Franklin Flexible Alpha Bond Fund

This fund or share class has been closed to new investors.

This fund or share class has been closed to new investors.

Fund Description

The fund seeks to provide total return through a combination of current income and capital appreciation by investing at least 80% of its net assets in bonds and investments that provide exposure to bonds, including global debt obligations of any credit quality, maturity or duration, and derivatives. The fund aims to provide attractive risk-adjusted total returns over a full market cycle.

Strategy Statement

"We take an unconstrained investment approach with dynamic sector rotation, active currency management, security selection and relative value positioning, while aiming to manage risks such as duration."

INVESTMENT PHILOSOPHY, STRATEGY AND APPROACH

Investment Philosophy

We believe that applying a tactical, risk-focused approach to a diversified set of holdings across global fixed income sectors can create a more attractive risk/return profile that can help to neutralize the impact of interest rate risk.

Investment Process

Fund's Investment Universe and Flexible Range of Tools to Potentially Drive Alpha

Strategy, Benefits, Results

Strategy

  • Invests in a broad investment universe of global debt unconstrained by a benchmark, with a focus on non-traditional global fixed income asset classes.
  • Aims to capitalize on global economic and market trends through opportunistic sector rotation, security selection and currency management.
  • Employs long and short positions to navigate market cycles and tactically manage market risks from interest rate, credit, currency and country exposures.

Benefits

  • Seeks to complement traditional fixed income asset classes by potentially providing low correlation to conventional holdings.
  • Focuses on risk management and reducing volatility to aim to protect on the downside.
  • Leverages nearly three decades of experience in managing unconstrained strategies and fixed income expertise honed over more than 60 years.

Selling The Fund

  1. Highlight how the fund is designed to provide diversification to core fixed income funds for clients seeking an alternative to traditional fixed income investments.

  2. Discuss how the fund seeks to provide attractive returns in all environments.

  3. Mention the fund’s risk management strategy that seeks to minimize performance downturns inherent in traditional fixed income funds during negative markets.