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."

Management

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

Rating

Overall Morningstar Rating As of 06/30/2019

Rating Category: Inflation-Protected Bond

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 [further-information] As of 06/30/2019

Years Ratings Funds
in category
3
3 Stars
193
5
1 Stars
165
10
2 Stars
101

Morningstar Style Box As of05/31/2019

Strategy, Benefits, Results

Strategy

  • 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.

Benefits

  • 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

$1,000.00

How Financial Advisors Help You

Speak to your advisor about whether this fund is appropriate for you.

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