PRICE AND YTD RETURN As of 04/27/2016

NAV up $0.03 $9.96
POP $10.40
YTD Total return at Nav 3.53%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 03/31/2016

Sales Charge

1 YEAR RETURN -7.51%
5 YEAR RETURN -1.52%
10 YEAR RETURN 2.08%

KEY STATS

Investment Category Multi Sector
Distributions Monthly
CUSIP 353 612 724
Fund Number 423
Inception Date Nov 17, 2004
Total Net Assets (all share classes) As of 03/31/2016 $248.8 (M)
Distribution Rate at NAV As of 04/27/2016 0.00%
30-Day Standardized yield As of 03/31/2016 (updated monthly)
w/ Waiver 2.23%
w/o Waiver 2.02%

SALES CHARGE, EXPENSES, & FEES As of 03/01/2016 (updated annually)

Gross Expense Ratio 1.12%
Net Expense Ratio 0.92%
Max Initial Sales Charge 4.25%
CDSC 0.00%
12b-1 Fee 0.25%

Fund Description

The fund allocates its investments among the following general asset classes: inflation-protected securities, investment grade and high-yield fixed income securities, mortgage-backed and other asset-backed securities and equity securities with high correlation to broad measures of inflation, including shares of real estate investment trusts (REITs).

Strategy Statement

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

T. Anthony Coffey, CFA®, MBA

Management

T. Anthony Coffey, CFA, MBA

T. Anthony Coffey, CFA®, MBA

  • Joined Franklin Templeton in 1989
  • Managed Fund Since 2004
Kent Burns, CFA

Kent Burns, CFA®

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 2004

Overall Morningstar Rating As of 03/31/2016

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 As of 03/31/2016

Years Ratings Funds
in category
3
1 Stars
200
5
1 Stars
170
10
1 Stars
107

Morningstar Style Box As of 12/31/2015

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. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline.
  • The risks of foreign securities include currency fluctuations and political uncertainty.
  • 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 financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

You need Adobe Acrobat Reader 6.0 or higher to view and print PDF documents. Download a free version from Adobe's website.