Franklin Limited Duration Income Trust Common Shares of Beneficial Interest (FTF)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I’m looking at FTF at $5.36 on 2026-10-13, a $237.8M closed-end fund managed by Franklin Advisers. It owns mortgage-backed securities, asset-backed securities, floating-rate bank loans, and high-yield corporate bonds. That mix can generate income, but it also carries credit and rate risk. The fund’s figures do not show a strong operating business: ROE is 4.37%, ROCE is 4.32%, the Piotroski F-Score is 1/9, and the Altman Z-Score is 0.79. Those are weak quality and financial-health readings, even if D/E of 0.38 is not extreme. The 13.09% dividend yield is the main attraction, but the P/E of 18.48 implies a much smaller earnings yield, so distribution coverage is a key question. Valuation is mixed. P/B is 0.84, the Graham Number is $6.44, and the margin of safety is 16.77% versus the close. So the shares trade below accounting book and below a Graham-style value estimate. However, a low P/B for a fixed income fund may reflect NAV erosion, credit worries, or leverage rather than a bargain. The 52-week range of $5.30-$6.35 shows the price is near its low, and beta of 0.44 suggests less equity-like volatility. FairStock Score is 60/100, and the Lynch category is none because only 0 years of filed results were available, needing 3. Growth is not provided. As a Graham/Buffett-style investor, I see a high-income, low-beta closed-end fund trading at a modest discount, but with weak profitability, weak quality scores, and no evident moat. I would want a wider discount or clearer evidence that the distribution is well covered before calling it compelling.

In plain English: Franklin Limited Duration Income Trust is a closed-end fund that invests in mortgage-backed securities, asset-backed securities, floating-rate bank loans, and high-yield corporate bonds. Its profits look modest and its financial-strength scores are weak, but it pays a very high income distribution. The shares look somewhat cheap against accounting book value, though not clearly cheap against profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer