Franklin Global Growth Fund seeks long-term capital appreciation by investing primarily in equity securities of growth companies, with any market size capitalisation, located throughout the world. It aims to outperform the MSCI World ex Australia Index, in Australian dollar terms after fees and expenses (but before taxes), over the medium to longer term.
During the third quarter of 2023, the portfolio underperformed its benchmark, the MSCI World ex-Australia Index-NR (both in Australian-dollar terms), as stock selection in the consumer discretionary, materials and financials sectors hindered relative returns. In contrast, stock selection in the health care sector boosted relative returns. In terms of sector allocations, a lack of exposure to energy and communication services detracted from relative results. In contrast, a lack of exposure to consumer staples and utilities enhanced relative results. On a regional level, stock selection in North America and Europe dampened relative returns, while exposure to Latin America/Caribbean benefitted relative returns.
What is Franklin Global Growth W Franklin Global Growth W is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Growth Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Franklin Global Growth W has Assets Under Management of 711.04 M with a management fee of 0.9%, a performance fee of 0.00% and a buy/sell spread fee of 0.4%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Franklin Global Growth W has returned -1.39% in the last month. The previous three years have returned 0.91% annualised and 13.13% each year since inception, which is when the Franklin Global Growth W first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Franklin Global Growth W first started, the Sharpe ratio is NA with an annualised volatility of 13.13%. The maximum drawdown of the investment product in the last 12 months is -5.71% and -26.62% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Franklin Global Growth W has a 12-month excess return when compared to the Foreign Equity - Large Growth Index of -8.61% and 0.66% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Franklin Global Growth W has produced Alpha over the Foreign Equity - Large Growth Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Large Growth Index category, you can click here for the Peer Investment Report.
What level of diversification will Franklin Global Growth W provide?
Franklin Global Growth W has a correlation coefficient of 0.93 and a beta of 0.97 when compared to the Foreign Equity - Large Growth Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Franklin Global Growth W and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Franklin Global Growth W with the Developed -World Index?
For a full quantitative report on Franklin Global Growth W compared to the Developed -World Index, you can click here.
Can I sort and compare the Franklin Global Growth W to do my own analysis?
To sort and compare the Franklin Global Growth W financial metrics, please refer to the table above.
Has the Franklin Global Growth W been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Franklin Global Growth W?
How do I get in contact with the Franklin Global Growth W?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Franklin Global Growth W. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2023 During the first quarter of 2023, the portfolio outperformed its benchmark, the MSCI World ex-Australia Index-NR (both in Australian-dollar terms), as stock selection in the industrials, financials and IT sectors boosted relative returns. In contrast, stock selection in the consumer discretionary and materials sectors hindered relative returns. In terms of sector allocations, a lack of exposure to consumer staples and energy and an overweight in IT enhanced relative results. In contrast, a lack of exposure to communication services and overweight positions in health care and materials detracted from relative results. On a regional level, stock selection in North America and a lack of exposure to Asia/Pacific ex Japan benefitted relative returns, while exposure to emerging markets and stock selection in Japan dampened relative returns.
Performance Commentary - March 31, 2023 During the first quarter of 2023, the portfolio outperformed its benchmark, the MSCI World ex-Australia Index-NR, as stock selection in the health care, consumer discretionary, real estate and industrials sectors boosted relative returns. In contrast, stock selection in financials and IT hindered relative results. In terms of sector allocations, a lack of exposure to energy and an overweight in consumer discretionary enhanced relative results, while an overweight in health care and a lack of exposure to communication services detracted. On a regional level, an overweight in emerging markets and stock selection in the United Kingdom benefitted relative returns, while stock selection in North America detracted.
Performance Commentary - December 31, 2022 During the period, the account underperformed its benchmark, the MSCI World ex-Australia Index-NR, as stock selection in the Information Technology (IT), Health Care and Financials sectors hampered relative returns.
Conversely, stock selection in the Consumer Discretionary and Real Estate sectors supported relative performance.
In terms of sector allocations, a lack of exposure to Energy and an overweighting in the IT sector hampered relative results. In contrast, a lack of exposure to the Communication Services sector and an overweight in Health Care supported relative portfolio returns. On a regional level, stock selection in North America and Europe dampened relative returns, while stock selection in the United Kingdom nominally enhanced portfolio results and an overweighting in North America modestly offset some of the negative selection effects.
Performance Commentary - September 30, 2022 During the quarter, the portfolio outperformed its benchmark, the MSCI World ex Australia Index, as security selection in the Industrials, Information Technology and Health Care sectors buoyed relative results.
Conversely, stock selection in the Materials, Consumer Discretionary and Real Estate sectors held back relative performance.
In terms of sector allocations, lack of exposure to Communication Services had a positive effect, whereas lack of exposure to Energy hindered relative performance. Regionally, stock selection in North America contributed on a relative basis, while stock selection in Europe held back results.
Performance Commentary - June 30, 2022 During the quarter, the portfolio underperformed its benchmark, the MSCI World ex Australia Index, as stock selection in the Financials, Health Care and Industrials sectors hindered relative performance. On the upside, stock selection in the Information Technology and Real Estate sectors buoyed relative returns. In terms of sector allocations, lack of exposure to Consumer Staples had a negative effect, whereas an overweight to Health Care benefitted relative performance. Regionally, stock selection in North America detracted while an overweight in that region marginally supported results.
The end of the second quarter brought a recovery in bonds, with the 10-year US Treasury yield moving back below 3% from a high of almost 3.5%. In our view, greater stability in fixed-income markets would indicate that markets are beginning to believe central banks have achieved the upper hand against inflation. Greater stability in bond markets may be leading to a more stable equity market entering the second half of the year, suggesting that the sharp selloff in the first half might have sufficiently corrected the pandemic-induced bull run of the past two years.
Looking toward the second half of 2022, investors hoping for a V-shaped snapback in equities are likely to be disappointed, in our view. While we believe the bear market correction is likely behind us, the market will need to clarify its response to intervening factors, including the waning pace of inflation and the depth of the economic downdraft caused by the reduction in demand associated with higher interest rates. We anticipate that it could take one or two more quarters for this picture to become clearer.
Performance Commentary - March 31, 2022 During the quarter, the portfolio underperformed its benchmark, the MSCI World ex Australia Index, as security selection in the Information Technology, Financials and Health Care detracted from relative results. Conversely, select holdings in the Information Technology sector contributed to relative results. In terms of sector allocations, a lack of exposure to Energy weighed on relative returns. Conversely, lack of exposure to Communication Services contributed to relative results. Regionally, security selection in North America held back performance, while lack of exposure to Japan aided returns.
Performance Commentary - December 31, 2021 During the quarter, the portfolio underperformed its benchmark, the MSCI World ex Australia Index, as stock selection in the Consumer Discretionary, Industrials and Health Care sectors hindered the fund’s performance. Conversely, stock selection in Financials helped relative returns. In terms of sector allocations, an overweight to Industrials detracted, while an overweight in Information Technology contributed to relative performance. Regionally, exposure to emerging markets weighed on relative results, while a lack of exposure to Japan had a positive effect.
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