Franklin Floating Rate Daily Access Fund

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.

Strategy Statement

"We invest in floating-rate loans, which pay interest that adjusts periodically to current rates, generally making them less sensitive to interest rate volatility than fixed-rate securities."

Reema Agarwal, CFA®


Reema Agarwal, CFA

Reema Agarwal, CFA®

  • Joined Franklin Templeton in 2004
  • Managed Fund Since 2019
Justin G. Ma, CFA

Justin G. Ma, CFA®

  • Joined Franklin Templeton in 2006
  • Managed Fund Since 2013
Margaret Chiu, CFA

Margaret Chiu, CFA®

  • Joined Franklin Templeton in 2012
  • Managed Fund Since 2019
Judy Sher

Judy Sher

  • Joined Franklin Templeton in 2013
  • Managed Fund Since 2019


Overall Morningstar Rating As of 06/30/2021

Rating Category: Bank Loan

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 06/30/2021

Years Ratings Funds
in category
1 Stars
2 Stars
2 Stars

Morningstar Style Box As of05/31/2021

Strategy, Benefits, Results


  • We invest predominantly in floating interest rate senior secured corporate loans and corporate debt securities.
  • We seek higher credit-quality loans that may potentially help the fund maintain a more stable net asset value than the fund's benchmark index.
  • We look for companies with strong management teams and market leadership.


  • 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.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • Investors should be aware that the fund’s share price and yield will fluctuate with market conditions.
  • The fund should not be considered an alternative to money market funds or certificates of deposit (CDs).
  • The floating-rate loans and debt securities in which the fund invests tend to be rated below investment-grade.
  • Investing in higher-yielding, lower-rated, floating-rate loans and debt securities involves greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.
  • Interest earned on floating-rate loans varies with changes in prevailing interest rates; therefore, while floating-rate loans offer higher interest income when interest rates rise, they will also generate less income when interest rates decline.
  • Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value.
  • The fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results.
  • These and other risks considerations are discussed in the fund’s prospectus.

Minimum Investment

See Prospectus

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.