Franklin Floating Rate Fund PLC

Franklin Floating Rate Fund plc

Summary of Fund Objective

A master feeder fund which seeks to provide investors with as high a level of current income and preservation of capital as is consistent with investing primarily in floating rate or variable rate senior secured corporate loans or senior secured debt securities.

FUND MANAGERS

Reema Agarwal

  • California, United States
  • Years With Firm: 16
  • Years Of Experience: 23

Justin G. Ma

  • California, United States
  • Years With Firm: 14
  • Years Of Experience: 14

Margaret Chiu

  • California, United States
  • Years With Firm: 8
  • Years Of Experience: 8

Judy Sher

  • California, United States
  • Years With Firm: 6
  • Years Of Experience: 18

What are the Key Risks?

All Funds are subject to market or currency fluctuations and to the risks inherent in all investments. Therefore, no assurance can be given that the invested capital will be preserved, or that capital appreciation will occur. The principal objective of the fund is to provide a high level of current income and preservation of capital by investing in secured and unsecured debt obligations that include U.S. government securities, U.S. government agency securities, money market instruments, corporate and commercial obligations and repurchase agreements. Since the Fund may invest up to 100% of its portfolio in senior secured Debt Obligations that may he high yield, high risk, debt securities that are rated less than investment grade (i.e. less than BBB), the fundamental risks include illiquid securities, credit, currency fluctuations, borrowing, political and economic factors, emerging markets, pricing, and decline in NAV due to redemptions risks. Please consult the Prospectus for a full discussion of these risks.

Counterparty Risk: the risk of failure of financial institutions or agents (when serving as a counterparty to financial contracts) to perform their obligations, whether due to insolvency, bankruptcy or other causes. Derivatives risk: the risk of loss in an instrument where a small change in the value of the underlying investment may have a larger impact on the value of such instrument. Derivatives may involve additional liquidity, credit and counterparty risks. Liquidity risk: the risk that arises when adverse market conditions affect the ability to sell assets when necessary. Reduced liquidity may have a negative impact on the price of the assets. Other significant risks include: lower-rated or non-investment grade securities risk, credit risk, derivative instruments risk, interest rate securities risk, settlement risk, liquidity risk.

The value of shares in the fund and income received from it can go down as well as up and investors may not get back the full amount invested.

Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments.

For full details of all of the risks applicable to this Fund, please refer to the “Risk Factors” section of the Fund in the current prospectus of Franklin Floating Rate Fund Plc.