Investment objective & strategy
As of June 24, 2025 · prospectusObjective. The fund seeks high current income. Preservation of capital is a secondary goal.
Strategy. Investments The fund invests mainly in corporate loans and debt securities that have floating rates of interest and other corporate debt securities. Under normal circumstances, the fund will invest at least 80% of its net assets in income-producing floating rate loans and other floating rate debt securities. This policy may be changed only after 60 days notice to shareholders. The fund invests mainly in obligations of U.S. issuers that are below-investment-grade in quality (having credit characteristics similar to junk bonds). The fund may invest up to 25% of its net assets in foreign securities. The funds portfolio managers may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy … Investments The fund invests mainly in corporate loans and debt securities that have floating rates of interest and other corporate debt securities. Under normal circumstances, the fund will invest at least 80% of its net assets in income-producing floating rate loans and other floating rate debt securities. This policy may be changed only after 60 days notice to shareholders. The fund invests mainly in obligations of U.S. issuers that are below-investment-grade in quality (having credit characteristics similar to junk bonds). The fund may invest up to 25% of its net assets in foreign securities. The funds portfolio managers may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell investments. The fund may also use derivatives, such as futures, options, warrants, certain foreign currency transactions, and credit default, total return and interest rate swap contracts for both hedging and non-hedging purposes.
Top holdings
As of Feb. 28, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Putnam Short Term Investment Fund, Class P | — | $12.86M | 4.42% |
| BAUSCH LOMB CORP TL | BLCOCN | $3.12M | 1.07% |
| RH TERM B2 1LN 10/20/2028 | — | $2.96M | 1.02% |
| T/L KENAN ADVANTAGE GROUP REGD ZCP TERM LOAN 0.00000000 | KEADGR | $2.95M | 1.01% |
| American Airlines, Inc., Term Loan | — | $2.88M | 0.99% |
| Chariot Buyer LLC/Term Loan B 07/25 | BL516801 | $2.87M | 0.99% |
| T/L GREAT OUTDOORS GROUP LLC REGD 0.00000000 | BASSPR | $2.86M | 0.98% |
| IGT Holding IV AB, First Lien, CME Term Loan, B8 | — | $2.86M | 0.98% |
| AMERICAN TRAILER WORLD TERM B 1LN 3/3/2028 | — | $2.75M | 0.95% |
| UFC Holdings, LLC, Term Loan | ZUFFAL | $2.74M | 0.94% |
Portfolio moves
Nov 30, 2025 → Feb 28, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Franklin Floating Rate Daily Access Fund · FAFRX, FCFRX, FDAAX, FFRDX | 27% | 0.62% |
| Franklin Floating Rate Master Series · XFFLX | 27% | — |
| JNL Multi-Manager Floating Rate Income Fund | 23% | 0.63% |
Advisers
| Firm | Role |
|---|---|
| Franklin Advisers, Inc. | Adviser |
| Franklin Templeton Investment Management Limited | Sub-adviser |
| Putnam Investment Management, LLC | Sub-adviser |
Footnotes
- Expense ratio as of June 24, 2025, from the fund's prospectus.
- Net assets and holdings count as of February 28, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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