30 | 40.71 | 30.79 | -1.30 | 20.18 | 6.60 | -5.79 | 12/31/1997 | |
| Franklin Small Cap Growth SMA - Pure Gross (%) | 3.53 | 13.27 | 29.70 | -28.76 | -0.21 | 43.65 | 33.53 | 0.82 | 22.71 | 8.87 | -3.76 | 12/31/1997 | |
| Russell 2000 Growth Index (%) | 11.65 | 15.15 | 18.66 | -26.36 | 2.83 | 34.63 | 28.48 | -9.31 | 22.17 | 11.32 | -1.38 | — |
Past performance is no guarantee of future results. 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.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Fees: Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross Composite performance of the portfolio reduced by an annual fee of 2.14 %, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Separately Managed Accounts 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.
Cumulative Total Returns
Cumulative Total Returns
The hypothetical growth scenario of $100k does not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares. Had they been reflected hypothetical values would be lower.
1997
2025
Chart
Quarter End As of 09/30/2025 | YTD | 1 Year | 3 Years | 5 Years | 10 Years | 15 Years | Since Inception 12/31/1997 | |
|---|---|---|---|---|---|---|---|---|
| Franklin Small Cap Growth SMA - Net (%) | 1.90 | 4.92 | 49.23 | 20.41 | 139.37 | 296.48 | 774.21 | |
| Franklin Small Cap Growth SMA - Pure Gross (%) | 3.53 | 7.16 | 58.92 | 33.84 | 195.48 | 443.67 | 1,469.67 | |
| Russell 2000 Growth Index (%) | 11.65 | 13.56 | 58.87 | 49.74 | 157.14 | 379.31 | 566.39 |
Historical Cumulative Total Returns
2025
Date Selected As of 09/30/2025 | YTD | 1 Year | 3 Years | 5 Years | 10 Years | 15 Years | Since Inception 12/31/1997 | |
|---|---|---|---|---|---|---|---|---|
| Franklin Small Cap Growth SMA - Net (%) | 1.90 | 4.92 | 49.23 | 20.41 | 139.37 | 296.48 | 774.21 | |
| Franklin Small Cap Growth SMA - Pure Gross (%) | 3.53 | 7.16 | 58.92 | 33.84 | 195.48 | 443.67 | 1,469.67 | |
| Russell 2000 Growth Index (%) | 11.65 | 13.56 | 58.87 | 49.74 | 157.14 | 379.31 | 566.39 |
Past performance is no guarantee of future results. 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.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Fees: Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross Composite performance of the portfolio reduced by an annual fee of 2.14 %, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Separately Managed Accounts 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.
Risk/Return Profile
Risk/Return Profile (%)
Based on a 10 year period ending Sep-30-2025
Chart
| Net |
| Pure Gross |
| Russell 2000 Growth Index |
Past performance is no guarantee of future results. 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.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Fees: Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross Composite performance of the portfolio reduced by an annual fee of 2.14 %, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Separately Managed Accounts 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.
Risk Measures
Risk Measures
| Statistics | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Beta (Net) | 0.96 | 0.93 | 0.90 | 0.96 |
| Historical Tracking Error (Net) | 6.52 | 6.47 | 6.79 | 5.93 |
| Historical Tracking Error (Pure Gross) | 6.52 | 6.47 | 6.79 | 5.93 |
| Information Ratio (Pure Gross) | 0.26 | 0.00 | -0.35 | 0.26 |
| Information Ratio (Net) | -1.32 | -0.37 | -0.68 | -0.13 |
| Standard Deviation (%) | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Standard Deviation (Net) | 22.16 | 20.81 | 21.18 | 21.13 |
| Sharpe Ratio (%) | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Sharpe Ratio (Net) | 0.49 | 0.51 | 0.13 | 0.42 |
| Sharpe Ratio (Pure Gross) | 0.60 | 0.61 | 0.23 | 0.52 |
Past performance is no guarantee of future results. 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.
Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.
