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Risk Disclosure for:

  • Franklin Floating Rate Fund PLC
  • Franklin U.S. Government Fund
  • FTGF Brandywine Global Income Optimiser Fund
  • FTGF Western Asset Asian Opportunities Fund

Franklin Floating Rate Fund PLC

INVESTMENT INVOLVES RISKS. The value of the Fund can be volatile and investors may not get back the amount originally invested. Past performance is not indicative of future results.

  • Franklin Floating Rate Fund plc invests up to 100% of its net assets in shares of the Franklin Floating Rate Master Trust which invests primarily in senior secured corporate loans and corporate debt securities with floating interest rates.
  • The Fund is subject to market risk, interest rate risk, credit risk and sovereign debt risk, low-rated, unrated or non-investment grade securities risk, liquidity risk, emerging markets risk, repurchase agreement risk, derivatives risk, counterparty risk, hedged share classes risk, currency risk and RMB Currency and Conversion risks.
  • The Fund may at its discretion pay dividends out of the capital or out of gross income of the Fund while paying all or part of the Fund’s fees and expenses out of the capital of the Fund, which results in effectively paying dividends out of capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital or payment of dividends effectively out of the Fund’s capital (as the case may be) may result in an immediate reduction of the net asset value per share.
  • Investors should not invest based on this marketing material alone.  Offering documents should be read for further details, including the risk factors. Before you decide to invest, you should make sure the intermediary has explained to you that the Fund is suitable to you.

Franklin U.S. Government Fund

INVESTMENT INVOLVES RISKS. The value of the Fund can be volatile and investors may not get back the amount originally invested. Past performance is not indicative of future results. 

  • Franklin U.S. Government Fund invests primarily in debt securities issued or guaranteed by the U.S. government and its agencies.  The Fund will have an allocation to fixed income securities of at least 75% of its net assets. 
  • The Fund is subject to market risk, debt securities risk, credit risk, liquidity risk, valuation risk, concentration risk, foreign currency risk, class hedging risk, counterparty risk, securitisation risk, “to-be-announced”  transaction risk, securities lending risk and derivative instruments risk.
  • The Fund may at its discretion pay dividends out of the capital or out of gross income of the Fund while paying all or part of the Fund’s fees and expenses out of the capital of the Fund, which results in effectively paying dividends out of capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital or payment of dividends effectively out of the Fund’s capital (as the case may be) may result in an immediate reduction of the net asset value per share.
  • Investors should not invest based on this marketing material alone. Offering documents should be read for further details, including the risk factors.  Before you decide to invest, you should make sure the intermediary has explained to you that the Fund is suitable to you.

FTGF Brandywine Global Income Optimiser Fund

INVESTMENT INVOLVES RISKS. The value of the Fund can be volatile and investors may not get back the amount originally invested. Past performance is not indicative of future results.

  • The Fund is a sub-fund of Franklin Templeton Global Funds plc, an open-ended umbrella investment company constituted in Ireland.  The Fund seeks to maximise income yield in all market conditions while preserving capital (for the avoidance of doubt, the Fund is not a guarantee or capital-protected product). The Fund invests at least 70% of its net asset value in debt securities and derivatives providing exposure to debt securities. The Fund intends to invest at least 85% of its net asset value in US Dollar-denominated investments.
  • Investors will be exposed to debt securities, credit/ counterparty, downgrading, interest rate, volatility and liquidity, valuation, currency, credit rating, government securities risks and risks related to Collateralised and/or Securitised Products and below investment grade/ unrated securities.
  • The Fund may invest in emerging markets which involve special risks, including liquidity, volatility, currency, political, economic, legal and regulatory risks.
  • The Fund may invest in inflation protected securities, whose value generally fluctuates in response to changes to interest rates.
  • The Fund may use certain types of financial derivative instruments ("FDIs").  The Fund may suffer a substantial loss arising from the use of FDIs.
  • The income optimisation strategy adopted by the Fund may not achieve the desired results under all circumstances and market conditions.
  • As the active position of the Fund through the use of derivatives (including the active currency position) may not be correlated with the underlying securities positions held by the Fund, the Fund may suffer a significant or total loss.
  • The Fund may invest in debt instruments that have contingent write down or loss absorption features, these instruments involve risks which may potentially lead to losses to the Fund.
  • The directors of Franklin Templeton Global Funds plc may at their discretion pay dividends out of capital of a Distributing Plus Share Class. The payment of dividends out of capital effectively amounts to a return or withdrawal of an investor´s original capital investment or of capital gains attributable to that original investment. Such distribution will result in a corresponding immediate decrease in the Net Asset Value per share of these Share Classes.
  • Investors should not invest based on this marketing material alone. Offering documents should be read for further details, including the risk factors.

