The Franklin Australian Absolute Return Bond Fund is an actively managed portfolio of fixed income strategies designed to deliver attractive returns through the interest rate and credit cycles while protecting against capital volatility through strong risk management.

The strategy may invest in Australian dollar and non-Australian dollar-denominated fixed income instruments including sovereign, corporate debt and derivative instruments.

Below investment-grade exposure is limited to no more than 20% of portfolio net assets at the time of investment.

The Fund can adopt duration position of up to 2.5 years in both long and short strategies and is able to invest up to 35% in non-AUD securities which are hedged back to AUD.