Franklin Growth Opportunities SMA Outperformed In Q2 2026
Franklin Growth Opportunities SMA outperformed its benchmark in the second quarter of 2026. Stock selection in communication services and industrials, along with an overweight in health care, hurt relative performance. The commentary highlighted Dell's AI-optimized server business growing more than 300% year over year and McKesson shares declining after a strong run.
The SMA beat its benchmark in Q2 2026. Even so, choices in communication services and industrials, plus a health-care overweight, weighed on relative results. Broader US stocks staged a strong second-quarter rebound after a soft start to the year, helped by improving investor confidence and solid earnings despite geopolitical uncertainty.
Dell’s AI-focused server unit grew more than 300% year over year. McKesson, a drug distributor, saw its shares fall after a strong prior run. Franklin Templeton, the article’s author, manages over $1.4 trillion and has more than 75 years of investment experience.
Investors in this SMA and similar funds may see outcomes shaped by sector calls and single-stock moves. Dell’s rapid AI server growth could reinforce attention on AI infrastructure, potentially influencing capital flows and tech hiring. McKesson’s pullback may affect health-care investors’ sentiment. Broader market rebound may support retirement and savings accounts, though geopolitical uncertainty means gains could prove uneven.