Fixed Income

FLDZX Franklin Low Duration Total Return Fund

Low Duration. The fund's low average duration, targeted at three years or less, may potentially make the fund less sensitive to interest rate changes than funds with higher average durations.
Sector Diversification. We have the flexibility to allocate investments across multiple fixed-income sectors to maximize income and capital appreciation potential.
High Credit Quality. We invest primarily in investment-grade debt.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks to provide a high level of current income consistent with prudent investing, while seeking preservation of capital. The fund primarily invests in debt securities, which may be represented by derivatives that provide exposure to debt securities. The fund focuses on government and corporate debt securities and mortgage- and asset-backed securities. The fund targets an estimated average portfolio duration of three years or less.

Benchmark: Bloomberg US Government & Credit (1-3 Year) Index
Dividend Frequency, if any: Monthly
Fund Inception Date: 11/17/2004
Distribution Rate at NAV⁴As of 05/22/2026 (Updated Daily): 4.43%
30-Day SEC Yield—With Waiver^5,6,7As of 04/30/2026 (Updated Monthly): 4.18%
30-Day SEC Yield—Without Waiver^6,7As of 04/30/2026 (Updated Monthly): 3.90%
Effective DurationAs of 04/30/2026 (Updated Monthly): 2.04 Years

Sales Charges, Expenses & Fees

As of 03/01/2026

Gross Expense Ratio⁸: 0.70%
Net Expense Ratio^8,9: 0.45%
Maximum Initial Charge: —
CDSC: N/A
12b-1 Fee: N/A

Identifiers

Ticker: FLDZX
Fund Number: 621
CUSIP Code: 353612617

Average Annual Total Returns As of 04/30/2026

View performance section for additional info As of 04/30/2026

Advisor Class

With Sales Charge (POP)

Without Sales Charge (NAV)

3.97%1 Year
4.81%3 Years
2.52%5 Years
2.55%10 Years
2.86%Since Inception
11/17/2004

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.

See the risks and other important information.

Top Asset Allocation

View portfolio section for additional info

As of 04/30/2026 - Market Value % of Total (Updated Monthly)

Top Asset Allocation
Fixed Income96.48%
Equity0.02%
Cash & Cash Equivalents3.49%

Additional Fund Info

Share Class Inception Date: 05/15/2008
Investment Style: Multi-Sector
Lipper Classification: Short Investment Grade Debt Funds
Morningstar Category¹⁰: Short-Term Bond

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-driven approach means maintaining portfolio and risk exposures that align with client expectations.

Commentary Highlights

March 31, 2026

Markets : The war in the Middle East, which began in late February when the United States and Israel struck Iran, dominated much of the news flow and financial market sentiment over the remainder of the quarter. The reaction in markets has evolved, initially seeing a traditional risk-off move in both the US dollar and US bonds, which then turned into a stagflationary-focused sell-off in core developed bond markets as oil prices surged (although the dollar remained well-supported). The US Federal Reserve remained on hold throughout the quarter. The March FOMC meeting statement and press conference emphasized uncertainty related to the Iran war, indicating that the Fed would look through any initial oil supply shock effect on inflation to focus on core developments, while also noting a likely dragging effect on the economy; ultimately the Committee retained an easing bias. Fixed income volatility measures rose during the quarter, with much of the increase coming in the wake of the onset of the war in the Middle East. Credit spreads rose over the quarter, with the increase significantly more pronounced in the high-yield sector; total returns in corporate bonds were negative over the quarter. Securitized sectors generated a positive excess return versus duration-matched Treasuries. The two-year UST yield increased 32 bps to end the quarter at 3.79%.
Contributors : Out-of-index exposure to agency collateralized mortgage obligations (CMOs), residential mortgage-backed securities (RMBS), collateralized loan obligations (CLOs) and commercial mortgage-backed securities (CMBS). Underweight allocation to the two-year part of the yield curve.
Detractors : Out-of-index holdings of high-yield (HY) corporate bonds and senior-secured floating-rate bank loans. Security selection in investment-grade (IG) corporate bonds. Overweight exposure to the five-year portion of the yield curve.
Outlook : Looking ahead into 2026, we have favorable view towards the US economy, which remains resilient despite rising external pressures. Impending fiscal stimulus and an intact AI-driven capital expenditure cycle could offset consumption drags. While our 3.0% GDP growth forecast faces downside risks, structural expansion continues, making slower growth far more likely than a recession. Meanwhile, we expect the Federal Reserve to hold rates steady to combat any persistent inflation risks.

