Franklin Euro High Yield Fund

Franklin Templeton Investment Funds

Summary of Fund Objective

The Fund aims to earn a high level of current income and seeks capital appreciation when consistent with its principal objective of high current income, by investing principally either directly or through the use of financial derivative instruments in Euro-denominated or Non-Euro denominated Euro-hedged Fixed Income Debt Securities of European or Non-European issuers with Non-investment grade ratings, or if unrated, their equivalent.

Investor Profile

  • Seeking to earn a high level of income, and to a lesser extent, some capital appreciation in a Fund with the Euro as its base currency.
  • Seeking investment primarily in Euro-denominated high-yielding fixed income securities.
  • Planning to hold their investment for the medium to long term.


Patricia O'Connor

  • California, United States
  • Years With Firm: 24
  • Years Of Experience: 25

Piero del Monte

  • London, United Kingdom
  • Years With Firm: 14
  • Years Of Experience: 23

Rod MacPhee

  • London, United Kingdom
  • Years With Firm: 8
  • Years Of Experience: 14

Emmanuel Teissier

  • London, United Kingdom
  • Years With Firm: 13
  • Years Of Experience: 19

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 invests mainly in lower-quality debt securities denominated in euro. Such securities have historically been subject to price movements, generally due to interest rates or movements in the bond market in general. As a result, the performance of the Fund can fluctuate moderately over time.
  • 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.
  • 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 Considerations” section of the Fund in the current prospectus of Franklin Templeton Investment Funds.