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Why are investors increasing allocations to US equities?

Expensive for a reason

 

US equities have continued to outperform global markets leading to significantly higher valuations than their global peers.

While a lot of this is driven by some mega-cap names, or the ‘Magnificent 7’, even without these, there would be a valuation gap.

One simple explanation is that investors are wilpng to pay for more profitable companies – US company earnings continue to impress.

Too big to ignore, they own the future
 

A number of US companies are shaping the world of tomorrow, to some extent owning the future – whether in tech or sustainability.

The US makes up more than half of global stock markets by capitalisation and offers a high concentration of well-established companies, with global operations and diverse revenue streams.

Diversity of choice

 

The US equity market offers a plethora of choices. Whether you prefer the high growth potential of innovative firms, the steady returns of income investing or the hidden gems of value, our specialised investment teams open the door to the US market.

With managers specialised in both small- and large-cap investing, our product offering could be a great fit for your portfolio.

Why consider U.S. Opportunities?

U.S. Opportunities are focused on investing in leading U.S. companies that have the potential to benefit from multi-year growth trends or emerging profit cycles.

Focused on long-term secular growth trends

Including health care innovation, digital customer engagement, factory automation and the rise of fintech.

Multiple opportunities across industries and market caps

These include small, medium, and large capitalization companies with strong growth potential across a wide range of sectors and fast growing, innovative firms within these sectors.

Actively seeks growth, quality and valuation

We research companies that have robust competitive positions, strong pricing power and healthy financials.

Broad diversification through investment in various leading growth themes 
 

Cloud computing services:

Data and applications are stored and made available via the Internet instead of on your computer's hard drive. Offers immense growth potential as well as scalability, cost efficiency and flexibility.

Financial services 3.0:

Fintech, digital payment systems, e-commerce. Buying and selling products electronically, e.g. via the internet. Shows stronger sales growth than the retail sector.

Innovations in the healthcare sector:

The ageing population worldwide will drive global demand for pharmaceuticals, medical devices and improved treatments.

Industry 4.0:

The intelligent industrial revolution beyond technology. While there were only 1 billion PC users in 1995 and 3 billion mobile device users in 2005, artificial intelligence and the Internet of Things have been the topic since 2015 with several hundred billion devices and users. 

Learn more about our pure 'Growth' style solution investing in the US market

Why Franklin Templeton for US equities? It’s in our DNA.

  • Franklin Templeton was founded in 1947 by Rupert H. Johnson, Sr., who ran a successful retail brokerage firm from an office on Wall Street. He named the company after US founding father Benjamin Franklin because Franklin epitomised the ideas of frugality and prudence when it came to saving and investing.
  • Our first line of mutual funds, Franklin Custodian Funds, was a series of conservatively managed US equity and bond funds.
  • Now, we have a long-standing track record of managing US equity funds that target different market segments and styles and that include large-cap, mid-cap and small-cap companies.
  • Our investment approach in US equities is characterised by rigorous fundamental research and a focus on long-term value creation. Our specialist investment teams employ bottom-up analysis, seeking to identify companies with solid fundamentals, attractive valuations and strong growth prospects.