Fees: Returns for periods less than one year are not annualized. Pure Gross of fee returns do not reflect the deduction of any expenses, including transaction costs. Net composite returns referenced above represent Pure Gross Composite performance of the portfolio reduced by an annual fee of 2.14 %, the maximum fee charged by Primerica Advisors to clients invested in the Lifetime Investment Platform wrap fee program. The Net of fee composite returns presented in the strategy GIPS report are calculated by reducing each monthly composite pure gross rate of return by the highest “bundled” fee charged (3.00%) annually, prorated to a monthly ratio.
Returns reflect the reinvestment of dividends and other earnings. All performance is reported in US dollars. Returns for periods less than one year are not annualized.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) 822-8464. Franklin Separately Managed Accounts 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
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.
Portfolio Allocations
- Assets
- Geography
- Sector
- Market Capitalization
Assets
Asset Allocation
Chart
| Portfolio | ||
|---|---|---|
| Equity | 94.46% | |
| Cash & Cash Equivalents | 5.54% |
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.
Geography
Geographic Allocation
Chart
| Portfolio | Benchmark | ||
|---|---|---|---|
| 89.03% | 98.60% | ||
| 4.07% | 0.58% | ||
| 1.35% | 0.02% | ||
| 5.54% | — |
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
Sector Allocation
Chart
| Portfolio | Benchmark | ||
|---|---|---|---|
| Information Technology | 24.58% | 22.23% | |
| Health Care | 20.15% | 22.10% | |
| Industrials | 19.42% | 22.07% | |
| Consumer Discretionary | 10.96% | 9.38% | |
| Financials | 9.36% | 10.42% | |
| Consumer Staples | 4.59% | 2.25% | |
| Energy | 2.36% | 2.96% | |
| Communication Services | 2.29% | 2.50% | |
| Real Estate | 0.51% | 1.97% | |
| Materials | 0.24% | 3.51% | |
| Cash & Other Net Assets | 5.54% | — |
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.
Market Capitalization
Market Capitalization Allocation
Chart
| Portfolio | ||
|---|---|---|
| <1.0 Billion | 2.51% | |
| 1.0-2.0 Billion | 8.80% | |
| 2.0-5.0 Billion | 34.86% | |
| 5.0-10.0 Billion | 32.62% | |
| >10.0 Billion | 21.20% |
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.
Portfolio Holdings
Top Equity Issuers
Chart
| Portfolio | ||
|---|---|---|
| BWX Technologies, Inc. | 3.65% | |
| AAR CORP. | 2.59% | |
| Arcosa, Inc. | 2.52% | |
| Granite Construction Incorporated | 2.17% | |
| Lattice Semiconductor Corporation | 2.08% | |
| Merus N.V. | 2.05% | |
| SiTime Corporation | 1.99% | |
| Onto Innovation, Inc. | 1.84% | |
| Vontier Corp | 1.79% | |
| New York Times Company Class A | 1.78% |
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.
Documents
Product Literature
Factsheet - Franklin Small Cap Growth SMA - PRIMERICA Use Only
Risks
What Are The Key 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.
Important Information
Separately Managed Accounts (SMAs) are investment services provided by Franklin Templeton Private Portfolio Group, LLC (FTPPG), a federally registered investment adviser. Client portfolios are managed based on investment instructions or advice provided by Franklin Templeton. Management is implemented by FTPPG, the designated sub-adviser or, in the case of certain programs, the program sponsor or its designee.
Performance data quoted represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or a loss when you sell your shares. Returns reflect reinvestment of dividends and capital gains. Performance figures for periods shorter than one year represent cumulative figures and are not annualized. All performance is reported in US dollars.
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.
Professional money management may not be suitable for all investors. Factual information relating to the securities discussed was obtained from sources believed to be reliable, but there can be no guarantee as to its accuracy. It should not be assumed that investments made in the future will be profitable or will equal the performance of the securities discussed in the material.
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 Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe.
Source: FTSE.
All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
FINANCIAL ADVISORS: Please call Franklin Templeton at (800) DIAL BEN/342-5236 for more information.