Franklin Templeton Introduces Innovative Core Enhanced Equity Funds to UK Investors

• Franklin Core Enhanced Equity Funds offer a unique quantitative investment approach that includes the insights of Franklin Templeton’s Specialist Investment Managers
• Cost-effective core portfolios that combine the best features of active and passive management, without introducing excess risk

 

London, 13 October 2025 – Franklin Templeton¹ is pleased to announce the launch of the FTIF Franklin Core Global Enhanced Equity Fund² and FTIF Franklin Core U.S. Enhanced Equity Fund², sub-funds of the Luxembourg-domiciled Franklin Templeton Investments Funds (FTIF) range. The funds are Franklin Templeton’s first systematic equity products to incorporate the fundamental research insights of the firm’s most prominent active investment managers. This innovative approach is designed to be scalable across asset classes and product wrappers.

Developed and managed by Franklin Templeton Investment Solutions (FTIS), both funds are actively managed, and will seek to deliver above market returns, while maintaining smaller deviation (tracking error) from core indices, a risk management approach that may be beneficial for many client portfolios.

Andrew Ashton, Head of UK commented: “The Franklin Core Enhanced Equity funds offer a compelling solution for modern portfolios. Positioned between traditional active and passive equity approaches, these cost-effective strategies, with their tightly managed tracking error, are designed to help investors pursue more consistent outperformance against the index. By leveraging the insights from Franklin Templeton’s active fundamental managers, we’re proud to offer this innovative core building block to UK investors.”

Key features of the Franklin Core Enhanced Equity Funds

The Franklin Core Enhanced Equity Funds pursue an actively managed, quantitative process to dynamically invest in equity securities while keeping the expected level of tracking error between 1- 2% in normal market conditions. The funds employ a proprietary quantitative selection process using a multi-factor model to assign a weighted score across quality, value, sentiment and alternatives factors. The process also incorporates an alpha score derived from the proprietary signals and insights of Franklin Templeton’s Specialist Investment Managers.

Designed to be a foundational equity allocation, the Franklin Core Enhanced Equity funds are sector, industry and factor neutral, with the global portfolio also offering diversified exposure across major regions.

Adam Petryk, Head of Franklin Templeton Investment Solutions added: “With a long track record of consistent returns, our quantitative portfolios are built with diversification and risk management at their core. These new Core Enhanced strategies utilise our long-standing quantitative approach supplemented by the addition of these fundamental insights. We have strong conviction in this approach and, as part of our commitment to expanding our European presence and meeting evolving client needs, we plan to extend this offering across asset classes, jurisdictions, and investment vehicles.”

The Franklin Core Global Enhanced Equity Fund and the Franklin Core U.S. Enhanced Equity Fund will be managed by a seasoned team including Brett E. Risser, Head of Quantitative Equity Portfolio Management; Jacqueline Hurley Kenney, Head of Solutions Research; Dawei Zhou, Head of Equity Factor Research, and Adrian Chan, Head of Quantitative Investments, each bringing deep expertise in quantitative research and portfolio management.

Harry Reeves, Head of UK Wholesale concluded: “We’re seeing strong client demand for core enhanced index strategies, driven by a continued focus on cost efficiency. While passive strategies offer predictability, many investors are increasingly seeking smarter solutions that retain the potential for alpha generation while reducing excess volatility relative to the benchmark, especially within the core of their portfolios. These strategies have been specifically designed to deliver that balance at the heart of client portfolios. Additionally, we’re able to leverage Franklin Templeton’s deep pool of analysts and fund managers across global markets to deliver additional alpha, bringing a powerful edge to our enhanced index approach.”

Franklin Templeton Investment Solutions (FTIS) is a global leader in multi-asset, quantitative, and hedged solutions, offering clients a single point of access to public and private market capabilities. Through deep research, active management, and data-driven insights, FTIS creates customized solutions designed to meet the evolving needs of investors in an increasingly complex market environment.

 

-ENDS-

Contacts:

Saira Khan Senior Corporate Communications Manager Franklin Templeton Investments Cannon Place, 78 Cannon Street London EC4N 6HL Tel: +44 20 7073 8644 Email: [email protected]

Shelly Durrant Corporate Communications Manager Franklin Templeton Investments Cannon Place, 78 Cannon Street London EC4N 6HL Tel: +44 20 7073 8521 Email: [email protected]

Notes to Editors:

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions.

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialisation on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.66 trillion in assets under management as of 30 Septmeber 2025. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, X, and Facebook.
2. The FTIF Franklin Core Global Enhanced Equity Fund and FTIF Franklin Core U.S. Enhanced equity fund are sub-funds 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.
3. This product is based overseas and is not subject to UK sustainable investment labelling and disclosure requirements

This press release is intended to be of general interest only and does not constitute professional advice. Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes.

Please consult your financial advisor before deciding to invest.

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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