Fund Description

The fund seeks high total return by investing at least 80% of its net assets in equity and debt securities of companies that own, produce, refine, process, transport and market natural resources, as well as those that provide related services.

Strategy Statement

"As emerging markets continue to industrialize, we believe their demand for natural resources will increase rapidly, creating significant long-term opportunities for natural resources investors. "

Fred Fromm, CFA®

Management

Fred Fromm, CFA

Fred Fromm, CFA®

  • Joined Franklin Templeton in 1992
  • Managed Fund Since 2003
Matthew Adams, CFA

Matthew Adams, CFA®

  • Joined Franklin Templeton in 2004
  • Managed Fund Since 2008
Steve Land, CFA

Steve Land, CFA®

  • Joined Franklin Templeton in 1997
  • Managed Fund Since 1999

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Philosophy

We Seek to Provide Solid Risk-Adjusted Returns through the Employment of Fundamental Analysis with a Focus On:

  • Long-term trends/themes
  • Growth
  • Intrinsic value
  • Active management/opportunistic approach
  • Security and subsector diversification

Investment Process

  • Top-down/bottom-up approach
  • Research driven
  • Attempt to identify and invest in companies with:
    • Long-term revenue growth visibility
    • Solid profitability
    • Sustainable and meaningful competitive advantage
    • Growth initiatives/differentiated upside potential

Rating

Overall Morningstar Rating As of 10/31/2019

Rating Category: Natural Resources

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 As of 10/31/2019

Years Ratings Funds
in category
3
1 Stars
113
5
2 Stars
109
10
2 Stars
80

Morningstar Style Box As of09/30/2019

Strategy, Benefits, Results

Strategy

  • Our fundamental, research-driven approach focuses on higher-quality companies with strong business models and healthy balance sheets.
  • We actively invest in companies we believe present attractive risk-adjusted return potential with a focus on secular growth themes.
  • We are focused typically in the energy industry, but also invest in metals and mining, chemicals, paper and forest products, and other related sectors.

Benefits

  • Participate in trends moving markets. Invest in innovative sectors—technology, medicine, natural resources—that you believe are poised for long-term growth.
  • Diversification. By adding investments from different sectors to your portfolio, you may take advantage of expanding and contracting economic cycles.

Selling The Fund

  1. Point out the fund's historically strong calendar-year track record.

  2. Discuss the fund's focus on higher-quality companies with strong business models and healthy balance sheets.