Equity

FRNRX Franklin Natural Resources Fund

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.
Experienced Portfolio Management Team. Actively managed by a seasoned portfolio management team that utilizes a distinct research structure with specialists organized into collaborative sector teams.

Overview

See the risks and other important information.

Fund Facts

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.

Benchmark: S&P North American Natural Resources Sector Index
Additional Benchmark⁴: S&P Global Natural Resources Index
Fund Inception Date: 06/05/1995
Dividend Frequency, if any: Annually
Portfolio Turnover: 27%

Sales Charges, Expenses & Fees

As of 09/01/2025

Gross Expense Ratio⁵: 1.01%
Net Expense Ratio^5,6: 1.00%
Maximum Initial Charge: 5.50%
CDSC⁷: 1.00%
12b-1 Fee: 0.25%

Identifiers

Ticker: FRNRX
Fund Number: 403
CUSIP Code: 354713604

Average Annual Total Returns As of 06/30/2026

View performance section for additional info As of 06/30/2026

Class A

With Sales Charge (POP)

Without Sales Charge (NAV)

31.87%1 Year
14.55%3 Years
15.24%5 Years
6.76%10 Years
6.79%Since Inception
06/05/1995

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.

See the risks and other important information.

Top Sectors

View portfolio section for additional info

As of 06/30/2026 Equity as a % of Total (Updated Monthly)

Top Sectors
Oil, Gas & Consumable Fuels44.21%
Metals & Mining26.49%
Chemicals9.55%
Energy Equipment & Services8.11%
Construction Materials2.17%

Additional Fund Info

Share Class Inception Date: 06/05/1995
Investment Style: Sector
Lipper Classification: Global Natural Resources Funds
Morningstar Category⁸: Natural Resources

Manager and Commentary

About the Team

Franklin Equity

Franklin Equity understands innovation from every angle—our decades of experience investing in complex change fuels a differentiated perspective on how public and private companies accelerate growth and unlock value. Leveraging fundamental depth and quantitative precision, we identify catalysts for transformation that reshape companies and industries. Our expertise, spanning from growth to value, brings together diverse perspectives that help us spot opportunities ahead of the market.

Commentary Highlights

June 30, 2026

Global Commodities Market and Natural Resources Equities: After rallying during the first quarter of 2026 amid supply disruptions centered on Middle East energy exports, the global commodities complex transitioned into a consolidation phase as investors reassessed supply risks and the prospect of higher interest rates. Broad commodity benchmarks finished the second quarter (2Q26) well above their year-ago levels while retreating from their 2026 highs. The Reﬁnitiv CoreCommodity CRB Index (CRB) fell by 5.1% in 2Q26 but was still up 18.4% year-to-date. Materials sector stocks posted a 2.0% 2Q26 return in the United States (according to the S&P 500 Index) and a scant 0.2% advance globally (per the MSCI All Country World Index in US dollar terms), relegating it to the back half of the sector rankings. The energy sector underwent a correction and sank to last place among the 11 major sector groups, both in the United States (-13.5%) and globally (-12.9%). Investor preferences increasingly shifted towards companies with low-cost production, strong balance sheets and resource assets located in politically stable jurisdictions, reflecting growing concerns over supply-chain resilience rather than simple exposure to commodity price appreciation.
Contributors: Overweight exposure to the materials sector and underweighting in energy companies. Security selection within energy also contributed, reflecting disciplined stock picking under broadly weak circumstances.
Detractors: Underweightings in two energy-related industries that appreciated (while five others sold off): oil and gas storage and transportation, and oil and gas refining and marketing. Underweightings in construction materials; and paper and plastic packaging, products and materials were also a hindrance.
Outlook: We believe select metals present the strongest long-term investment opportunity, but we remain concerned that ongoing tensions in the Middle East and resulting inflationary pressures could soften economic growth and demand for some. Gold, silver, copper and uranium have the strongest structural outlook, supported by supply constraints and long-term demand trends. However, as tensions have resurfaced in the Persian Gulf, oil and related equities may garner renewed support.

For complete information, please see the full commentary:

Franklin Equity

Managed Fund Since 2003

Managed Fund Since 2008

Managed Fund Since 1999

Latest Insights

July 22, 2026

Innovation Insights Quarterly: Q3 2026

June 4, 2026

The IPO market reset

June 1, 2026

How innovation is transforming biotechnology

May 18, 2026

Software in the “Age of Intelligence”

Performance

Average Annual Total Returns

⁹

As of 06/30/2026

Month End

Quarter End

As of

Class A - With Sales Charge (POP) (%)

Month End

As of 06/30/2026

1 Year: 31.87

3 Years: 14.55

5 Years: 15.24

10 Years: 6.76

Since Inception(06/05/1995): 6.79

Class A - Without Sales Charge (NAV) (%)

Month End

As of 06/30/2026

1 Year: 39.53

3 Years: 16.73

5 Years: 16.55

10 Years: 7.36

Since Inception(06/05/1995): 6.98

S&P North American Natural Resources Sector Index (%)

Month End

As of 06/30/2026

1 Year: 30.40

3 Years: 16.51

5 Years: 16.77

10 Years: 9.15

Since Inception(06/05/1995): —

S&P Global Natural Resources Index (%) ⁴

Month End

As of 06/30/2026

1 Year: 28.41

3 Years: 11.90

5 Years: 9.35

10 Years: 10.38

Since Inception(06/05/1995): —

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 3 out of 5 stars
As of 06/30/2026

3 Years: 3 Years: 4 out of 5 stars
121 Funds in category

5 Years: 5 Years: 5 out of 5 stars
107 Funds in category

10 Years: 10 Years: 1 out of 5 stars
92 Funds in category

Rating Category: Natural Resources

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.

