Franklin Templeton is a large fund company offering an expansive selection of mutual funds under three brands – Franklin, Templeton, and Mutual Series.
The Franklin Utilities Fund FRUAX invests in utility stocks and related securities, boasting a Zacks Mutual Fund Rank of #1.
Tax-Free Income Fund
The Tax-Free Income Fund offers investors an easy and accessible way to invest in municipal bonds issued by states, cities, counties, or other government entities. Municipals are exempt from federal income tax for most residents in their state of issue and tend to offer lower yields than their taxable counterparts – providing investors in higher tax brackets an effective tool to lower their taxable income and decrease tax liabilities.
On March 31st, 2022, the Fund held 115 issues worth $16 billion. It had an average duration of 7.6 years with a tax-free yield of 4.79% and a total return of 4.92%. Managed by Franklin Templeton Investments, its primary aim is to provide current income exempt from federal income taxes while protecting capital.
Investment returns and principal will fluctuate over time; when redeeming shares, they may be worth more or less than what was paid initially. Investors should carefully evaluate a fund’s objectives, risks, charges, and expenses before investing – which can be found by calling their financial professional or clicking the link here for their prospectus copy.
The Fund’s investments in asset-backed and mortgage-backed securities involve unique risks, including credit risk, prepayment risk, potential default risk, and increased susceptibility to adverse economic developments. Furthermore, derivative investments expose it to the individual market, leverage, and liquidity risks.
The Fund’s investment adviser has contractually agreed to waive fees or reimburse certain expenses of the Fund through September 30, 2022; without this agreement, its performance would have been lower. The Adviser Selection Committee chooses issuers in which to invest; its criteria focus on the creditworthiness of issuers as well as factors related to the economic environment of operations of each issuer – subject to review and revision by the Board of Trustees.
Global Bond Fund
The $123 trillion global bond opportunity set provides diverse returns. Experienced managers who can identify inefficiencies across credit, currency, and rate markets are well-suited to finding attractive risk-reward profiles for issuers around the globe. The Fund aims to generate a total return by combining income with capital appreciation through its diverse investment opportunity set while keeping volatility within reasonable levels.
The Fund invests primarily in debt securities, such as convertibles and structured products, asset-backed securities, mortgage-backed and corporate bonds, preferred stocks (up to 10% of assets held), and duration. Longer-duration securities tend to be more sensitive to changes in interest rates than shorter-duration ones.
Before investing, prospective investors must carefully assess the Fund’s investment objectives, risk factors, and fees. It’s a prospectus, and critical investor information contains this essential information about the Fund; both documents may be obtained by contacting Franklin Templeton International Services S.A.r.l. Swedish branch filial at Nybrokajen 5, SE-111 48 Stockholm Sweden or call +46 (0)8 545 01230 for copies. Past performance cannot guarantee future results – an investment could decline as quickly as it increases.
Investment in a Fund may not be suitable for all investors. Due to being undiversified, market fluctuations could cause greater exposure. Furthermore, derivatives increase risk and complexity in investments held within the Fund – this could expose it to liquidity, valuation, and concentration risks that must be monitored closely.
So long as nothing else is specified, the yield quoted represents the weighted average of bid and offer prices on a closing basis without considering transaction costs. Yields do not indicate actual current or potential future values of the Fund and do not consider whether dividend payments could be reinvested into it.
Investors should consult their tax or financial advisor regarding any restrictions to investing in Funds. Funds do not target distribution in the US market and do not qualify as offering materials suitable for distribution there.
FRIAX
The Franklin Custodian Income Fund; Advisor Class (FRIAX) is an all-around mutual fund with an excellent track record and reliable dividend payments. As a balanced fund, approximately 44 percent of its assets are invested in stocks while about 13 percent in bonds; cash and other holdings account for the remaining 13 percent. Its five-year annualized return of 5.44% ranks within the middle third of category peers.
FRIAX provides an impressive 3-year annualized return of 9.27%, making it an excellent option for investors who seek regular income. However, investors should remember that total returns do not account for sales charges and should always read through a fund’s prospectus before investing.
Investors should also carefully evaluate a fund’s risk profile and alpha. Beta, which measures volatility, provides insight into its performance. In contrast, alpha measures how well its manager picks securities that outshone market average performance – FRIAX currently boasts an alpha score of 0.57 which puts it below the market average of 0.78.
One important consideration when selecting a mutual fund is expenses. Mutual funds incur operating and management fees that are passed along to investors; these expenses can reduce returns over time, so it’s critical to reduce the costs as much as possible; FRIAX’s expense ratio stands at just 0.63%, which is lower than its industry average of 0.87%.
Many investors focus on the return potential of funds, but it is equally important to recognize their risks. Most equity investments involve systematic and unsystematic risks – the former refers to price movements within overall markets, while unsystematic ones include factors specific to an individual company or industry.
The Fund may use derivative transactions, including options, swaps, and forward contracts, to take net long or short positions in selected markets, interest rates, countries, durations, or sectors for various reasons, including increasing returns, liquidity management, or accessing specific instruments more cost effectively or efficiently while/or mitigating risk associated with changes in interest rates.
FRUAX
Franklin Templeton Investments is a global investment firm offering mutual funds and other products that help individuals meet their financial goals, mainly assisting people to meet them more quickly. Established in 1947 and based out of New York City, this business was named in honor of Benjamin Franklin due to his belief in thriftiness and prudent spending; today, the firm operates globally across 32 offices worldwide and forms part of the FTSE 100 Index.
The Franklin Templeton Tax-Free Income Fund Class C primarily invests in municipal bonds exempt from federal taxes, with an impressively low turnover ratio for secure income with minimal market risk and diversification benefits for your portfolio. But remember, investing is never free from hazards; value may fluctuate up and down over time.
FRUAX is an ideal fund for investors interested in US-based investments. The fund features a diverse portfolio of stocks managed by experts with extensive sector knowledge. Furthermore, its track record indicates it consistently outpaces the market over time.
Franklin Templeton Global Bond Fund Class A provides diverse fund options that provide adequate portfolio diversification. Its managers scour the globe to identify potential investment opportunities in currencies, interest rates, and sovereign credit with lower volatility than general markets and offer returns with reduced risks.
This Site is intended for dealers whose clients invest in Franklin Templeton products and investors located outside the United States; however, anyone can access the Site – both dealers residing within and those outside – who wish to access Franklin Templeton products as an investment strategy. You are solely responsible for adhering to all applicable laws in your jurisdiction.
Franklin Templeton has taken reasonable measures to ensure the Site Content is accurate and up-to-date, yet we cannot guarantee it will be error-free or complete. As such, you should not place undue reliance on it. All prices on this Site should only be used as reference points; any purchase, exchange, or redemption transactions can only occur upon receiving confirmed quotes for shares.
