FRANKLIN TECHNOLOGY FUND - Mark August - Prival
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FRANKLIN TECHNOLOGY FUND
Mark August
Vice President
Product Manager
Franklin Templeton Investments
August 2020
For Financial Advisor Use Only / Not for Distribution to the Public
Contents Our Team and Investment Process Valuations & Overview of the Markets Digital Transformation Opportunity Covid-19 Impacts About Franklin Technology Strategy Q&A For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 1
Summary
• Secular Growth - Several secular growth themes, including Digital Transformation and sub-themes of AI /
machine learning, intelligent machines, cyber security, cloud computing, new commerce, IoT and
Why
financial technology and 5G
Technology
• COVID-19 crisis is accelerating Digital Transformation
Now?
• Valuation - While absolute sector valuations in the Information Technology & Communication Services
sectors have increased, valuations relative to the SP500 appear more reasonable
• Tech is Core - Investors should start thinking about tech as core as digital experiences become central to all
business and consumer experiences
• Gain exposure to the dynamic technology sector
Why • Long-tenured fund managers
Franklin • Team of closely aligned and experienced technology experts
Technology? • Located in the heart of Silicon Valley
• A history of outperforming its peers
For illustrative and discussion purposes only.
Source: As of 16 April 2020, Franklin Templeton
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 2OUR TEAM AND
INVESTMENT PROCESS
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton.Franklin Templeton Is a Global Leader In Asset
Management
We are the sixth largest independent asset manager in the world, with1:
70+ $1.4T 1,300+ 12,000+
years of asset (USD) total assets investment professionals2 employees globally
management experience under management
We have one of the industry’s broadest global footprints The strength and experience
of a global leader
• We are the world’s top
cross-border fund manager3
34 • Located in countries
Countries representing 84%
with Offices
of the world’s GDP4
1. Information is restated to combine the results and operations of Franklin Templeton and Legg Mason, Inc. as of 30 June 2020. Franklin Templeton acquired Legg Mason on 31 July 2020.
2. Investment professionals include portfolio managers, research analysts, research associates, investment support and executives of Franklin Templeton, Legg Mason and subsidiary investment management groups.
3. As of April 2020. Based on findings for Franklin Templeton from PwC’s 2020 Benchmark Your Global Fund Distribution Report which ranks asset managers on the number of countries in which their cross‐border funds are distributed.
4. Based on information from the International Monetary Fund, World Economic Outlook Database, October 2019.
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 4Franklin Equity Group Our Team ▪ Franklin Equity Group investment professionals average over 18 years of experience and more than 12 years with Franklin Templeton ▪ Includes 61 equity professionals with access to 148 fixed income investment professionals* Our Culture ▪ Fundamental research conducted by experienced industry specialists ▪ Collaborative environment that balances autonomy with rigorous debate and accountability ▪ Equity and fixed income teams work together for additional insight on companies Our Research ▪ Investment professionals operate as industry specialists within sector teams ▪ Sector team leaders have over 21 years of experience on average** ▪ Deep industry coverage across all market caps and styles ▪ Industry and sector research supplemented by small-cap generalists *Investment professionals include portfolio managers, research analysts, research associates, investment support and executives of Franklin, Templeton, Franklin Mutual Series, and subsidiary investment management groups. **As defined in Franklin Equity Group Coverage List. As of June 30, 2020. For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 5
In the Heart of Silicon Valley
Better Access to Leading Publics, Privates, VC’s
“Our presence in Silicon Valley gives us unapparelled access to the world’s
A Team of Tech Experts
largest and established technology companies, many of the world’s emerging
technology leaders and hundreds of early stage companies, backed by the world’s • Franklin Technology Strategy
offers a growth oriented,
deepest pools of venture capital.” professionally managed,
diversified approach to
– Jonathan Curtis, Portfolio Manager
investing in the technology
sector.
• 12 investment professionals
provide in-depth research of the
Technology sector and
related industries.
Located In Silicon Valley • Jonathan Curtis,
near leading technology MBA & BS Electrical
Engineering
companies, research universities has been with the firm since
and venture capital firms 2008 and has more than 28
years of professional
experience in technology.
• JP Scandalios, MBA has been
with the firm since 1996 and
has covered semiconductors for
more than 22 years.
