Franklin Templeton Introduces Innovative Core Enhanced Equity Funds to European Investors

• Franklin Core Enhanced Equity Funds offer a unique quantitative investment approach that includes the insights of Franklin Templeton’s Specialist Investment Managers
• Cost-effective core portfolios that combine the best features of active and passive management, without introducing excess risk

Luxembourg, 13 October 2025 – Franklin Templeton¹ is pleased to announce the launch of the FTIF Franklin Core Global Enhanced Equity Fund² and FTIF Franklin Core U.S. Enhanced Equity Fund², sub-funds of the Luxembourg-domiciled Franklin Templeton Investments Funds (FTIF) range. The funds are Franklin Templeton’s first systematic equity products to integrate the fundamental research insights of the firm’s most prominent active investment managers. This innovative approach is designed to be scalable across asset classes and product wrappers.

Developed and managed by Franklin Templeton Investment Solutions (FTIS), both funds are actively managed, and will seek to deliver above market returns, while maintaining smaller deviation (tracking error) from core indices, a risk management approach that may be beneficial for many client portfolios. The funds are classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR)³, and will be registered for sale in Germany, Italy, Spain, Switzerland and the United Kingdom.

Matt Harrison, Head of Americas (ex-US), Europe & UK commented: “The Franklin Core Enhanced Equity funds are effective building blocks for today’s portfolios. Designed to fill the gap between traditional active and passive equity strategies, these lower-cost products’ tightly controlled tracking error can help investors aim for more consistent outperformance against the index. With the additional insights from our active fundamental managers, we are excited to offer this differentiated core building block option to our clients.”

Key features of the Franklin Core Enhanced Equity Funds

The Franklin Core Enhanced Equity Funds pursue an actively managed, quantitative process to dynamically invest in equity securities while keeping the expected level of tracking error between 1- 2% in normal market conditions. The funds employ a proprietary quantitative selection process using a multi-factor model to assign a weighted score across quality, value, sentiment and alternatives factors. The process also incorporates an alpha score derived from the proprietary signals and insights of Franklin Templeton’s Specialist Investment Managers.

Designed to be a foundational equity allocation, the Franklin Core Enhanced Equity funds are sector, industry and factor neutral, with the global portfolio also offering diversified exposure across major regions.

Adam Petryk, Head of Franklin Templeton Investment Solutions added: “With a long track record of consistent returns, our quantitative portfolios are built with diversification and risk management at their core. These new Core Enhanced strategies utilise our long-standing quantitative approach supplemented by the addition of these fundamental insights. We have strong conviction in this approach and, as part of our commitment to expanding our European presence and meeting evolving client needs, we plan to extend this offering across asset classes, jurisdictions, and investment vehicles.”

The Franklin Core Global Enhanced Equity Fund and the Franklin Core U.S. Enhanced Equity Fund will be managed by a seasoned team including Brett E. Risser, Head of Quantitative Equity Portfolio Management; Jacqueline Hurley Kenney, Head of Solutions Research; Dawei Zhou, Head of Equity Factor Research, and Adrian Chan, Head of Quantitative Investments, each bringing deep expertise in quantitative research and portfolio management.

Jaspal Sagger, Global Head of Product concluded: “By diversifying across style and risk factors, the strategies avoid concentration risk while still offering the potential for alpha. This approach to core equity allocations can complement both traditional active and passive exposures. This reflects our commitment to expanding investor choice across the risk-return spectrum; and providing more tools for allocators to build smarter portfolios.”

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]

Shelly Durrant Corporate Communications Manager Franklin Templeton Investments Cannon Place, 78 Cannon Street London EC4N 6HL Tel: +44 20 7073 8521 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 Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 150 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 offers specialisation on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.66 trillion in assets under management as of 30 Septmeber 2025. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, X, and Facebook.
2. The FTIF Franklin Core Global Enhanced Equity Fund and FTIF Franklin Core U.S. Enhanced equity fund are sub-funds of Franklin Templeton Investments Funds (FTIF), a Luxembourg-domiciled SICAV. Subscriptions to shares of FTIF can only be made on the basis of the current prospectus, and, where available, the relevant Key Investor Information Document, accompanied by the latest available audited annual report and the latest semi-annual report if published thereafter. The value of shares in FTIF 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. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, your performance may also be affected by currency fluctuations. In emerging markets, the risks can be greater than in developed markets.

An investment in FTIF entails risks, which are described in the FTIF’s prospectus and, where available, the relevant Key Investor Information Document. Investments in derivative instruments entail specific risks that may increase the risk profile of the fund and are more fully described in FTIF’s prospectus and where available in the relevant Key Investor Information Document. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a fund’s holding at any one time.

No shares of FTIF may be directly or indirectly offered or sold to nationals or residents of the United States of America. Shares of FTIF are not available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton Investments representative before making any plans to invest.

3. This fund has been classified as Article 8 under the Regulation on sustainability related disclosures in the financial services sector (EU) 2019/2088. These are Funds which have an ESG integration approach and, in addition, have binding environmental and/or social characteristics in their investment process. Further information in relation to the sustainability-related aspects of the Fund can be found at franklinresources.com/countries. Please review all of the fund's objectives and characteristics before investing.

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