 

FTGF Western Asset Asian Opportunities Fund

INVESTMENT INVOLVES RISKS. The value of the Fund can be volatile and investors may not get back the amount originally invested. Past performance is not indicative of future results.

  • The Fund is a sub-fund of Franklin Templeton Global Funds plc, an open-ended umbrella investment company constituted in Ireland. The Fund seeks to maximise total return through income and capital appreciation by investing at least 70% of its net asset value in debt securities issued by Asian issuers and in derivatives on Asian interest rates and currencies, which debt securities and derivatives are listed or traded on regulated markets.
  • Investors will be exposed to debt securities risk, risk of government securities, risk related to below investment grade/ unrated securities, interest rate risk, credit risk, liquidity risk, concentration risk, custody and settlement risk, derivatives risks, emerging markets risk, Asia markets risk, China market risk, risk of investing in below investment grade or unrated sovereign securities, currency risk, Renminbi currency and conversion risks and investment risk.
  • The Fund may invest in mortgage-backed securities and asset-backed securities, which may give rise to higher liquidity, credit, counterparty and interest rate risks.
  • The Fund may invest in debt instruments that have contingent write down or loss absorption features, these instruments involve risks which may potentially lead to losses to the Fund.
  • The directors of Franklin Templeton Global Funds plc may at their discretion pay dividends out of capital of a Distributing Plus Share Class. The payment of dividends out of capital effectively amounts to a return or withdrawal of an investor´s original capital investment or of capital gains attributable to that original investment. Such distribution will result in a corresponding immediate decrease in the Net Asset Value per share of these Share Classes.
  • Investors should not invest based on this marketing material alone. Offering documents should be read for further details, including the risk factors. Before you decide to invest, you should make sure the intermediary has explained to you that the Fund is suitable to you.

Opportunities Abound

The global economy is expected to slow in 2024, yet we believe it will steer clear of a recession. Inflation is projected to ease, setting the stage for the US Federal Reserve to cut rates. Such a pivot will likely bring about a favourable environment for fixed income.

Within fixed income, we see strong potential for compelling returns, especially as monetary policy shifts towards a more neutral, or possibly accommodative, stance if the economy exhibits further signs of cooling or recessionary pressures.

With more than 50 years of experience investing in fixed income1, Franklin Templeton has a solid track record of achieving sustained growth and stability for our investors.

Franklin Templeton’s Fixed Income Investment Capabilities

Unrivalled experience, unmatched global breadth and depth, and unparalleled innovation have put Franklin Templeton at the forefront of fixed income investing for more than 50 years. We understand client challenges and are here to help with long-term fixed income goals. We have a strong track record of navigating market cycles and creating value.

Strategies to address investor needs

  • Provide clients with a comprehensive range of investment strategies.
  • Multi-sector, unconstrained, country, and sector strategies.
  • Managed by our specialist investment managers.

Grounded in active management

  • We believe active management can help generate attractive returns and potentially reduce volatility over the long-term.
  • Robust research guides our investment decisions to help deliver outcomes that meet client needs.

Global expertise

  • Over 50 years of experience successfully navigating fixed income markets and varying market environments.
  • We have multiple, well-defined investment processes rooted in fundamental research, discipline and experience.

Four Fixed Income teams with deep sector strength

Our independent specialist managers provide deep expertise and specialization within and across asset classes, investment styles, and geographies. 

Brandywine Global

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Acting with conviction and discipline, looks beyond short-term, conventional thinking to rigorously pursue long-term value across differentiated fixed income and equity solutions.

Multi-Sector > Multi-sector bond strategies typically aim to capture the income, return potential and diversification benefits offered by credit markets worldwide. This universe can include investment-grade and high-yield corporate credit, residential and commercial mortgage-backed securities, asset-backed securities, emerging market debt, bank loans and collateralized loan obligations (CLOs).
Unconstrained > Unconstrained (now called Non-Traditional) - An unconstrained strategy seeks to separate duration and credit exposure in seeking to increase risk-adjusted returns by leveraging an extended toolkit including regular bonds and derivatives, used to establish negative exposure to rates, while maintaining positive exposure to credit. It doesn’t require the portfolio manager to track an index or benchmark.
Credit > Credit – Also known as corporate strategies, are issued by companies for a wide variety of purposes, including buying new equipment, investing in research and development and buying back their own stock, just to name a few. Credit rating agencies assign credit ratings based on their evaluation of the risk that the company may default on its bonds. Based on their credit ratings, bonds can be either investment grade or non-investment grade.

