Franklin Pelagos Commodities Strategy Fund

This fund or share class has been liquidated or reorganized.

This fund or share class has been liquidated or reorganized.


Investment Philosophy

The managers believe:

  • Market inefficiencies and price volatility create opportunities for active commodities investors.
  • Both top-down macroeconomic research and bottom-up fundamental analysis add value.
  • Sector and commodity-specific allocation decisions will ultimately have the greatest impact on commodity fund returns.
  • Long-term total return and collateral maintenance can be achieved on parallel tracks.

Investment Process

The team implements an active, flexible, and research-driven process. Top-down analysis seeks to identify drivers of global growth, capital markets and sector trends. Bottom-up analysis explores supply, demand, price, momentum, seasonal and fundamental corporate data trends. Portfolio construction decisions seeks to identify the best near-term sources of alpha, implementing ideas via a broad range of commodity-linked derivative instruments. The fund will also invest in low duration U.S. government / agency securities and other fixed income securities to help manage volatility and satisfy asset coverage requirements.