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Heading towards a new digital reality

The outbreak of Covid-19 has forced a number of behavioural changes throughout societies across the globe, including how we work, shop and interact with others. These changes are accelerating existing dynamics at a faster pace, including the drive towards digitalization of business and consumer behavior. Jonathan Curtis, Head of Franklin Equity Group’s Technology Sector Research Team, believes that companies ahead of the digital transformation trend will lead coming out of the crisis. Learn more in the video.

Key drivers of innovation and Technology growth

Technology is fueling disruptive innovation, streamlining outdated processes, and creating new possibilities.

While new technologies have already changed our world, the pace of innovation is continuing to accelerate. The coming decades will feature even more growth in digital technologies, tools, and services. Where are the potential investment opportunities?

Artificial Intelligence

Enables data analysis using automated computing processes at scale

Examples: Alibaba, Facebook, Google1

Cloud Computing

Supports companies in scaling their digital businesses globally at low cost

Example: Amazon1

Financial Services (Fintech)

Key to new commerce growth, allowing for digital transactions

Example: Tencent1

Internet-of-Things (IoT)

A rich source of consumer and business process data

Example: Qualcomm1

Software as a Service (SaaS)

Provides enterprises with a more efficient way to attract new customers while scaling operations

Example: Salesforce1

E-commerce

Connects buyers and sellers no matter how far apart

Examples: MasterCard, Alibaba1

Medical Technology

New pharmaceutical technologies offer new treatment options for patients and advancements in healthcare

Example: Illumina Inc.1

As technology becomes more integrated into business processes and consumer behaviour, the sector has grown enormously.

Capitalise on the growth themes in digital transformation with our funds.

Capitalising on technology sector's growth

Is your portfolio keeping up with the pace of innovation?

Technology firms are increasingly central to the economy and businesses. The sector is dominating the equity markets and will continue to grow as a result of the digital transformation megatrend; seven out of the ten most valuable companies are technology related.2 Relative to growth potential, the valuations of the technology sector (price-to-earnings ratio) remain reasonable and are nowhere near the dotcom era peak.3 The sector is the second most profitable sector in the S&P 500 Index.4

Most Valuable Companies by Market Capitalisation (USD billion)2

70%

are technology-related firms

Our funds

The diversity of technology sub-sectors and the prevalence of technology in daily life make a strong argument for treating technology as a core element of investor portfolios.​

We offer a full range of equity funds that put a different ​focus on this sector. Check which one suits best for your investment needs.

20

years

since launch

Franklin US Opportunities Fund*

  • Invests in leading growth companies located in the US - the world‘s largest and most resilient equity market

  • A well-diversified, multi-cap, multi-industry portfolio

  • Leading growth fields in focus are technology, biotech and communications

  • Track record since 2000

20

years

since launch

Franklin Technology Fund*

  • Identifies high-quality technology companies worldwide

  • Capitalizes on investment opportunities arising from digital transformation

  • Focuses on three leading growth themes cloud computing services, the internet of things and e-commerce

  • 20-year anniversary in April 2020

  • Identifies the growth potential of the most innovative companies worldwide

  • Focuses on global e-commerce, genetic breakthroughs, intelligent machines, new finance and exponential data

  • A broadly diversified growth portfolio

  • Launched in 2019 - mirrors a similar fund sold in the US with a successful track record since 1968

  • A single-industry-focused fund that invests in biotechnology companies across all market capitalisations

  • Seeks potential growth from recent breakthrough developments

  • Focuses on biotechnology, emerging pharmaceutical, medical technology and life science tool companies

  • Long fund history since 2000

*Sub-funds of Franklin Templeton Investment Funds, a Luxembourg-registered SICAV ("FTIF").

Our expertise in the technology sector

Technological and digital trends are changing our world at a faster pace than many investors expect.

Headquartered in the middle of the Silicon Valley, the team is located in the proximity of leading technology companies, research universities and Venture Capital firms. This access helps to see investment opportunities and technology-driven disruption before the broader markets.

30

Sector Experts5

Experienced sector experts conduct in-depth research and provide industry coverage across all market caps and styles.