A CANADIAN SHORT DURATION STRATEGY WITH THE FLEXIBILITY TO GO BEYOND THE BENCHMARK

Franklin Bissett Short Duration Bond Fund and Franklin Liberty Short Duration Bond ETF (FLSD)

 

Canadians have been stashing their cash during the pandemic, with lots of money in low yielding vehicles such as savings accounts and GICs. Those investors may be looking for alternatives that provide liquidity, a measure of safety and go further to provide more upside potential.

Franklin Bissett’s Short Duration strategy does exactly that. It combines high quality Canadian short-term debt securities with non-core debt securities to create a multi-sector solution with a low duration to protect against rising rates.

Proven track record

Franklin Bissett Short Duration Bond Fund-Series F (TML 1015), has a track record of generating higher yields than GICs.

 

Higher Distribution Yield Relative to Peers and GICs2

As of December 31, 2020

12-Month Distribution Yield (%)

 

Diversification

Flexible multi-sector approach to benefit from the best yield opportunities, while limiting volatility.

Risk Mitigation

The portfolio is defensively positioned to minimize interest rate risk in a rising rate environment.

Stable Income

Strives for above average distribution rates with competitive performance.

Global Exposure

Up to 30% of holdings can be invested abroad for enhanced returns from yields and currencies.

Strong Performance Relative to the Peer Group3,4,5

As of June 30, 2021

Series F Returns (%) and Quartile Rankings

Downside Protection for Portfolios

As of December 31, 2020

Bond and Equity Indices Fund Series F
Years with Negative Returns Average Return in Negative Years Average Return During Index’s Negative Years Correlation with Index (17 years)
FTSE Canada Universe Bond 1 -1.2% 1.4% 0.59
S&P/TSX Composite TR 4 -14.7% 3.0% 0.26
S&P 500 TR 2 -15.9% 4.5% 0.11
MSCI ACWI NR 4 -9.8% 3.5% 0.18
MSCI EM NR 3 -21.6% 3.6% 0.16

A Well-Diversified, High Quality Portfolio6

As of June 30, 2021 (all weightings as percent market value)

Corporate Sectors (% Corp. Bonds)
Financial 49.16
Energy 13.35
Communication 11.25
Real Estate 8.94
Industrial 7.98
Infrastructure 6.85
Securitization 1.72
Bank Loans 0.75
Yield to Worst (%) 1.50
Average Duration (Years) 2.66
Average Coupon (%) 3.08
Fixed Income Sectors (% Total)
Canadian Corporate Investment-Grade Bonds 54.24
Federal Bonds 15.90
Provincial Bonds 15.14
Foreign Investment-Grade Corporate Bonds 7.72
High Yield Corporate Bonds 6.54
Bank Loans 0.52
Municipal Bonds 0.34
Other -0.39
Credit Rating (% Total)
AAA 17.22
AA 24.42
A 21.69
BBB 29.89
BB 5.61
B 0.82
CCC 0.28
D 0.04
Non-Rated 0.03
Average (ex cash) A
Maturity (% Total)
Floating-Rate Notes 3.25
< 5 Years 76.80
5–10 Years 19.27
> 10 Years 0.68
Country (% Total)
Canada 78.11
United States 20.55
Germany 1.02
United Kingdom 0.75
Other -0.44

For more information, please contact your investment advisor or our Client Services team