Franklin Templeton Fixed Income

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Believes the best way to pursue alpha is by integrating top-down macroeconomic analysis with robust bottom-up fundamental sector research and quantitative science.

Multi-Sector > Multi-sector bond strategies typically aim to capture the income, return potential and diversification benefits offered by credit markets worldwide. This universe can include investment-grade and high-yield corporate credit, residential and commercial mortgage-backed securities, asset-backed securities, emerging market debt, bank loans and collateralized loan obligations (CLOs).
Unconstrained > Unconstrained (now called Non-Traditional) - An unconstrained strategy seeks to separate duration and credit exposure in seeking to increase risk-adjusted returns by leveraging an extended toolkit including regular bonds and derivatives, used to establish negative exposure to rates, while maintaining positive exposure to credit. It doesn’t require the portfolio manager to track an index or benchmark.
Credit > Credit – Also known as corporate strategies, are issued by companies for a wide variety of purposes, including buying new equipment, investing in research and development and buying back their own stock, just to name a few. Credit rating agencies assign credit ratings based on their evaluation of the risk that the company may default on its bonds. Based on their credit ratings, bonds can be either investment grade or non-investment grade.
Country > Country strategy: investment approach that focuses on constructing a portfolio of fixed income securities based on the analysis and evaluation of countries' economic and political factors. This strategy aims to capitalize on opportunities and manage risks associated with investing in bonds issued by different countries.

In a fixed income country strategy, investment decisions are primarily driven by the assessment of a country's macroeconomic indicators, monetary policy, fiscal stability, geopolitical factors, and other relevant factors that can influence the creditworthiness and performance of a country's debt securities.

Templeton Global Macro

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Research-intensive, fundamentals-based, high-conviction approach to capitalize on short-term inefficiencies and capture long-term value across global interest rate, currency, and credit markets.

Unconstrained > Unconstrained (now called Non-Traditional) - An unconstrained strategy seeks to separate duration and credit exposure in seeking to increase risk-adjusted returns by leveraging an extended toolkit including regular bonds and derivatives, used to establish negative exposure to rates, while maintaining positive exposure to credit. It doesn’t require the portfolio manager to track an index or benchmark.

Western Asset

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Known for team management and proprietary research, supported by robust risk management and a long-term fundamental value approach.

Multi-Sector > Multi-sector bond strategies typically aim to capture the income, return potential and diversification benefits offered by credit markets worldwide. This universe can include investment-grade and high-yield corporate credit, residential and commercial mortgage-backed securities, asset-backed securities, emerging market debt, bank loans and collateralized loan obligations (CLOs).
Unconstrained > Unconstrained (now called Non-Traditional) - An unconstrained strategy seeks to separate duration and credit exposure in seeking to increase risk-adjusted returns by leveraging an extended toolkit including regular bonds and derivatives, used to establish negative exposure to rates, while maintaining positive exposure to credit. It doesn’t require the portfolio manager to track an index or benchmark.
Credit > Credit – Also known as corporate strategies, are issued by companies for a wide variety of purposes, including buying new equipment, investing in research and development and buying back their own stock, just to name a few. Credit rating agencies assign credit ratings based on their evaluation of the risk that the company may default on its bonds. Based on their credit ratings, bonds can be either investment grade or non-investment grade.
Country > Country strategy: investment approach that focuses on constructing a portfolio of fixed income securities based on the analysis and evaluation of countries' economic and political factors. This strategy aims to capitalize on opportunities and manage risks associated with investing in bonds issued by different countries.

In a fixed income country strategy, investment decisions are primarily driven by the assessment of a country's macroeconomic indicators, monetary policy, fiscal stability, geopolitical factors, and other relevant factors that can influence the creditworthiness and performance of a country's debt securities.

 

Glossary

Credit: An alternative name for fixed income securities.
Alpha: A term used in investing to describe an investment strategy's ability to beat the market.
Duration: A measure of a fixed income portfolio or bond's price sensitivity to interest rate changes.
Bottom up investing: An investment approach that analyzes individual stocks while deemphasizing the significance of macroeconomic and market cycles.

Featured Fixed Income Solutions Across Market Cycles

FTGF Brandywine Global Income Optimiser Fund

The Fund is designed for investors seeking a strategic blend of income generation and capital growth potential. Its global scope offers a diversified income stream, reducing the reliance on any single market or currency, thereby mitigating risk.

Fund details

FTGF Western Asset Asian Opportunities Fund

The Fund meticulously selects high-quality assets across the Asian fixed income landscape, tapping into opportunities that span from sovereign to corporate debt while managing risks associated with currency fluctuations and interest rate movements.