Team information as of 16 April 2020
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 6How We Evaluate Opportunities
Growth Quality Valuation
Focus on companies with the Identify high-quality companies Assess if the growth opportunity
potential to produce sustainable with strong management teams is already reflected in the stock
revenue, earnings, and cash and financial strength price
flow growth • Seek strong and improving • Model a range of potential
• Evaluate the long-term market competitive positions scenarios
opportunity • Identify experienced, talented • Consider the balance of growth
• Identify critical success factors management teams with a strong opportunities relative to business
• Assess the industry’s track record of execution and financial risks
competitive structure • Seek premium level financial • Compare growth, profitability,
• Target leaders and emerging strength and profitability returns, visibility, and consistency
leaders to peers and other category
leaders
Our bias in technology sector investing is towards innovation, superior growth,
sustainable/improving competitive positions, strong profitability/FCF, and consistent execution
For discussion purposes only.
Source: As of 16 April 2020, Franklin Templeton Investments.
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 7Portfolio Construction Process
• Focused on growth opportunities in digital transformation, artificial intelligence, cloud
computing, new commerce, FinTech, new media, digital advertising, IoT, IT security and robotics
1 2 3 4 5
Build Domain Identify Company Investment Initiate Portfolio
Expertise Emerging Analysis Assessment Position
Leaders
Analyst develops Analyst identifies Analyst constructs If valuation and If convinced, PM
deep domain best positioned detailed model upside/downside opportunistically
expertise companies levered projecting future stock risk are initiates/builds a Continuously
and identifies to innovation and earnings and attractive, analyst position equivalent review, evaluate and critique
major industry secular growth performs ‘DCF’ presents to our conviction assumptions, cyclical factors,
secular trends theme(s) analysis investment case to level lateral implications and
PMs price targets
Always maintain a long-term investment focus
For illustrative and discussion purposes only.
Source: As of 16 April 2020, Franklin Templeton Investments
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 8Investment Guidelines Portfolio Guidelines • Seek to limit single industry exposure to ≤ 30% • Seek to hold ~70 positions Position Size Determinants • Confidence in the secular theme(s) supporting a company’s growth • Confidence in the sustainability of the company’s competitive position • Confidence in the strength of the business model • Management’s execution track record and consistency of results • A stock’s liquidity relative to our ownership Sell Discipline • Structural deterioration in fundamentals contradicting our investment thesis • Target stock price and valuation are exceeded • Maximum position size is exceeded Source: Franklin Templeton Investments. As of 30 June 2020. Portfolio guidelines are presented for informational purposes only and should not be viewed as predictive of the ongoing composition of the strategy’s portfolio which may change at any time. For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 9
Investing in Privates
Small Part of Portfolio, but Key Part of Process
We invest in privates to Portfolio of Current Private Investments
• Learn important companies & trends • Confluent – Event streaming & processing platform
• See disruption before our peers
• Gitlab – Integrated DevOps platform
• HashiCorp – Programmatic cloud management
Location Matters
• Proterra – Electric Buses & Trucks
• ~50% of venture dollars deployed in Silicon Valley
• Rent the Runway – Digital Transformation of
Fashion
Exposure
• Sumo Logic – Data Analytics Platform
• Privates are currently 2-3% of AUM
• Regulatory limit of 10% • Samsara – Fleet management solutions
• Tanium – Endpoint Management
Developing a Track Record • Tempus – Data driven precision medicine platform
• Completed IPO’s (1) - CloudFlare • Tula Technology – ICE & Electric Motor Technology
• Completed Acquisitions (2) – eSilicon, DraftKings • TalkDesk – Contact Center as a Service
Source: Franklin Templeton Investments
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 10VALUATION & OVERVIEW
OF THE MARKETS
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton.The Technology Sector Is
Reasonably Valued
Price-to-Earnings Ratio S&P 500 Information Technology Index
20-Year Period Ended 30 June 2020
60
50
40
P/E Ratio
30
Historical Average
24.9x
20
10
S&P 500 Information
Technology Index
19.1x
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
U.S. Recessions
Source for Price-to-Earnings Ratio: © 2020 FactSet, 30 June 2020. Price-to-Earnings Ratio is based on an estimate of Next-Twelve-Months (NTM). Copyright © 2020, S&P Dow Jones
Indices LLC. All rights reserved. See www.franklintempletondatasources.com for additional data provider information. Past performance is no guarantee of future results. Indexes are
unmanaged, and one cannot invest directly in an index.
Source for recessions: National Bureau of Economic Research.
