Franklin Real Estate Securities Fund

Fund Description

The Fund’s managers invest at least 80% of the fund’s net assets in equity securities of companies operating in the real estate industry, mainly real estate investment trusts (REITs).

Strategy Statement

"We seek attractive opportunities in the U.S. real estate sector by analyzing supply/demand trends for various property types, evaluating company management and conducting in-depth securities analysis."

Management

Blair Schmicker, CFA

Blair Schmicker, CFA®

  • Joined Franklin Templeton in 2006
  • Managed Fund Since 2019
Daniel Scher

Daniel Scher

  • Joined Franklin Templeton in 2002
  • Managed Fund Since 2014

Rating

Overall Morningstar Rating As of 11/30/2019

Rating Category: Real Estate

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 11/30/2019

Years Ratings Funds
in category
3
3 Stars
224
5
3 Stars
200
10
3 Stars
137

Morningstar Style Box As of10/31/2019

Strategy, Benefits, Results

Strategy

  • The securities of REITs (real estate companies that purchase and usually manage properties such as office buildings, malls, apartments and hotels) are traded like stocks, which make them more liquid than individual properties.
  • We combine top-down macro analysis with bottom-up research of individual stocks to locate investment opportunities.
  • We seek to maximize total return by investing at least 80% of net assets in the equity securities of companies operating in the real estate industry—primarily Real Estate Investment Trusts (REITs).

Benefits

  • Experienced Management. Our real estate team has been investing in real estate for more than 30 years.
  • Portfolio Diversification. Historically, real estate securities have had a relatively low correlation to both stocks and bonds, offering potential diversification benefits.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • The fund concentrates in real estate securities which involve special risks, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments affecting the sector.
  • The fund’s investments in REITs involves additional risks; since REITs typically are invested in a limited number of projects or in a particular market segment they are more susceptible to adverse developments affecting a single project or market segment than more broadly diversified investments.
  • These and other risks are described more fully in the fund’s prospectus.

Minimum Investment

See Prospectus

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