Franklin Templeton Investments

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Franklin U.S. Government Securities Fund  – 
USGov A : Newspaper symbol FKUSX : NASDAQ symbol Fixed Income : Fund Category
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Portfolio
Portfolio Facts1
Net Assets (millions) $6,770.2
Class A as of July 31, 2010
(updated monthly)
Portfolio turnover ratio 34.74
as of September 30, 2009
(updated annually)
Fees & Expenses View Performance
Expense ratio
as of February 01, 2010
(updated annually)		 0.75%
12b-1 fee2 0.14%
Max. initial sales charge 4.25%
Contingent deferred sales charge 0.00%
Volatility Measures
as of June 30, 2010
(Source: Thomson Financial)
(updated quarterly, based on a 3-year period)
Beta3 0.93
Alpha4 -0.24
Sharpe ratio5 2.04
R squared6 0.95
Standard deviation7 3.12
Asset Mix1
 as of July 31, 2010
(updated monthly)
 
 
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Portfolio Holdings1
Number of positions: 14111
Coupon Rate Breakdown (as of July 31, 2010)
5.00 22.10%
5.50 31.30%
6.00 21.50%
6.50 15.80%
7.00 3.90%
7.50 1.60%
8.00 0.50%
8.50 0.30%
9.00 0.07%
9.50 0.08%
10.00 0.05%
10.50 0.07%
11.00 0.06%
11.50 0.03%
12.00 0.01%
12.50 0.04%
13.00 0.02%
13.50 0.02%
Credit Quality (as of July 31, 2010)
AAA 98.40%
AA 1.50%
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Important Legal Information

Franklin U.S. Government Securities Fund's share price and yield will be affected by interest rate movements and mortgage prepayments. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund's share price may decline. These and other risk considerations are discussed in the fund's prospectus.

Performance data quoted represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares.

For more information on any of our funds, contact your financial advisor or download a free prospectus. Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

Footnotes

  1. Portfolio holdings are subject to change.
  2. Represents the maximum amount of Rule 12b-1 distribution and service fees the Fund may pay.
  3. A measure of the fund's volatility relative to the market, as represented by the Barclays Capital GNMA Index. A beta greater than 1.00 indicates volatility greater than the market. Based on the 3-years ended as of the date of the calculation.
  4. The annualized percentage difference between a fund's actual returns and its expected performance given its level of market risk, as measured by beta. Based on the 3-years ended as of the date of the calculation.
  5. A statistical measurement of a fund's historical risk-adjusted performance. It is calculated by taking a fund's excess return over that of the three-month Treasury bill divided by its standard deviation. Higher values generally indicate better historical risk-adjusted performance. Based on the 3 years ended as of the date of the calculation.
  6. Percentage of the fund's returns explained by movements in the Barclays Capital GNMA Index. 1.00 equals perfect correlation to the index. Based on the 3-years ended as of the date of the calculation.
  7. A statistical measurement of the range of a fund's total returns. In general, a higher standard deviation means greater volatility. Based on the fund's monthly returns over the 3-year period ended as of the date of the calculation.

For U.S. residents only.