Franklin Templeton's Vision for the Future for Technology and Digital Transformation

London, 5 May 2025 – As we move through 2025, technology continues to stand at the forefront of global change, offering unprecedented opportunities across industries.  Franklin Templeton’s technology team ¹ based in Silicon Valley believes that the future of technology is not just about new gadgets and software, but about a profound digital transformation that will redefine how businesses operate, how economies grow, and how we interact with the world around us.

Matt Cioppa, Portfolio Manager of Franklin Technology Fund ² commented: “We see technology as a driving force that transcends the typical market cycles.  From Artificial intelligence (AI) and machine learning to blockchain, cloud computing and the internet of things, the technologies shaping the future are already beginning to make a lasting impact on all industries.  These technological advancements since we started out as a fund 25 years ago, promise to drive efficiency, enhance productivity, and open new revenue streams for companies poised to embrace them.”

“Our experience over the past 25 years taught us that when forecasting new markets, investors often underestimate exponential growth curves. For instance, during the early days of cloud computing, there was significant doubt that cloud would proliferate across large corporations, but relentless innovation and scale enabled the cloud providers to fully capture this opportunity, leading to years of hypergrowth, margin expansion, and great outcomes or technology investors. Other foundational technology cycles of the past also taught us that a focus on quality, not just growth, is essential. In the mobile computing era, the companies best able to deliver higher returns over the long run exhibited distinct quality attributes like visionary leadership, platform lock-in, and differentiated intellectual property. Today, these learnings help frame our perspective on AI. Like in the early days of both cloud and mobile, the market has expressed uncertainty about the durability of AI as an exponential growth vector. However, experience, and the many parallels to early cloud and mobile computing, have taught us to maintain our conviction and identify businesses that exhibit the best growth and quality attributes.”

“We’ve also learned that in technology investing, volatility comes with the territory. The MSCI World Information Technology index has experienced at least one correction in 20 of the last 25 years, but that has not stopped its meaningful outperformance versus the broader market. Recent market volatility has created compelling opportunities for long-term investors to own the exponential growth potential of high quality, innovation-led technology companies at more compelling valuations.”

“Looking forward, we are particularly excited about AI, quantum computing and robotics, which together can usher in the “intelligence age.” Just as the industrial revolution transformed agrarian societies, and digital technology created our connected world, embedded intelligence will likely accelerate innovation, productivity, and potentially solve previously intractable problems from disease to resource constraints. There will undoubtedly be bumps along the way, but long-term technology investors should not lose sight of the abundance of opportunity ahead.”

“Franklin Templeton’s outlook for the tech sector going is driven by its belief that technology is not just a short-term trend but a long-term evolutionary force.  As businesses continue to navigate a rapidly changing digital landscape, the ability to adapt and innovate will be the key to success. It’s about identifying those companies that are not only positioned to succeed in the short term are also driving innovation that will shape the future for years to come.”

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Contacts:

Melissa Leighton  Senior Corporate Communications Manager  Franklin Templeton Investments  Cannon Place, 78 Cannon Street  London EC4N 6HL  Tel: +44 20 0738707  Email: [email protected]

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]

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 over $1.53 trillion in assets under management as of 31 March 2025. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, X, and Facebook.

2. The Franklin Technology Fund is a sub-fund 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, KID/KIID (or any other relevant offering 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.  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.

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 in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes.

Please consult your financial advisor before deciding to invest.

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