Franklin Templeton has launched the Franklin Innovation fund - a sub-fund of the Luxembourg-domiciled Franklin Templeton Investments Funds (FTIF) range.
This new thematic fund will be led by California-based portfolio manager Matthew J. Moberg from the Franklin Equity Group.
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.
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.
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.