Franklin Templeton·2026-05-27·via All Articles on Seeking Alpha
Summary
Franklin Utilities Fund outperformed the S&P 500 Utilities Index benchmark in the first quarter of 2026.
Entergy's shares rose due to robust industrial electricity demand, notably from major data center projects, and benefited from investors shifting toward defensive regulated utilities amid market volatility.
An unhelpful underweight in NextEra Energy worked against Franklin Utilities Fund as it limited exposure to the stock's gains tied to a strong earnings outlook and rising power demand.
Franklin Utilities Fund believes power demand across the United States has the potential to improve significantly, along with industry capital spending on data center development.
Utilities are spending record levels of capital in transmission and distribution to make the grid more reliable and resilient as weather severity makes infrastructure upgrades more urgent.
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Key Takeaways
• Markets: US equities endured a difficult first quarter of 2026 as investors reassessed the durability of the AI trade and geopolitical risk intensified. Technology-focused shares came under pressure as rising AI-related capital expenditure
