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Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 12/06/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
8.8%
1 yr return
9.5%
3 Yr Avg Return
7.0%
5 Yr Avg Return
5.0%
Net Assets
$1.42 B
Holdings in Top 10
13.2%
Expense Ratio 1.01%
Front Load 2.25%
Deferred Load N/A
Turnover 66.03%
Redemption Fee N/A
Standard (Taxable)
$1,000
IRA
$250
Fund Type
Open End Mutual Fund
Name
As of 12/06/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
The Fund normally invests at least 80% of its net assets in income-producing floating interest rate corporate loans and corporate debt securities made to or issued by U.S. companies, non-U.S. entities and U.S. subsidiaries of non-U.S. entities. Floating interest rates vary with and are periodically adjusted to a generally recognized base interest rate such as the Secured Overnight Financing Rate (SOFR) or the Prime Rate. The Fund may invest in companies whose financial condition is troubled or uncertain and that may be involved in bankruptcy proceedings, reorganizations or financial restructurings.
Floating interest rate corporate loans and debt securities, also called bank loans or senior floating rate interests (collectively, floating rate investments), generally have credit ratings below investment grade and may be subject to restrictions on resale. Under normal market conditions, the Fund invests at least 75% of its net assets in floating rate investments that are rated B- or higher at the time of purchase by a nationally recognized statistical rating organization (NRSRO) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. Under normal market conditions, the Fund may invest up to 25% of its net assets in floating rate investments that are rated below B- by an NRSRO or, if unrated, are determined to be of comparable quality by the investment manager.
The Fund's floating rate investments typically hold the most senior position in the capitalization structure of a company and are generally secured by specific collateral. Such senior position means that, in case the company becomes insolvent, the lenders or security holders in a senior position like the Fund's position will typically be paid before other unsecured or subordinated creditors of the company from the assets of the company.
The Fund typically invests in a corporate loan or corporate debt security if the investment manager judges that the borrower can meet the scheduled payments of interest and principal on the obligation. The investment manager performs its own independent credit analysis of each borrower/issuer and of the collateral structure securing the Fund’s investment. The investment manager also considers the nature
of the industry in which the borrower operates, the nature of the borrower's assets, and the general quality and creditworthiness of the borrower and of any shareholder or other entity providing credit support to the borrower.
Historically, corporate loans and corporate debt securities have required that the borrower or issuer comply with various restrictive covenants that accompanied the loan or security, which tended to conserve collateral held by the borrower that supports the loan or security. However, consistent with the characteristics of the prevailing loan market, the loans or securities in which the Fund generally invests have varied terms and conditions, but contain fewer or no restrictive covenants and are often referred to as “covenant lite” loans and debt securities. Covenant lite loans or securities may have tranches that contain fewer or no maintenance financial covenants, which require borrowers/issuers to meet financial requirements specified under the loan credit agreement that are tested regularly for compliance. The most common examples of maintenance financial covenants include maximum leverage and minimum interest coverage ratios. Because a covenant lite loan or debt security does not require the borrower to maintain these financial tests regularly, investors typically have less ability to declare a default, and therefore receive collateral in a timely manner, or to force restructurings and other capital changes on struggling borrowers compared to an otherwise similar loan that does contain maintenance financial covenants. The Fund may experience relatively greater difficulty or delays in enforcing its rights on its holdings of certain covenant lite loans and debt securities than its holdings of loans or securities with maintenance financial covenants. However, depending on the circumstances, there are often alternative sources of recourse portfolio managers can seek in order to protect their investments. Further, the Fund typically invests in a corporate loan or corporate debt security, including those that are covenant lite, if the investment manager judges that the borrower can meet the scheduled payments of interest and principal on the obligation and meets other creditworthiness criteria.
The Fund may invest in structured fixed income securities, including collateralized loan obligations (CLOs).
The Fund currently limits its investments in debt obligations of non-U.S. entities to no more than 25% of its total assets. The Fund currently invests predominantly in debt obligations that are U.S. dollar-denominated or otherwise provide for payment in U.S. dollars.
The Fund currently does not intend to invest more than 25% of its net assets in the obligations of borrowers in any single industry, except that, under normal market conditions, the Fund invests more than 25% of its net assets in debt obligations of companies operating in the industry group consisting of financial institutions and their holding companies, including commercial banks, thrift institutions, insurance
companies and finance companies. These firms, or "agent banks," may serve as administrators of corporate loans issued by other companies. For purposes of this restriction, the Fund currently considers such companies to include the borrower, the agent bank and any intermediate participant. The Fund may invest up to 100% of its net assets in loans where firms in such industry group are borrowers, agent banks or intermediate participants.
