Diversify sources of alpha: The Fund provides exposure to a systematic investment process that complements traditional fundamental managers. By relying on quantitative signals rather than discretionary stock picking, it can add a differentiated source of return.
WHAT IS SYSTEMATIC INVESTING?
Systematic investing explained
Systematic investing combines the discipline of active management with the efficiency investors expect from modern portfolio solutions. Rather than relying on subjective views or market noise, it uses a rules-based, data-driven process to identify opportunities and apply them consistently across market environments.
Unlike traditional passive funds that simply replicate an index, systematic investing seeks to improve on market-cap weighted exposures through disciplined stock selection. By focusing on repeatable investment signals, it aims to generate differentiated outcomes while reducing behavioural biases.
As a core portfolio solution, systematic investing offers an alternative to simply owning the market, seeking to add value through a transparent and repeatable investment approach.
Systematic investing is powered by quantitative models and deep data analysis
A disciplined, research-driven investment process
Systematic investing uses decades of academic research and proprietary insights to identify investment opportunities. Every stock is assessed consistently using a repeatable framework, helping remove emotion and bias from investment decisions.
Designed to capture proven return drivers
Rather than relying on individual fundamental stock picks, systematic portfolios seek to capture exposure to factors such as quality, value, momentum, and diversifying alternative signals that have historically been associated with long-term outperformance. This creates a diversified portfolio built on measurable characteristics.
Active management with greater consistency and Institutional risk management
Systematic investing is an active management approach delivered through a rules-based process. It combines the discipline and scalability of quantitative investing with active portfolio construction through a lens of risk, offering a cost-effective way to pursue excess returns.
FRANKLIN GLOBAL SYSTEMATIC EQUITY FUND
Introducing the Franklin Global Systematic Equity Fund
The Franklin Global Systematic Equity Fund combines the efficiency and cost advantages of passive investing with the return potential of active management. Using a quantitative, rules-based investment approach, the Fund constructs a well-diversified portfolio of global equities designed to deliver consistent, repeatable and predictable outcomes relative to its benchmark.
FGSE
Franklin Global Systematic Equity Fund – Active ETF
Available on the ASX as FGSE, providing convenient, transparent and liquid access to the strategy through an Active ETF
SSB0126AU
Franklin Global Systematic Equity Fund – Class A
An unhedged managed fund, with returns influenced by movements in global equity markets and the Australian dollar
SSB4269AU
Franklin Global Systematic Equity Fund – Class A (Hedged)
A hedged managed fund, designed to reduce the impact of movements in the Australian dollar
INVESTMENT APPROACH
Building a diversified portfolio of global equity securities
A repeatable, evidence-based investment process lies at the heart of the Franklin Global Systematic Equity Fund, helping to identify opportunities and manage risk with discipline.
PORTFOLIO USE
Where does the Franklin Global Systematic Equity Fund sit in a portfolio?
Whether used as a core global equity holding or alongside traditional active funds, the Fund seeks to enhance portfolio diversification, improve cost efficiency and provide a differentiated source of active return potential.
The Fund aims to:
Improve risk-adjusted returns: By combining multiple proven investment factors and maintaining broad diversification, the Fund aims to deliver competitive long-term returns while managing portfolio risk.
Access active management efficiently: The Fund offers a lower-cost alternative to many traditional active global equity strategies, making it a cost-efficient way to pursue active returns without simply tracking an index.
Bring consistency through market cycles: A disciplined, repeatable investment process removes emotion from decision-making and applies the same framework regardless of market conditions, helping to maintain investment discipline over the long term.
INVESTMENT TEAM
Franklin Templeton Investment Solutions
Franklin Templeton Investment Solutions (FTIS) is a global leader in multi-asset, quantitative, and hedged solutions, offering clients a single point of access to public and private market capabilities. Through deep research, active management, and data-driven insights, FTIS creates customised solutions designed to meet the evolving needs of investors in an increasingly complex market environment.
Resources
Dive deeper
Explore the thinking, the process and the people that power our systematic approach.
More Information?
Speak with your local Franklin Templeton representative about how this strategy could fit your clients' portfolios.
FAQs
Frequently Asked Questions
Systematic investing is an active investment approach that uses quantitative models, data analysis and a disciplined, rules-based process to identify investment opportunities. Rather than relying on subjective stock picking, every company is assessed consistently using a repeatable framework grounded in research and empirical evidence. The approach combines the discipline and scalability often associated with quantitative investing with active portfolio construction designed to pursue excess returns.
Unlike an index fund, which simply seeks to track a benchmark, the Franklin Global Systematic Equity Fund uses a systematic multi-factor process to identify companies with attractive characteristics and outperform over time. The portfolio is actively managed and benchmark-aware, drawing on factors such as quality, value, sentiment and other proprietary signals to construct a diversified portfolio of global equities. The objective is to deliver a more consistent source of excess return while maintaining disciplined risk management.
The Fund employs a multi-factor investment process that evaluates companies across a range of proven return drivers, including quality, value, sentiment and diversifying alternative signals. Rather than relying on a single factor or style, the Fund combines multiple signals in a dynamic framework designed to adapt to changing market environments, while maintaining diversification and robust portfolio construction.
The Fund can be used as a core global equities allocation or alongside existing active global equity managers. Because it relies on quantitative signals rather than discretionary stock selection, it can provide a differentiated source of alpha and help diversify return drivers within a portfolio. The Fund also seeks to improve cost efficiency by offering access to active management at a fee level that is typically lower than many traditional active global equity strategies.
Investors increasingly face a choice between low-cost passive strategies and higher-cost active managers. The Franklin Global Systematic Equity Fund aims to bridge that gap by combining the efficiency and cost advantages associated with passive investing with the return potential of an actively managed portfolio. The strategy is supported by decades of systematic investing experience, a disciplined research process, sophisticated risk management and a long-term track record of benchmark outperformance across multiple time periods.
Yes. The Franklin Global Systematic Equity Fund is available on the ASX as the FGSE Active ETF, providing investors with access to the strategy through a listed vehicle while retaining the same active systematic investment approach.