Fund Description

The fund was incepted in May 1994 and is managed by Franklin Advisers. The objective of this fund is to earn a high level of current income. Its secondary objective is capital appreciation over the long term. The fund invests at least 65% of its assets in U.S. and foreign debt securities. The fund may invest up to 100% of its total assets in bonds that are rated below investment grade, sometimes called 'junk bonds' or 'high yield' securities. Investment grade bonds are rated in the top four ratings categories by independent rating organizations such as Standard & Poor's Ratings Group (S&P) and Moody's Investors Service (Moody's). The fund generally invests in bonds rated at least Caa by Moody's or CCC by S&P, or unrated bonds that the fund's manager determines are comparable. The fund offers dividends monthly and capital gains, if any annually. There is no guarantee that fund pays either income dividends or capital gains distributions.