Fund Evaluator:

Franklin Real Estate Securities Adv Overview

Franklin Real Estate Securities Adv (FRLAX) is an actively managed Sector Equity Real Estate fund. Franklin Templeton Investments launched the fund in 1996.

The investment seeks to maximize total return. Normally, the fund invests at least 80% of its net assets in equity securities of companies operating in the real estate industry predominantly in the United States, including: companies qualifying under federal tax law as real estate investment trusts (REITs); and companies that derive at least half of their assets or revenues from the ownership, construction, management, operation, development or sale of commercial or residential real estate (such as real estate operating or service companies, homebuilders, lodging providers, and developers). It is non-diversified.

About Franklin Real Estate Securities Adv (FRLAX)

There are 2 members of the management team with an average tenure of 9.59 years: Daniel Scher (2014), Blair Schmicker (2019). 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 MSCI US IMI/Real Estate 25-50 NR USD index with a weighting of 100%. Franklin Real Estate Securities Adv has 43 securities in its portfolio. The top 10 holdings constitute 55.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Franklin Real Estate Securities Adv is part of the Equity global asset class and is within the Sector Equity fund group. Franklin Real Estate Securities Adv has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.1%. There is 0.0% allocated to foreign stock, and 0.0% 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 0.0% convertible bond). Franklin Real Estate Securities Adv has 0.9% of the portfolio in cash.

Assets Under Management

The fund has $30 million in total assets, which is below the $667 million average for the Real Estate 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.

FRLAX 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 Real Estate Securities Adv expense ratio is above average compared to funds in the Real Estate category. Franklin Real Estate Securities Adv has an expense ratio of 0.78%, which is 36% lower than its category average, making the fund expense ratio grade a B. 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 Real Estate Securities Adv has a portfolio turnover rate of 32%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 78% for the Real Estate category.

Recently, in the month of July 2026, Franklin Real Estate Securities Adv returned 2.7%, which earned it a grade of A, as the Real Estate category had an average return of 2.0%. 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 Real Estate Securities Adv has a trailing yield of 1.54%, which is below the 2.02% category average. The fund normally distributes its income quarterly 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 Real Estate Securities Adv Grades

Year to date, the fund has returned 16.4%, 0.2 percentage points worse than the category, which translates into a grade of C. The fund has returned 17.3% over the past year (grade of C), 9.0% over the past three years (grade of D) and 2.6% per year over the past five years (grade of D) and 4.6% per year over the past 10 years (grade of D).

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