Franklin Gold and Precious Metals Fund

Fund Description

The fund seeks capital appreciation by investing at least 80% of its net assets in the securities of companies around the world that mine, process or deal in gold or other precious metals such as silver, platinum and palladium. The fund has a secondary goal of current income.

Strategy Statement

"We think precious metals are attractive because they are a hard asset that's not tied to a particular country or financial system, potentially providing stability in times of economic uncertainty. "

Steve Land, CFA®

Management

Steve Land, CFA

Steve Land, CFA®

  • Joined Franklin Templeton in 1997
  • Managed Fund Since 1999
Fred Fromm, CFA

Fred Fromm, CFA®

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 1993

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Strategy & Process

  • Actively managed with a long-term focus
  • Research driven
  • Top down/bottom-up approach
  • Valuation discipline
  • Diversified globally across precious metals
  • Look to maintain a stable risk profile over time

Rating

Overall Morningstar Rating As of 10/31/2019

Rating Category: Equity Precious Metals

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating [further-information] As of 10/31/2019

Years Ratings Funds
in category
3
2 Stars
64
5
3 Stars
63
10
3 Stars
45

Morningstar Style Box As of09/30/2019

Strategy, Benefits, Results

Strategy

  • Our fundamental, research-driven approach focuses on high-quality companies with attractive production profiles, strong reserve bases and active exploration programs.
  • We focus on companies that mine, process or deal in gold and other precious metals, which may provide portfolio diversification given their low correlation to the overall equity, bond and currency markets.

Benefits

  • Inflation hedge. Gold and other precious metals tend to perform well during recessionary and inflationary times.
  • Diversification. By adding investments from different sectors to your portfolio, you may take advantage of expanding and contracting economic cycles.

Selling The Fund

  1. Highlight the fund’s historically strong calendar-year track record, especially during volatile economic times.

  2. Point out that the fund is best positioned as a supporting player in one’s portfolio, and can work as a hedge against inflation while also offering diversification.