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 8Many Tech Firms Have
Become Very Profitable
Earnings-Per-Share S&P 500 Information Technology Index
20-Year Period Ended 30 June 2020
80 S&P 500 Information $74.29
Technology Index
70
60
EPS (USD)
50
40
30
Historical Average $33.00
20
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
U.S. Recessions
Source for Earnings-Per-Share: © 2020 FactSet, 30 June 2020. Earnings-Per-Share is based on an estimate of Next-Twelve-Months (NTM). Copyright © 2020, S&P Dow Jones Indices LLC. All
rights reserved. See www.franklintempletondatasources.com for additional data provider information. Past performance is no guarantee of future results. Indexes are unmanaged, and one cannot
invest directly in an index.
Source for recessions: National Bureau of Economic Research.
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 9Tech Firms Benefit from Low Debt
S&P 500 Sectors – Debt-to-Market Cap Ratio
As of 30 June 2020
Health Care Consumer Energy
Discretionary
-1% 11% 3% 25%
Consumer Industrials Materials
Staples
Information
14% 27% 17%
Technology Financials Real Estate Communication
Services
97% 29% -0.4%
Source: © 2020 FactSet. See www.franklintempletondatasources.com for additional data provider information. Past performance is no guarantee of future results.
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 10DIGITAL TRANSFORMATION
OPPORTUNITY
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton.Digital Transformation Defined
Several secular growth themes are impacting the technology space, as well as sectors outside of technology
AI / machine Digital Transformation
Cloud computing
learning We believe all businesses will need to
increase investment in digital
transformation to better understand, retain,
Autonomy E-commerce and serve their customers and to
dramatically improve their business
processes.
Intelligent Internet of Things
machines (IoT) We believe businesses—many of which
were viewed as distant from the
Financial technology sector—that do not make these
Electrification investments risk being disrupted by a
technology
nimbler, digital competitor.
Cyber Security 5G
For illustrative and discussion purposes only.
The information provided is not a recommendation to purchase, sell, or hold any particular security and should not be construed as an endorsement of or affiliation with Franklin Templeton
Investments.
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 16Leading Industry Growth Themes
CLOUD COMPUTING SERVICES
Storing and accessing data and
apps over the Internet instead of your SOFTWARE
computer's hard drive.
Why?
• Top priority for many companies
• Scalable, flexible, cost efficient
• Growth forecast¹: Increase 3x by 2022
• Cloud services spending²: $331 billion by 2022
Market Leaders
+ Amazon, Alibaba, Microsoft, Google all provide cloud services
+ Twilio is strong in B2C communication services
+ CloudFlare is strong in security, network & edge computing services
+ HashiCorp is a leader in cloud management and deployment services
There is no assurance that any projection, estimate or forecast will be realized.
1. Source for growth forecast: Cisco Global Cloud Index: Forecast and Methodology 2016-2021 whitepaper. 2. Source for services spending: IDC., 28 February 2019.
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 17Leading Industry Growth Themes
THE INTERNET OF THINGS
Adding Internet capability to
devices beyond just computers
and smart phones.
Why? Market Leaders
• Immensely disruptive with potential for Hardware
+ Amphenol
big winners + Analog Devices
• Potential economic impact¹: + Texas Instruments
$11 trillion per year by 2025 Software & Services
• Connected devices²: + Twilio
2006: 2 billion | 2023: 299 billion + CloudFlare
+ Sumo Logic
There is no assurance that any projection, estimate or forecast will be realized.
1. Source for economic impact: McKinsey & Company. The Internet of Things: Mapping the Value Beyond the Hype June 2015.
2. Source for connected devices: Intel Corp. A guide to the Internet of Things: Intel, IDC, United Nations 2016.
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 18Leading Industry Growth Themes
E-COMMERCE
The buying and selling of products via
electronic means such as the Internet.
WHY?
• Huge upside potential
• Sales growth exceeds retail growth¹:
16.9% vs 2.5% year-over-year
• Online purchases made by²:
87% of online population
Market Leaders
+ Amazon, Alibaba, Etsy
+ MasterCard, Visa, Square
+ Shopify, Avalara
1. Source for sales growth: U.S. Census Bureau. Based on U.S. sales, year-over-year, as of 30 September 2019. Quarterly year-over-year change, as of 2019
preliminary estimate.
2. Source for online purchases: eMarketer, Inc. 2015. Most recent data available.
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 19COVID-19 IMPACTS For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton.
What has been the role of Technology During the Crisis?