The number of funds in the category for the Overall Morningstar Rating are listed in the funds in category for the 3-year rating.

Morningstar Style Box

As of 06/30/2026

Current Historical
			Large
			Medium
			Small
Value	Blend	Growth
Style

Size

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Portfolio

Assets

As of06/30/2026 (Updated Monthly)

Total Net Assets: $495.18 Million

Positions

As of 06/30/2026 (Updated Monthly)

Number of Issuers

Fund: 95
Benchmark: 150

Portfolio Statistics

As of 06/30/2026 (Updated Monthly)

Price to Earnings (12-Month Forward)

Fund: 12.59x
Benchmark: 12.86x

Price to Cash Flow

Fund: 8.18x
Benchmark: 9.10x

Price to Book

Fund: 2.39x
Benchmark: 2.44x

Weighted Average Market Capitalization (USD)

Fund: $74.67 Billion
Benchmark: $128.25 Billion

Asset Allocation

As of 06/30/2026 % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Equity	98.26%
Cash & Cash Equivalents	1.74%

Holdings
As of 06/30/2026 (Updated Monthly)

Exxon Mobil Corp COM USD NPV

NEWMONT CORP COM USD1.6

ConocoPhillips COM USD.01

Chevron Corp COM USD.75

Freeport-McMoRan Inc COM USD 0.10

Linde PLC ORD USD 1

BHP GROUP LTD SPONSORED ADR

Barrick Mining Corp ORD USD NPV

BP PLC SPONSORED ADR

Williams Cos Inc/The COM USD1

Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.

Distributions & Tax

Distribution Frequency
Ex-Dividend Fund: This type of fund declares periodic dividends, which are paid to shareholders who own the fund as of a certain date - known as the "record date". After the record date, the fund is said to be trading "ex-dividend"(literally, without the dividend). An investor who buys shares during the interval between the record date and the payment of the dividend does not receive the dividend. A fund that's in the ex-dividend period is marked with an "x" in newspaper listings.

Daily Accrual Fund: This type of fund typically declares income dividends each day that its net asset value is calculated. These dividends remain in the fund until the designated reinvestment or payment date and are distributed to the shareholders, generally once a month, as additional shares or cash, respectively.: AnnuallyThis fund is an ex-Dividend fund
Capital Gain Distributions: December

Proposed 2026 distribution dates for Franklin, Templeton and Mutual Series funds (excluding ETFs).

Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.

Distributions Per Share
Distributions with future dates are estimates and those figures are not final

12/19/2025

Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.

The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.

Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.

Pricing

Pricing History

As of 07/23/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices and Breakpoints

As of 07/23/2026

Share Prices

As of 07/23/2026

NAV ¹(Net Asset Value): $43.93
NAV Change ¹: $-0.16
NAV Change (%) ¹: -0.36%

POP and Sales Charge at Breakpoints

Less than $25,000

$25,000 - $49,999

$50,000 - $99,999

$100,000 - $249,999

$250,000 - $499,999

$500,000 - $749,999

$750,000 - $999,999

52-Week Range

Highest NAV As of 06/02/2026: $46.04
Lowest NAV As of 08/01/2025: $30.70

Documents

Fund Literature

Factsheet - Franklin Natural Resources Fund

Product Commentary - Franklin Natural Resources Fund

Regulatory Documents

Annual Report - Franklin Natural Resources Fund - Class A

Annual Financial Statements and Other Information - Franklin Strategic Series

Semi-Annual Report - Franklin Natural Resources Fund - Class A

Semiannual Financial Statements And Other Information - Franklin Strategic Series

Prospectus - Franklin Strategic Series 2

Summary Prospectus - Franklin Natural Resources Fund

Statement of Additional Information - Franklin Strategic Series 2

Mailed hardcopies unavailable.

Fiscal Q1 Holdings - Franklin Strategic Series

Mailed hardcopies unavailable.

Fiscal Q3 Holdings - Franklin Strategic Series

Mailed hardcopies unavailable.

View Proxy Voting Records and Proxy Voting Policies

Risks

All investments involve risks, including possible loss of principal. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. The investment style may become out of favor, which may have a negative impact on performance. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.

Important Information

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

The S&P Global Natural Resources Index includes 90 of the largest publicly-traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified and investable equity exposure across 3 primary commodity-related sectors: agribusiness, energy, and metals & mining.
Source: © S&P Dow Jones Indices LLC.

The S&P North American Natural Resources Index provides investors with a benchmark that represents U.S. traded securities that are classified under the GICS energy and materials sector excluding the chemicals industry; and steel sub-industry.
Source: © S&P Dow Jones Indices LLC. All rights reserved.

Click here for funds sales charge and breakpoint information.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics. ©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Effective September 1, 2024 the fund changed its benchmark to the S&P Global Natural Resources Index.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
For net asset value (NAV) purchases, a 1% contingent deferred sales charge (CDSC) may apply to shares redeemed within 18 months.
©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Prior to 9/10/18, these shares were offered at a higher initial sales charge of 5.75%; thus actual returns would have differed. Total returns with sales charges have been restated to reflect the current maximum initial sales charge of 5.50%.
Capitalization Rate is calculated without the deduction of fees and expenses.

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Individual Investor

Financial Professional

Institutional Investor

FRNRX Franklin Natural Resources Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class A

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Ratings 3

Portfolio

Asset Allocation

Distributions & Tax

Pricing

Daily Fund Prices and Breakpoints

Documents

Fund Literature

Regulatory Documents

Risks

Important Information

Footnotes

Ratings ³