Franklin Real Return Fund

This fund or share class has been closed to new investors.

This fund or share class has been closed to new investors.

Fund Description

The fund seeks to achieve total return that exceeds the rate of inflation over an economic cycle. The fund will generally invest a significant portion of its assets in inflation-protected securities. The manager also has the flexibility to invest in other sectors of the market as it seeks to achieve a high level of real return (total return less inflation), consistent with an acceptable level of risk.

Strategy Statement

"By focusing on inflation-protected securities and other investments correlated to inflation, we strive to maximize real return potential for shareholders."


Kent Burns, CFA

Kent Burns, CFA®

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 2004
David Yuen, CFA

David Yuen, CFA®

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2019


Overall Morningstar Rating As of 08/31/2019

Rating Category: Inflation-Protected Bond

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 08/31/2019

Years Ratings Funds
in category
1 Stars
1 Stars
2 Stars

Morningstar Style Box As of07/31/2019

Strategy, Benefits, Results


  • We generally invest a substantial portion of the fund's assets in inflation-protected securities, including Treasury Inflation-Protected Securities (TIPS).i
  • We may also invest in other asset classes that have historically shown a high correlation to inflation, such as foreign debt securities, real estate investment trusts (REITs), gold and other natural resource stocks.


  • Real Return Potential. The fund aims to achieve a total return that exceeds the rate of inflation over an economic cycle.i, ii
  • Hedge Against Deflation. At maturity, TIPS can be redeemed at their inflation-adjusted principal amount or at par value, whichever is greater. In a deflationary environment, that means a TIPS investor is guaranteed par value.iii
  • Diversification. The fund may be an effective diversifier in either a stock and/or traditional bond portfolio due to exposure to alternative asset classes.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • Interest rate movements will affect the fund’s share price and yield.
  • Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline.
  • Foreign securities involve special risks, including currency fluctuations and economic and political uncertainties.
  • Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value.
  • Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.
  • The fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results.
  • These and other risks are described in the fund’s prospectus.

Minimum Investment

See Prospectus

How Financial Advisors Help You

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