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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

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.

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 may 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

Franklin EAFE Plus Equity
Franklin All Country World Ex-US Equity

Take the Next Step

Please connect with us to learn more about our investment capabilities and how we can help meet your investing needs.

Important Information

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. All investments involve risks, including possible loss of principal. There is no guarantee that a strategy will meet its objective. Performance may also be affected by currency fluctuations. Reduced liquidity may have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where a strategy invests in emerging markets, the risks can be greater than in developed markets. Where a strategy invests in derivative instruments, this entails specific risks that may increase the risk profile of the strategy. Where a strategy invests in a specific sector or geographical area, the returns may be more volatile than a more diversified strategy.

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If you would like information on Franklin Templeton’s retail mutual funds, please visit www.franklinresources.com to be directed to your local Franklin Templeton website.

*These portfolio metrics are the managers current thinking and may be subject to change