In addition to the Fund’s main investments, the Fund may invest up to 20% of its net assets in certain other types of debt obligations and equity or debt securities, including, but not limited to, other secured, second lien, subordinated or unsecured corporate loans and corporate debt securities, fixed rate obligations of U.S. companies, non-U.S. entities and U.S. subsidiaries of non-U.S. entities and equity securities (including convertible securities, warrants and rights) to the extent that they are acquired in connection with or incidental to the Fund's other investment activities.
Period | FAFRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 8.8% | -3.7% | 11.0% | 31.70% |
1 Yr | 9.5% | -3.2% | 13.1% | 40.38% |
3 Yr | 7.0%* | -6.8% | 8.2% | 5.06% |
5 Yr | 5.0%* | -6.2% | 38.3% | 34.02% |
10 Yr | 3.8%* | -2.0% | 19.9% | 54.40% |
* Annualized
Period | FAFRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 5.7% | -12.0% | 11.1% | 2.64% |
2022 | -7.0% | -22.9% | 5.1% | 41.86% |
2021 | 4.7% | -12.2% | 11.1% | 1.19% |
2020 | -8.6% | -14.1% | 289.8% | 94.63% |
2019 | -2.1% | -8.1% | 7.5% | 93.62% |
Period | FAFRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 8.8% | -3.7% | 11.0% | 31.70% |
1 Yr | 9.5% | -3.2% | 13.1% | 40.38% |
3 Yr | 7.0%* | -6.8% | 8.2% | 5.06% |
5 Yr | 5.0%* | -6.2% | 38.3% | 34.02% |
10 Yr | 3.8%* | -2.0% | 19.9% | 54.40% |
* Annualized
Period | FAFRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 15.7% | -12.0% | 22.1% | 3.40% |
2022 | -1.4% | -22.9% | 5.1% | 24.42% |
2021 | 9.2% | -10.2% | 11.1% | 4.37% |
2020 | -3.6% | -14.1% | 306.9% | 88.43% |
2019 | 3.7% | -3.6% | 10.5% | 93.62% |
FAFRX | Category Low | Category High | FAFRX % Rank | |
---|---|---|---|---|
Net Assets | 1.42 B | 29.9 M | 13.5 B | 33.59% |
Number of Holdings | 334 | 2 | 2051 | 57.98% |
Net Assets in Top 10 | 192 M | -191 M | 2.37 B | 29.96% |
Weighting of Top 10 | 13.16% | 5.2% | 100.7% | 53.91% |
Weighting | Return Low | Return High | FAFRX % Rank | |
---|---|---|---|---|
Bonds | 92.97% | 0.00% | 161.82% | 70.43% |
Cash | 5.00% | -61.90% | 16.36% | 30.35% |
Stocks | 1.55% | 0.00% | 100.74% | 44.36% |
Other | 1.31% | -52.39% | 26.58% | 17.12% |
Convertible Bonds | 0.22% | 0.00% | 5.51% | 17.25% |
Preferred Stocks | 0.00% | -3.99% | 7.54% | 29.18% |
Weighting | Return Low | Return High | FAFRX % Rank | |
---|---|---|---|---|
Utilities | 0.00% | 0.00% | 100.00% | 37.78% |
Technology | 0.00% | 0.00% | 100.00% | 35.11% |
Real Estate | 0.00% | 0.00% | 48.61% | 17.78% |
Industrials | 0.00% | 0.00% | 100.00% | 43.56% |
Healthcare | 0.00% | 0.00% | 100.00% | 20.89% |
Financial Services | 0.00% | 0.00% | 89.61% | 0.44% |
Energy | 0.00% | 0.00% | 100.00% | 72.89% |
Communication Services | 0.00% | 0.00% | 100.00% | 64.89% |
Consumer Defense | 0.00% | 0.00% | 100.00% | 38.67% |
Consumer Cyclical | 0.00% | 0.00% | 97.66% | 48.89% |
Basic Materials | 0.00% | 0.00% | 1.36% | 25.78% |
Weighting | Return Low | Return High | FAFRX % Rank | |
---|---|---|---|---|
US | 1.55% | -0.01% | 100.74% | 44.36% |
Non US | 0.00% | 0.00% | 0.68% | 39.69% |
Weighting | Return Low | Return High | FAFRX % Rank | |
---|---|---|---|---|
Corporate | 95.23% | 0.00% | 99.80% | 21.96% |
