Franklin Real Estate Securities Fund Class A (FREEX)

Overview

This investment fund primarily focuses on allocating at least 80% of its net assets into the equity securities of companies engaged in the real estate sector, predominately within the United States. The fund's investment strategy is to support entities that play a significant role in the real estate industry, including those companies that qualify as real estate investment trusts (REITs) under federal tax laws, as well as those deriving a substantial portion of their assets or revenues from real estate-related activities. These activities may encompass the ownership, construction, management, operation, development, or sale of commercial or residential properties. Given its concentrated investment approach, the fund is categorized as non-diversified, meaning it might allocate a larger portion of its assets into fewer securities than a diversified fund.

Products and Services

• Equity Securities of REITs

  The fund invests in equity securities of companies that are qualified as real estate investment trusts (REITs). REITs are companies that own, operate, or finance income-producing real estate across a range of property sectors. These investments can provide shareholders with dividends generated from the income of the real estate assets held by the REITs.

• Equity Securities of Real Estate Operating or Service Companies

  Investments are also made in companies that provide significant operations, services, or support to the real estate industry. This includes but is not limited to companies involved in property management, real estate brokerage services, and companies offering construction or development services for real estate projects. These companies often derive a majority of their assets or revenues from real estate activities, positioning them as key players in the real estate market ecosystem.

• Commercial and Residential Real Estate Companies

  The fund's portfolio features companies engaged in the ownership, development, or sale of commercial or residential real estate. This includes firms specializing in the development of housing projects, commercial real estate developers, lodging providers, and other entities that have their business models deeply rooted in the real estate sector.