Global equity markets generally declined during the first quarter of 2026.
Consumer discretionary holdings were weak, with key detractors focused on e-commerce companies.
Declines in Axon Enterprise were partially offset by robust returns for specialty construction and electrical equipment companies.
Semiconductor and semiconductor equipment holdings were a source of strength, as Franklin DynaTech Fund's 1.5% decline compared well to the index's 4.8% drop in the same industry.
Franklin DynaTech Fund maintained a large yet underweight exposure to Microsoft, which aided results in the software industry as the stock fell much further than the index.
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Key Takeaways
• Markets: Global equity markets generally declined during the first quarter of 2026 (1Q26) amid heightened volatility, as geopolitical tensions and shifting macroeconomic dynamics weighed on investor sentiment. The conflict in the Middle East emerged as a
