Benefits of investing in the Franklin Templeton Multisector Bond Fund - W Class

The significant benefits of the Fund are:

• Exposure to a multi-sector global bond portfolio that seeks value from economic imbalances in relation to interest rates, currencies and sovereign and corporate credit;

• Access to the expertise of global specialist investment teams covering every major sector of the global fixed income security and debt obligation market; and

• Takes advantage of differences in market environments by identifying and investing in the strongest sources of income, capital growth and currency gains from fixed income securities and debt obligations anywhere around the world.

Risk level

Medium to High

Investor suitability

Investors who:

• have an investment timeframe of at least five years;

• wish to gain exposure to a global portfolio of fixed income securities and debt obligations; and

• are comfortable with the risk level of the Fund.

The significant features of the Fund are:

• The Fund's principal investment return objective is to maximise total investment returns consisting of a combination of interest income, capital appreciation and currency gains. The Fund will seek to achieve its objective by investing primarily in a portfolio of fixed income securities and debt obligations of government, government-related and corporate issuers worldwide. The Fund may also invest in securities linked to the assets or currencies of any nation. The Fund may purchase foreign currency denominated fixed income securities and debt obligations and may also invest in Derivatives (for more information on Derivatives please refer to Section 4 in the PDS - Risks of managed investment schemes).

• The flexible and opportunistic nature of the Fund's investment strategy allows the investment team to take advantage of different market environments. By using in-depth economic, country and security research including detailed risk analysis, Franklin Templeton Investments' large team of fixed income specialists look to take advantage of differences in market environments by identifying and investing in the strongest sources of income, capital growth and currency gains from fixed income securities and debt obligations anywhere around the world. In making investment decisions, Franklin Templeton Investments' investment team uses in-depth research about various factors that may affect fixed income security and debt obligation prices and currency values.

How we invest your money

The Fund invests in a portfolio of global fixed income securities and debt obligations of governments, government-related, municipal or corporate issuers worldwide, as well as Derivatives. Derivatives will not be used to gear or leverage the Fund's investment portfolio.

Below investment-grade exposure is limited to no more than 50% of portfolio net assets at the time of investment.​

At the date of the PDS, the Fund does not intend to borrow to achieve the stated investment objectives.

Investment philosophy

We believe that a portfolio built around a diversified set of active management positions has the potential to generate the most attractive information ratios over a full market cycle. We seek to accomplish this by implementing a large number of small, low-correlated active positions, in order to reduce the risk of poor performance from any single active position. We look to keep this strategy benchmark aware but unconstrained, seeking to reap the full benefits of our global fixed income expertise. Our global framework, significant bottom-up resources and integrated quantitative group allow us to identify market inefficiencies which we seek to exploit while utilising a disciplined risk management process.

Investment process

Franklin Templeton's value-based investment style combines the qualitative analysis of macroeconomic factors with sophisticated quantitative tools in a benchmark-agnostic yet risk-controlled framework. Our investment process is structured to pursue diversified sources of alpha across securities, sectors and global markets. We aim to add value by exploiting market inefficiencies through both top-down allocation decisions and bottom-up security selection on a tactical and strategic basis. Qualitative analysis is used in identifying secular trends and evaluating each of the factors that affect countries, currencies and sectors. Proprietary and non-proprietary systems provide the framework to manage these components and understand the sources of risk and expected returns.