Fixed Income

FLDAX 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 07/23/2026 (Updated Daily): 4.20%
30-Day SEC Yield—With Waiver^5,6,7As of 06/30/2026 (Updated Monthly): 4.01%
30-Day SEC Yield—Without Waiver^6,7As of 06/30/2026 (Updated Monthly): 3.73%
Effective DurationAs of 06/30/2026 (Updated Monthly): 1.73 Years

Sales Charges, Expenses & Fees

As of 03/01/2026

Gross Expense Ratio⁸: 0.95%
Net Expense Ratio^8,9: 0.70%
Maximum Initial Charge: 2.25%
CDSC¹⁰: 1.00%
12b-1 Fee: 0.25%

Identifiers

Ticker: FLDAX
Fund Number: 401
CUSIP Code: 353612690

Average Annual Total Returns As of 06/30/2026

View performance section for additional info As of 06/30/2026

Class A

With Sales Charge (POP)

Without Sales Charge (NAV)

0.89%1 Year
4.10%3 Years
1.84%5 Years
2.06%10 Years
2.54%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 06/30/2026 - Market Value % of Total (Updated Monthly)

Top Asset Allocation
Fixed Income97.82%
Equity0.02%
Cash & Cash Equivalents2.16%

Additional Fund Info

Share Class Inception Date: 11/17/2004
Investment Style: Multi-Sector
Lipper Classification: Short Investment Grade Debt Funds
Morningstar Category¹¹: 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

June 30, 2026

Markets : Some of the risk aversion that had characterized financial markets at the end of the previous quarter eased during the second quarter, although geopolitical developments remained a key focus. The Middle East conflict continued to drive sentiment through the quarter, with markets reacting to shifting news around negotiations, before the United States and Iran signed a 14-point Memorandum of Understanding (MOU) in late June. The MOU formalized a ceasefire, established a 60-day negotiation framework and included provisions to restore shipping through the Strait of Hormuz. The US dollar was modestly stronger over the quarter, appreciating against most other currencies. The Federal Reserve (Fed) kept policy rates unchanged, but its tone became more hawkish overall as internal disagreement over the easing bias increased; minutes suggested rates could remain unchanged for longer and the June meeting removed previous easing guidance despite a more dovish press conference from new Fed Chair Kevin Warsh. Fixed income volatility measures eased during the quarter as risk aversion retreated somewhat. For similar reasons, credit spreads narrowed over the quarter, with the declines more pronounced in the high-yield sectors. Total returns on corporate bonds were positive over the quarter. Securitized sectors generated a positive excess return versus duration-matched Treasuries. The two-year UST yield increased 38 basis points (bps) to end the quarter at 4.17%.
Contributors : Out-of-index exposure to high-yield (HY) corporate bonds. Security selection within investment-grade (IG) and HY corporate bonds and senior-secured floating-rate bank loans. Underweight allocation to the two-year segment of the yield curve.
Detractors : Overweight allocation to the five-year segment of the yield curve. Security selection within commercial mortgage-backed securities (CMBS).
Outlook : The June Federal Open Market Committee (FOMC) meeting reinforced our view that the Fed is likely to remain on hold in the near term, although persistent inflation has increased the risk of further tightening. We continue to expect resilient economic growth, supporting attractive income and carry across IG and HY corporate bonds, backed by healthy fundamentals and favorable technicals despite elevated issuance and geopolitical uncertainty. We remain moderately constructive on Agency mortgage-backed securities, residential mortgage-backed securities (RMBS) and CMBS, where attractive carry, resilient fundamentals and supportive technicals continue to underpin our preference for high-quality securities, while disciplined security selection remains key in a range-bound spread environment.

For complete information, please see the full commentary:

Franklin Templeton Fixed Income

Managed Fund Since 2019

Managed Fund Since 2024

Managed Fund Since 2022

Managed Fund Since 2024

Managed Fund Since 2026

Latest Insights

July 17, 2026

Central Bank Watch: No Rush to Relax

July 16, 2026

Beyond the Chips: Hyperscalers and the Financing of AI

July 6, 2026

Municipal bond market monthly brief

June 18, 2026

On My Mind: The Warsh Fed—Return to Orthodoxy

Performance

Average Annual Total Returns

¹²

As of 06/30/2026

Month End

Quarter End

As of

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

Month End

As of 06/30/2026

1 Year: 0.89

3 Years: 4.10

5 Years: 1.84

10 Years: 2.06

Since Inception(11/17/2004): 2.54

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

Month End

As of 06/30/2026

1 Year: 3.24

3 Years: 4.89

5 Years: 2.31

10 Years: 2.30

Since Inception(11/17/2004): 2.64

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

Month End

As of 06/30/2026

1 Year: 3.14

3 Years: 4.64

5 Years: 2.12

10 Years: 2.00

Since Inception(11/17/2004): 2.35

See the risks and other important information.

