Fixed Income

FAURX Franklin Low Duration U.S. Government Securities Fund

Offers the best ideas across the government-related landscape, with a focus on agency MBS.
High credit quality.
Attractive current income, low interest rate sensitivity and stability of capital.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks a high level of current income, consistent with preservation of capital. The Fund invests at least 80% of its net assets in U.S. government securities, including adjustable-rate mortgage securities (ARMS) and fixed-rate mortgage securities and other mortgage-backed securities, including collateralized mortgage obligations (CMOs). The fund also invests in direct obligations of the U.S. government, such as Treasury bills, bonds or notes or its agencies instrumentalities or sponsored enterprises. The fund currently targets an estimated portfolio duration of 1 to 3.5 years.

Benchmark⁴: Bloomberg US Government (1-3 Year) Index
Dividend Frequency, if any: Monthly
Fund Inception Date: 10/20/1987
Distribution Rate at NAV⁵As of 11/26/2025 (Updated Daily): 5.10%
30-Day SEC Yield—With Waiver^6,7,8As of 10/31/2025 (Updated Monthly): 4.06%
30-Day SEC Yield—Without Waiver^6,8As of 10/31/2025 (Updated Monthly): 4.02%
Effective DurationAs of 10/31/2025 (Updated Monthly): 1.03 Years

Sales Charges, Expenses & Fees

As of 03/01/2025

Gross Expense Ratio⁹: 0.65%
Net Expense Ratio^9,10: 0.56%
Maximum Initial Charge: N/A
CDSC: N/A
12b-1 Fee: 0.00%

Identifiers

Ticker: FAURX
Fund Number: 838
CUSIP Code: 353612492

Average Annual Total Returns As of 10/31/2025

View performance section for additional info As of 10/31/2025

Class R6

With Sales Charge (POP)

Without Sales Charge (NAV)

5.12%1 Year
4.90%3 Years
2.23%5 Years
1.67%10 Years
3.51%Since Inception
10/20/1987

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

¹²

View portfolio section for additional info

As of 10/31/2025 - Market Value % of Total (Updated Monthly)

Top Sectors
Mortgage Backed Securities31.21%
Agency Adjustable Rate Mortgages (ARMs)27.09%
U.S. Treasuries20.31%
Collateralized Mortgage Obligations (CMOs)15.95%
U.S. Agency—

Additional Fund Info

Share Class Inception Date: 09/20/2013
Investment Style: Government
Lipper Classification: Short U.S. Government Funds
Morningstar Category³: Short Government

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

Franklin Templeton Fixed Income is a fixed income specialist with a measured "no surprises" approach that is committed to the goal of delivering clients consistent, predictable fixed income results. We pursue dimensional sources of potential alpha across all global fixed income securities, sectors, and markets.

Franklin Templeton Fixed Income

Managed Fund Since 2024

Managed Fund Since 2003

Managed Fund Since 2023

Latest Insights

November 18, 2025

Sector Views: Proceed with caution

November 12, 2025

Flash Insights: Rate cuts and returns—what past Fed cycles reveal

October 30, 2025

On My Mind: Dancing in the dark

October 28, 2025

Flash Insights: New York (City) state of mind—NYC mayoral election

Performance

Calendar Year Returns

As of 10/31/2025

Month End

Quarter End

Class R6 - With Sales Charge (POP) (%)

Class R6 - Without Sales Charge (NAV) (%)

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

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.

Overall Morningstar Rating: Overall Morningstar Rating: 4 out of 5 stars
As of 10/31/2025

3 Years: 3 Years: 4 out of 5 stars
68 Funds in category

5 Years: 5 Years: 5 out of 5 stars
62 Funds in category

10 Years: 10 Years: 4 out of 5 stars
56 Funds in category

Rating Category: Short Government

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.

Morningstar Style Box

As of 10/31/2025

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.

©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.

Portfolio

Assets

As of10/31/2025 (Updated Monthly)

Total Net Assets: $379.00 Million

Positions

As of 10/31/2025 (Updated Monthly)

Number of Holdings

Fund: 1,220
Benchmark: 234

Portfolio Statistics

As of 10/31/2025 (Updated Monthly)

Average Weighted Maturity

Fund: 2.73 Years
Benchmark: 1.89 Years

Effective Duration

Fund: 1.03 Years
Benchmark: 1.80 Years

Asset Allocation

As of 10/31/2025 - Market Value % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Fixed Income	94.57%
Cash & Cash Equivalents	5.43%

Holdings
As of 10/31/2025 (Updated Monthly)

