Fund Evaluator:

Franklin U.S. Large Cap Equity FI Overview

Franklin U.S. Large Cap Equity FI (LMUSX) is an actively managed U.S. Equity Large Blend fund. Franklin Templeton Investments launched the fund in 2008.

The investment seeks long-term capital appreciation. Under normal circumstances, the fund invests at least 80% of its net assets, plus borrowings for investment purposes, if any, in U.S. equity securities or other investments with similar economic characteristics of large capitalization companies. It has exposure to growth and value equities of large capitalization companies. The fund seeks to produce returns that exceed those of the Russell 1000 Index over a full market cycle (typically three to five years).

About Franklin U.S. Large Cap Equity FI (LMUSX)

There are 3 members of the management team with an average tenure of 1.72 years: Christopher Floyd (2022), Brett Risser (2025), Adrian Chan (2026). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 1000 TR USD index with a weighting of 100%. Franklin U.S. Large Cap Equity FI has 122 securities in its portfolio. The top 10 holdings constitute 37.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Franklin U.S. Large Cap Equity FI is part of the Equity global asset class and is within the U.S. Equity fund group. Franklin U.S. Large Cap Equity FI has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.0%. There is 0.0% 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 U.S. Large Cap Equity FI has 1.0% of the portfolio in cash.

Assets Under Management

The fund has $124 million in total assets, which is below the $6 billion average for the Large Blend 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.

LMUSX 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 U.S. Large Cap Equity FI expense ratio is high compared to funds in the Large Blend category. Franklin U.S. Large Cap Equity FI has an expense ratio of 1.05%, which is 30% higher than its category average, making the fund expense ratio grade a D. 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 U.S. Large Cap Equity FI has a portfolio turnover rate of 52%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 48% for the Large Blend category.

Recently, in the month of June 2026, Franklin U.S. Large Cap Equity FI returned -0.1%, which earned it a grade of B, as the Large Blend category had an average return of -0.2%. 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 U.S. Large Cap Equity FI has a trailing yield of 0.00%, which is below the 0.56% 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 U.S. Large Cap Equity FI Grades

Year to date, the fund has returned 10.3%, 1.3 percentage points better than the category, which translates into a grade of B. The fund has returned 25.0% over the past year (grade of A), 22.7% over the past three years (grade of A) and 13.4% per year over the past five years (grade of A) and 15.0% per year over the past 10 years (grade of B).

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