Franklin Templeton launches Core Enhanced Equity funds for UK investors, combining systematic investing with active conviction

New OEIC range offers a cost-efficient core by integrating factor-based investing with a proprietary conviction signal

London, 13 April 2026 – Franklin Templeton¹, a leading global asset manager, has launched a range of enhanced indexing funds for UK investors which combine systematic factor-based investing with a proprietary “conviction” signal derived from its fundamental managers. Covering UK, Europe ex-UK, US and global equities, the actively managed strategies are available as sub-funds of the Franklin Templeton Funds (FTF) OEIC range.

The strategies translate stock-picking insights from Franklin Templeton’s fundamental managers into an additional source of return within a systematic framework. Designed to stay close to their benchmarks while seeking incremental outperformance, the funds are intended to serve as cost-efficient core building blocks within diversified portfolios.

Developed and managed by the Franklin Templeton Investment Solutions (FTIS) team, the four strategies reflect a “for portfolio allocators, by portfolio allocators” approach, combining systematic investing with insights drawn from Franklin Templeton’s active equity capabilities.

Harry Reeves, Head of UK Wholesale at Franklin Templeton, said: “This new suite of OEIC funds reflects our continued focus on broadening the range of solutions available to UK investors. These strategies are designed to complement both traditional index and active approaches. By embedding conviction within a quantitative framework, they are a cost‑efficient alternative to full active management, while retaining a disciplined approach to risk and diversification. As portfolio construction continues to evolve, we believe approaches that combine different investment disciplines can play a valuable role in helping clients build resilient, cost-conscious portfolios which are competitive in fees with other enhanced index and factor-based solutions.”

Key features of the Franklin Core Enhanced Equity Funds:

The Franklin Core Enhanced Equity Funds are built on a time-tested process that draws on the firm’s 40-plus years of experience at the forefront of quantitative investing. They start with an active, factor-based quantitative strategy, which is then enhanced with Franklin Templeton’s fundamental equity expertise through a proprietary “conviction” factor.

Analysis by FTIS has shown the conviction factor to be less correlated to other more traditional quantitative factors, thereby increasing diversification within the portfolios through its inclusion. The funds also feature a tracking error risk-control overlay, supporting downside resilience and tight benchmark alignment. In addition, proprietary risk management allows the funds to target alpha driving factors and mitigate any unwanted exposures or incidental tilts. The process draws on both Franklin Templeton’s long history of innovation in the quantitative arena and the firm’s 75-plus years of experience in active management.

Lisa Wang, Head of EMEA Investment Strategy at FTIS, said: “The challenge we set ourselves was to harness our active managers’ proven skills by transforming their qualitative insights into a systematic factor. By extracting this ‘conviction’ factor from managers’ research-intensive stock selection, we can add a valuable extra layer of investment insight to an underlying process that remains fully systematic and tightly risk managed.”

The Franklin Core Enhanced Equity Funds seek to deliver above-market returns while limiting deviation from their benchmark indices. They target a tracking error of 1.25% during normal market conditions. They are the first systematic equity products in the UK to integrate the in-depth fundamental research insights of Franklin Templeton’s active managers.

The funds are managed by a seasoned team that includes Brett E. Risser, Head of Quantitative Equity Portfolio Management; Jacqueline Hurley Kenney, Head of Solutions Research; and Adrian Chan, Head of Quantitative Investments. Each team member brings deep expertise in quantitative research and portfolio management.

Officially launched in the UK on 10th April and available through a variety of platforms, the Franklin Core Enhanced Equity Funds range consists of the following:

• FTF Franklin Core UK Equity Enhanced Index Fund²
• FTF Franklin Core Europe ex UK Equity Enhanced Index Fund²
• FTF Franklin Core US Equity Enhanced Index Fund²
• FTF Franklin Core Global Equity Enhanced Index Fund²

Harry Reeves added: “We believe this is the kind of product UK advisers and their clients will value in a challenging global backdrop. We expect a healthy appetite for strategies that can serve as core building blocks in portfolios, deliver more consistent outperformance against their benchmarks and keep a tight rein on tracking error.”

Franklin Templeton Investment Solutions (FTIS) is a global leader in multi-asset, quantitative and hedged solutions, offering clients a single point of access to public and private market capabilities. Through deep research, active management and data-driven insights, FTIS creates customised solutions designed to meet the evolving needs of investors in an increasingly complex market environment.

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Contacts:

Saira Khan Senior Corporate Communications Manager Franklin Templeton Investments Cannon Place, 78 Cannon Street London EC4N 6HL Tel: +44 20 7073 8644 Email: [email protected]

Constanze Ullmann Senior Corporate Communications Manager Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: +44 20 7070 7438 Email: [email protected]

Notes to Editors:

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.

1. Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients’ strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity. With $1.7 trillion in assets under management as of March 31, 2026, Franklin Templeton operates globally in more than 35 countries. Franklin Templeton, present in Italy for 30 years, is among the leading foreign asset managers in the country. For more information, please visit www.franklintempleton.it.
   
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2. The FTF Franklin Core UK Equity Enhanced Index Fund, the FTF Franklin Core Europe ex UK Equity Enhanced Index Fund, the FTF Franklin Core US Equity Enhanced Index Fund and the FTF Franklin Core Global Equity Enhanced Index Fund are sub-funds of Franklin Templeton Funds (FTF), a UK-domiciled OEIC range. For further information, please refer to relevant Key Investor Information Document. Past performance is no guarantee of future performance. This document does not constitute nor form part of any offer for shares or an invitation to apply for shares. Subscriptions for shares can only be made on the basis of the Fund’s current prospectus and the relevant Key Investor Information Document, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. The price of the shares of the Funds and the income received from them can go down as well as up, and investors may not get back the full amount invested. Currency fluctuations may affect the value of overseas investment. An investment in the Franklin Templeton Funds OEIC funds entails risks, which are described in the Fund’s prospectus and relevant Key Investor Information Document.
3. To avoid any misunderstanding, if you decide to invest, you will be purchasing units/shares of the fund and not directly investing in the underlying assets of the fund. Past performance is not a guarantee of future results. This press release is intended solely for general information purposes and does not constitute professional advice. Franklin Templeton and its management groups have exercised care and professional diligence in collecting and processing the information contained in this press release. Franklin Templeton makes no representations and warranties regarding the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for any inaccuracies in the information contained in this press release or for any errors or omissions in its content, regardless of the cause of such inaccuracy, error, or omission.

This press release is intended to be of general interest only and does not constitute professional advice. Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes. Please consult your financial advisor before deciding to invest.

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