Franklin Floating Rate II Fund
The Fund’s objective is to provide Investors with a high level of current income and preservation of capital. The Fund seeks to achieve its investment objective by investing (whether by way of subscription, acquisition or participation) primarily in a diversified portfolio of senior secured floating rate corporate loans and corporate debt securities made to or issued by US entities, non-US entities and US subsidiaries of non-US entities, as well as collateralised debt obligations and collateralised loan obligations (together “Obligations”). In some instances, the Fund may invest in unsecured loans or loans subject to higher risks of default (as a result notably of the failure by the issuer to meet its obligations). The Fund may invest up to 15% of its net assets in Debtor in Possession (DIP) loans and not rated loans (when not rated, securities will be determined to be of comparable quality with other floating rate investments rated B or higher at the time of purchase).