Fund Evaluator:
Franklin Templeton SMACS: Series EM (FQEMX)
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Best Performing in Diversified Emerging Mkts Over the Last Year
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| 51.1% | WCM Focused Emerging Mkts Ex Chn Inv (WCFEX) |
| 47.2% | Matthews Emerging Markets Sust Fut Inv (MASGX) |
| 46.5% | Lazard Emerging Markets Equity Instl (LZEMX) |
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Fund Details
Franklin Templeton SMACS: Series EM Overview
Franklin Templeton SMACS: Series EM (FQEMX) is an actively managed International Equity Diversified Emerging Mkts fund. Franklin Templeton Investments launched the fund in 2021.
The investment seeks long-term capital appreciation. Under normal market conditions, the fund invests predominantly in securities of companies located or operating in “emerging market countries.” Its investments in equity securities may include investments in the securities of companies of any capitalization, including smaller or mid-size companies. In addition to the fund's main investments, it may invest up to 20% of its net assets in the securities of issuers in developed market countries. The fund is non-diversified.
About Franklin Templeton SMACS: Series EM (FQEMX)
There are 2 members of the management team with an average tenure of 4.78 years: Chetan Sehgal (2021), Andrew Ness (2021). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: MSCI EM NR USD index with a weighting of 100%. Franklin Templeton SMACS: Series EM has 62 securities in its portfolio. The top 10 holdings constitute 68.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Franklin Templeton SMACS: Series EM is part of the Equity global asset class and is within the International Equity fund group. Franklin Templeton SMACS: Series EM has 95.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 3.5%. There is 95.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Franklin Templeton SMACS: Series EM has 1.2% of the portfolio in cash.
Assets Under Management
The fund has $2 million in total assets, which is below the $967 million average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FQEMX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin Templeton SMACS: Series EM expense ratio is low compared to funds in the Diversified Emerging Mkts category. Franklin Templeton SMACS: Series EM has an expense ratio of 0.00%, which is 100% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin Templeton SMACS: Series EM has a portfolio turnover rate of 18%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 68% for the Diversified Emerging Mkts category.
Recently, in the month of July 2026, Franklin Templeton SMACS: Series EM returned -14.4%, which earned it a grade of F, as the Diversified Emerging Mkts category had an average return of -4.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Franklin Templeton SMACS: Series EM has a trailing yield of 2.05%, which is above the 1.72% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Franklin Templeton SMACS: Series EM Grades
Year to date, the fund has returned 55.4%, 36.3 percentage points better than the category, which translates into a grade of A. The fund has returned 94.6% over the past year (grade of A) and 37.6% over the past three years (grade of A).
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FQEMX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FQEMX Return (NAV) | -14.4% | 10.0% | 94.6% | 37.6% | na | na |
| FQEMX Grade | F | A | A | A | na | na |
| +/- Category | -9.5% | 7.5% | 58.7% | 19.6% | na | na |
| Diversified Emerging Mkts Avg | -4.9% | 2.4% | 35.9% | 17.9% | 6.5% | 8.7% |
| FQEMX Tax Cost Ratio | na | na | 1.3% | 1.5% | na | na |
FQEMX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FQEMX Return (NAV) | 55.4% | 55.9% | 6.7% | 12.2% | -20.7% | na | na | na | na | na | na |
| FQEMX Grade | A | A | C | B | B | na | na | na | na | na | na |
| +/- Category | 36.3% | 24.5% | 0.4% | 0.1% | 1.9% | na | na | na | na | na | na |
| Diversified Emerging Mkts Avg | 19.1% | 31.4% | 6.2% | 12.1% | -22.6% | -0.2% | 21.6% | 21.9% | -16.4% | 36.6% | 8.6% |
| Risk Measures | |
| Standard Deviation: | 31.4% |
| Total Risk Index: | 2.56 - High |
| Category Risk Index: | 1.88 - High |
| Category Risk Grade: | F (101% Rank) |
| Beta: | 1.73 |
| R-Squared: | 58% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 2.1% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $2 Mil |
| Fund Total Assets: | $ 2 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 18% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 4.8 years | |||
| Average Tenure: 4.8 years | |||
| Managers (Year): Sehgal Chetan (2021), Ness Andrew (2021) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 62 |
| % in Top 10 Holdings: | 68.8% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 95.4% |
Portfolio Allocation |
|
| Domestic Stock: | 3.5% |
| Foreign Stock: | 95.4% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.2% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-632-2301 |
| Website: | www.franklintempleton.com |
| Status: | Open |
| Inception Date: | October 20, 2021 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.00% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 1.16% |
| Share Class: | Franklin Templeton SMACS: Series EM |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
