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Managed Strategy Since 2023
Fixed Income
Franklin Corporate Ladder 1-3 Year SMA
- Access to investment grade bonds. Seeks to provide investors exposure to a portfolio of investment grade bonds with a maturity of 3 years or less.
- Diversified maturities. A diversified set of corporate bonds with staggered maturities helps create a stable stream of income.
- Manage interest rate risk. Can be used to help manage interest rate risk.
Popular Documents
Year to Date Returns (Net)
0.72%
As of 06/30/2026
Year to Date Returns (Pure Gross)
1.47%
Overview
Product Facts
Strategy Description
The Franklin Fixed Income team manages portfolios composed primarily of Investment Grade Corporate Credit issues. Using a bottom-up, relative value strategy, we seek to provide capital appreciation with a high level of current income. At least every other year in the ladder will have a bond position with a corresponding maturity in that year for the complete maturity range of the strategy.
- Benchmark
- Bloomberg US Corporate 1-3 Year Index
- Inception Date
- 12/31/2022
- Asset Class
- Fixed Income
- Yield to Worst
As of 08/31/2026 (Updated Monthly) - 4.52%
- Effective Duration
As of 08/31/2026 (Updated Monthly) - 1.18 Years
Average Annual Total Returns As of 07/31/2026
- 2.47%1 Year
- 3.29%3 Years
- —5 Years
- —10 Years
- 3.17%Since Inception
12/31/2022
The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.
Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (1.5% is the maximum anticipated wrap fee for fixed income portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.
For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236.
Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Top Sectors
As of 08/31/2026 % of Total (Updated Monthly)
Investment Grade Corporate98.17% |
Manager and Commentary
About the Team
Franklin Templeton Fixed Income
A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-driven approach means maintaining portfolio and risk exposures that align with client expectations.
Commentary Highlights
June 30, 2026- Markets : Some of the risk aversion that had characterized financial markets at the end of the previous quarter eased during the second quarter, although geopolitical developments remained a key focus. The Middle East conflict continued to drive sentiment through the quarter, with markets reacting to shifting news around negotiations, before the United States and Iran signed a 14-point Memorandum of Understanding (MOU) in late June. The MOU formalized a ceasefire, established a 60-day negotiation framework and included provisions to restore shipping through the Strait of Hormuz. The US dollar was modestly stronger over the quarter, appreciating against most other currencies. The US Federal Reserve (Fed) left the federal funds rate unchanged at 3.50% - 3.75% at both its April and June 2026 Federal Open Market Committee (FOMC) meetings. The June FOMC meeting was the first held under new Fed Chair Kevin Warsh, who took office during May. Although the Committee left the policy rate unchanged, the meeting delivered a notable split: the “dot plot” and Summary of Economic Projections turned more hawkish and the statement removed the prior easing guidance, while Chair Warsh's press conference leaned dovish. Fixed income volatility measures eased during the quarter as risk aversion retreated somewhat. The benchmark 10-year UST yield rose by 15 basis points to 4.47% over the quarter.
- Contributors: The portfolio’s duration underweight lifted relative performance, as did its underweight to bonds with two years to maturity.
- Detractors: Rating and sector selection.
- Outlook : US growth remained resilient but uneven. While geopolitical developments and supply-side risks continue to warrant close monitoring, the greater near-term focus is on whether inflation pressures prove persistent enough to shift the Fed away from its current hold.
Franklin Templeton Fixed Income
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Managed Strategy Since 2025
Latest Insights
September 9, 2026
September 8, 2026
August 31, 2026
August 17, 2026
Composite Performance
Average Annual Total Returns
As of 07/31/2026
Selected Month July 2026
Franklin Corporate Ladder 1-3 Year SMA - Net (%)
Month End
As of 07/31/2026
- 1 Year
- 2.47
- 2 Years
- 2.96
- 3 Years
- 3.29
- Since Inception(12/31/2022)
- 3.17
Franklin Corporate Ladder 1-3 Year SMA - Pure Gross (%)
Month End
As of 07/31/2026
- 1 Year
- 4.00
- 2 Years
- 4.50
- 3 Years
- 4.84
- Since Inception(12/31/2022)
- 4.71
Bloomberg US Corporate 1-3 Year Index (%)
Month End
As of 07/31/2026
- 1 Year
- 3.89
- 2 Years
- 4.64
- 3 Years
- 5.25
- Since Inception(12/31/2022)
- 5.00
The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.
Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (1.5% is the maximum anticipated wrap fee for fixed income portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.
For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236.
Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Portfolio
Portfolio Statistics
As of 08/31/2026 (Updated Monthly)
Effective Duration 1 2 3
- Portfolio
- 1.18 Years
- Portfolio
- 1.27 Years
- Portfolio
- 4.55%
- Portfolio
- 4.52%
- Portfolio
- 3.94%
- Portfolio
- 99.29
Based on a representative account. Individual accounts within the composites may vary due to a variety of factors, such as account size, the specific investment guidelines and restrictions applicable to an account, and the inception date of the account.
Sector Allocation
As of 08/31/2026 % of Total (Updated Monthly)
| Sector | % of Total |
|---|---|
Investment Grade Corporate | 98.17% |
Cash & Cash Equivalents | 1.83% |
Based on a representative account. Individual accounts within the composites may vary due to a variety of factors, such as account size, the specific investment guidelines and restrictions applicable to an account, and the inception date of the account.
Top Securities
As of 08/31/2026 (Updated Monthly)
| Holdings | Portfolio |
|---|---|
JPMorgan Chase & Co,SR UNSECURED, Sr UnsecuredFRN thereafter, 6.07%, 10/22/2027 | 4.17% |
AbbVie Inc, SR UNSECURED, Sr Unsecured, 4.80%, 3/15/29 | 4.17% |
AT&T Inc., senior bond, 4.25%, 3/01/27 | 4.15% |
Duke Energy Corp, SR UNSECURED, Sr Unsecured, 4.30%, 3/15/28 | 4.13% |
CVS Health Corp., senior bond, 4.30%, 3/25/28 | 4.12% |
Citigroup Inc., senior note, 3.20%, 10/21/26 | 4.11% |
The Goldman Sachs Group Inc., senior note, 3.50%, 11/16/26 | 4.11% |
Cigna Corp., senior note, 4.375%, 10/15/28 | 4.10% |
T-Mobile USA Inc, COMPANY GUARNT, Sr Unsecured, 4.80%, 7/15/28 | 4.10% |
Comcast Corp., senior note, 3.30%, 4/01/27 | 4.10% |
Based on a representative account. Individual accounts within the composites may vary due to a variety of factors, such as account size, the specific investment guidelines and restrictions applicable to an account, and the inception date of the account.
Documents
Product Documents
Factsheet - Franklin Corporate Ladder 1-3 Year SMA
Product Commentary - Franklin Corporate Ladder 1-3 Year SMA
Risks
All investments are subject to certain risks, including possible loss of principal. Generally, investments offering the potential for higher returns are accompanied by a higher degree of risk. The risks inherent in this strategy include interest rate risk and credit risk albeit that exposure is limited to investment grade only. Securities markets can fluctuate significantly in response to industry, financial or economic developments, and unexpected events, such as the spread of deadly diseases or disasters, can cause investor fear and panic, which can adversely affect companies, sectors and the market in general. Investors should review their investment objectives, risk tolerance and liquidity needs before choosing a manager. There is no guarantee that investment strategies will work under all market conditions and investors should evaluate their ability to invest for the long term, especially during periods of market downturns.
Important Information
Separately Managed Accounts (SMAs) are investment services provided by Franklin Templeton Private Portfolio Group, LLC (FTPPG), a federally registered investment advisor. Client portfolios are managed based on investment instructions or advice provided by affiliated subadvisors of Franklin Templeton. Management is implemented by FTPPG, the designated subadvisor or, in the case of certain programs, the program sponsor or its designee.
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Franklin Templeton (FT) is not undertaking to provide impartial advice. Nothing herein is intended to provide fiduciary advice. FT has a financial interest.
Important data provider notices and terms available at www.franklintempletondatasources.com.
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 Bloomberg U.S. Corporate 1-3 Year Index measures the performance of the U.S. dollar-denominated, investment-grade, fixed-rate, taxable one- to three-year maturity corporate (industrial, financial institutions, utility) bond market. Source: Bloomberg Indices.
All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.