Designed to tap into the team’s best high-quality, sustainable growth ideas. The team evaluates companies from multiple angles and assesses material ESG factors to identify companies that meet their strict growth, quality and valuation criteria.
Strategy Overview
The team utilizes fundamental bottom-up stock analysis to identify and select quality growth companies with sustainable business models and proven management teams focused on the creation of shareholder value.
In-Depth Research Driven Approach
Concentrated, Yet Diversified
Differentiated portfolio construction results in a concentrated portfolio of approximately 35 companies* diversified across a range of economic exposures, verticals and revenue drivers.
Designed to generate differentiated results
The team’s unique research-driven approach leads to investments in lesser-known companies and has generated complementary results relative to the index and key competitors.
Our Philosophy
We believe that a concentrated yet diversified portfolio of sustainable growth companies benefiting from attractive secular growth drivers and selected based on deep fundamental research, combined in a portfolio with limited overlap of economic exposure, has the potential to generate excess returns over a full market cycle.
Investment Process
Idea Generation & 360° Research Process
We employ a 360º Research Process 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 based on these criteria:
- Growth. We conduct free cash flow analysis to identify what we 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. We assess financial transparency and accounting quality, corporate governance, ESG and labor practices.
- Valuation. We use a consistent valuation approach to determine the relative attractiveness of a company and valuation support under different scenarios.
This is a general depiction of the investment team's methodology and may not reflect the exact investment process for any particular strategy.
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 holdings, typical position sizes range from 1.5-4%. Given our three- to five-year average holding period, portfolio turnover is relatively low.
- Limited Overlap of Economic Exposures – Our risk framework emphasizes diversification and limits the overlap of economic exposures among holdings.
Management Team
The Franklin Global Plus Equity strategy is managed by the Franklin Global Equity Group primarily based in New York, NY. The current investment approach and leadership have been in place since January 2004. John Remmert has been a leader for the team since that time and is responsible for the investment approach currently utilized. The Franklin Global Equity Group is a subset of the broader Franklin Equity Group based in San Mateo, CA. The Franklin Equity Group brings together more than six decades of investment experience offering in-depth expertise in managing growth, value, core and convertible equity strategies that cover global, regional and sector specialties. We believe that attractive risk-adjusted returns can be achieved over time by using a team-oriented collaborative approach and disciplined, bottom-up fundamental research.
Patrick McKeegan, CFA
Vice President, Portfolio Manager/Research Analyst
Other Strategies to Consider
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Important Information
All investments involve risks, including possible loss of principal.
There is no assurance that the employment of this strategy will result in the investment objective being achieved.
This information is intended for institutional audiences interested in institutional products and services available through Franklin Templeton and its affiliates. Various account minimums or other eligibility qualifications apply depending on the investment strategy or vehicle.
The information contained on this webpage is intended only as a general overview of Franklin Templeton investment capabilities and is for informational purposes only and should not be construed or relied upon as investment advice.
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.
*These portfolio metrics are the managers current thinking and may be subject to change
*These portfolio metrics are the managers current thinking and may be subject to change