PRICE AND YTD RETURN As of 07/22/2016

NAV up $0.01 $10.12
POP $10.57
YTD Total return at Nav 5.20%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 06/30/2016

Sales Charge

1 YEAR RETURN -4.37%
5 YEAR RETURN -1.16%
10 YEAR RETURN 2.17%


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 06/30/2016 $245.2 (M)
Distribution Rate at NAV As of 07/22/2016 0.00%
30-Day Standardized yield As of 06/30/2016 (updated monthly)
w/ Waiver 2.15%
w/o Waiver 1.95%

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


T. Anthony Coffey, CFA, MBA

T. Anthony Coffey, CFA®, MBA

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

Kent Burns, CFA®, MBA

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 2004

Overall Morningstar Rating As of 06/30/2016

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 06/30/2016

Years Ratings Funds
in category
1 Stars
1 Stars
1 Stars

Morningstar Style Box As of 03/31/2016

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. 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


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.

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