For complete information, please see the full commentary:

Franklin Templeton Fixed Income

Managed Fund Since 2004

Managed Fund Since 2022

Managed Fund Since 2024

Managed Fund Since 2019

Managed Fund Since 2024

Latest Insights

May 7, 2026

Municipal bond market monthly brief

May 6, 2026

On My Mind: The “Scarlet K”—A misleading consumption divergence story

April 29, 2026

Emerging markets update: Resilience through volatility

April 27, 2026

Research matters: The impact changing demographics has on the municipal bond market

Performance

Average Annual Total Returns

^12,13

As of 04/30/2026

Month End

Quarter End

As of

Advisor Class - With Sales Charge (POP) (%)

Month End

As of 04/30/2026

Advisor Class - Without Sales Charge (NAV) (%)

Month End

As of 04/30/2026

Bloomberg US Government & Credit (1-3 Year) Index (%)

Month End

As of 04/30/2026

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 3 out of 5 stars
As of 04/30/2026

3 Years: 3 Years: 3 out of 5 stars
531 Funds in category

5 Years: 5 Years: 3 out of 5 stars
502 Funds in category

10 Years: 10 Years: 3 out of 5 stars
389 Funds in category

Rating Category: Short-Term Bond

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.

The number of funds in the category for the Overall Morningstar Rating are listed in the funds in category for the 3-year rating.

Morningstar Style Box

As of 04/30/2026

Current Historical
			High
			Medium
			Low
LTD	MOD	EXT
Duration

Quality

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Portfolio

Assets

As of04/30/2026 (Updated Monthly)

Total Net Assets: $1.85 Billion

Positions

As of 04/30/2026 (Updated Monthly)

Number of Holdings

Fund: 802
Benchmark: 2,076

Portfolio Statistics

As of 04/30/2026 (Updated Monthly)

Effective Duration

Fund: 2.04 Years
Benchmark: 1.79 Years

Average Weighted Maturity

Fund: 2.49 Years
Benchmark: 1.90 Years

Asset Allocation

As of 04/30/2026 - Market Value % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Fixed Income	96.48%
Equity	0.02%
Cash & Cash Equivalents	3.49%

Holdings
As of 04/30/2026 (Updated Monthly)

United States Treasury Note/Bond 4.625% 04/30/2029

Franklin Institutional U.S. Government Money Market Fund OEMF-SWEEP MONEY MARKET PORTFOLIO

United States Treasury Note/Bond 4.625% 09/30/2030

United States Treasury Note/Bond .625% 03/31/2027

United States Treasury Strip Coupon 11/15/2027 STRIP COUPON

United States Treasury Note/Bond 4% 10/31/2029

UNITED STATES TREASURY NOTE/BOND 2.875% 08/15/2028

RR 14 Ltd FRN 04/15/2036 144A 2021-14A A1

Apidos CLO XXXV FRN 04/20/2034 144A 2021-35A A

United States Treasury Note/Bond .5% 08/31/2027

Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.

Distributions & Tax

Federal ID Number 20-1557865

For information on tax years prior to 2008, please contact us

These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.

Distributions per Share ($)

Year

Tax Information
Ordinary Dividends Dividends paid by a fund that are derived from interest, dividends, net short-term capital gains and other types of ordinary income earned by the fund. For a fund that elects to pass through its foreign taxes paid (a non-cash item), a shareholder's allotted share of foreign taxes has been added to the “Ordinary Dividends” cash distributions received by the shareholder. If the fund passed through foreign taxes paid and later is refunded any portion of those taxes by a foreign tax authority, any interest paid to the fund on that refund is also required to be included in “Ordinary Dividends”.	Qualified Dividends The portion of a fund’s “Ordinary Dividends” that may be eligible for a reduced capital gain tax rate. To be eligible for the lower tax rates, certain holding periods apply and shareholders should consult their tax advisor to determine the amount eligible for the reduced rate. This amount represents both cash distributions and non-cash amounts, such as foreign taxes paid, that have been allocated to shareholders.	Capital Gain Distributions	Unrecaptured Section 1250 Gain	Non-Taxable Return Of Capital	Section 199a Dividends The portion of a fund’s “Ordinary Dividends” generated by a real estate investment trust or earned by a fund from its investments in real estate investment trusts, subject to limitations. Individual (non-corporate) shareholders may be entitled to a special deduction from gross income for “Section 199A Dividends” received from a fund. To qualify for this deduction certain holding periods apply and shareholders should consult their tax advisor.	Foreign Tax Paid	Exempt Interest Dividends	Interest on Tax Reclaim Refunds
0.029761091	—	—	—	—	—	—	—	—
0.032325036	—	—	—	—	—	—	—	—
0.035617624	—	—	—	—	—	—	—	—
0.035950875	—	—	—	—	—	—	—	—
0.033645523	—	—	—	—	—	—	—	—
0.034672715	—	—	—	—	—	—	—	—
0.036175958	—	—	—	—	—	—	—	—
0.032353362	—	—	—	—	—	—	—	—
0.035847185	—	—	—	—	—	—	—	—
0.030926032	—	—	—	—	—	—	—	—
0.034752389	—	—	—	—	—	—	—	—
0.406389876	—	—	—	—	—	—	—	—

