FLCO

FLCO aims for active exposure to the investment-grade USD-denominated bond space. The fund manager uses a combination of top-down and bottom-up approaches for portfolio construction. The fund manager also uses the top-down approach for tactical sector allocation and the bottom-up approach to select individual securities regardless of maturity or duration. Despite its primary USD-denominated investment objective, FLCO can hold up to 15% in non-USD-denominated securities and up to 40% in foreign issuers including emerging markets. Given the nature of actively-managed funds, FLCO may experience higher portfolio turnover. Also, with the opaque trading nature of the bond market, investors should reach out to market makers for assistance to execute block trades. Prior to Aug. 1, 2022, the fund traded under the name Franklin Liberty Investment Grade Corporate ETF.