Street Calls of the Week
LONDON - Franklin Global Trust plc reported a 4.1% decline in net asset value (NAV) total return for the six months ended July 31, 2025, underperforming its benchmark MSCI All Country World index, which gained 1.3% during the same period.
The investment trust’s share price total return fell 5.9% compared to the same period last year when it recorded a positive 5.8% return. Revenue return per share decreased to 1.41p from 1.52p a year earlier.
In response to the underperformance, the company appointed Jonathan Curtis, Chief Investment Officer of Franklin Equity Group, as co-manager alongside Zehrid Osmani effective July 12, 2025. The board also negotiated a management fee reduction from 0.45% to 0.40% of assets, effective March 1, 2025.
"The six months from the end of January to the end of July 2025 were a volatile period," said Christopher Metcalfe, Chair of Franklin Global Trust. "It has been an environment in which many active managers have failed to match the returns achieved by global indices."
The portfolio was negatively impacted by its exposure to the Health Care sector, which fell 13% during the period, and Consumer Discretionary stocks, which declined 8%. Technology, Industrials and Utilities were the strongest performing sectors, each gaining about 8%.
The company maintained its dividend at 1.80p per share for the period, unchanged from the previous year. Franklin Global Trust will pay a second interim dividend of 0.9p per share on October 24, 2025.
As of July 31, 2025, the trust’s largest holdings included Microsoft (9.4%), Nvidia (8.6%), and Linde (4.7%). The portfolio remains heavily weighted toward Information Technology (34.8%) and Health Care (23.4%) sectors.
The company continues to operate its zero discount policy, buying back 6.5 million shares during the period. Total net assets stood at £197.5 million at the end of July, down from £232.2 million on January 31, 2025.
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