Franklin Income SMA Lags Benchmark Amid Ongoing Uncertainty

The Franklin Income SMA Portfolio underperformed its benchmark in Q2 2026. The fund's performance was impacted by ongoing uncertainty in monetary and fiscal policy, as well as trade and geopolitical risks.

Despite these challenges, the fund's fixed income allocation increased, while its equity exposure decreased. Community Health Systems, Organon & Co., and Mauser Packaging Solutions were among the top performers within the fund's fixed income positioning.

The fund also saw value additions from Texas Instruments, Cisco Systems, and Morgan Stanley in its equity holdings.