“Everything from Home”
• When people and companies had to practice • We believe this crisis is
“social distancing”, they turned to the tools of • Driving “innovators” more deeply into digital
Digital Transformation to connect and to transformation
rebuild critical business processes • Awakening the “digital laggards” to the need to
digitally transform
• Digitally transformed businesses (e.g.
Walmart, Target) appear to have flourished in • There is a significant retraining of businesses
relative terms during the crisis, while legacy and consumers on technology led tools and
businesses have struggled servicesrything from Home”
Work, Socialize, Exercise, Entertain, Shop, and Educate from Home
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 21Will all this “New Digital First Behavior” last?
• Of course … • But …
• People will go outdoors again • Even as economies re-open, social distancing
will remain as Covid-19 remains a threat
• People will go to movie theaters again
• People and businesses have learned new digital
• People will travel again skills and found that many of these experiences
are passable; We believe many behaviors have
permanently changed
• People will visit clients again
• We believe that this crisis will make many of
• People will return to their doctor's offices
these technology vendors and digital
transformation leaders MORE valuable and
• People will go to work again accelerate their long-term growth
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 22Summary
• Key Opportunity is the Digital Transformation of the Global Economy and its supporting themes
• +10 years of growth for leading digital platforms and the digital enablers
• While valuations in the Information Technology and Communication Services are elevated, we believe they are
reasonable vs the broader market given the better growth and the high quality in the sectors
• We seek to own the highest quality companies with the best long-term growth potential
• 1) Leading digital disrupters – Large and Emerging
• 2) Vendors enabling transformation
• Covid-19 volatility has created opportunities to increase exposure to the best positioned companies
• We believe that enterprise spending on digital initiatives will accelerate coming out of the Covid-19 crisis
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 23ABOUT FRANKLIN
TECHNOLOGY STRATEGY
For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton.Fund Summary
Franklin Technology Fund–A (acc) USD
As of 31/07/2020
Summary of Investment Objective
Morningstar CategoryTM Sector Equity Technology The Fund aims to achieve capital appreciation by investing at least two-
Investment Style Sector thirds of its assets in equity securities of companies expected to benefit
from the development, advancement and use of technology.
Fund Inception Date 03/04/2000
Portfolio Manager(s)
Benchmark MSCI World Information Technology
Index Jonathan T. Curtis United States
Base Currency for Fund USD John Scandalios, CFA United States
Base Currency for Share Class USD James Cross, CFA United States
UK Reporting Status Yes Fund Indentifiers
Total Net Assets (USD) $6,034,579,625 ISIN Code LU0109392836
Portfolio Turnover -52.37% SEDOL Code 4161828
Asset Allocation Equity: 94.78% Bloomberg Code TEMTECI LX
Cash & Cash Equivalents: 5.22% Fund Ratings (31/07/2020)
Number of Issuers 81 Overall Morningstar RatingTM ★★★★★
Ongoing Charges 1.81%
The Portfolio Turnover is calculated over a 12-month period as at the end of the fiscal year (31/12/2019).
Holdings of the same issuer have been combined. © Morningstar, Inc. 2020. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not
be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this
information. Percentage may not total 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change.
The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details.
Past performance is not an indicator or a guarantee of future performance.
For Professional Client Use Only. Not for distribution to Retail Clients. 25What are the Risks?
The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the
full amount invested. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value
of overseas investments. The Fund invests mainly in equity securities of technology companies worldwide. Such securities
have historically been subject to significant price movements that may occur suddenly due to market or company-specific
factors. As a result, the performance of the Fund can fluctuate significantly over relatively short time periods. Other
significant risks include: Equity risk: prices of equities may be affected by factors such as economic, political, market, and
issuer-specific changes. Such changes may adversely affect the value of the equities regardless of company-specific
performance. Securities Lending risk: the risk that default or insolvency of the borrower of securities lent by a Fund may
lead to losses if collateral received realises less than the values of securities lent. For full details of all of the risks applicable
to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin Templeton
Investment Funds.
