Franklin Floating Rate Daily Access Fund

Fund Description

The fund seeks a high level of current income and, secondarily, preservation of capital, by investing predominantly in floating interest rate senior secured corporate loans (floating-rate loans) and corporate debt securities.

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

Rating

Overall Morningstar Rating As of 01/31/2018

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 01/31/2018

Years Ratings Funds
in category
3
4 Stars
206
5
3 Stars
165
10
3 Stars
77

Morningstar Style Box As of12/31/2017

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.
  • Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value.
  • The fund is actively managed but there is no guarantee that the manager’s investment decisions will produce the desired results.
  • These and other risks considerations are discussed in the fund’s prospectus.

Minimum Investment

See Prospectus

How Financial Advisors Help You

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