Franklin Flexible Alpha Bond Fund

Franklin Templeton Investment Funds

Summary of Fund Objective

The Fund aims to earn income and to increase the value of its investments over the medium to long term in excess of the London Interbank Offered Rate (LIBOR) 90 Day (USD) over a full market cycle. The Fund invests in a wide range of global debt securities of any maturity, duration or quality.

The Fund seeks to complement traditional fixed income asset classes by potentially providing low correlation to conventional holdings.

The Fund focuses on risk management and reducing volatility to aim to protect on the downside.

The Fund leverages nearly three decades of experience in managing unconstrained strategies and fixed income expertise honed over more than 60 years.


David Yuen

  • California, United States
  • Years With Firm: 25
  • Years Of Experience: 33

Tina Chou

  • California, United States
  • Years With Firm: 16
  • Years Of Experience: 18

William Chong

  • California, United States
  • Years With Firm: 12
  • Years Of Experience: 12

Sonal Desai

  • Florida, United States
  • Years With Firm: 11
  • 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.

  • The Fund seeks to generate attractive risk-adjusted returns over a full market cycle by allocating its investments across a wide range of debt securities and debt obligations of any maturity or credit rating of corporate and/or sovereign issuers worldwide, with the ability to actively use financial derivative instruments. Such securities and investment instruments have historically been subject to price movements due to such factors as sudden changes in interest rates, changes in the financial outlook or perceived credit worthiness of securities issuers, or fluctuations in currency markets. As a result, the performance of the Fund can fluctuate to a small degree 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.
    Securitisation risk: investment in securities which generate return from various underlying groups of assets such as mortgages, loans or other assets may bear a greater risk of loss due to possible default of some of the underlying assets.
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.