Franklin Templeton Launches New Franklin Innovation Fund For UK Investors

From Franklin Templeton
Contact Saira Khan
Telephone (0)20 70738644

New diversified portfolio will invest in companies whose growth prospects are poised to benefit from innovation across all sectors and industries

London, 11th November 2019: Franklin Templeton1 today announced the launch of the Franklin Innovation Fund – a sub-fund of the Luxembourg-domiciled Franklin Templeton Investments Funds (FTIF)2 range. This new thematic fund will be led by California-based Portfolio Manager Matthew J. Moberg from the Franklin Equity Group. The new fund has been publicly launched in Luxembourg and is in the process of being registered with the FCA for UK investors.

Franklin Innovation Fund seeks capital appreciation by investing primarily in companies that are leaders in innovation, take on pioneering technologies, have superior management and benefit from new industry conditions in the dynamically changing global economy.

Matt Moberg said: “Innovation is often mispriced – it is adopted faster than expected and frequently has long-lasting effects. We believe, we are experiencing a new industrial revolution in which disruptive technologies, innovative processes and new modes of communication are proliferating. We view today as similar to a period in the late 1800s, when the telegram, electricity, indoor plumbing, photographs and the internal combustion engine re-made the world we live in. It was a period of tremendous wealth creation, if you were on the right side of that innovation. We strive to invest at the intersection where new ideas can make great long-term investments.”

The fund will invest in companies in any economic sector and of any market capitalisation globally and is expected to focus its principal geographic exposure on the US market. In selecting equity investments, the investment team utilises fundamental, bottom-up research to seek companies meeting its criteria of sustainable growth and a large investable market driven by innovation.

The investment team believes in three key tenets as part of its investment philosophy:

  1. Innovation drives wealth creation in the economy: the investment team aims to hold “generational companies”. These are companies whose business models are so disruptive and innovative with exposure to powerful secular tailwinds that they may grow well in excess of GDP for five, 10, and - in some cases - even 20 years, ideally.
  2. Investing in innovation demands active management: innovation has been and continues to be one of the most misunderstood parts of the market. Active management is needed to navigate through this environment more than ever before, as some technologies may be in stages too early to be investable. In other instances, active management is helpful to understand where the best business models attach to innovation.
  3. Innovation occurs in all parts of the economy: the investment team can invest in any company regardless of sector classification or market cap. The investment team finds misclassifications exciting and sees them as opportunities and evidence that everyone else sees the world differently than they do.

Martyn Gilbey, UK Country Head, Franklin Templeton commented: “We believe that companies whose long-term growth prospects are poised to benefit from innovation provide compelling opportunities for UK investors. We have seen increasing interest in thematic offerings as clients look for strategies that address the ongoing creative disruption and key innovation themes, such as e-commerce, genetics breakthroughs, new finance, robotics, and artificial intelligence. We are pleased to offer UK-based investors access to an additional choice to help support their long-term wealth creation goals.”

The investment team will be supported by the 30+ research analysts of the Franklin Equity Group, which brings together more than six decades of investment experience offering in-depth expertise in managing growth, value and hybrid/balanced equity strategies that cover global, regional and sector specialties.

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Franklin Templeton Launches New Franklin Innovation Fund For UK Investors

Contacts:

Franklin TempletonFTI Consulting
Saira KhanGabriella Ruggiero
Corporate Communications ManagerConsultant
Franklin Templeton, Cannon Place, 78 Cannon StreetFTI Consulting, 200 Aldersgate Street
London EC4N 6HLLondon EC1A 4HD
Tel: 020 7073 8644Tel: 020 3727 1026
Email: saira.khan@franklintempleton.co.ukEmail: gabriella.ruggiero@fticonsulting.com

Notes to Editors:

    1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization operating as Franklin Templeton. Franklin Templeton’s goal is to deliver better outcomes by providing global and domestic investment management to retail, institutional and sovereign wealth clients in over 170 countries. Through specialized teams, the company has expertise across all asset classes, including equity, fixed income, alternatives and custom multi-asset solutions. The company’s more than 600 investment professionals are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With employees in over 30 countries, the California-based company has more than 70 years of investment experience and over $692 billion in assets under management as of September 30, 2019. For more information, please visit www.franklintempleton.co.uk.
    2. Franklin Innovation Fund is a sub-fund of Franklin Templeton Investments Funds (FTIF), a Luxembourg-domiciled SICAV. Subscriptions to shares of FTIF can only be made on the basis of the current prospectus, and, where available, the relevant Key Investor Information Document, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. The value of shares in FTIF and income received from it can go down as well as up, and investors may not get back the full amount invested.

Past performance is not an indicator or a guarantee of future performance. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. In emerging markets, the risks can be greater than in developed markets.

An investment in FTIF entails risks, which are described in the FTIF’s prospectus and, where available, the relevant Key Investor Information Document. Investments in derivative instruments entail specific risks that may increase the risk profile of the fund and are more fully described in FTIF’s prospectus and where available in the relevant Key Investor Information Document. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a fund’s holding at any one time.

No shares of FTIF may be directly or indirectly offered or sold to nationals or residents of the United States of America. Shares of FTIF are not available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any plans to invest.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes. For more information, UK investors should contact: Franklin Templeton, Cannon Place, 78 Cannon Street, London EC4N 6HL. United Kingdom. Phone: 0800 305 306, Email: ftisalessupport@franklintempleton.co.uk

Issued by Franklin Templeton Investment Management Limited (FTIML). FTIML is authorised and regulated in the United Kingdom by the Financial Conduct Authority.

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