United States Treasury Note/Bond 4.125% 01/31/2027

United States Treasury Note/Bond 4.875% 04/30/2026

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

United States Treasury Note/Bond 4.5% 04/15/2027

Fannie Mae Pool 2.027% 04/01/2044 FAR

Fannie Mae Pool 5.5% 04/01/2053 FNMA

United States Treasury Note/Bond 4.25% 03/15/2027

United States Treasury Note/Bond 2.625% 01/31/2026

Fannie Mae Pool 2.085% 04/01/2047 FNMA

FANNIE MAE FRN 03/25/2061 2021-8 YF

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 94-6605546

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
Record Date	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
Jan 31	0.028767	—	—	—	—	—	—	—	—
Feb 29	0.029349	—	—	—	—	—	—	—	—
Mar 28	0.030549	—	—	—	—	—	—	—	—
Apr 30	0.031437	—	—	—	—	—	—	—	—
May 31	0.033083	—	—	—	—	—	—	—	—
Jun 28	0.03067	—	—	—	—	—	—	—	—
Jul 31	0.033066	—	—	—	—	—	—	—	—
Aug 30	0.035476	—	—	—	—	—	—	—	—
Sep 30	0.030446	—	—	—	—	—	—	—	—
Oct 31	0.033305	—	—	—	—	—	—	—	—
Nov 29	0.034105	—	—	—	—	—	—	—	—
Dec 31	0.032433	—	—	—	—	—	—	—	—
	0.382686	—	—	—	—	—	—	—	—

Jan 31

Feb 29

Mar 28

Apr 30

May 31

Jun 28

Jul 31

Aug 30

Sep 30

Oct 31

Nov 29

Dec 31

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.: 11.31%
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 11/26/2025 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 11/26/2025

Share Prices

As of 11/26/2025

NAV ¹(Net Asset Value): $7.56
NAV Change ¹: $-0.01
NAV Change (%) ¹: -0.13%
POP ¹¹(Public Offering Price): $7.56

52-Week Range

Highest NAV As of 04/30/2025: $7.59
Lowest NAV As of 12/18/2024: $7.54

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download	Add to Cart
Checkbox	Factsheet - Franklin Low Duration U.S. Government Securities Fund	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Franklin Low Duration U.S. Government Securities Fund - Class R6	Download Document
Checkbox	Annual Financial Statements and Other Information - Franklin Investors Securities Trust #2	Download Document
Checkbox	Semi-Annual Report - Franklin Low Duration U.S. Government Securities Fund Class R6	Download Document
Checkbox	Semiannual Financial Statements and Other Information - Franklin Investors Securities Trust	Download Document
Checkbox	Prospectus - Franklin Low Duration U.S. Government Securities Fund	Download Document
Checkbox	Important Notice - Franklin Adjustable US Government Securities FundMailed hardcopies unavailable.	Download Document
Checkbox	Summary Prospectus - Franklin Low Duration U.S. Government Securities Fund	Download Document
Checkbox	Statement of Additional Information - Franklin Low Duration U.S. Government Securities FundMailed 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. These and other risks are discussed in the fund’s prospectus.

Important Information

Click here for funds sales charge and breakpoint information.

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

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.

You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.

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.

The Bloomberg US Government (1-3 Year) Index includes public obligations of the U.S. Treasury with at least one year up to, but not including, three years to final maturity and publicly issued debt of U.S. government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. government.
Source: Bloomberg Indices.

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

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.
Effective March 1, 2023 the fund changes its benchmark to the Bloomberg US Government (1-3 Year) Index.
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 return of capital, and excludes special distributions. The Distribution Rate is not guaranteed, subject to change, and is not a quotation of fund performance.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
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.
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.
Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations (NRSRO), such as S&P Global Ratings, Moody's Investors Service and Fitch Ratings, Inc. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Refunded category consists of refunded bonds secured by the US government or other high-quality securities. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. The Not Applicable category consists of third-party exchange-traded funds and securities that have only a short-term rating and are not cash equivalents. Cash includes equivalents, which may be rated. The methodology used for the calculation of credit quality ratings displayed may differ from the methodology for monitoring investment limits, if applicable. Please note, the portfolio itself has not been rated by an independent rating agency.
Credit Quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by S&P Global Ratings, Moody's Investors Service and/or Fitch Ratings, Inc. and typically range from AAA (highest) to D (lowest), or an equivalent and/or similar rating. For this purpose, the manager assigns each security the middle rating from these three agencies. When only two agencies provide ratings, the lower of the two ratings will be assigned. When only one agency assigns a rating, that rating will be used. Foreign government bonds without a specific rating are assigned a country rating, if available. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the portfolio does not apply to the stability or safety of the portfolio. The methodology used for the calculation of credit quality ratings displayed may differ from the methodology for monitoring investment limits, if applicable. Please note, the portfolio itself has not been rated by an independent rating agency.

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Individual Investor

Financial Professional

Institutional Investor