Fund Description

The fund seeks to provide high current income consistent with preservation of capital. Capital appreciation over the long term is a secondary goal. The fund invests at least 80% of its assets in investment grade debt securities and investment and focuses on government and corporate debt securities and mortgage- and asset-backed securities.

Strategy Statement

"The fund was created to be a core fixed income holding, offering diversification across the fixed income universe and backed by the expertise of a world-class team of fixed income professionals. "

Management

Roger Bayston, CFA

Roger Bayston, CFA®

  • Joined Franklin Templeton in 1991
  • Managed Fund Since 1998
Kent Burns, CFA

Kent Burns, CFA®

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 1998
Christopher J. Molumphy, CFA

Christopher J. Molumphy, CFA®

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 1998
David Yuen, CFA

David Yuen, CFA®

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2005
Michael Materasso

Michael Materasso

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2008

Rating

Overall Morningstar Rating As of 04/30/2018

Rating Category: Intermediate-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
2 Stars
863
5
3 Stars
783
10
3 Stars
560

Morningstar Style Box As of03/31/2018

Strategy, Benefits, Results

Strategy

  • Our multi-sector, fixed-income fund focuses on government and corporate debt securities, as well as mortgage- and asset-backed securities.
  • Our research-driven, value-oriented approach identifies bonds with the best prospects for income and capital appreciation.
  • We provide in-depth, fundamental analysis of each of the key fixed-income sectors within the context of a global economic outlook.

Benefits

  • Diversification. Broad diversification makes our fund attractive as a core fixed-income holding.
  • 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.
  • 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.
  • Investments in foreign securities involve risks such as 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 as promised.
  • These and other risk considerations are discussed 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.

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

You need Adobe Acrobat Reader 6.0 or higher to view and print PDF documents. Download a free version from Adobe's website.