Franklin Emerging Market Debt Opportunities II Fund

Franklin Templeton Series II Funds

Summary of Fund Objective

The Fund's objective is to achieve income yield and long-term capital appreciation. The Fund will invest primarily in fixed- and floating-rate debt securities and debt obligations of government and government-related issuers located in emerging market countries.

Investor Profile

Considering the investment objectives, as stated above, the Fund may appeal to Investors looking to:

  • income yield and long-term capital appreciation by investing in emerging markets debt obligations excluding securities rated below B minus
  • invest for the medium to long term


Nicholas Hardingham

  • London, United Kingdom
  • Years With Firm: 18
  • Years Of Experience: 21

Stephanie Marjan Ouwendijk

  • London, United Kingdom
  • Years With Firm: 6
  • Years Of Experience: 14

Joanna Woods

  • London, United Kingdom
  • Years With Firm: 1
  • Years Of Experience: 11

What are the Key Risks?

The value of shares in the fund and income received from it can go down as well as up and 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.

  • The Fund invests mainly in investment grade (B minus or above as per Standard & Poor’s) debt securities issued by any government and government related issuers located in emerging markets. Such securities have historically been subject to price movements, generally due to interest rates changes or movements in the bond market. As a result, the performance of the Fund can fluctuate over time.
  • Other significant risks include:
    Lower-rated or non-investment grade securities risk: the risk that relates to Investing in higher-yielding, lower-rated corporate debt securities and instruments involving greater risk of default, which could result in loss of principal – a risk that may be heightened in a slowing economy. Investments in lower rated bonds include higher risk of default and loss of principal.
    Derivatives Instruments 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.
    Emerging markets risk: the risk related to investing in countries that have less developed political, economic, legal and regulatory systems, and that may be impacted by political/economic instability, lack of liquidity or transparency, or safekeeping issues. Frontier markets risk.
    Foreign currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations.
    Interest rate securities risk: the risk that relates to changes in interest rates which may affect the value of the fund's portfolio and its share price and yield. This risk will be higher for accounts holding fixed income securities with longer duration.
For a full list of the main risks applicable to this Fund, please refer to the “Risk Considerations” section of the Franklin Emerging Market Debt Opportunities II Fund in the current prospectus of Franklin Templeton Series II funds.