Supplemental Tax Information

Foreign Source Income: —
Foreign Source Qualified Dividends: —
Direct U.S. Government Obligations The portion of “Ordinary Dividends” attributable to earnings from US Treasury and certain other government securities may be categorized as a fund containing US government obligations. This income may be exempt from state personal income taxes. The percentage for direct US government obligation interests available for tax-exempt treatment may be limited in states that require the fund to meet certain minimum thresholds. Shareholders should consult their tax advisor to determine the availability of exemptions in their state.: 15.70%
Specified Private Activity Bond Interest: —
Dividends Received Deduction: —
Section 163(j): 100.00%
Indiana Resident Taxable Income: —
Utah Resident Taxable Income The portion of “Exempt-Interest Dividends” subject to Utah income tax. Subject to certain exceptions, the state of Utah provides that income earned from non-federal government entities outside of Utah (non-Utah municipal bonds) is taxable to Utah resident shareholders. Income earned from states that do not tax Utah obligations are also exempt. Shareholders should consult their tax advisor about applicability.: —

Franklin Templeton and its specialized investment managers and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Pricing

Pricing History

As of 05/22/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 05/22/2026

Share Prices

As of 05/22/2026

NAV ¹(Net Asset Value): $8.97
NAV Change ¹: $0.00
NAV Change (%) ¹: 0.00%
POP ¹¹(Public Offering Price): $8.97

52-Week Range

Highest NAV As of 09/16/2025: $9.10
Lowest NAV As of 05/19/2026: $8.96

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download	Add to Cart
Checkbox	Factsheet - Franklin Low Duration Total Return Fund	Download Document
Checkbox	Product Commentary - Franklin Low Duration Total Return Fund	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Low Duration Total Return Fund - Advisor Class	Download Document
Checkbox	Annual Financial Statements And Other Information - Franklin Investors securities Trust	Download Document
Checkbox	Semi-Annual Report - Franklin Low Duration Total Return Fund Advisor Class	Download Document
Checkbox	Semiannual Financial Statements and Other Information - Franklin Investors Securities Trust	Download Document
Checkbox	Prospectus - Franklin Investors Securities Trust #2	Download Document
Checkbox	Summary Prospectus - Franklin Low Duration Total Return Fund	Download Document
Checkbox	Statement of Additional Information - Franklin Investors Securities Trust #2Mailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Franklin Investors Securities Trust FundsMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Franklin Investors Securities Trust FundsMailed hardcopies unavailable.	Download Document

View Proxy Voting Records and Proxy Voting Policies

Risks

All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.

Important Information

Click here for funds sales charge and breakpoint information.

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

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.

The Bloomberg U.S. Government/Credit Index: 1-3 Year Component includes investment-grade, U.S. dollar-denominated, fixed-rate Treasuries, government-related (sovereign, agency, local authority and supranational) and corporate securities with at least one year up to, but not including, three years to final maturity.
Source: Bloomberg Indices.

U.S. government-sponsored entities, such as Fannie Mae and Freddie Mac, may be chartered by acts of Congress; their securities are neither issued nor guaranteed by the U.S. government. Although the U.S. government has recently provided financial support to Fannie Mae and Freddie Mac, no assurance can be given that the U.S. government will always do so.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics. ©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Distribution Rate is calculated by annualizing the most recent distribution amount paid, divided by the NAV as of the date indicated. The Distribution Rate calculation includes income and excludes special distributions. The Distribution Rate is subject to change and is not guaranteed nor a quotation of fund performance.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Public Offering Price – the purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
Effective 5/15/08, the fund began offering Advisor Class shares. For periods prior to the fund's Advisor Class inception date, a restated figure is used based on the fund's oldest share class, Class A performance, excluding the effect of Class A's maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and for periods after the fund's Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.
Performance quotations for this class reflect the following methods of calculation: a) For periods prior to the fund's Advisor Class inception date, a restated figure is used based on the fund's oldest share class, Class A performance, excluding the effect of Class A's maximum initial sales charge but reflecting the effect of the Class A Rule 12b-1 fees; and b) for periods after the fund's Advisor Class inception date, actual Advisor Class performance is used, reflecting all charges and fees applicable to that class.

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Individual Investor

Financial Professional

Institutional Investor

FLDZX Franklin Low Duration Total Return Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Advisor Class

Top Asset Allocation

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Ratings 3

Portfolio

Asset Allocation Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of any derivatives, unsettled trades or other factors.

Distributions & Tax

Federal ID Number 20-1557865

Pricing

Daily Fund Prices

Documents

Risks

Important Information

Footnotes

Ratings ³

Asset Allocation