FAFRX

Franklin Floating Rate Daily Access Fund

PRICE AND YTD RETURN As of 07/22/2016

NAV up $0.00 $8.64
POP $8.84
YTD Total return at Nav 6.53%

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

Sales Charge

1 YEAR RETURN -1.94%
5 YEAR RETURN 2.38%
10 YEAR RETURN 2.74%

KEY STATS

Investment Category Bank Loans
Distributions Monthly
CUSIP 353 612 823
Fund Number 489
Inception Date May 01, 2001
Total Net Assets (all share classes) As of 06/30/2016 $2,897.6 (M)
Distribution Rate at NAV As of 07/22/2016 4.41%
30-Day Standardized yield As of 06/30/2016 (updated monthly)
w/ Waiver 6.26%
w/o Waiver 6.23%

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

Gross Expense Ratio 0.86%
Net Expense Ratio 0.85%
Max Initial Sales Charge 2.25%
CDSC 0.00%
12b-1 Fee 0.25%

Fund Description

The Fund seeks to provide investors with as high a level of current income and preservation of capital as is consistent with investing primarily in senior, secured floating rate loans.

Strategy Statement

"We invest in floating-rate loans, which pay interest that adjusts periodically to current rates, generally making them less sensitive to interest rate volatility than fixed-rate securities. "

Madeline Lam

Management

Mark Boyadjian, CFA

Mark Boyadjian, CFA®

  • Joined Franklin Templeton in 1998
  • Managed Fund Since 2014
Madeline Lam

Madeline Lam

  • Joined Franklin Templeton in 1998
  • Managed Fund Since 2001
Justin G. Ma, CFA

Justin G. Ma, CFA®

  • Joined Franklin Templeton in 2006
  • Managed Fund Since 2013

Overall Morningstar Rating As of 06/30/2016

Rating Category: Bank Loan

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
2 Stars
215
5
2 Stars
170
10
2 Stars
66

Morningstar Style Box As of 03/31/2016

Strategy, Benefits, Results

Strategy

  • We invest predominantly in floating interest rate senior secured corporate loans and corporate debt securities.
  • We seek higher credit-quality loans that may potentially help the fund maintain a more stable net asset value than the fund's benchmark index.
  • We look for companies with strong management teams and market leadership.

Benefits

  • Dedicated Floating Rate Research Team. We have a team solely focused on floating-rate loans analysis, separate from high-yield bonds.
  • Access to In-Depth Investment Expertise. Whether we want to look at a security from a credit or equity perspective to get a holistic understanding of the security, we have the ability to draw upon the extensive research resources of Franklin Templeton's fixed income and equity teams.
  • Diversified Portfolio. The fund's diversification helps to potentially reduce credit risk by spreading assets across many different issuers and industries.

Investing In The Fund

What Are the Risks?
  • All investments involve risks, including possible loss of principal.
  • Investors should be aware that the fund’s share price and yield will fluctuate with market conditions.
  • The fund should not be considered an alternative to money market funds or certificates of deposit (CDs).
  • The floating-rate loans and debt securities in which the fund invests tend to be rated below investment-grade.
  • Investing in higher-yielding, lower-rated, floating-rate loans and debt securities involves greater risk of default, which could result in loss of principal—a risk that may be heightened in a slowing economy.
  • Interest earned on floating-rate loans varies with changes in prevailing interest rates; therefore, while floating-rate loans offer higher interest income when interest rates rise, they will also generate less income when interest rates decline.
  • These and other risks 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.

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