FTF Franklin Sterling Corporate Bond Fund

Franklin Templeton Funds

Summary of Fund Objective

The Fund aims to outperform the Markit iBoxx GBP Non-Gilts Index after fees and costs through a combination of income and investment growth over a three to five-year period.


David Zahn

  • London, United Kingdom
  • Years With Firm: 15
  • Years Of Experience: 27

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 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. There is no guarantee that the Fund will meet its objective.

  • The Fund may distribute income gross of expenses. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital.
  • The Fund invests mainly in higher-quality debt securities of corporations located in or doing significant business in the UK. Such securities have historically proven to present some stability over time and have benefited from a limited exposure to interest rates and movements in the bond market but the performance can fluctuate over time.
  • Other significant risks include:
    Credit risk: the risk of loss arising from default that may occur if an issuer fails to make principal or interest payments when due. This risk is higher if the Fund holds low-rated, sub-investment-grade securities.
    Derivative 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.
    Liquidity risk: the risk that arises when an asset cannot be sold on a timely basis due to security-specific factors or adverse market conditions, which may impact the Fund’s ability to meet redemption requests, particularly if they are increasing.
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 Templeton Funds.