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: 20%

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 05/31/2026

View performance section for additional info As of 05/31/2026

Class A

With Sales Charge (POP)

Without Sales Charge (NAV)

48.39%1 Year
20.46%3 Years
16.88%5 Years
7.89%10 Years
7.03%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 05/31/2026 Equity as a % of Total (Updated Monthly)

Top Sectors
Oil, Gas & Consumable Fuels42.26%
Metals & Mining28.11%
Chemicals8.66%
Energy Equipment & Services7.99%
Construction Materials1.99%

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

March 31, 2026

Global Commodities Market and Natural Resources Equities: Boosted by supply shocks concentrated in energy and agriculture, the global commodity complex, as measured by the Refinitiv CoreCommodity CRB Index (CRB), posted a 24.6% first quarter 2026 (1Q26) price return, with nearly all of that gain occurring in March. The US dollar’s trade-weighted value rose from a four-year low and generally made commodities more expensive for users of other currencies. The CRB’s rally was supported by extraordinary returns for US-based heating oil (+96.3%), gasoline (+94.2%) and crude oil (+76.6%), while major crop products such as wheat (+21.5%) and soybeans (+13.6%) provided secondary support. Precious and industrial metals had mixed results, while the CRB’s downside was anchored by double-digit losses in cocoa (-45.6%), US natural gas (-21.8%) and coffee (-14.5%). Commodity trading reflected elevated risks linked to the outbreak of war in the Middle East, uneven supply/demand dynamics, financial market volatility, weakening consumer sentiment, inflation pressures and fairly stable central bank policy stances across major economies. Ongoing structural themes—including resource nationalism, trade barriers and supply chain realignment—also remained influential. Although the US stock market delivered its worst quarterly results since 2022, the energy sector was a distinct outlier to the upside, having gained 38.3% domestically (as measured by the S&P 500 Index) and 33.8% globally (per the MSCI All Country World Index in US dollar terms). In both cases, energy topped all 10 other major equity sectors in 1Q26 and was the only one with a gain in March (+10.4% in the US and +10.5% globally). On the same two measures, materials sector stocks were also resilient as they increased 9.7% (S&P 500) and 6.7% (MSCI ACWI) in the quarter despite losses of 6.9% (US) and 11.6% (globally) in March, when they dropped into the bottom half of the sector rankings as the metals and mining industry fell by double-digit percentages and shed most of its prior 1Q26 gains.
Detractors: Significant underweighting in the integrated oil and gas industry; stock selection and an overweighting among copper producers; and substantial overweighting in diversified metals and mining companies.
Contributors: Lighter-than-benchmark exposures to poor-performing construction materials, paper and plastic packaging, and energy pipeline and infrastructure companies.
Outlook: We remain constructively cautious as the Iran war has made the near-term backdrop more supportive for energy, precious metals and select supply-constrained commodities than previously assumed.

For complete information, please see the full commentary:

Franklin Equity

Managed Fund Since 2003

Managed Fund Since 2008

Managed Fund Since 1999

Latest Insights

June 4, 2026

The IPO market reset

June 1, 2026

How innovation is transforming biotechnology

May 18, 2026

Software in the “Age of Intelligence”

April 16, 2026

Innovation Insights Quarterly: Q2 2026

Performance

Calendar Year Returns

⁹

As of 05/31/2026

Month End

Quarter End

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

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

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

S&P Global Natural Resources Index (%)

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 3 out of 5 stars
As of 05/31/2026

3 Years: 3 Years: 4 out of 5 stars
119 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 05/31/2026

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 of05/31/2026 (Updated Monthly)

Total Net Assets: $528.30 Million

Positions

As of 05/31/2026 (Updated Monthly)

Number of Issuers

Fund: 94
Benchmark: 134

Portfolio Statistics

As of 05/31/2026 (Updated Monthly)

Price to Earnings (12-Month Forward)

Fund: 13.35x
Benchmark: 13.62x

Price to Cash Flow

Fund: 8.85x
Benchmark: 9.70x

Price to Book

Fund: 2.55x
Benchmark: 2.59x

Weighted Average Market Capitalization (USD)

