Fund Evaluator:

Franklin Floating Rate Daily Access A Overview

Franklin Floating Rate Daily Access A (FAFRX) is an actively managed Taxable Bond Bank Loan fund. Franklin Templeton Investments launched the fund in 2001.

The investment seeks a high level of current income; capital preservation is a secondary goal. The fund normally invests at least 80% of its net assets in income-producing floating interest rate corporate loans and corporate debt securities made to or issued by U.S. companies, non-U.S. entities and U.S. subsidiaries of non-U.S. entities. It invests at least 75% of its net assets in floating rate investments that are rated B- or higher at the time of purchase by a nationally recognized statistical rating organization (NRSRO) or, if unrated, are determined to be of comparable quality by the fund's investment manager.

About Franklin Floating Rate Daily Access A (FAFRX)

There are 4 members of the management team with an average tenure of 8.67 years: Justin Ma (2013), Margaret Chiu (2019), Reema Agarwal (2019), Judy Sher (2019). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Morningstar LSTA US LL TR USD index with a weighting of 100%. Franklin Floating Rate Daily Access A has 285 securities in its portfolio. The top 10 holdings constitute 21.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Franklin Floating Rate Daily Access A is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Franklin Floating Rate Daily Access A has 2.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 92.0% (89.2% domestic bond, 2.8% foreign bond and 0.0% convertible bond). Franklin Floating Rate Daily Access A has 7.2% of the portfolio in cash.

Assets Under Management

The fund has $812 million in total assets, which is above the $344 million average for the Bank Loan category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FAFRX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin Floating Rate Daily Access A expense ratio is high compared to funds in the Bank Loan category. Franklin Floating Rate Daily Access A has an expense ratio of 0.95%, which is 10% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin Floating Rate Daily Access A has a portfolio turnover rate of 46%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 62% for the Bank Loan category.

Recently, in the month of July 2026, Franklin Floating Rate Daily Access A returned 0.9%, which earned it a grade of A, as the Bank Loan category had an average return of 0.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Franklin Floating Rate Daily Access A has a trailing yield of 7.61%, which is above the 6.73% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Franklin Floating Rate Daily Access A Grades

Year to date, the fund has returned 2.0%, 0.0 percentage points better than the category, which translates into a grade of C. The fund has returned 2.8% over the past year (grade of F), 6.7% over the past three years (grade of C) and 6.0% per year over the past five years (grade of A) and 4.1% per year over the past 10 years (grade of D).

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