Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Franklin Small Mid Cap Growth VIP 2 Release date as of 2024-10-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Morningstar Report Overall Morningstar Rating™ What is this? As of 2024-10-31 Out of 512 Mid-Cap Growth Funds Morningstar® Style Box™ What is this? As of 2024-09-30 Total Fund Assets ($ Mil) 438.47 View Historical Morningstar Star Ratings and Definitions

Investment Objective & Strategy   The investment seeks long-term capital growth. The fund invests at least 80% of its net assets in investments of small-capitalization (small-cap) and mid-capitalization (mid-cap) companies. It invests predominantly in equity securities, predominantly in common stock. The fund, from time to time, may have significant positions in particular sectors.

Morningstar Category: Mid-Cap Growth Some mid-cap growth portfolios invest in stocks of all sizes, thus leading to a mid-cap profile, but others focus on midsize companies. Mid-cap growth portfolios target U.S. firms that are projected to grow faster than other mid-cap stocks, therefore commanding relatively higher prices. Stocks in the middle 20% of the capitalization of the U.S. equity market are defined as mid-cap. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high valuations (high price ratios and low dividend yields).

Investment Risks Mid Cap Funds: The securities of companies with market capitalizations below $10 billion may be more volatile and less liquid than the securities of larger companies.

Portfolio Profile Asset Allocation % of Net Assets U.S. Stocks 94.2 Non-U.S. Stocks 1.6 Bonds 0.2 Cash 2.2 Other 1.8 Data through 2024-09-30 Morningstar Equity Sectors % of Stocks Cyclical 27.61 Basic Materials 0.00 Consumer Cyclical 13.22 Financial Services 12.47 Real Estate 1.92 Sensitive 56.39 Communication Services 6.16 Energy 4.09 Industrials 17.69 Technology 28.45 Defensive 16.00 Consumer Defensive 2.49 Healthcare 13.51 Utilities 0.00 Data through 2024-09-30 Holding Status Total Number of Stock Holdings 90 Total Number of Bond Holdings 1 % of Net Assets in Top 10 Holdings 20.92 Turnover % (as of 2023-12-31) 43.03 30 Day SEC Yield % -0.22 Top Holdings Sector P/E % of Net Assets Ares Management Corp Ordinary Shares - Class A 86.43 2.37 Axon Enterprise Inc 111.74 2.18 Franklin IFT Money Market --- --- 2.13 Gartner Inc 47.81 2.12 Verisk Analytics Inc 42.40 2.11 Fair Isaac Corp 104.74 2.07 Paychex Inc 29.71 2.06 Trane Technologies PLC Class A 33.93 2.00 Old Dominion Freight Line Inc Ordinary Shares 35.20 1.95 DoorDash Inc Ordinary Shares - Class A --- 1.93 Data through 2024-09-30

Principal Risks    Loss of Money, Not FDIC Insured, Growth Investing, Active Management, Market/Market Volatility, Other, Restricted/Illiquid Securities, Portfolio Diversification, Small Cap, Mid-Cap Show Risk Definitions

Other Information Inception Date: 1999-01-06 Portfolio Manager(s) Jennifer Chen   (2024-09-30) Jennifer Chen is a research analyst with the Franklin Equity Group. She specializes in the equity research and analysis of companies in the media, entertainment, and video gaming industries. Prior to joining Franklin Templeton in 2021, Ms. Chen was a private equity director at Saban Capital Group, a media and entertainment-focused investment firm. She started her career as an investment banking analyst in the mergers and acquisitions group at Morgan Stanley. Ms. Chen earned her BS in business administration from UC Berkeley and her MBA from Stanford Graduate School of Business Michael McCarthy   (1995-11-01) Michael McCarthy is executive vice president and portfolio manager for Franklin Equity Group (FEG). He is the lead portfolio manager for the Franklin Small Cap Growth strategy, and also assists with the management of the Franklin Small-Mid Cap Growth strategy, which he has helped manage since its inception in 1992. Mr. McCarthy is a Chartered Financial Analyst (CFA) charter holder and earned his B.A. in history from the University of California, Los Angeles. He is a member of the Security Analysts of San Francisco (SASF) and the CFA Institute John P. Scandalios   (2016-09-01) John P. Scandalios is a vice president, research analyst and portfolio manager with Franklin Equity Group. He is the co-manager of the Franklin Technology Fund, Franklin Small-Mid Cap Growth Fund and is a member of the Technology/Communications Research Team. Mr. Scandalios specializes in research analysis of the semiconductor industry. Mr. Scandalios joined Franklin Templeton Investments(FTI) as an analyst in 1996. Prior to FTI, he completed the management-training program at Chase Manhattan in New York, and was an assistant portfolio manager for Chase Private Bank in Los Angeles. Investment Advisor(s) Franklin Advisers, Inc. Issuer Franklin Templeton Investments Subadvisor(s) ---

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