Franklin Templeton Investments

<GAIN FROM OUR PERSPECTIVE>

Franklin Total Return Fund  – 
TtlRtn A : Newspaper symbol FKBAX : NASDAQ symbol Fixed Income : Fund Category
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Portfolio
Portfolio Facts1
Net Assets (millions) $1,675.9
Class A as of July 31, 2010
(updated monthly)
Portfolio turnover ratio 187.73
as of October 31, 2009
(updated annually)
Fees & Expenses View Performance
Expense ratio2
as of March 01, 2010
(updated annually)		 1.06%
12b-1 fee3 0.25%
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)
Beta4 1.05
Alpha5 -1.65
Sharpe ratio6 0.86
R squared7 0.52
Standard deviation8 5.85
Asset Mix1
 as of July 31, 2010
(updated monthly)
 
 
To view historical portfolio information, choose a month and year and click "Go."
Portfolio Holdings1
Number of positions: 880
Credit Quality (as of July 31, 2010)
AAA 41.90%
AA 14.40%
A 15.20%
BBB 15.60%
BB 9.50%
B 5.20%
CCC 3.00%
CC 0.01%
D 0.05%
Not Rated 0.70%
N/A -6.00%
Sector Breakdown (as of July 31, 2010)
Investment Grade Corporates 19.00%
Mortgage-Backed Securities 18.60%
International Bonds 17.00%
U.S. Treasuries 13.80%
High Yield Corporates 10.30%
Commercial Mortgage-Backed Securities 6.10%
Floating-Rate Loans 4.00%
U.S. Agency 2.00%
Asset-Backed Securities 1.20%
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Important Legal Information

Interest rate movements and mortgage prepayments will affect Franklin Total Return Fund's share price and yield. 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. Investing in derivative securities such as financial futures and option contracts involves special risks. The risks associated with higher-yielding, lower rated securities (commonly called junk bonds) include higher risk of default and loss of principal. Investment in foreign securities also involves special risks, including currency fluctuations, and political and economic uncertainty. Investing in derivative securities, such as financial futures and option contracts, and the use of foreign currency techniques involve special risks as such may not achieve the anticipated benefits and/or may result in losses to the fund. 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. The Gross Expense Ratio does not include an expense reduction contractually guaranteed through at least the dates noted below. Please see the prospectus for additional information. Total returns, yield and distribution rate reflect the expense reduction, without which the results would have been lower. Franklin All Cap Value Fund (2/28/11); Franklin Balanced Fund (2/28/11); Franklin Federal Limited-Term Tax-Free Income Fund (6/30/11); Franklin Focused Core Equity Fund (8/31/11); Franklin Global Real Estate Fund (11/30/10); Franklin India Growth Fund (2/28/11); Franklin International Growth Fund (11/30/10); Franklin International Small Cap Growth Fund (11/30/10); Franklin Large Cap Equity Fund (11/30/10); Franklin Low Duration Total Return Fund (2/28/11); Franklin MidCap Value Fund (2/28/11); Franklin Real Return Fund (2/28/11); FT 2015 Retirement Target Fund (4/30/11); FT 2025 Retirement Target Fund (4/30/11); FT 2035 Retirement Target Fund (4/30/11); FT 2045 Retirement Target Fund (4/30/11); FT Conservative Allocation Fund (4/30/11); FT Corefolio Allocation Fund (4/30/11); FT Founding Funds Allocation Fund (4/30/11); FT Growth Allocation Fund (4/30/11); FT Moderate Allocation Fund (4/30/11); F Tennessee Municipal Bond Fund (9/30/10); Franklin Total Return Fund (2/28/11); Mutual International Fund (4/30/11); Templeton Emerging Markets Small Cap Fund (7/31/11); Templeton Frontier Markets Fund (7/31/11); Templeton Global Total Return Fund (12/31/10); Templeton Income Fund (7/31/11); Templeton International Bond Fund (12/31/10).
  3. Represents the maximum amount of Rule 12b-1 distribution and service fees the Fund may pay.
  4. A measure of the fund's volatility relative to the market, as represented by the Barclays Capital U.S. Aggregate 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.
  5. 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.
  6. 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.
  7. Percentage of the fund's returns explained by movements in the Barclays Capital U.S. Aggregate Index. 1.00 equals perfect correlation to the index. Based on the 3-years ended as of the date of the calculation.
  8. 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.