Fund Description

The fund seeks a high level of current income, with a secondary focus on capital appreciation, by investing predominantly in higher-yielding, lower-rated corporate bonds.

Strategy Statement

"The fund focuses on higher-yielding, lower-rated corporate bonds. We examine financial structure, cash flow, earnings prospects, market share and strategic positioning."


Glenn Voyles, CFA

Glenn Voyles, CFA®

  • Joined Franklin Templeton in 1993
  • Managed Fund Since 2015
Bryant Dieffenbacher, CFA

Bryant Dieffenbacher, CFA®

  • Joined Franklin Templeton in 2009
  • Managed Fund Since 2020
S. James McGiveran III, CFA

S. James McGiveran III, CFA®

  • Joined Franklin Templeton in 2006
  • Managed Fund Since 2020
Patricia O'Connor, CFA

Patricia O'Connor, CFA®

  • Joined Franklin Templeton in 1997
  • Managed Fund Since 2020


Overall Morningstar Rating As of 06/30/2021

Rating Category: High Yield Bond

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 [further-information] As of 06/30/2021

Years Ratings Funds
in category
4 Stars
5 Stars
3 Stars

Morningstar Style Box As of05/31/2021

Strategy, Benefits, Results


  • We conduct independent, bottom-up analysis focusing on critical factors that affect a company's long-term performance.
  • We seek to opportunistically invest in companies and sectors that are infrequently followed or are out of favor with the marketplace.
  • We adhere to a long-term disciplined approach through changing market environments, supported by separate risk management and quantitative research groups.


  • Diversified Portfolio. We invest in hundreds of securities representing various industries, thereby helping to reduce the potential negative impact any one security or sector may have on the fund's overall performance.
  • Proven Track Record. With performance dating back to 1969, our fund has successfully navigated a variety of economic environments.
  • Global Fixed Income Expertise. Investors have full access to the research resources of the Franklin Templeton Fixed Income Group®.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • The risks associated with higher-yielding, lower-rated securities include higher risk of default and loss of principal.
  • Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. In addition, interest rate movements 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.
  • Investment in foreign securities also involves special risks, including currency fluctuations, and political and economic uncertainty.
  • These and other risk considerations are discussed in the fund’s prospectus.

Minimum Investment


How Financial Professionals Help You

Speak with your financial professional about whether this fund is appropriate for you.

Learn more from FINRA about How to Find and Work with an Investment Professional.