Franklin European Income Fund

Franklin Templeton Investment Funds

Summary of Fund Objective

The Funds objective is to maximise income while maintaining prospects for capital appreciation. The fund will seek to achieve its objective by investing principally in a portfolio of equities and fixed income, domiciled or having significant business activities in European countries, including emerging markets in Europe.

The Fund brings together the best investment ideas of two highly experienced groups – the European Fixed Income Group and the European Equity Group – with the goal of to achieve the right blend required to maximise income and produce capital growth.

The investment team looks at all income opportunities across the capital structure of European companies and sovereign debt with no benchmark constraints. This holistic approach allows the team to decide on the overall asset allocation based on their highest convictions between equities, government and corporate bonds, convertibles and currencies.

The fund will dynamically allocate between European bonds and equities in a range of 35-65% based on where portfolio management is finding the most attractive opportunities during any market cycle. In addition, the fund employs active currency management on portfolio level to generate positive returns and to limit overall portfolio risk

FUND MANAGERS

David Zahn

  • London, United Kingdom
  • Years With Firm: 12
  • Years Of Experience: 25

Dylan Ball

  • London, United Kingdom
  • Years With Firm: 11
  • Years Of Experience: 19

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 invests mainly in a diversified portfolio of European equity, equity-related and debt securities. Such securities have historically been subject to price movements that may occur suddenly due to equity market- and bond market-specific factors. As a result, the performance of the Fund can fluctuate over time.
  • The Fund may distribute income gross of expenses. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital.
  • Other significant risks include: credit risk, currency risk, derivatives risk, liquidity risk.
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.