Franklin Biotechnology Discovery Fund

Fund Description

The fund seeks capital appreciation by investing at least 80% of its net assets in securities of biotechnology companies and discovery research firms including those involved in fields such as genomics, genetic engineering, and gene therapy, as well as health care, pharmaceuticals and agriculture.

Strategy Statement

"With the increasing demand for new medical treatments driving earnings growth, and many profitable firms to choose from, we believe now is an exciting time to invest in the biotechnology sector."

Evan McCulloch, CFA®


Evan McCulloch, CFA

Evan McCulloch, CFA®

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 1997
Wendy Lam, Ph.D

Wendy Lam, Ph.D

  • Joined Franklin Templeton in 2016
  • Managed Fund Since 2018
Akiva Felt

Akiva Felt

  • Joined Franklin Templeton in 2018
  • Managed Fund Since 2020


Investment Philosophy

The Franklin Equity Group philosophy holds that companies with the potential for long-term sustainable growth can provide significant opportunities for investors. Market participants can have a short-term perspective and may under appreciate the potential for value created by sustainable growth. We believe that we have the potential to deliver superior risk-adjusted returns by identifying companies with potential for sustainable growth which we believe is not reflected in current prices.

Investment Process

Within a collaborative environment, our team utilizes fundamental, bottom-up research to focus on companies that we believe have sustainable growth characteristics—meeting our criteria of Growth, Quality and Valuation.

• 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 seeking to identify target leaders and emerging leaders
• 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
• Consider a range of potential outcomes based on an assessment of multiple scenarios
• Evaluate whether, in our view, security prices fully reflect the balance of the sustainable growth opportunities relative to the business and financial risks


Overall Morningstar Rating As of 06/30/2021

Rating Category: Health

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 [further-information] As of 06/30/2021

Years Ratings Funds
in category
2 Stars
2 Stars
2 Stars

Morningstar Style Box As of05/31/2021

Strategy, Benefits, Results


  • We take a bottom-up approach to individual stock selection.
  • We look for companies that possess products with favorable competitive profiles, large market opportunities and strong intellectual property.
  • We favor companies with excellent management, strong financial characteristics and attractive valuations.
  • Our San Francisco Bay Area location is shared by many leading biotechnology companies, enabling us to easily attend scientific meetings and symposia, and to consult with community and academic physicians.


  • Participate in trends moving markets. Invest in innovative sectors—technology, medicine, global communications—we believe are poised for long-term growth.
  • Diversification. By adding investments from different sectors to your portfolio, you may take advantage of expanding and contracting economic cycles.
  • Experienced management. Same lead portfolio manager since the fund's inception in 1997.