Templeton Growth Fund, Inc.

Scorecard
3 / 5 Stars
Lipper
---
Zacks Investment Research
---
Standard & Poor's
3 / 5 Stars
TheStreet.com
D+ (Sell)

U.S. News evaluated 304 World Stock Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

See all Franklin Templeton Investments funds

See full World Stock rankings

See more fund rankings

Note: Profile written for different share class.

Performance

The fund has returned 27.95 percent over the past year, 12.81 percent over the past three years, 21.56 percent over the past five years, and 6.17 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 2.5%
1 Year 27.9%
3 Years (Annualized) 12.8%
5 Years (Annualized) 21.6%
10 Years (Annualized) 6.2%

See more FTGFX performance

Summary

They say that bigger is better, but for Templeton Growth, the jury is still out.

As of March 05, 2014, the fund has assets totaling $17.61 billion. Its portfolio consists primarily of megacap stocks. 

Recently, this large-value fund has suffered, with the downturn exposing a wrinkle in its time-tested strategy. In particular, the fund struggled in 2008 and the opening months of 2009 as the mega caps anchoring its portfolio lagged. Still, the fund is sticking with its approach and counting on large, attractively priced stocks to make a strong rebound. Management will go after out-of-favor stocks and sectors. Lately, management has loaded up on healthcare and developed Europe, which have both underperformed. The fund also had a slow start to 2010. As of third quarter, the fund's returns are still in the red. The fund has returned 27.95 percent over the past year and 12.81 percent over the past three years.

Historically, the fund has put up respectable numbers through value-oriented investments around the globe. It has also maintained a consistent strategy marked by little turnover. Although the fund has posted solid returns over time, its conservative portfolio has sometimes made it hard for investors to cash in on big swings. "The fund's contrarian, value investment philosophy has often put us on the wrong side of momentum markets, as experienced during the recent commodities and credit bubbles and, before that, the technology and Japanese market bubbles. Historically, though, the fund has performed well in the aftermath of these bubbles," the fund notes in its semiannual report. The fund has returned 21.56 percent over the past five years and 6.17 percent over the past decade.

Investment Strategy

The fund looks for attractively priced stocks with strong potential for appreciation. According to the fund's semiannual report: "We focus on the market price of a company's securities relative to our evaluation of the company's long-term earnings, asset value, and cash flow potential. As we look worldwide, we consider specific companies, rather than sectors or countries, while doing in-depth research to construct a bargain list from which we buy."

Role in Portfolio

Morningstar calls it a "core" investment. 

Management

Manager Cindy Sweeting took over in 2007.

Fees

Templeton Growth Fund, Inc. has an expense ratio of 0.71 percent.

See more FTGFX fees

Risk

As with any fund that invests primarily in stocks, this one comes with some risks. 

See more FTGFX risk

Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 3 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 2 for one year, 3 for five years, and 5 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 4 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

In the annual Lipper/Barron's Fund Families Survey for 2009, Franklin Templeton ranks 17th out of 61 fund families surveyed.

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying, "This fund has the backing of a sound and stable corporate culture, and benefits from the firm's extensive analyst staff and overall prudent investment philosophy. Although the firm gets solid marks in most places, we wish it were governed by a board of directors with an independent chairman."

Morningstar 2011-01-04

In the annual Lipper/Barron's Fund Families Survey for 2009, Franklin Templeton ranks 17th out of 61 fund families surveyed.

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying, "This fund has the backing of a sound and stable corporate culture, and benefits from the firm's extensive analyst staff and overall prudent investment philosophy. Although the firm gets solid marks in most places, we wish it were governed by a board of directors with an independent chairman."

Morningstar 2011-01-04

See Also:

Top Franklin Templeton Investments Funds