All investments involve risks, including possible loss of principal. Generally, those offering potential for higher returns are accompanied by a higher degree of risk. Bond prices are affected by interest rate changes. Bond prices generally move in the opposite direction of interest rates. As the price of bonds adjusts to a rise in interest rates, the price may decline. High-yield, lower-rated ("junk") bonds generally have greater price swings and higher default risks. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in emerging markets involve heightened risks related to the same factors and are less liquid. For tax-free income investments, the alternative minimum tax may apply. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the fund to participate in losses on an amount that exceeds the initial investment. Portfolios may not achieve the anticipated benefits and may realize losses when a counterparty fails to perform as promised.
There is no assurance that the employment of this strategy will result in the investment objective being achieved. Various account minimums or other eligibility qualifications apply depending on the investment strategy or vehicle.
The information contained on this webpage is intended only as a general overview of Franklin Templeton investment capabilities and is for informational purposes only and should not be construed or relied upon as investment advice.
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.
Products, services and information may not be available in all jurisdictions and are offered outside the U.S. by other FT affiliates and/or their distributors as local laws and regulation permits. Please consult your own professional adviser or Franklin Templeton institutional contact for further information on availability of products and services in your jurisdiction.
Please visit www.franklinresources.com to be directed to your local Franklin Templeton website.
This site is intended only for U.S. Institutional Investors and Consultants. Using it means you agree to our Anti-Corruption Policy.
If you would like information on Franklin Templeton’s retail mutual funds, please visit www.franklintempleton.com.