Fund details

Franklin Floating Rate Fund PLC

Tailored for investors seeking a resilient income stream, particularly in fluctuating interest rate environments, the Fund focusses on floating rate instruments that offer competitive yields with a lower interest rate risk compared to fixed-rate bonds.

Fund details

Franklin U.S. Government Fund

Key characteristics of the Fund include its diversified portfolio of US government obligations, including Treasury securities, agency bonds, and mortgage-backed securities guaranteed by the US government. It offers a steady stream of income with relatively low volatility, making it a solid foundation for any investment portfolio.

Fund details

Explore our full range of Fixed Income solutions

Fixed Income mutual funds

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Related Insights

10 DECEMBER 2025

Global Investment Management Survey

This bi-annual outlook survey is designed to give a view across our investment teams. The expectations for 2026 are based on survey results from investment professionals across all asset classes. We also provide our predictions on inflation, recession, asset class performance and more.

4 DECEMBER 2025

Global Macro Insights: November 2025

Despite tariff uncertainties, Templeton Global Macro highlights Asia-Pacific and Latin America as potential areas of opportunity in this month’s Global Macro Insights.

18 NOVEMBER 2025

Sector Views: Proceed with caution

The Franklin Templeton Fixed Income team believes that the US economic outlook at this stage likely doesn't warrant additional monetary easing; however, outside the United States, economic growth still faces some challenges and suggests proceeding with caution. Read more in their latest Sector Views.

Footnotes

1. Source: Franklin Templeton, as of 30 April 2024.

Important Legal Information

This document is intended to be of general interest only. This document should not be construed as individual investment advice or offer or solicitation to buy, sell or hold any shares of fund or security. The information provided for any individual security mentioned is not a sufficient basis upon which to make an investment decision. Investment involves risks. Value of investments may go up as well as down and past performance is not an indicator or a guarantee of future performance. The investment returns are calculated on NAV to NAV basis, taking into account of reinvestments and capital gain or loss. The investment returns are denominated in stated currency, which may be a foreign currency other than USD and HKD (“other foreign currency”). US/HK dollar-based investors are therefore exposed to fluctuations in the US/HK dollar / other foreign currency exchange rate. Please refer to the offering documents for further details, including the risk factors.

The data, comments, opinions, estimates and other information contained herein may be subject to change without notice. There is no guarantee that an investment product will meet its objective and any forecasts expressed will be realized. Performance may also be affected by currency fluctuations. Reduced liquidity may have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where an investment product invests in emerging markets, the risks can be greater than in developed markets. Where an investment product invests in derivative instruments, this entails specific risks that may increase the risk profile of the investment product. Where an investment product invests in a specific sector or geographical area, the returns may be more volatile than a more diversified investment product. Franklin Templeton accepts no liability whatsoever for any direct or indirect consequential loss arising from use of this document or any comment, opinion or estimate herein. This document may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

Any share class with “(Hedged)” in its name will attempt to hedge the currency risk between the base currency of the Fund and the currency of the share class, although there can be no guarantee that it will be successful in doing so. In some cases, investors may be subject to additional risks.

Please contact your financial advisor if you are in doubt of any information contained herein.

For UCITS funds only: In addition, a summary of investor rights is available from here. The summary is available in English and Chinese.

The fund(s)/ sub-fund(s) are notified for marketing in various regions under the UCITS Directive. The fund(s)/ sub-fund(s) can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.

For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the fund(s)/ sub-fund(s) and will not be investing directly in the underlying assets of the fund(s)/ sub-fund(s).

For AIFMD funds only: The Franklin Floating Rate Fund PLC (the Fund) is an investment company with variable capital incorporated in Ireland on 1 December 1999 as a public limited company under registration number 316174. The Fund is authorised by the Central Bank of Ireland as a designated investment company pursuant to to Section 1395 of Part 24 of the Companies Act 2014. The Fund's registered office is Capital Dock, Sir John Rogerson's Quay, Dublin Ireland.

In addition, a summary of investor rights is available from here. The summary is available in English and Chinese.

The fund(s)/ sub-fund(s) are notified for marketing in various regions under the AIFMD Directive. The fund(s)/ sub-fund(s) can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 32a of the AIFMD Directive.

For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the fund(s)/ sub-fund(s) and will not be investing directly in the underlying assets of the fund(s)/ sub-fund(s).

Copyright © 2025. Franklin Templeton. All rights reserved.

This document is issued by Franklin Templeton Investments (Asia) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.

Unless stated otherwise, all information is as of the date stated above. Source: Franklin Templeton.