For Professional Client Use Only. Not for distribution to Retail Clients. 26Sector Allocation
Franklin Technology Fund
vs. MSCI World Information Technology Index
As of 31/07/2020
Portfolio % Index % Over/Under %
Application Software Application Software 22.18 12.71 9.47
Semiconductors Semiconductors 12.64 13.31 -0.66
Internet & Direct Marketing Retail
Internet & Direct Marketing Retail 10.00 0.00 10.00
Systems Software
Systems Software 8.52 19.33 -10.81
Data Processing & Outsourced Services
Interactive Media & Services Data Processing & Outsourced Services 8.36 14.04 -5.68
Internet Services & Infrastructure Interactive Media & Services 6.46 0.00 6.46
Technology Hardware, Storage & Peripherals Internet Services & Infrastructure 4.65 2.58 2.07
Semiconductor Equipment Technology Hardware, Storage & 4.63 21.10 -16.46
Specialized REITs Peripherals
Research & Consulting Services Semiconductor Equipment 3.21 4.07 -0.87
Electronic Components Specialized REITs 2.43 0.00 2.43
Wireless Telecommunication Services Research & Consulting Services 1.60 0.00 1.60
Movies & Entertainment Electronic Components 1.50 1.55 -0.05
Health Care Technology
Wireless Telecommunication Services 1.48 0.00 1.48
Automobile Manufacturers
Movies & Entertainment 1.45 0.00 1.45
Auto Parts & Equipment
Interactive Home Entertainment Health Care Technology 1.27 0.00 1.27
Trucking Automobile Manufacturers 0.84 0.00 0.84
IT Consulting & Other Services Auto Parts & Equipment 0.75 0.00 0.75
Communications Equipment Interactive Home Entertainment 0.74 0.00 0.74
Electronic Equipment & Instruments Trucking 0.73 0.00 0.73
Others IT Consulting & Other Services 0.00 5.01 -5.01
Cash & Cash Equivalents
Communications Equipment 0.00 3.36 -3.36
0% 5% 10% 15% 20% 25% Electronic Equipment & Instruments 0.00 2.28 -2.28
Others 1.33 0.66 0.66
◼ Franklin Technology Fund
◼ MSCI World Information Technology Index Cash & Cash Equivalents 5.22 0.00 5.22
Weightings as % of Total. The industry group percentages may not total to 100% and may not sum to the weight of the sector they are under because only the largest industry groups are shown. Information is historical and may not reflect
current or future portfolio characteristics. All portfolio holdings are subject to change.
For Professional Client Use Only. Not for distribution to Retail Clients. 27Geographic Allocation
Franklin Technology Fund
vs. MSCI World Information Technology Index
As of 31/07/2020
Portfolio % Index % Over/Under %
North America North America 84.78 87.83 -3.04
United States 83.97 86.10 -2.13
Canada 0.82 1.73 -0.91
Asia 8.09 4.61 3.48
Asia
China 7.53 0.00 7.53
Taiwan 0.56 0.00 0.56
Japan 0.00 4.54 -4.54
Europe Europe 1.90 6.88 -4.98
Netherlands 1.90 1.92 -0.02
Germany 0.00 2.21 -2.21
Mid-East/Africa France 0.00 1.11 -1.11
Sweden 0.00 0.55 -0.55
Finland 0.00 0.29 -0.29
United Kingdom 0.00 0.26 -0.26
Australia/New Zealand Switzerland 0.00 0.23 -0.23
Spain 0.00 0.23 -0.23
Mid-East/Africa 0.00 0.49 -0.49
Cash & Cash Equivalents Israel 0.00 0.49 -0.49
Australia/New Zealand 0.00 0.18 -0.18
Australia 0.00 0.18 -0.18
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cash & Cash Equivalents 5.22 0.00 5.22
◼ Franklin Technology Fund
Emerging Markets Exposure 8.09 0.00 8.09
◼ MSCI World Information Technology Index
Weightings as % of Total. The country percentages may not total to 100% and may not sum to the weight of the region they are under because only the largest countries are shown. Information is historical and may not reflect current or
future portfolio characteristics. All portfolio holdings are subject to change.
Emerging markets exposure is based on the countries included in the MSCI Emerging Markets Index.
