Fund Rationale: Franklin U.S. Opportunities Fund

Franklin U.S. Opportunities Fund (the “Fund”)
SGD Retail Class A Accumulation Shares (ISIN: LU0320765059)
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SGD Retail Class AS Accumulation Shares (ISIN: LU1267930730)
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Endowus has selected the Fund as it offers both Cash/SRS and CPF investors the opportunity to invest in a diverse portfolio of high-quality growth companies in the US.


Key Information

Fund Objective: Aims to achieve capital appreciation by investing principally in equity securities of U.S. companies believed to possess sustainable growth characteristics and which meet growth, quality and valuation criteria.

Suitability: Investors who seek capital appreciation, growth investment concentrated in equities of U.S. issuers in sectors showing above-average growth or growth potential as compared with the overall economy, and plan to hold their investment for the medium to long term.

The Class AS Shares is on the CPF Investment Scheme - List A Fund, and is included under the CPF Investment Scheme for Ordinary Account. It has been classified by the CPF Board under the risk classification of “Higher Risk / Narrowly Focused (Country, USA).”

Cost (Class A, Cash/SRS):
* Total Fund-level Fees include fund management fee of 1.50%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Cost (Class AS, CPF):
* Total Fund-level Fees include fund management fee of 0.74%.
** Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 3 April 2000
Share Class Inception: 25 October 2007 (Class A), 19 October 2015 (Class AS)
Benchmark: Russell 3000 Growth Index

Fund AUM: SGD 10.9bn
Source: MorningStar as of 30 April 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

Sector Allocation:

Source: MorningStar as of 30 April 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.

Selection Criteria

Endowus has selected the Franklin U.S. Opportunities Fund as it offers investors the exposure to a diversified portfolio of high-quality growth companies in the US to both Cash/SRS and CPF investors. The Fund invests in small, medium and large cap companies that exhibit the potential for long-term revenue growth, superior profitability, and sustainable and meaningful competitive advantages in sectors with secular growth trends and large addressable markets.

The Fund is managed by Grant Bowers and Sara Araghi, who have collective experience of more than 40 years. The team uses methods such as proprietary growth ranking tools, industry-specific quantitative and qualitative screenings to generate ideas and identify attractive opportunities. The portfolio managers and the analysts in the equity sector team conduct collaborative research on stock ideas. The Fund's investment process integrates ESG metrics to reflect material risks and opportunities of the companies in the longer term.

Incepted in 2000, the Fund has realised benchmark-like returns with slightly higher volatility, resulting from the Fund’s higher exposure to growth and small-cap companies compared to the benchmark.

Updated by Endowus: June 2021

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Investment involves risk. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Past performance is not an indicator nor a guarantee of future performance. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund.

Please note that the above information does not purport to be all-inclusive or to contain all the information that you may need in order to make an informed decision. The information contained herein is not intended, and should not be construed, as legal, tax, regulatory, accounting or financial advice.