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Managed Fund Since 2018
Fixed Income
FRERX Franklin Total Return Fund
- Diversification. Broad diversification makes our fund attractive as a core fixed-income holding.
- Global Fixed Income Expertise. Investors have full access to the research resources of the Franklin Templeton Fixed Income Group®.
- Experienced Portfolio Management Team. Tenured investment team with expertise across market cycles.
Popular Documents
Overview
Fund Facts
Fund description
The fund seeks to provide high current income consistent with preservation of capital. Capital appreciation over the long term is a secondary goal. 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.
- Benchmark
- Bloomberg U.S. Aggregate Index
- Dividend Frequency, if any
- Monthly
- Fund Inception Date
- 08/03/1998
- Distribution Rate at NAV
3 As of 05/01/2026 (Updated Daily) - 4.73%
- Effective Duration
As of 03/31/2026 (Updated Monthly) - 5.77 Years
Identifiers
- Ticker
- FRERX
- Fund Number
- 360
- CUSIP Code
- 353612518
Average Annual Total Returns As of 03/31/2026
Class R6
- 4.54%1 Year
- 3.92%3 Years
- 0.39%5 Years
- 1.91%10 Years
- 4.27%Since Inception
08/03/1998
Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.
Top Sectors
As of 03/31/2026 - Notional Exposure % of Total (Updated Monthly)
Investment Grade Corporates45.14% | |
Agency Mortgage-Backed Securities33.16% | |
Interest Rate Derivatives11.59% | |
U.S. Treasuries10.83% | |
Collateralized Loan Obligation8.89% |
Additional Fund Info
- Share Class Inception Date
- 05/01/2013
- Investment Style
- Multi-Sector
- Lipper Classification
- Core Plus Bond Funds
- Morningstar Category
9 - Intermediate Core-Plus 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 selloff in core developed bond markets as oil prices surged (although the dollar remained well-supported). The US Federal Reserve (Fed) remained on hold throughout the quarter. The March Federal Open Market Committee (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. US Treasury (UST) yields moved higher across the curve over the three-month period, resulting in a broader upward shift in the interest rate environment. By the end of the period, the yield on the benchmark 10-year UST note had risen by 15 basis points to 4.32%..
- Contributors : Out-of-index allocations to residential mortgage-backed securities (RMBS), collateralized loan obligations (CLOs) and collateralized mortgage obligations (CMOs). Security selection in investment-grade (IG) corporate bonds. Yield curve exposure.
- Detractors : Overweight exposure to IG corporate bonds and sovereign emerging market (EM) debt. Out-of-index holdings of high-yield (HY) corporate bonds and senior-secured floating-rate bank loans. Security selection in HY corporate bonds.
- Outlook : Looking ahead into 2026, we have a favorable view toward the US economy, which remains resilient despite rising external pressures. Impending fiscal stimulus and an intact artificial intelligence (AI)-driven capital expenditure cycle could offset consumption drags. While our 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.
- Fixed income spreads remain tight on a historical basis, but they still provide opportunities when looked at from an income and yield prospective.
Franklin Templeton Fixed Income
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Managed Fund Since 2024
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Managed Fund Since 2019
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Managed Fund Since 2023
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Managed Fund Since 2019
Latest Insights
April 29, 2026
April 23, 2026
Performance
Risk Measures
As of 03/31/2026
Class R6 - Without Sales Charge (NAV)
Measured against: Bloomberg U.S. Aggregate Index
Statistics
Historical Tracking Error
Information Ratio
Standard Deviation (%)
Class R6
Bloomberg U.S. Aggregate Index
Sharpe Ratio (%)
Class R6
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.
Ratings 11
©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 of03/31/2026 (Updated Monthly)
- Total Net Assets
- $2.88 Billion
Positions
As of 03/31/2026 (Updated Monthly)
Number of Holdings
- Fund
- 1,025
- Benchmark
- 14,057
Portfolio Statistics
As of 03/31/2026 (Updated Monthly)
Effective Duration
- Fund
- 5.77 Years
- Benchmark
- 5.82 Years
- Fund
- 8.49 Years
- Benchmark
- 8.05 Years
Asset Allocation
As of 03/31/2026 - Market Value % of Total (Updated Monthly)
| Holdings | Fund |
|---|---|
Fixed Income | 119.20% |
Equity | 0.02% |
Cash & Cash Equivalents | -19.21% |
Holdings
As of 03/31/2026 (Updated Monthly)
Fannie Mae Or Freddie Mac 4.5% 04/01/2056 FHLM
Fannie Mae Or Freddie Mac 6% 04/01/2056 FHLM
Fannie Mae Or Freddie Mac 2% 04/01/2056 FHLM
Fannie Mae Or Freddie Mac 6.5% 04/01/2056 FHLM
Franklin Institutional U.S. Government Money Market Fund OEMF-SWEEP MONEY MARKET PORTFOLIO
Fannie Mae Or Freddie Mac 2.5% 04/01/2056 FHLM
Freddie Mac Pool 3% 02/01/2052 FHLM
United States Treasury Note/Bond 1.875% 11/15/2051
United States Treasury Note/Bond 2.25% 08/15/2049
Freddie Mac Pool 2% 03/01/2051 FHLM
Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.
Distributions & Tax
Federal ID Number 94-3297384
For information on tax years prior to 2008, please contact usThese amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.
Distributions per Share ($)
Supplemental Tax Information
- Foreign Source Income
- —
- Foreign Source Qualified Dividends
- —
- Direct U.S. Government Obligations
- 14.45%
- Specified Private Activity Bond Interest
- —
- Dividends Received Deduction
- —
- Section 163(j)
- 100.00%
- Indiana Resident Taxable Income
- —
- Utah Resident Taxable Income
- —
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
Documents
Fund Literature
| Name | Download | Add to Cart | |
|---|---|---|---|
| Factsheet - Franklin Total Return Fund | |||
| Product Commentary - Franklin Total Return Fund |
Regulatory Documents
| Name | Download | Add to Cart | |
|---|---|---|---|
| Annual Report - Franklin Total Return Fund - Class R6 | |||
| Annual Financial Statements And Other Information - Franklin Investors securities Trust | |||
| Semi-Annual Report - Franklin Total Return Fund Class R6 | |||
| Semiannual Financial Statements and Other Information - Franklin Investors Securities Trust | |||
| Prospectus - Franklin Investors Securities Trust #2 | |||
| Summary Prospectus - Franklin Total Return Fund | |||
| Statement of Additional Information - Franklin Investors Securities Trust #2 | |||
| Fiscal Q1 Holdings - Franklin Investors Securities Trust Funds | |||
| Fiscal Q3 Holdings - Franklin Investors Securities Trust Funds |
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
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. Aggregate Index is comprised of investment-grade, U.S. dollar-denominated government, corporate, and mortgage- and asset-backed issues having at least one year to 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.