For Professional Client Use Only. Not for distribution to Retail Clients. 28Top Ten Holdings Franklin Technology Fund As of 31/07/2020 Name of Issuer Industry % of Total AMAZON.COM INC Retailing 5.25 ALIBABA GROUP HOLDING LTD Retailing 4.75 APPLE INC Technology Hardware & Equipment 4.63 MICROSOFT CORP Software & Services 4.59 SALESFORCE.COM INC Software & Services 2.97 PAYPAL HOLDINGS INC Software & Services 2.88 TENCENT HOLDINGS LTD Media & Entertainment 2.73 SERVICENOW INC Software & Services 2.70 MASTERCARD INC Software & Services 2.49 WORKDAY INC Software & Services 2.45 Total 35.44 Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. The information provided is not a recommendation to purchase, sell or hold any particular security. The securities or issuers listed do not represent the entire holdings and in the aggregate may represent only a small percentage of such holdings. There is no assurance that securities purchased will remain in the portfolio, or that securities sold will not be repurchased. In addition, it should not be assumed that any securities or issuers listed were or will prove to be profitable. Holdings of the same issuers have been combined. The portfolio manager reserves the right to withhold release of information with respect to holdings that would otherwise be included. For Professional Client Use Only. Not for distribution to Retail Clients. 29
Historical Performance
Franklin Technology Fund–A (acc) USD
As of 31/07/2020
Inception Since
Annualised Total Returns (%) Date 1 Yr 3 Yrs 5 Yrs 10 Yrs 20 Yrs Incept
Franklin Technology Fund–A (acc) USD—Net of 03/04/2000 40.71 26.75 22.67 18.33 5.69 5.87
Fees—(USD)
MSCI World Information Technology Index—(USD) 37.12 25.48 22.41 18.61 4.68 3.82
Inception Since
Cumulative Performance (%) Date YTD 1 Mth 3 Mths 1 Yr 3 Yrs 5 Yrs 10 Yrs 20 Yrs Incept
Franklin Technology Fund–A (acc) USD—Net of 03/04/2000 32.79 6.87 28.09 40.71 103.64 177.86 438.34 202.65 218.69
Fees—(USD)
MSCI World Information Technology Index—(USD) 20.82 5.87 22.35 37.12 97.62 174.97 451.17 149.69 114.35
Effective 29 September 2017, Franklin Technology Fund changed its benchmark to the MSCI World Information Technology Index, following the discontinuation of the ICE BofAML Technology 100 Index.
All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations.
The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details.
When performance for either the portfolio or its benchmark has been converted, different foreign exchange closing rates may be used between the portfolio and its benchmark.
The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance.
Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, performance may also be affected by
currency fluctuations. Please visit franklinresources.com/countries for current performance.
For Professional Client Use Only. Not for distribution to Retail Clients. 30Calendar Year Returns
Franklin Technology Fund–A (acc) USD
As of 31/07/2020
60.0%
50.0% 48.15
40.00 38.74
40.0% 38.01
32.79
29.30
30.0% 26.07
20.82 21.90
20.0% 16.61
13.75 13.77
11.98 10.81
9.73
10.0% 6.99 7.31
5.21
1.40
0.0%
-2.25 -2.17
-5.57
-10.0%
YTD 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Franklin Technology Fund–A (acc) USD—Net of Fees—(USD) MSCI World Information Technology Index—(USD)
Effective 29 September 2017, Franklin Technology Fund changed its benchmark to the MSCI World Information Technology Index, following the discontinuation of the ICE BofAML Technology 100 Index.
All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations. The fund offers other
share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details. When performance for either the portfolio or its benchmark has been converted, different foreign exchange
closing rates may be used between the portfolio and its benchmark.
The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance.
Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, performance may also be affected by
currency fluctuations. Please visit franklinresources.com/countries for current performance.
For Professional Client Use Only. Not for distribution to Retail Clients. 31What Are the Key Risks? The value of shares in the Strategy and income received from it can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments. The Strategy invests mainly in equity securities of technology companies worldwide. Such securities have historically been subject to significant price movements that may occur suddenly due to market or company-specific factors. As a result, the performance of the Strategy can fluctuate significantly over relatively short time periods. Other significant risks include: liquidity risk. For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 32
Important Information
This presentation is for information only and does not constitute investment advice or a recommendation and was prepared without
regard to the specific objectives, financial situation or needs of any particular person who may receive it. Any research and analysis
contained in this presentation has been procured by Franklin Templeton for its own purposes and may be acted upon in that connection
and, as such, is provided to you incidentally. Any views expressed are the views of the fund manager and do not constitute investment
advice. The underlying assumptions and these views are subject to change. Franklin Templeton accepts no liability whatsoever for any
direct or indirect consequential loss arising from the use of any information, opinion or estimate herein. The value of investments and the
income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is not an
indicator nor a guarantee of future performance.
Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not
necessarily indicative of the future or likely performance.
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For Distributor Use Only. Not for Public Distribution. The content of the presentation should not be reproduced/distributed without the prior approval of Franklin Templeton. 33You can also read
