FLDAX

Franklin Low Duration Total Return Fund

PRICE AND YTD RETURN As of 07/26/2016

NAV up $0.00 $9.86
POP $10.09
YTD Total return at Nav 1.88%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 06/30/2016

Sales Charge

1 YEAR RETURN -1.83%
5 YEAR RETURN 0.70%
10 YEAR RETURN 2.96%

KEY STATS

Investment Category Multi Sector
Distributions Monthly
CUSIP 353 612 690
Fund Number 401
Inception Date Nov 17, 2004
Total Net Assets (all share classes) As of 06/30/2016 $2,572.8 (M)
Distribution Rate at NAV As of 07/26/2016 0.60%
30-Day Standardized yield As of 06/30/2016 (updated monthly)
w/ Waiver 1.46%
w/o Waiver 1.32%

SALES CHARGE, EXPENSES, & FEES As of 03/01/2016 (updated annually)

Gross Expense Ratio 0.97%
Net Expense Ratio 0.82%
Max Initial Sales Charge 2.25%
CDSC 0.00%
12b-1 Fee 0.25%

Fund Description

The fund invests primarily in investment-grade debt securities, including government and corporate debt securities and mortgage- and asset-backed securities, targeting an estimated average portfolio duration of three years or less. Some of the fund's investments may include securities issued by U.S. government-sponsored entities, such as Fannie Mae or Freddie Mac.

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. "

Roger Bayston, CFA®, MBA

Management

Roger Bayston, CFA, MBA

Roger Bayston, CFA®, MBA

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

Kent Burns, CFA®, MBA

  • Joined Franklin Templeton in 1994
  • Managed Fund Since 2004
Chris Molumphy, CFA, MBA

Chris Molumphy, CFA®, MBA

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

David Yuen, CFA®, MBA, FRM, CPA

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2016

Overall Morningstar Rating As of 06/30/2016

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 06/30/2016

Years Ratings Funds
in category
3
1 Stars
493
5
2 Stars
405
10
3 Stars
284

Morningstar Style Box As of 03/31/2016

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.
  • As the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline.
  • Investing in derivative securities, such as financial futures and option contracts, as well as our use of foreign currency techniques, involve special risks as such may not achieve the anticipated benefits and/or may result in losses to the fund. Some derivatives are particularly sensitive to changes in interest rates.
  • Risks of foreign securities include currency fluctuations and political uncertainty.
  • During periods of declining interest rates, principal prepayments tend to increase as borrowers refinance their mortgages at lower rates; therefore, the fund may be forced to reinvest returned principal at lower interest rates, reducing its income.
  • These and other risk considerations are described 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.

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