CONTACT
Franklin Templeton
Aimee Corsiglia
+61 448 126 555
Sydney, 8 July 2021 – Value investing has stolen some of growth’s lustre in recent months as cheaper value stocks have outperformed since late 2020. But for many investors, the case for investing in global growth equities today remains compelling.
This year in June, the Franklin Global Growth Fund eclipsed A$1 billion in assets, attracting strong inflows in recent months as investors position for the economic recovery from the Covid-19 pandemic and beyond.
While some view the pandemic as providing temporary tailwinds for e-commerce and other digital trends underlying some growth stocks, Sydney-based portfolio manager Francyne Mu argues the thesis for investing in these areas for the long term remains as strong as ever.
“Key technological trends accelerated during the Covid-19 pandemic as consumers were forced to embrace new digital behaviours – for instance, the shift to shopping online,” says Ms Mu.
“We were positioned to capitalise on these trends before the pandemic hit and we retain that same level of conviction today.
“In our view, the pandemic served to accelerate many of these trends, and over the long run, companies in these sectors continue to be well-positioned for substantial growth.”
Ms Mu identifies four key digital growth trends that present attractive opportunities for global investors: e-commerce, cybersecurity, online education and digital payments.
“Take cybersecurity as an example. The shift last year to employees working from home increased the need for cybersecurity software and accelerated the adoption of cloud-based applications. We believe that business is likely to stick as enterprises make permanent changes to support a more mobile
workforce,” says Ms Mu.
“To capitalise on these long-term secular growth trends, we employ in-depth, bottom-up research to uncover high-quality growth companies that have both the technological and operational prowess to build lasting competitive advantages in these areas.”
Matthew Harrison, managing director of Franklin Templeton Australia & New Zealand, notes that while growth equities can be volatile, they importantly provide investors access to innovation that can unlock
long-term value.
“We recognise and value the trust clients put in us to manage their assets, particularly with a high-conviction style portfolio like the Franklin Global Growth Fund,” says Mr Harrison.
“Over the fund’s 13-year history, the investment team have demonstrated the ability to identify innovative companies across geographies and sectors that are well-positioned for long-term growth, delivering strong outcomes for investors,” he adds.
Key Facts about Franklin Global Growth Fund
Investment Objective: The Fund aims to achieve long-term capital appreciation by investing primarily in equity and/or equity-related securities of companies throughout the world – in both developed and emerging
markets – of any market capitalisation. The Fund aims to outperform the MSCI World ex Australia Index-NR, in Australian dollar terms after fees and expenses (but before taxes).
Fund Highlights:
- A high conviction, concentrated yet diversified portfolio of high-quality growth stocks
- Benchmark indifferent – invests outside the well-known mega-cap universe (e.g. currently no exposure to FAANGs)
- Employs a forward-looking risk management approach
Performance (AUD %, net of fees)
As at 31 May 2021
| 1 Yr | 3 Yrs | 5Yrs | 10 Yrs |
Since Inception (01/10/2008) |
|
| Franklin Global Growth Fund | 21.97 | 18.18 | 17.61 | 16.10 | 13.03 |
| MSCI World ex-Australia Index-NR* |
20.41 | 13.63 | 12.79 | 14.05 | 9.96 |
*Benchmark. Net Returns (NR) include income net of tax withholding when dividends are paid.
Further information on the Fund is available here.
For all media queries, please contact Simrita Virk
E: [email protected]
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in
more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience. In July 2020, Franklin Templeton completed the acquisition of Legg Mason, Inc. [NYSE:LM] and its specialist investment managers. The newly-combined
organisation establishes Franklin Templeton as one of the world’s largest independent, specialised global investment managers with a combined approximately US$1.5 trillion in assets under management (AUM) across one of the broadest ranges of high-quality investment teams in the industry
as of 31 May 2021. For more information, please visit www.franklintempleton.com.au.
Disclaimers
Issued by Franklin Templeton Investments Australia Limited (ABN 87 006 972 247, AFSL 225328) which is part of Franklin Resources, Inc.
Past performance is not an indicator or a guarantee of future performance.
This publication is issued for information purposes only and does not constitute investment or financial product advice. It expresses no views as to the suitability of the services or other matters described in this document as to the individual circumstances, objectives, financial situation, or needs of any recipient. You should assess whether the information is appropriate for you and consider obtaining independent taxation, legal, financial or other professional advice before making an investment decision.
A Product Disclosure Statement (PDS) for any funds referred to in this document is available from Franklin Templeton at www.franklintempleton.com.au or by calling 1800 673 776 or Legg Mason Australia at www.leggmason.com.au. or by calling 1800 679 541. The PDS and associated reference documents should be read before making an investment decision.
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