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."


Matthew Moberg

Matthew Moberg

  • Joined Franklin Templeton in 1998
  • Managed Fund Since 2004


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.


• 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.


• 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.
• Consider whether security prices fully reflect the balance of the sustainable growth opportunities relative to the  business and financial risks.


Overall Morningstar Rating As of 09/30/2019

Rating Category: Large Growth

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 09/30/2019

Years Ratings Funds
in category
5 Stars
5 Stars
5 Stars

Morningstar Style Box As of08/31/2019

Strategy, Benefits, Results


We use fundamental, bottom-up research to find innovative, fast-growing companies that meet our criteria of

  • Growth. We focus on companies with the potential to produce sustainable earnings and cash-flow growth.
  • Quality. We seek high-quality companies with strong management teams and financial strength.
  • Valuation. We assess whether the growth opportunity is already reflected in the stock price.


  • Participate in trends moving markets. Invest in innovative sectors—technology, medicine, global communications—that we believe are poised for long-term growth.
  • Tenured and experienced. Portfolio management team has a combined 56 years of industry experience.
  • Distinct research structure. Our investment professionals are organized into collaborative sector teams.

Selling The Fund

  1. Highlight the fund's historically strong calendar-year track record.
  2. Discuss the fund's focus on leading, quality companies that have a unique technological advantage over their competitors.