Fund Evaluator:
Franklin Natural Resources Adv (FNRAX)
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Best Performing in Natural Resources Over the Last Year
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Fund Details
Franklin Natural Resources Adv Overview
Franklin Natural Resources Adv (FNRAX) is an actively managed Sector Equity Natural Resources fund. Franklin Templeton Investments launched the fund in 1996.
The investment seeks high total return. Under normal market conditions, the fund invests at least 80% of its net assets in the equity and debt securities of companies in the natural resources sector. It predominantly invests in equity securities. In addition to its investments in companies in the natural resources sector, the fund may also invest up to 20% of its net assets in equity or debt securities of any type of issuer. It may invest a significant portion of its assets in smaller capitalization companies, which are generally companies with market capitalizations of less than $2 billion at the time of the fund's investment.
About Franklin Natural Resources Adv (FNRAX)
There are 3 members of the management team with an average tenure of 22.85 years: Matthew Adams (2008), Frederick Fromm (2003), Steve Land (1999). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and S&P North American Natural Resources TR index with a weighting of 100%. Franklin Natural Resources Adv has 100 securities in its portfolio. The top 10 holdings constitute 27.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Franklin Natural Resources Adv is part of the Equity global asset class and is within the Sector Equity fund group. Franklin Natural Resources Adv has 35.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 62.2%. There is 35.0% allocated to foreign stock, and 0.7% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.3% convertible bond). Franklin Natural Resources Adv has 1.8% of the portfolio in cash.
Assets Under Management
The fund has $102 million in total assets, which is below the $233 million average for the Natural Resources category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FNRAX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin Natural Resources Adv expense ratio is above average compared to funds in the Natural Resources category. Franklin Natural Resources Adv has an expense ratio of 0.75%, which is 35% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin Natural Resources Adv has a portfolio turnover rate of 19%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 61% for the Natural Resources category.
Recently, in the month of July 2026, Franklin Natural Resources Adv returned 3.5%, which earned it a grade of B, as the Natural Resources category had an average return of 1.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Franklin Natural Resources Adv has a trailing yield of 1.47%, which is below the 2.18% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Franklin Natural Resources Adv Grades
Year to date, the fund has returned 19.2%, 5.6 percentage points better than the category, which translates into a grade of B. The fund has returned 43.0% over the past year (grade of B), 15.3% over the past three years (grade of A) and 19.1% per year over the past five years (grade of A) and 8.0% per year over the past 10 years (grade of D).
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FNRAX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FNRAX Return (NAV) | 3.5% | -4.6% | 43.0% | 15.3% | 19.1% | 8.0% |
| FNRAX Grade | B | C | B | A | A | D |
| +/- Category | 1.6% | 0.4% | 9.4% | 3.9% | 7.5% | -1.5% |
| Natural Resources Avg | 1.9% | -5.0% | 33.6% | 11.4% | 11.6% | 9.5% |
| FNRAX Tax Cost Ratio | na | na | 0.7% | 0.7% | 0.6% | 0.6% |
FNRAX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FNRAX Return (NAV) | 19.2% | 30.7% | 1.5% | 3.6% | 30.8% | 36.3% | -21.4% | 10.2% | -23.5% | 0.5% | 34.9% |
| FNRAX Grade | B | B | B | B | A | A | F | D | D | F | B |
| +/- Category | 5.6% | 2.1% | 2.0% | 0.2% | 22.7% | 5.4% | -31.0% | -4.6% | -3.0% | -12.5% | 6.3% |
| Natural Resources Avg | 13.7% | 28.6% | -0.5% | 3.4% | 8.0% | 30.8% | 9.6% | 14.8% | -20.5% | 13.1% | 28.6% |
| Risk Measures | |
| Standard Deviation: | 15.8% |
| Total Risk Index: | 1.29 - Above Average |
| Category Risk Index: | 0.89 - Low |
| Category Risk Grade: | A (19% Rank) |
| Beta: | 0.44 |
| R-Squared: | 12% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Value |
| Bond Investment Style: | na |
| Yield: | 1.5% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $500 Mil |
| Fund Total Assets: | $ 103 Mil |
| Share Class Type: | Adv |
| Portfolio Turnover: | 20% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 27.4 years | |||
| Average Tenure: 22.8 years | |||
| Managers (Year): Land Steve (1999), Fromm Frederick (2003), Adams Matthew (2008) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 100 |
| % in Top 10 Holdings: | 27.8% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 35.0% |
Portfolio Allocation |
|
| Domestic Stock: | 62.2% |
| Foreign Stock: | 35.0% |
| Preferred Stock: | 0.7% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.3% |
| Other: | 0.0% |
| Cash: | 1.8% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-342-5236 |
| Website: | www.franklintempleton.com |
| Status: | Open |
| Inception Date: | December 31, 1996 |
| Min. Initial Purchase: | $100,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.75% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 1.15% |
| Share Class: | Franklin Natural Resources A |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
