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Managed Fund Since 2019
Fixed Income
FDAAX Franklin Floating Rate Daily Access Fund
- 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.
Popular Documents
Total Net Assets
$1.40B
As of 10/31/2025 (Updated Monthly)
Overview
Fund Facts
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.
Identifiers
- Ticker
- FDAAX
- Fund Number
- 689
- CUSIP Code
- 353612781
Average Annual Total Returns As of 10/31/2025
Advisor Class
- 5.69%1 Year
- 9.88%3 Years
- 7.60%5 Years
- 4.55%10 Years
- 4.07%Since Inception
05/01/2001
Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.
Top Sectors
As of 10/31/2025 % of Total (Updated Monthly)
Additional Fund Info
- Share Class Inception Date
- 05/01/2001
- Investment Style
- Bank Loans
- Lipper Classification
- Loan Participation Funds
- Morningstar Category
- Bank Loan
Manager and Commentary
About the Team
Franklin Templeton Fixed Income
Franklin Templeton Fixed Income is a fixed income specialist with a measured "no surprises" approach that is committed to the goal of delivering clients consistent, predictable fixed income results. We pursue dimensional sources of potential alpha across all global fixed income securities, sectors, and markets.
Commentary Highlights
September 30, 2025- Markets: Over the last few months, the loan market processed the impact of increasing visibility on rate cuts, falling US Treasury yields and ongoing repricings, balanced by lackluster new-issue supply. Retail outflows increased, as investors looked at lower yields in this floating-rate asset class. Collateralized loan obligation (CLO) issuance stayed quite healthy though, which provided a buffer to loan spreads. Second-quarter 2025 earnings show the progress of responses to tariffs. Tariff-exposed sectors are talking more about pricing versus supply chain changes (a common theme), as pricing seems to be more often cited as a tool companies plan to use. Companies that have been working down inventory as they look for more clarity on tariffs will now need to start buying at higher rates.
- Contributors: Security selection in the transportation and retailers segments of the loan market.
- Detractors: Overweight exposure to and security selection in automotive -related companies.
- Outlook: On balance, we maintain our view that loan spreads will be generally range-bound with a bias toward widening in the near term, with choppiness over the coming months as the tariff and rate situation evolves. We view pockets of market volatility as opportunities to invest in fundamentally strong issuers with solid balance sheets, capital market access and lasting competitive advantages. Over the one-year period, we think loan spreads should remain stable, assuming a favorable or neutral macroeconomic environment.
Franklin Templeton Fixed Income
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Managed Fund Since 2013
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Managed Fund Since 2019
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Managed Fund Since 2019
Latest Insights
November 12, 2025
October 30, 2025
October 28, 2025
October 9, 2025
Performance
Risk Measures
As of 10/31/2025
Advisor Class - Without Sales Charge (NAV)
Measured against: Morningstar LSTA U.S. Leveraged Loan Index
Statistics
Beta Bear
Bull Bear Capture Ratio
Beta Bull
Historical Tracking Error
Information Ratio
Gains/Losses
Standard Deviation (%)
Advisor Class
Morningstar LSTA U.S. Leveraged Loan Index
Sharpe Ratio (%)
Advisor Class
Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.
Ratings 3
©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Portfolio
Assets
As of10/31/2025 (Updated Monthly)
- Total Net Assets
- $1.40 Billion
Positions
As of 10/31/2025 (Updated Monthly)
Number of Holdings
- Fund
- 310
- Benchmark
- 1,333
Portfolio Statistics
As of 10/31/2025 (Updated Monthly)
Effective Duration
- Fund
- 0.09 Years
- Benchmark
- -0.01 Years
Asset Allocation
As of 10/31/2025 % of Total (Updated Monthly)
| Holdings | Fund |
|---|---|
Fixed Income | 92.88% |
Equity | 1.32% |
Cash & Cash Equivalents | 5.80% |
Holdings
As of 09/30/2025 (Updated Monthly)
Franklin Institutional U.S. Government Money Market Fund OEMF-SWEEP MONEY MARKET PORTFOLIO
HSBC Securities USA Inc 4.21% 10/01/2025 REPO
BNP Paribas Securities Corp 4.2% 10/01/2025 REPO
Deutsche Bank Securities Inc 4.2% 10/01/2025 REPO
HUB INTERNATIONAL LTD 6.5% 06/20/2030 2025 Incremental Term Loans
UKG Inc 8.81426% 02/09/2031 Initial Term Loan
Medline Borrower LP 6.5% 10/22/2028 Incremental Term Loan
Sedgwick Claims Management Services Inc 9.07734% 07/31/2031 2024 Term Loans
Boost Newco Borrower LLC 6.5% 01/31/2031 USD Term B-2 Loans
Mcafee Corp 6.5% 03/01/2029 Tranche B-1 Term Loans
Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.
Distributions & Tax
- Distribution Frequency
- MonthlyThis fund is an Accrual fund.
- Capital Gain Distributions
- December
Rates and Yields
Distribution Rate
At Net Asset Value (NAV) 7.71%
Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.
Distributions Per Share
12/30/2025
10/31/2025
09/30/2025
08/29/2025
07/31/2025
06/30/2025
05/30/2025
04/30/2025
03/31/2025
02/28/2025
Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.
The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.
Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.
Pricing
Documents
Fund Literature
| Name | Download | Add to Cart | |
|---|---|---|---|
| Factsheet - Franklin Floating Rate Daily Access Fund | |||
| Product Commentary - Franklin Floating Rate Daily Access Fund |
Regulatory Documents
| Name | Download | Add to Cart | |
|---|---|---|---|
| Annual Report - Franklin Floating Rate Daily Access Fund - Advisor Class | |||
| Annual Financial Statements and Other Information - Franklin Investors Securities Trust #2 | |||
| Semi-Annual Report - Franklin Floating Rate Daily Access Fund Advisor Class | |||
| Semiannual Financial Statements and Other Information - Franklin Investors Securities Trust | |||
| Prospectus - Franklin Investors Securities Trust #2 | |||
| Summary Prospectus - Franklin Floating Rate Daily Access Fund | |||
| Statement of Additional Information - Franklin Investors Securities Trust #2 | |||
| Fiscal Q1 Holdings - Franklin Investors Securities Trust Funds | |||
| Fiscal Q3 Holdings - Franklin Investors Securities Trust Funds |
Risks
All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. The fund should not be considered an alternative to money market funds or certificates of deposit (CDs). Floating-rate loans and debt securities are typically rated below investment grade and are subject to greater risk of default, which could result in loss of principal. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. Active management does not ensure gains or protect against market declines. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.
Important Information
Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.
Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.
Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.
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Important data provider notices and terms available at www.franklintempletondatasources.com.
Performance data quoted represents past performance, which does not guarantee future results.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
The Morningstar LSTA US Leveraged Loan Index is designed to reflect the performance of the largest facilities in the leveraged loan market.
The Fund is not sponsored, endorsed, sold or promoted by Morningstar, Inc. or any of its affiliates.
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.