How does the Franklin Gold & Precious Metals fund invest?
26 JAN, 2026
By Joanna Piwko from RankiaPro Europe
The Franklin Gold & Precious Metals fund is a thematic fund that invests in global equity and is domiciled in Luxembourg. Launched in April 2010, it focuses on the precious metals sector, particularly on companies linked to the extraction, processing or trading of gold, silver, platinum and palladium.
Next, we analyze how the Franklin Gold & Precious Metals invests, its main features and the opportunities it offers to investors interested in gold.
Features of the Franklin Gold & Precious Metals fund
Among the reasons to invest in this thematic fund is the attractiveness of precious metals as tangible assets not linked to a specific country or financial system. Therefore, in periods of economic uncertainty, precious metals can provide stability, diversification and a refuge from inflation; and the possibilities of recession in different markets. In addition, gold in particular has always been considered the universal currency.
- Benchmark index: the fund is actively managed using the FTSE Gold Mines Index as a reference.
- Investment strategy: being an active fund, Franklin Templeton can select companies with different weights to the index. The team is composed of experts who analyze and select the best opportunities in the precious metals sector, focusing on high-quality companies with attractive production profiles, solid reserve bases and active precious metals exploration programs.
- Management team: the investment team is led by Steve Land, PM and research analyst at Franklin Templeton. With over 27 years of experience, Steve is a member of the portfolio management team of the Franklin Natural Resources Fund. Alongside him is Frederick Fromm, PM and research analyst, with over 32 years of experience. He also leads the Franklin Natural Resources fund.
- Assets: as of December 12, 2025, the Franklin Gold & Precious Metals fund had 1.63 trillion dollars in assets under management.
Accumulated return of the Franklin Gold & Precious Metals fund
The Franklin Gold & Precious Metals fund is a strategy with returns that exceed its benchmark, but not in all time horizons. This can also be observed in the quartile in which the fund is positioned in different periods, although the strategy tends to be in the second quartile.
On the Franklin Templeton website, you can observe the fund's risk metrics at 3, 5, and 10 years. It is evident that the fund takes less risk than the market.
As for its allocation, it can be seen that at the subsector level the fund is quite diverse compared to the benchmark index. The significant position in companies dedicated to exploration and development in the gold sector is evident, appreciating the potential of these types of companies and their long-term results. As for the geographical allocation, as one might expect, Franklin Gold & Precious Metals has most of its positions in developed markets, overweighting the United States over Australia.
Advantages:
- It is a fund whose investment philosophy on precious metals can constitute a refuge against current inflation.
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- Institutional dimensions and recognized manager.
Disadvantages:
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- Global fund with a specific theme, which could be suitable for a selected group of investors who understand the level of volatility involved in investing in it.
