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Innovation is Everywhere

Across all sectors, innovation is a key engine of growth that is creating long-term wealth – and it is accelerating.

FTIF Franklin Innovation Fund1 invests primarily in companies that leverage leading new technologies to benefit as the global economy moves toward a post-pandemic recovery.

Headquartered in Silicon Valley, Franklin Templeton has a proven track record of identifying innovative companies in rapidly evolving areas of the economy such as e-commerce, cloud computing and health care. The importance of investing in innovation has only been reinforced by the coronavirus pandemic.

Key Reasons to Invest

The Franklin Innovation Fund investment team expects five platforms of growth to generate considerable economic value over the next five to ten years.

Global Electronic Commerce

  • General trade

  • Media​

  • The Sharing Economy​

  • Verticals: Travel, Autos, Real Estate, etc.​

  • Transport & Logistics​

Genomic Advances

  • Sequencers & Equipment​

  • Diagnostics​

  • Gene Silencing ​
    or Muting​

  • Gene Editing​

  • Agriculture​

Smart Machines

  • Robotics​

  • 3D Printing​

  • Internet of Things​

  • Automated Driving​

  • Drones​

  • Healthcare Implantables​

New Finance

  • ePayments ​

  • Exchanges​

  • Blockchain​

  • Virtual Currencies​

  • Distributed Lending​

  • Alternative Data​

Exponential Data

  • Artificial Intelligence & Machine Learning​

  • Cloud Computing​

  • Edge Computing​

  • Data Analysis​

  • Augmented & Virtual Reality ​

Global E-Commerce

It’s easy to think that global e-commerce is late stage, but we believe there is much further to go. E-commerce is transforming commercial transactions through streamlined procurement systems, and fostering new online markets such as ride-sharing, home sharing, luxury apparel rental, apparel consignment, and leveraging internet influencers.

Genetic Breakthroughs

The gene was discovered in 1953,5 and it was first sequenced in 2003 at a cost of $100 Million.6 The decreasing cost of genome sequencing is leading to an explosion in new technologies that are designed to extend and enhance the quality of human life, including diagnostics, gene muting, breakthrough therapy, gene editing, health and wellness, and the agricultural use of genetics to improve food taste and quality.

Intelligent Machines

The last 30 years were spent organizing data with mainframes, personal computers, and mobile phones and we believe the next 30 years could repurpose that data to change our lives. Improvements in data, algorithms, and networking have led to new designs with more individualized products, specific to our own needs. Potential investments include autonomous driving, sensor and connector producers, semiconductors that drive artificial intelligence, software that helps in product design, factory automation, and network enablers.

New Finance

The level of innovation that is permeating the marketplace is affecting money itself. Currencies are now backed by algorithms, not just precious metals. Today we are increasingly using data to help price risk appropriately and allocate capital in more efficient ways. And how we pay for things is moving away from cash, checks and credit cards to mobile payments and digital wallets.

Exponential Data

Data, data, data. It is the underlying factor in almost all of our platforms. Without data, none of these platforms would be successful. But data isn’t virtual, it needs to be collected, stored and delivered. That means there need to be overhauls in the amounts and structures of data centers, fiber-optic cable, towers and other supporting infrastructure. Artificial Intelligence, computer power and memory are crucial to the next stage of actually using the data. The creation, cleaning, storage, and delivery of data will lead to new applications like Augmented and Virtual Reality, Artificial Intelligence & Machine Learning, Software as a Service, and the Sharing Economy.

A Diversified Growth Strategy

Why Franklin Innovation Fund

  • Identifies the growth potential of the most innovative companies worldwide
  • Focuses on global e-commerce, genetic breakthroughs, intelligent machines, new finance and exponential data
  • Invests in a broadly diversified growth portfolio
  • Mirrors the strategy of a similar fund in the U.S. with a successful track record since 1968

Resources

Learn more about Franklin Innovation Fund

Brochure

Download

Fund Flyer

Download

Factsheet

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Why Franklin Templeton?

Our focus is always on delivering better outcomes for our clients.

We bring together specialist investment managers with distinct styles to offer clients a full range of capabilities, from traditional to alternative investments. Each manager follows a well-defined investment process rooted in the discipline, rigor and experience gained over decades of successfully navigating global markets—and underpinned by robust risk management protocols at the portfolio and enterprise levels.

Global Scale and Local Insights

Clients can take advantage of the local insight and expertise of our more than 1,200+ investment professionals located in over 34 countries. And our more than 70 years of global investing experience.

Meaningful Innovation

We focus on innovation that’s meaningful to clients. From embedding artificial intelligence into our research and investment decision-making to creating a fintech incubation center on our main campus, we’ve made innovation a cornerstone of our business and culture. And that lets us rapidly harness the power of new technologies and other advances for our clients.

Connections that Matter

We believe in the good that comes from making connections. So we build valuable connections between our clients, our portfolio managers, business leaders, and economic experts. And we connect with the people and organizations in our communities through extensive volunteering and charitable giving.

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All investments are subject to risk, including the possible loss of principal.

Franklin Distributors, LLC., member FINRA/SIPC and a Franklin Templeton affiliated company.

Footnotes:

1. This information is for illustrative purposes only and not necessarily representative of Franklin Innovation Fund’s past of future portfolio composition. There is no assurance that the Fund will invest in any or all of these innovation examples. This information is not intended as an investment recommendation, nor does it constitute investment advice.

Important Legal Information

The information contained in this piece is not a complete analysis of every material fact regarding the market and any industry, sector, security or portfolio. Statements of fact cited by the manager have been obtained from sources considered reliable, but no representation is made as to their completeness or accuracy. Because market and economic conditions are subject to rapid change, opinions provided are valid only as of the date of the material and are subject to change without notice. The manager’s opinions are intended solely to provide insight into how the manager analyzes securities, may differ from that of other affiliated managers, and are not a recommendation or individual investment advice for any particular security, strategy, or investment product. Any securities discussed may not represent an account’s entire portfolio and in the aggregate may represent a small percentage of an account’s portfolio holdings. There is no assurance that any such securities will remain in an account’s portfolio, or that securities sold have not been repurchased. It should not be assumed that any securities transactions discussed were or will prove to be profitable. The information provided should not be considered a recommendation to purchase, sell or hold any particular security. All indexes are unmanaged and cannot accommodate direct investment.

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