Franklin Templeton has launched a suite of enhanced index equity funds for UK investors, combining systematic factor-based investing with stock-picking insights from its fund managers.
The new actively managed funds are available through the Franklin Templeton Funds OEIC range and cover UK, Europe ex-UK, US and global equities.
Designed as cost-efficient core portfolio building blocks, the strategies aim to remain close to their benchmark indices while delivering incremental outperformance.
The funds have been developed by Franklin Templeton Investment Solutions and incorporate a proprietary “conviction” factor, which translates insights from the firm’s fundamental equity managers into a systematic investment framework.
Head of UK wholesale Harry Reeves said the range reflects Franklin Templeton’s focus on broadening the solutions available to UK investors.
He said: “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.”
The Franklin Core Enhanced Equity Funds target a tracking error of 1.25% in normal market conditions and seek to deliver above-market returns while limiting deviation from benchmark indices.
Robin Powell: When active managers’ own money is in index funds, you know there’s a problem
The range includes the FTF Franklin Core UK Equity Enhanced Index Fund, Franklin Core Europe ex-UK Equity Enhanced Index Fund, Franklin Core US Equity Enhanced Index Fund and Franklin Core Global Equity Enhanced Index Fund.
Head of EMEA investment strategy at Franklin Templeton Investment Solutions Lisa Wang said the aim was to transform active managers’ qualitative insights into a systematic factor.
She said: “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 funds launched in the UK on 10 April and are available across a range of investment platforms.
Leave a comment