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."

Management

David Yuen, CFA, MBA

David Yuen, CFA®, MBA

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2015
Christine S. Chou, MBA

Christine S. Chou, MBA

  • Joined Franklin Templeton in 2004
  • Managed Fund Since 2019
William Chong, MBA

William Chong, MBA

  • Joined Franklin Templeton in 2008
  • Managed Fund Since 2019
Sonal Desai, Ph.D

Sonal Desai, Ph.D

  • Joined Franklin Templeton in 2009
  • Managed Fund Since 2018

Rating

Overall Morningstar Rating As of 09/30/2019

Rating Category: Nontraditional 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 09/30/2019

Years Ratings Funds
in category
3
2 Stars
279
5
Stars
10
Stars

Morningstar Style Box As of08/31/2019

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.

Investing In The Fund

What Are the Risks?

  • All investments involve risk, including possible loss of principal.
  • Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value.
  • Interest rate movements and mortgage prepayments will affect the fund’s share price and yield.
  • Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline.
  • The risks associated with higher-yielding, lower-rated securities (commonly called junk bonds) include higher risk of default and loss of principal.
  • Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the fund to participate in losses (as well as enable gains) in an amount that exceeds the fund’s initial investment.
  • The fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as intended.
  • Investments in foreign securities involve risks such as currency fluctuations, and political and economic uncertainty.
  • These and other risk considerations are discussed in the fund’s prospectus.

Minimum Investment

$1,000.00

How Financial Advisors Help You

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