Fund Description

The fund seeks to provide high current income consistent with preservation of capital. Capital appreciation over the long term is a secondary goal. The fund invests at least 80% of its assets in investment grade debt securities and investment and focuses on government and corporate debt securities and mortgage- and asset-backed securities.

Strategy Statement

"The fund was created to be a core fixed income holding, offering diversification across the fixed income universe and backed by the expertise of a world-class team of fixed income professionals. "

Management

Sonal Desai, Ph.D

Sonal Desai, Ph.D

  • Joined Franklin Templeton in 2009
  • Managed Fund Since 2018
Roger Bayston, CFA

Roger Bayston, CFA®

  • Joined Franklin Templeton in 1991
  • Managed Fund Since 1998
Kent Burns, CFA

Kent Burns, CFA®

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 1998
David Yuen, CFA

David Yuen, CFA®

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2005
Michael Materasso

Michael Materasso

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2008

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Philosophy

We believe that applying a disciplined process to investing across fixed income sectors, seeking opportunities to add value in the market cycles, can potentially result in attractive risk-adjusted returns over the long term. The Fund’s principal investment goal is to provide high current income, consistent with preservation of capital. Its secondary goal is capital appreciation over the long term. Under normal market conditions, the Fund invests at least 80% of its assets in investment grade debt instruments. The Fund focuses on government and corporate debt securities and mortgage- and asset-backed securities.

Investment Process

  • Long term, fundamentally driven investment focus
  • Diversified multi-sector fund with a flexible mandate to invest across fixed income sectors, with a focus on investment-grade debt.
  • Proactive asset allocation and diversification
    • Flexible, multi-sector structure allows the managers to focus on investment ideas believed to have the most potential within each sector and opportunistically invest across the fixed income universe.
    • Centralized decision making structure, formalized through our Fixed Income Policy Committee (FIPC), allows for nimble and flexible sector allocation potential to capitalize on investment opportunities.
  • Depth and breadth of fixed income expertise
    • Leverages expertise and experience across the Franklin Templeton Fixed Income Group’s sector and strategy teams—credit, municipal, international fixed income and structured products.

Rating

Overall Morningstar Rating As of 08/31/2019

Rating Category: Intermediate Core-Plus Bond

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 08/31/2019

Years Ratings Funds
in category
3
1 Stars
536
5
1 Stars
448
10
2 Stars
329

Morningstar Style Box As of07/31/2019

Strategy, Benefits, Results

Strategy

  • Our multi-sector, fixed-income fund focuses on government and corporate debt securities, as well as mortgage- and asset-backed securities.
  • Our research-driven, value-oriented approach identifies bonds with the best prospects for income and capital appreciation.
  • We provide in-depth, fundamental analysis of each of the key fixed-income sectors within the context of a global economic outlook.

Benefits

  • Diversification. Broad diversification makes our fund attractive as a core fixed-income holding.
  • Global Fixed Income Expertise. Investors have full access to the research resources of the Franklin Templeton Fixed Income Group®.

Selling The Fund

  1. Highlight our ongoing adherence to stringent risk-management disciplines.
  2. Review how the investment process allows our team to take advantage of income and capital-appreciation opportunities.
  3. Discuss how the fund's multi-sector structure provides the flexibility to tap different areas of the fixed-income spectrum.