PRICE AND YTD RETURN As of 02/05/2016

NAV down $-0.04 $7.93
POP $8.28
YTD Total return at Nav -3.65%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 12/31/2015

Sales Charge

1 YEAR RETURN -7.42%
5 YEAR RETURN
Since inception Inception: 04/01/2013 -3.78%

KEY STATS

Investment Category Multi Sector
Distributions Quarterly
CUSIP 880 208 830
Fund Number 072
Inception Date Apr 01, 2013
Total Net Assets (all share classes) As of 01/31/2016 $14.5 (M)
Distribution Rate at NAV As of 02/05/2016 3.38%
30-Day Standardized yield As of 01/31/2016 (updated monthly)
w/ Waiver 6.76%
w/o Waiver 5.52%

SALES CHARGE, EXPENSES, & FEES As of 01/01/2016 (updated annually)

Gross Expense Ratio 2.37%
Net Expense Ratio 1.26%
Max Initial Sales Charge 4.25%
CDSC 0.00%
12b-1 Fee 0.25%

Fund Description

The fund's investment goal is to seek current income with capital appreciation as a secondary goal. Under normal market conditions, the fund invests at least 80% of its net assets in a non-diversified portfolio of bonds issued by government or government related entities that are located in emerging market countries, as well as bonds issued by emerging market corporate entities. See the prospectus for the description of the terms "emerging market countries" and "emerging market corporate entities."

Strategy Statement

"Emerging market bonds provide exposure to different interest rate and currency dynamics, as well as attractive yields offered by developing countries around the world."

Michael Hasenstab, Ph.D

Management

Michael Hasenstab, Ph.D

Michael Hasenstab, Ph.D

  • Joined Franklin Templeton in 1995
  • Managed Fund Since 2013
Laura Burakreis, MBA

Laura Burakreis, MBA

  • Joined Franklin Templeton in 2006
  • Managed Fund Since 2013

Strategy, Benefits, Results

Strategy

  • Quantitative and qualitative analysis is supplemented with on-the-ground research, leveraging the resources of local analysts around the world to identify investment opportunities and risks that a solely U.S.-based manager might miss.
  • Research efforts focus on rigorous country analysis to identify economic imbalances leading to value opportunities in currencies, interest rates (duration) and sovereign and corporate credit.
  • We continually evaluate risk, shifting the risk budget based on relative attractiveness over the course of global economic and credit cycles.

Benefits

  • Income potential. By investing in emerging market bonds, the fund can potentially offer an attractive level of income.
  • Economic Growth. Emerging markets have increased their share of the global economy and capital markets, a trend which we believe is likely to continue.
  • Diversification. Adding emerging markets fixed income securities to an overall investment portfolio including other major asset classes offers investors the potential for greater diversification.

Investing In The Fund

What Are the Risks?
  • All investments involve risks, including possible loss of principal.
  • Changes in interest rates will affect the value of the fund’s portfolio and its share price and yield.

  • 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 risks of default and principal loss.
  • Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments.
  • Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity.
  • The fund’s use of derivatives and foreign currency techniques involve special risks as such techniques may not achieve the anticipated benefits and/or may result in losses to the fund.
  • The fund is also non-diversified, which involves the risk of greater price fluctuation than a more diversified portfolio.
  • These and other risk considerations are discussed in the fund’s prospectus.

Minimum Investment

$1,000.00

How Financial Advisors Help You

Speak to your financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

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