Cash & Equivalents | 5.00% | 0.00% | 25.03% | 27.63% |
Securitized | 0.56% | 0.00% | 91.68% | 40.39% |
Derivative | 0.00% | -11.46% | 0.67% | 50.19% |
Municipal | 0.00% | 0.00% | 0.47% | 28.63% |
Government | 0.00% | 0.00% | 3.18% | 39.61% |
Weighting | Return Low | Return High | FAFRX % Rank | |
---|---|---|---|---|
US | 92.97% | 0.00% | 124.50% | 45.14% |
Non US | 0.00% | 0.00% | 63.23% | 55.25% |
FAFRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.01% | 0.03% | 5.51% | 59.85% |
Management Fee | 0.58% | 0.00% | 1.89% | 29.92% |
12b-1 Fee | 0.25% | 0.00% | 1.00% | 23.31% |
Administrative Fee | 0.15% | 0.02% | 0.27% | 64.44% |
FAFRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | 2.25% | 1.00% | 5.75% | 85.19% |
Deferred Load | N/A | 1.00% | 1.00% | N/A |
FAFRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 1.00% | 2.00% | N/A |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
FAFRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 66.03% | 4.00% | 180.00% | 55.37% |
FAFRX | Category Low | Category High | FAFRX % Rank | |
---|---|---|---|---|
Dividend Yield | 7.97% | 0.00% | 11.13% | 47.17% |
FAFRX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Monthly | Monthly | Monthly | Monthly |
FAFRX | Category Low | Category High | FAFRX % Rank | |
---|---|---|---|---|
Net Income Ratio | 3.86% | 1.77% | 9.82% | 33.60% |
FAFRX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
Date | Amount | Type |
---|---|---|
Nov 29, 2024 | $0.051 | OrdinaryDividend |
Oct 31, 2024 | $0.052 | OrdinaryDividend |
Sep 30, 2024 | $0.049 | OrdinaryDividend |
Aug 30, 2024 | $0.060 | OrdinaryDividend |
Jul 31, 2024 | $0.057 | OrdinaryDividend |
Apr 30, 2024 | $0.061 | OrdinaryDividend |
Mar 28, 2024 | $0.058 | OrdinaryDividend |
Feb 29, 2024 | $0.054 | OrdinaryDividend |
Jan 31, 2024 | $0.052 | OrdinaryDividend |
Dec 29, 2023 | $0.066 | OrdinaryDividend |
Nov 30, 2023 | $0.055 | OrdinaryDividend |
Oct 31, 2023 | $0.052 | OrdinaryDividend |
Sep 29, 2023 | $0.057 | OrdinaryDividend |
Aug 31, 2023 | $0.055 | OrdinaryDividend |
Jul 31, 2023 | $0.049 | OrdinaryDividend |
Jun 30, 2023 | $0.054 | OrdinaryDividend |
May 31, 2023 | $0.052 | OrdinaryDividend |
Apr 28, 2023 | $0.043 | OrdinaryDividend |
Mar 31, 2023 | $0.052 | OrdinaryDividend |
Feb 28, 2023 | $0.048 | OrdinaryDividend |
Jan 31, 2023 | $0.044 | OrdinaryDividend |
Dec 30, 2022 | $0.058 | OrdinaryDividend |
Nov 30, 2022 | $0.044 | OrdinaryDividend |
Oct 31, 2022 | $0.039 | OrdinaryDividend |
Sep 30, 2022 | $0.047 | OrdinaryDividend |
Aug 31, 2022 | $0.035 | OrdinaryDividend |
Jul 29, 2022 | $0.033 | OrdinaryDividend |
Jun 30, 2022 | $0.029 | OrdinaryDividend |
May 31, 2022 | $0.027 | OrdinaryDividend |
Apr 29, 2022 | $0.030 | OrdinaryDividend |
Mar 31, 2022 | $0.023 | OrdinaryDividend |
Feb 28, 2022 | $0.023 | OrdinaryDividend |
Jan 31, 2022 | $0.022 | OrdinaryDividend |
Dec 31, 2021 | $0.032 | OrdinaryDividend |
Nov 30, 2021 | $0.023 | OrdinaryDividend |
Oct 29, 2021 | $0.020 | OrdinaryDividend |
Sep 30, 2021 | $0.022 | OrdinaryDividend |
Aug 31, 2021 | $0.024 | OrdinaryDividend |
Jul 30, 2021 | $0.020 | OrdinaryDividend |
Jun 30, 2021 | $0.022 | OrdinaryDividend |
May 28, 2021 | $0.017 | OrdinaryDividend |
