Franklin Adjustable U.S. Government Securities Fund

Fund Description

The fund seeks a high level of current income, while providing lower volatility of principal than a fund that invests in fixed-rate securities. The fund invests predominantly in adjustable-rate mortgage securities (ARMS) that are issued or guaranteed by the U.S. government, its agencies or instrumentalities. The fund’s investments may include securities issued by government-sponsored entities, such as Fannie Mae and Freddie Mac.

Strategy Statement

"The fund seeks a high level of current income, while providing lower volatility of principal than a fund that invests in fixed-rate securities. It invests predominantly in adjustable-rate mortgages. "

Paul Varunok

Management

Paul Varunok

Paul Varunok

  • Joined Franklin Templeton in 2001
  • Managed Fund Since 2003
Roger Bayston, CFA

Roger Bayston, CFA®

  • Joined Franklin Templeton in 1991
  • Managed Fund Since 1991

Rating

Overall Morningstar Rating As of 04/30/2018

Rating Category: Short Government

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 04/30/2018

Years Ratings Funds
in category
3
3 Stars
102
5
3 Stars
93
10
3 Stars
69

Morningstar Style Box As of03/31/2018

Strategy, Benefits, Results

Strategy

  • We invest predominantly in adjustable-rate mortgage securities (ARMS) that are issued or guaranteed by the U.S. government, its agencies or instrumentalities.i
  • We may invest in securities issued by government-sponsored entities, such as Fannie Mae and Freddie Mac.ii
  • We focus on the shortest part of the U.S. government market as well as seasoned ARMS that have been through multiple interest rate cycles and are therefore less sensitive to interest rate changes.
  • We do not invest in non-agency mortgages, mortgage derivatives or sub-prime residential mortgage-backed securities.

Benefits

  • Relative Share Price Stability. Our history reflects relative share price stability over changing interest rate climates.
  • Solid Performance. We maintain a record of solid risk-adjusted returns in a variety of interest rate environments.

Selling The Fund

  1. Cite the fund's long-term track record.
  2. Highlight the fund's historically low share price volatility in a variety of interest rate climates.
  3. Call attention to the fund's conservative approach and focus on high current income.

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