FLUD

FLUD covers a broad array of bonds, and investments with exposure to bonds, in the ultra-short maturity space with the goal of providing consistent current income and capital preservation. The securities that the fund holds are mixture of fixed and variable rate debts mainly from the US but also from other developed and emerging markets. Securities include those issued by governments and corporations, money market, MBS and ABS, and municipal bonds. FLUD may also hold interest rate/bond futures contracts and interest rate swaps, allowing the fund for net long or short exposures to select interest rates or durations. These holdings are actively selected from various sectors based on the fund manager's top-down analysis of macroeconomic trends and bottom-up analysis of market sectors, industries and issuers condition. A proprietary quantitative models are also used to identify trading opportunities. The fund focuses on the investment-grade securities to hedge credit risk and helps with capital preservation. Prior to Aug. 1, 2022, the fund traded under the name Franklin Liberty Ultra Short Bond ETF.