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."

Management

Christopher J. Molumphy, CFA

Christopher J. Molumphy, CFA®

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 1991
Glenn Voyles, CFA

Glenn Voyles, CFA®

  • Joined Franklin Templeton in 1993
  • Managed Fund Since 2015

Rating

Overall Morningstar Rating As of 04/30/2018

Rating Category: High Yield 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 04/30/2018

Years Ratings Funds
in category
3
2 Stars
583
5
2 Stars
489
10
3 Stars
318

Morningstar Style Box As of03/31/2018

Strategy, Benefits, Results

Strategy

  • 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.

Benefits

  • 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

See Prospectus

How Financial Advisors Help You

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