Franklin Adjustable U.S. Government Securities Fund

PRICE AND YTD RETURN As of 07/22/2016

NAV up $0.00 $8.42
POP $8.61
YTD Total return at Nav -0.15%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 06/30/2016

Sales Charge

1 YEAR RETURN -3.05%
5 YEAR RETURN -0.07%
10 YEAR RETURN 1.73%


Investment Category Government
Distributions Monthly
CUSIP 353 612 302
Fund Number 138
Inception Date Oct 20, 1987
Total Net Assets (all share classes) As of 06/30/2016 $1,454.9 (M)
Distribution Rate at NAV As of 07/22/2016 1.49%
30-Day Standardized yield As of 06/30/2016 (updated monthly)
w/ Waiver 0.40%
w/o Waiver 0.40%

SALES CHARGE, EXPENSES, & FEES As of 03/01/2016 (updated annually)

Gross Expense Ratio 0.91%
Net Expense Ratio 0.91%
Max Initial Sales Charge 2.25%
CDSC 0.00%
12b-1 Fee 0.25%

Fund Description

The Fund invests at least 80% of its net assets in adjustable-rate mortgage securities (ARMS) and other mortgage securities with interest rates that adjust periodically to reflect prevailing market interest rates, which are issued or guaranteed by the U.S. government, its agencies or instrumentalities.

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


Paul Varunok

Paul Varunok

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

Roger Bayston, CFA®, MBA

  • Joined Franklin Templeton in 1991
  • Managed Fund Since 1991

Overall Morningstar Rating As of 06/30/2016

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.

Historical Morningstar Rating As of 06/30/2016

Years Ratings Funds
in category
1 Stars
1 Stars
2 Stars

Morningstar Style Box As of 03/31/2016

Strategy, Benefits, Results


  • 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.


  • 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.

Investing In The Fund

What Are the Risks?
  • All investments involve risks, including possible loss of principal.
  • Interest rate movements, unscheduled mortgage prepayments and other risk factors will affect the fund’s share price and yield.
  • Bond prices generally move in the opposite direction of interest rates, thus the fund’s share price may decline as the prices of bonds adjust to a rise in interest rates.
  • These and other risks are discussed in the fund’s prospectus.

Minimum Investment


How Financial Advisors Help You

Speak to your financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

You need Adobe Acrobat Reader 6.0 or higher to view and print PDF documents. Download a free version from Adobe's website.