Fund: $99.59 Billion
Benchmark: $141.05 Billion

Asset Allocation

As of 05/31/2026 % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Equity	95.99%
Cash & Cash Equivalents	4.01%

Holdings
As of 05/31/2026 (Updated Monthly)

Franklin Institutional U.S. Government Money Market Fund OEMF-SWEEP MONEY MARKET PORTFOLIO

Exxon Mobil Corp COM NPV

NEWMONT CORP COM USD1.6

ConocoPhillips COM USD.01

Freeport-McMoRan Inc COM USD 0.10

Chevron Corp COM USD.75

BHP GROUP LTD SPONSORED ADR

Barrick Mining Corp ORD USD NPV

Agnico Eagle Mines Ltd ORD NPV

Linde PLC ORD USD 1

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

Federal ID Number 94-3220642

For information on tax years prior to 2008, please contact us

These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.

Distributions per Share ($)

Year

Tax Information
Record Date	Ordinary Dividends Dividends paid by a fund that are derived from interest, dividends, net short-term capital gains and other types of ordinary income earned by the fund. For a fund that elects to pass through its foreign taxes paid (a non-cash item), a shareholder's allotted share of foreign taxes has been added to the “Ordinary Dividends” cash distributions received by the shareholder. If the fund passed through foreign taxes paid and later is refunded any portion of those taxes by a foreign tax authority, any interest paid to the fund on that refund is also required to be included in “Ordinary Dividends”.	Qualified Dividends The portion of a fund’s “Ordinary Dividends” that may be eligible for a reduced capital gain tax rate. To be eligible for the lower tax rates, certain holding periods apply and shareholders should consult their tax advisor to determine the amount eligible for the reduced rate. This amount represents both cash distributions and non-cash amounts, such as foreign taxes paid, that have been allocated to shareholders.	Capital Gain Distributions	Unrecaptured Section 1250 Gain	Non-Taxable Return Of Capital	Section 199a Dividends The portion of a fund’s “Ordinary Dividends” generated by a real estate investment trust or earned by a fund from its investments in real estate investment trusts, subject to limitations. Individual (non-corporate) shareholders may be entitled to a special deduction from gross income for “Section 199A Dividends” received from a fund. To qualify for this deduction certain holding periods apply and shareholders should consult their tax advisor.	Foreign Tax Paid	Exempt Interest Dividends	Interest on Tax Reclaim Refunds
Dec 19	0.6192	0.6192	—	—	—	—	—	—	—
	0.6192	0.6192	—	—	—	—	—	—	—

Dec 19

Supplemental Tax Information

Foreign Source Income: —
Foreign Source Qualified Dividends: —
Direct U.S. Government Obligations The portion of “Ordinary Dividends” attributable to earnings from US Treasury and certain other government securities may be categorized as a fund containing US government obligations. This income may be exempt from state personal income taxes. The percentage for direct US government obligation interests available for tax-exempt treatment may be limited in states that require the fund to meet certain minimum thresholds. Shareholders should consult their tax advisor to determine the availability of exemptions in their state.: —
Specified Private Activity Bond Interest: —
Dividends Received Deduction: 69.71%
Section 163(j): —
Indiana Resident Taxable Income: —
Utah Resident Taxable Income The portion of “Exempt-Interest Dividends” subject to Utah income tax. Subject to certain exceptions, the state of Utah provides that income earned from non-federal government entities outside of Utah (non-Utah municipal bonds) is taxable to Utah resident shareholders. Income earned from states that do not tax Utah obligations are also exempt. Shareholders should consult their tax advisor about applicability.: —

Franklin Templeton and its specialized investment managers and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Pricing

Pricing History

As of 06/23/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices and Breakpoints

As of 06/23/2026

Share Prices

As of 06/23/2026

NAV ¹(Net Asset Value): $42.70
NAV Change ¹: $-0.66
NAV Change (%) ¹: -1.52%

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 06/25/2025: $30.24

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.

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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.

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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

Calendar Year Returns

Ratings 3

Portfolio

Asset Allocation

Distributions & Tax

Federal ID Number 94-3220642

Pricing

Daily Fund Prices and Breakpoints

Documents

Fund Literature

Regulatory Documents

Risks

Important Information

Footnotes

Ratings ³