PRICE AND YTD RETURN As of 02/11/2016

NAV up $0.02 $5.51
POP $5.85
YTD Total return at Nav -4.67%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 12/31/2015

Sales Charge

1 YEAR RETURN -26.46%
5 YEAR RETURN
Since inception Inception: 12/07/2011 -14.00%

KEY STATS

Investment Category Commodities
Distributions Annually
CUSIP 352 41W 609
Fund Number 995
Inception Date Dec 07, 2011
Total Net Assets (all share classes) As of 01/31/2016 $115.8 (M)
Distribution Rate at NAV N/A
30-Day Standardized yield N/A

SALES CHARGE, EXPENSES, & FEES As of 10/01/2015 (updated annually)

Gross Expense Ratio 2.19%
Net Expense Ratio 1.20%
Max Initial Sales Charge 5.75%
CDSC 0.00%
12b-1 Fee 0.25%

Fund Description

The fund seeks long-term total return by investing in commodity-linked derivative instruments, U.S. government / agency securities and other fixed income securities. By investing in commodity-linked derivative instruments, the fund seeks to gain exposure to the returns of real assets trading in the markets without direct investment in physical commodities. Real assets include metals, gas, oil, livestock, agricultural or meat products and other items.

Strategy Statement

"We believe the commodity markets are supported by population increases, economic expansion, urbanization trends and supply-side dynamics."

Stephen P. Burke

Management

Stephen P. Burke

Stephen P. Burke

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2011
John C. Pickart, CFA, MBA

John C. Pickart, CFA®, MBA

  • Joined Franklin Templeton in 2005
  • Managed Fund Since 2011
Wayne D. Ryan, MBA

Wayne D. Ryan, MBA

  • Joined Franklin Templeton in 2008
  • Managed Fund Since 2011

Strategy, Benefits, Results

Strategy

  • The derivatives market is a relatively efficient way to gain commodities exposure, without taking on the costs and logistical challenges of direct commodities investments.
  • Portfolio managers identify investment opportunities through a combination of top-down analysis of global growth and financial trends and bottom-up research on the commodities market, including supply, demand, price, momentum and seasonal dynamics.
  • The managers seeks to add value relative to the fund’s benchmark through their portfolio construction decisions regarding sector allocations, individual commodities, spot versus futures prices and seasonal issues.
  • To help manage volatility and satisfy asset coverage requirements, the portfolio managers also invest in securities of the U.S. government, its agencies and instrumentalities and other fixed income securities.

Benefits

  • Diversification. With its focus on commodities, the fund may help further diversify portfolios heavily weighted in stocks and bonds.
  • Inflation Protection Potential. An allocation to the fund may help a portfolio preserve purchasing power when inflation rises. Commodities, particularly food and energy, historically have represented a significant portion of the Consumer Price Index (CPI), one of the leading indicators for the U.S. inflation rate.i
  • Growth Potential. The fund provides access to a market with attractive growth potential. As populations grow and economies expand, notably in Asia and Africa, demand for commodities will likely follow.
  • Experienced Management. The fund’s portfolio managers have over 60 years of combined industry experience, with extensive backgrounds in commodities and asset allocation.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • Investing in physical commodities, either directly or through derivative instruments such as commodity-linked total return swaps, commodity futures, commodity index futures and options on commodity futures and commodities index futures, presents unique risks, is speculative and can be extremely volatile.
  • Market prices of commodities may fluctuate rapidly based on numerous factors, including: changes in supply and demand relationships; weather; agriculture; trade; domestic and foreign political and economic events and policies; diseases; pestilence; technological developments; currency exchange rate fluctuations; and monetary and other governmental policies, action and inaction.
  • Derivative instruments involve costs and can create leverage in the fund’s portfolio, which may result in significant volatility and cause the fund to participate in losses (as well as gains) in an amount that significantly exceeds the fund’s initial investment.
  • The fund may not achieve the anticipated benefits and may realize losses, which could be significant.
  • 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.
  • Foreign investing carries additional risks such as currency and market volatility and political, social and economic instability, risks which are heightened in less developed or emerging market countries.
  • These and other risks are described more fully 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.

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