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Franklin Low Duration Total Return Fund

Fund Category: Fixed IncomeGo to Prices & Performance page
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Symbol FLDAX
CUSIP 353 612 690
Fund Number 401
Inception Date1 Nov 17, 2004
Distributions Monthly
Total Net Assets
(all share classes)
As of 03/31/2014
$2,126.8
(millions)

As of  04/17/2014

NAV2 $10.13  
NAV Change $0.00  
POP3 $10.36  
YTD Total Return at NAV 0.51%
Distribution Rate at NAV 1.61%
30-day Standardized Yield4,5
As of 03/31/2014 (updated monthly)
0.93%

Average Annual Total Returns
As of Quarter End 03/31/2014

w/ Sales Charge w/o Sales Charge
1 Yr -1.14% 1.18%
5 Yrs 3.06% 3.54%
10 Yrs
Life 3.25% 3.50%

Expense Ratio and Sales Charge As of 03/01/2014 (updated annually)

Gross Expense Ratio6,7 0.98%
Net Expense Ratio 0.80%
Max Initial Sales Charge 2.25%
CDSC 0.00%
12b-1 Fee 0.25%

Fund Description11

Strategy Statement
Portfolio Managers
Roger Bayston
"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®
Joined Franklin Templeton in 1991
Managed Fund since 2004

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
i. Although U.S. government-sponsored entities may be chartered or sponsored by Acts of Congress, their securities are neither issued nor guaranteed by the U.S. government. Please see the fund's prospectus for a detailed discussion regarding various levels of credit support for government agency or instrumentality securities.

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.

Results

Hypothetical $10K Investment

Hypothetical $10K Investment

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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Important Legal Information

Footnotes

For U.S. residents only.