Overall Morningstar Rating: Overall Morningstar Rating: 3 out of 5 stars
As of 06/30/2026

3 Years: 3 Years: 2 out of 5 stars
517 Funds in category

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

10 Years: 10 Years: 3 out of 5 stars
379 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 06/30/2026

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 of06/30/2026 (Updated Monthly)

Total Net Assets: $1.83 Billion

Positions

As of 06/30/2026 (Updated Monthly)

Number of Holdings

Fund: 827
Benchmark: 2,093

Portfolio Statistics

As of 06/30/2026 (Updated Monthly)

Effective Duration

Fund: 1.73 Years
Benchmark: 1.79 Years

Average Weighted Maturity

Fund: 2.68 Years
Benchmark: 1.90 Years

Asset Allocation

As of 06/30/2026 - Market Value % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Fixed Income	97.82%
Equity	0.02%
Cash & Cash Equivalents	2.16%

Holdings
As of 06/30/2026 (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% 10/31/2029

United States Treasury Note/Bond 4.25% 06/30/2029

Franklin Ultra Short Bond ETF ETF USD 1

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

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

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

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

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

Distribution Frequency
Ex-Dividend Fund: This type of fund declares periodic dividends, which are paid to shareholders who own the fund as of a certain date - known as the "record date". After the record date, the fund is said to be trading "ex-dividend"(literally, without the dividend). An investor who buys shares during the interval between the record date and the payment of the dividend does not receive the dividend. A fund that's in the ex-dividend period is marked with an "x" in newspaper listings.

Daily Accrual Fund: This type of fund typically declares income dividends each day that its net asset value is calculated. These dividends remain in the fund until the designated reinvestment or payment date and are distributed to the shareholders, generally once a month, as additional shares or cash, respectively.: MonthlyThis fund is an Accrual fund.
Capital Gain Distributions: December

Proposed 2026 distribution dates for Franklin, Templeton and Mutual Series funds (excluding ETFs).

Rates and Yields Read important information about results and other investment disclosures

Distribution Rate & Breakpoints ⁴

As of 07/23/2026 (Updated Daily)

Less than $100,000 4.11%

$100,000 - $249,999 4.13%

Distribution Rate ⁴

As of 07/23/2026 (Updated Daily)

At Net Asset Value (NAV) 4.20%

30-Day SEC Yield ^5,6,7

As of 06/30/2026 (Updated Monthly)

w/ Waiver 4.01%

w/o Waiver 3.73%

Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.

Distributions Per Share
Distributions with future dates are estimates and those figures are not final

06/30/2026

05/29/2026

04/30/2026

03/31/2026

02/27/2026

01/30/2026

Annually, a fund must distribute all realized capital gains net of realized losses, so the fund will not be subject to an entity level income tax. A fund’s capital gain distribution in a particular year may be a result of the disposition of holdings that appreciated in value during prior years. Thus, while the fund may gain or lose value over the course of a year, a capital gain distribution paid by the fund may not be indicative of current performance of the fund.

The distributable amount of net capital gains are paid on a per-share basis to all investors who hold shares of the fund on the record date of the distribution and are recognized by the shareholder for tax purposes as of the ex-date of the distribution, regardless of when the gains or losses arose in the fund. Net gains on holdings held long term by the fund would be distributed to shareholders as a long-term capital gain distribution no matter how long the shareholder has owned shares in the fund.

Refer to the fund’s annual report or statement of additional information for specific information regarding distributions.

Pricing

Pricing History

As of 07/23/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices and Breakpoints

As of 07/23/2026

Share Prices

As of 07/23/2026

NAV ¹(Net Asset Value): $8.88
NAV Change ¹: $-0.01
NAV Change (%) ¹: -0.11%

POP and Sales Charge at Breakpoints

Less than $100,000

$100,000 - $249,999

52-Week Range

Highest NAV As of 09/16/2025: $9.05
Lowest NAV As of 07/23/2026: $8.88

Documents

Fund Literature

Factsheet - Franklin Low Duration Total Return Fund

Product Commentary - Franklin Low Duration Total Return Fund

Regulatory Documents

Annual Report - Franklin Low Duration Total Return Fund - Class A

Annual Financial Statements And Other Information - Franklin Investors securities Trust

Semi-Annual Report - Franklin Low Duration Total Return Fund - Class A

Semiannual Financial Statements and Other Information - Franklin Investors Securities Trust

Prospectus - Franklin Investors Securities Trust #2

Summary Prospectus - Franklin Low Duration Total Return Fund

Statement of Additional Information - Franklin Investors Securities Trust #2

Mailed hardcopies unavailable.

Fiscal Q1 Holdings - Franklin Investors Securities Trust Funds

Mailed hardcopies unavailable.

Fiscal Q3 Holdings - Franklin Investors Securities Trust Funds

Mailed hardcopies unavailable.

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

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.

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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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.

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.

Click here for funds sales charge and breakpoint information.

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.
For net asset value (NAV) purchases, a 1% contingent deferred sales charge (CDSC) may apply to shares redeemed within 18 months.
©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.
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.

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FLDAX Franklin Low Duration Total Return Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class A

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

Rates and Yields Read important information about results and other investment disclosures

Pricing

Daily Fund Prices and Breakpoints

Documents

Fund Literature

Regulatory Documents

Risks

Important Information

Footnotes

Ratings ³

Asset Allocation