Franklin US Investment Grade Long Credit Strategy | Franklin Templeton Institutional

Overview

The strategy seeks to maximize investment returns subject to its risk budget through a combination of income and capital appreciation, by investing in U.S. dollar-denominated investment grade corporate bonds.

Strategy Overview

The strategy seeks to maximize investment returns subject to its risk budget through a combination of income and capital appreciation, by investing in U.S. dollar-denominated investment grade corporate bonds.

Portfolio Construction

We believe portfolio construction can provide an independent alpha source in addition to security selection and sector allocation.

Explicit Volatility Management

Our managers believe that risk management of the portfolio on the downside should be an essential component of any credit investment process given the asymmetry of returns. As a result, our portfolios have explicit constraints built-in to quantitative models, to help provide resilience in down markets.

Low Correlation

The team’s custom sector framework and portfolio construction methodology provide a complementary risk/return profile relative to top industry peers. By breaking down credit markets in a distinct manner, our strategy seeks to add value through the utilization of additional sources of return and risk reduction.

Management Team

Franklin Templeton Fixed Income

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Important Information

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. Changes in the financial strength of a bond issuer or in a bond's credit rating may affect its value. Investing, especially in developing markets, has additional risks such as currency and market volatility and political or social instability. 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.

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