Fund Description

The fund seeks capital appreciation by investing primarily in companies which management believes are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions in the dynamically changing global economy.

Strategy Statement

"We invest in innovation. We believe innovation represents a driving force behind value creation in the economy."

Management

Matthew Moberg

Matthew Moberg

  • Joined Franklin Templeton in 1998
  • Managed Fund Since 2004
Rupert Johnson Jr.

Rupert Johnson Jr.

  • Joined Franklin Templeton in 1965
  • Managed Fund Since 1968

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Strategy
We believe that we can identify investments with the potential to deliver attractive risk-adjusted total returns. We search for long-term investments that seek to exploit a fundamental view that differs from the "market consensus" regarding growth potential or valuation. Our goal is to focus on investment opportunities that we believe offer the most compelling risk-reward trade-off between growth potential, valuation and risk.

Investment Approach
We utilize a flexible and diversified approach, searching across various asset classes including equities, fixed income and convertibles in seeking to meet the fund’s investment objective. The fund normally invests at least 25% of its total assets in equity securities and at least 25% of its total assets in fixed-income securities, including money market securities and the value of convertible and preferred securities that can be attributed to their debt characteristics.

Growth

• Focus on companies with potential to produce sustainable earnings and cash flow growth.
• Evaluate the long-term market opportunity and competitive structure of the industry to target current and emerging leaders.

Quality

• Seek companies with strong and improving competitive positions in attractive markets.
• Identify experienced and talented management teams as well as financial strength reflected in the capital structure, gross and operating margins, free cash flow generation, and returns on capital.

Valuation

• Consider a range of potential outcomes based on an assessment of multiple scenarios.
• Consider whether security prices fully reflect the balance of the sustainable growth opportunities relative to the  business and financial risks.

Rating

Overall Morningstar Rating As of 02/28/2019

Rating Category: Large Growth

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 02/28/2019

Years Ratings Funds
in category
3
5 Stars
1254
5
4 Stars
1114
10
5 Stars
804

Morningstar Style Box As of01/31/2019

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