Franklin Floating Rate Daily Access Fund

Fund Description

The fund seeks a high level of current income and, secondarily, preservation of capital, by investing predominantly in floating interest rate senior secured corporate loans (floating-rate loans) and corporate debt securities.

Strategy Statement

"We invest in floating-rate loans, which pay interest that adjusts periodically to current rates, generally making them less sensitive to interest rate volatility than fixed-rate securities. "

Madeline Lam

Management

Mark Boyadjian, CFA

Mark Boyadjian, CFA®

  • Joined Franklin Templeton in 1998
  • Managed Fund Since 2014
Madeline Lam

Madeline Lam

  • Joined Franklin Templeton in 1998
  • Managed Fund Since 2001
Justin G. Ma, CFA

Justin G. Ma, CFA®

  • Joined Franklin Templeton in 2006
  • Managed Fund Since 2013

Rating

Overall Morningstar Rating As of 04/30/2018

Rating Category: Bank Loan

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 04/30/2018

Years Ratings Funds
in category
3
4 Stars
207
5
3 Stars
167
10
3 Stars
81

Morningstar Style Box As of03/31/2018

Strategy, Benefits, Results

Strategy

  • We invest predominantly in floating interest rate senior secured corporate loans and corporate debt securities.
  • We seek higher credit-quality loans that may potentially help the fund maintain a more stable net asset value than the fund's benchmark index.
  • We look for companies with strong management teams and market leadership.

Benefits

  • Dedicated Floating Rate Research Team. We have a team solely focused on floating-rate loans analysis, separate from high-yield bonds.
  • Access to In-Depth Investment Expertise. Whether we want to look at a security from a credit or equity perspective to get a holistic understanding of the security, we have the ability to draw upon the extensive research resources of Franklin Templeton's fixed income and equity teams.
  • Diversified Portfolio. The fund's diversification helps to potentially reduce credit risk by spreading assets across many different issuers and industries.

Selling The Fund

  1. Highlight the fund's adherence to stringent risk management disciplines.
  2. Mention how the fund's diversification helps to potentially reduce credit risk by spreading assets across many different issuers and industries.
  3. Emphasize how floating-rate loans are generally less sensitive to interest-rate volatility than fixed-rate securities.

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