Franklin Low Duration Total Return Fund

Fund Description

The fund seeks to provide a high level of current income consistent with prudent investing, while seeking preservation of capital. The fund invests primarily in investment grade debt securities and investments, which may be represented by derivatives that provide exposure to debt securities. The fund targets an estimated average portfolio duration of three years or less.

Strategy Statement

"By focusing on low duration, high-quality investments across various sectors of the fixed income market, we strive to offer a competitive yield, while maintaining a relatively stable net asset value. "

Management

Roger Bayston, CFA

Roger Bayston, CFA®

  • Joined Franklin Templeton in 1991
  • Managed Fund Since 2004
Kent Burns, CFA

Kent Burns, CFA®

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 2004
Christopher J. Molumphy, CFA

Christopher J. Molumphy, CFA®

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2004
David Yuen, CFA

David Yuen, CFA®

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2016

Rating

Overall Morningstar Rating As of 04/30/2018

Rating Category: Short-Term 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
3 Stars
447
5
4 Stars
386
10
4 Stars
254

Morningstar Style Box As of03/31/2018

Strategy, Benefits, Results

Strategy

  • We target an estimated average portfolio duration of three years or less.
  • We invest across multiple investment-grade debt sectors, including government and corporate debt securities, and mortgage- and asset-backed securities.
  • Some of our investments may include securities issued by government-sponsored entities, such as Fannie Mae and Freddie Mac.i

Benefits

  • Low Duration. The fund's low average duration, targeted at three years or less, may potentially make the fund less sensitive to interest rate changes than funds with higher average durations.
  • Sector Diversification. We have the flexibility to allocate investments across multiple fixed-income sectors to maximize income and capital appreciation potential.
  • High Credit Quality. We invest primarily in investment-grade debt.
  • Investment Expertise. With access to research resources of the Franklin Templeton Fixed Income Group® and the perspective provided by Franklin equity research analysts, our combined "top-down" macroeconomic and "bottom-up" fundamental analysis helps identify bonds with the best prospects for income and capital appreciation.

Investing In The Fund

What Are the Risks?

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

Minimum Investment

See Prospectus

How Financial Advisors Help You

Speak to your advisor about whether this fund is appropriate for you.

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