FRANKLIN GLOBAL Plus EQUITY

The strategy aims to achieve long-term capital appreciation by investing in equity and/or equity-related securities of companies throughout the world, including developed and emerging markets, with a focus on mid and large capitalizations. The team utilizes a bottom-up approach focused on high quality, sustainable growth criteria to build portfolios.

OVERVIEW

STRATEGY SECTION

  • We focus on fundamental bottom-up stock analysis to identify and select quality growth companies with sustainable business models and proven management teams that are focused on the creation of value.
  • We utilize the recommendations from this analysis to build a concentrated, portfolio of 35–40 stocks that is benchmark indifferent, yet diversified, due to the limited overlap of economic exposures between companies.
  • Our in-depth research supports our longer-term perspective, seeking to hold companies for three to five years.

BENCHMARK

  • MSCI World Index-NR
  • MSCI World Growth Index-NR

COMPOSITE PROFILE

A multi-page overview highlighting the fund's performance, portfolio characteristics, investment process, management team and commentary.

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OUR APPROACH

Investment Philosophy

Research-Driven Portfolio

  • Concentrated portfolio with approximately 35–40 holdings
  • Benchmark indifferent

Longer-Term Investment Horizon

  • Investment horizon of 3 to 5 years
  • Typical holding period of 4+ years

Seek to Manage Risk by Limiting Economic Overlap among Holdings

  • Select companies whose earnings streams are not highly correlated
  • Has typically resulted in a diversified portfolio across MSCI Global Industry Classification Standard (GICS) sectors and industries

Global Opportunity Set

  • Search without borders
  • Average allocation to emerging markets has been less than 10%​

Investment Process Summary

Idea Generation & 360° Research Process

The goal of our 360 Research Process is to identify and recommend the most attractive high-quality sustainable growth companies that can be utilized within our risk framework to build a diversified portfolio. We conduct in-depth research, evaluating companies from multiple angles, and identify companies that meet our strict growth, quality and valuation criteria:

  • Growth – Analysts conduct free cash flow analysis to identify the specific drivers that they believe may enable a company to grow faster than its peers over a multi-year period, taking into account the sustainability of the company’s business model, whether the company has a long-term competitive advantage, and if a value-generating reinvestment record exists.
  • Quality – Analysts ascertain the financial transparency and accounting quality, corporate governance, and environmental management, social and labor practices. 
  • Valuation – Consistent valuation approach to determine relative attractiveness of a company and valuation support under different scenarios.

Portfolio Construction & Management

  • Benchmark Indifferent – We are benchmark indifferent throughout portfolio construction, with all decisions made at the individual stock level.
  • Concentrated, Long Term Focus – With approximately 35-40 holdings, typical position sizes range from 1.5-3.5%. Given our three- to five-year average holding period, portfolio turnover is relatively low.
  • Limit Overlap of Economic Exposures  Our risk framework emphasizes diversification and limits the overlap of economic exposures among holdings.

OUR TEAM

Huber Don

Don Huber, CFA
Senior Vice President
Franklin Equity Group
With firm since: 2002

John P. Remmert

John Remmert
Senior Vice President
Franklin Equity Group
With firm since: 2002