Apr 30, 2021 | $0.023 | OrdinaryDividend |
Mar 31, 2021 | $0.026 | OrdinaryDividend |
Feb 26, 2021 | $0.023 | OrdinaryDividend |
Jan 29, 2021 | $0.023 | OrdinaryDividend |
Dec 31, 2020 | $0.024 | OrdinaryDividend |
Dec 31, 2020 | $0.032 | OrdinaryDividend |
Nov 30, 2020 | $0.026 | OrdinaryDividend |
Oct 30, 2020 | $0.025 | OrdinaryDividend |
Sep 30, 2020 | $0.026 | OrdinaryDividend |
Aug 31, 2020 | $0.026 | OrdinaryDividend |
Jul 31, 2020 | $0.026 | OrdinaryDividend |
Jun 30, 2020 | $0.031 | OrdinaryDividend |
May 29, 2020 | $0.026 | OrdinaryDividend |
Apr 30, 2020 | $0.032 | OrdinaryDividend |
Mar 31, 2020 | $0.026 | OrdinaryDividend |
Feb 28, 2020 | $0.029 | OrdinaryDividend |
Jan 31, 2020 | $0.035 | OrdinaryDividend |
Dec 31, 2019 | $0.040 | OrdinaryDividend |
Nov 29, 2019 | $0.033 | OrdinaryDividend |
Oct 31, 2019 | $0.037 | OrdinaryDividend |
Sep 30, 2019 | $0.037 | OrdinaryDividend |
Aug 30, 2019 | $0.037 | OrdinaryDividend |
Jul 31, 2019 | $0.040 | OrdinaryDividend |
Start Date
Tenure
Tenure Rank
Jun 01, 2013
9.0
9.0%
Justin Ma is an assistant portfolio manager for Franklin Advisers' Floating Rate Debt Group. He is a portfolio manager on Franklin Floating Rate Daily Access Fund, Franklin Floating Rate PLC, and FTSIIF Franklin Floating Rate II Funds, as well as the floating rate investments of Franklin Templeton Limited Duration Income Trust Fund. Mr. Ma is also a member of the Investment Committee. Mr. Ma joined Franklin Templeton in 2006 as a member of the Futures Program and joined the Floating Rate Debt Group as a portfolio analyst in 2008. Mr. Ma holds a B.A. from Stanford University and is a Chartered Financial Analyst (CFA) Charterholder. He is also a member of the CFA Society of San Francisco (CFASF) and the CFA Institute.
Start Date
Tenure
Tenure Rank
Jan 31, 2019
3.33
3.3%
Reema Agarwal, SVP, Director of the Floating Rate Debt Group, manages a team of research analysts and portfolio managers across the full spectrum of the bank loan market. Prior to this role Reema was the Floating Rate Debt Group Director of Research (2014–2018). Prior to joining the firm in 2004, Ms. Agarwal was with FleetBoston Financial and ABN AMRO Bank N.V. Ms. Agarwal holds an M.B.A. from the Indian Institute of Management, Bangalore. She is a Chartered Financial Analyst (CFA) charter holder and a member of the CFA Society of San Francisco (CFASF).
Start Date
Tenure
Tenure Rank
Mar 01, 2019
3.25
3.3%
Margaret Chiu is a portfolio manager for the Franklin Advisers' Floating Rate Debt Group. Ms. Chiu provides portfolio analytics for the floating rate open-end funds and institutional separate accounts. Ms. Chiu joined Franklin Templeton in 2012 and the Floating Rate Debt Group in 2013. Ms. Chiu holds a B.S. in business administration from the University of California, Berkeley. She is a Chartered Financial Analyst (CFA) charterholder and a Certified Financial Risk Manager (FRM).
Start Date
Tenure
Tenure Rank
Dec 31, 2019
2.42
2.4%
Ms. Sher has been a portfolio manager of the Fund since December 2019. She joined Franklin Templeton in 2013.
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.09 | 21.18 | 6.08 | 3.25 |
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