Franklin Emerging Markets Debt Opportunities Hard Currency Fund

Franklin Templeton Investment Funds

Summary of Fund Objective

The Fund's objective is to achieve income yield and long-term capital appreciation by investing primarily in fixed and floating rate debt securities and debt obligations of government, government-related issuers, supranational entities and corporate issuers located in an emerging market country and / or deriving a significant proportion of their economic activity from developing or emerging countries. At the time of purchase, investment will be rated B minus or above or of comparable quality if unrated. All investment will be denominated in G7 currencies. Derivatives will be used mainly to hedge currency exposures and also on occasion to hedge against interest rate risk.


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

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.

  • The Fund seeks to achieve its investment objective by investing primarily in a diversified portfolio of fixed and floating rate debt securities and debt obligations, traded on a regulated market and issued by government and/or corporate issuers located in Emerging Market countries.
  • These securities will be denominated in hard currencies. Such securities have historically been subject to price movements, generally due to interest rates, market factors or movements in the bond market. As a result, the performance of the Fund can fluctuate over time.
  • Other significant risks include:
    Counterparty risk: the risk of failure of financial institutions or agents (when serving as a counterparty to financial contracts) to perform their obligations, whether due to insolvency, bankruptcy or other causes.
    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.
    Foreign currency risk: the risk of loss arising from exchange-rate fluctuations or due to exchange control regulations. 
    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.
    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.
    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.