- Source: Franklin Templeton, Morningstar. As of June 30, 2022. Historical yield observations are based on monthly data. The indices used are MSCI US Large Cap for US Equity, US 10 Year Yield, FTSE EPRA/NAREIT for Global REITs, Bloomberg Corporate High Yield Index for US High Yield, and Bloomberg Global 7-10 Aggregate for Global Bonds, Leveraged Loan Index for Leveraged Loans, Cliffwater Direct Lending Index for Private Debt. Index returns do not reflect any fees, expenses or sales charges. Indexes are unmanaged and investors cannot invest directly in an index. This information is provided for illustrative purposes only.
- AUM refers to the assets under management for all credit funds and separately managed accounts managed and administered by BSP. AUM amounts are approximations as of June 30, 2022 and are unaudited. Certain amounts are preliminary and remain subject to change.
- Includes pro forma amounts for the merging of Benefit Street Partners Realty Trust (“BSPRT”) and Capstead Mortgage Corporate (“Capstead”) and anticipated deleveraging of the post-combination portfolio.
What Are the Risks?
All investments involve risks, including the possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested. An investment in an interval fund is not suitable for all investors. Unlike closed-end funds an interval fund’s shares are not typically listed on a stock exchange. There is also no secondary market for the fund’s shares, and none is expected to develop. Even though an interval fund provides limited liquidity to its investors by offering to repurchase a portion of the shares on a periodic basis, investors should consider shares of the fund to be an illiquid Investment in an interval fund, therefore, an investment is subject to liquidity risk. There is no guarantee that an investor will be able to tender all or any of their requested fund shares in a periodic repurchase offer. Shareholders should not expect to be able to sell their Shares regardless of how the Fund performs. An investment in the Fund is considered illiquid. There is no assurance that monthly distributions paid by the Fund will be maintained at the targeted level or that dividends will be paid at all. The Fund’s distributions may be funded from unlimited amount of offering proceeds or borrowings but may constitute return of capital and reduce the amount of capital available to the Fund for investment. An investment strategy focused primarily on privately held companies presents certain challenges and involves incremental risks as opposed to investments in public companies, such as dealing with the lack of available information about these companies as well as their general lack of liquidity. The value of most bond funds and credit instruments are impacted by changes in interest rates; bond prices generally move in the opposite direction of interest rates. Investing in lower-rated or high yield debt securities (“junk bonds”) involve greater credit risk, including the possibility of default, which could result in loss of principal – a risk that may be heightened in a slowing economy. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the fund to participate in losses (as well as gains) that significantly exceed the fund’s initial investment in such derivative. Reduced liquidity will have an adverse impact on such securities’ value and on a portfolio’s ability to sell such securities when necessary to meet the portfolio’s liquidity needs or in response to a specific market event. The Fund may be materially adversely affected by market, economic and political conditions globally and in the jurisdictions and sectors in which the fund invests. The market values of securities owned by the fund will go up or down, sometimes rapidly or unpredictably. Diversification does not guarantee a profit or protect against a loss. There can be no assurance that the Fund will be able to implement its investment strategy and achieve its investment objectives. Prior to offering interests in the Fund, Franklin BSP will give investors the opportunity to ask questions and receive additional information concerning the terms and conditions of such offering and other relevant matters.
These and other risks are described more fully in the fund’s prospectus. Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.
Important Information
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.
Investment perspectives reflect the analysis and opinions of the authors as of the dates on the respective content and may change without notice. It may differ from the opinions of other portfolio managers, investment teams or platforms at Franklin Templeton. It is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment or strategy.
Products, services and information may not be available in all jurisdictions and are offered outside the U.S. by other FT affiliates and/or their distributors as local laws and regulation permits. Please consult your own financial professional or Franklin Templeton institutional contact for further information on availability of products and services in your jurisdiction.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. Download a prospectus, which contains this and other information. Please carefully read a prospectus before you invest or send money.
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Franklin Distributors, LLC. Member FINRA/SIPC. Prior to July 7, 2021, Franklin Templeton Distributors, Inc., and Legg Mason Investor Services, LLC served as mutual fund distributors for Franklin Templeton. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
