Skip to content

FKFSX

Franklin U.S. Government Securities Fund

As of 12/12/2025

NAV 1

$5.15

$-0.01 (-0.19%)
 

POP 2

$5.35

 
 

YTD Total Return At NAV 3

6.41%

 

Overview

Fund Description

The fund's investment goal is income. Since 1983, the fund has invested substantially in Government National Mortgage Association obligations, or Ginnie Maes (GNMAs). These securities carry a guarantee backed by the full faith and credit of the U.S. government as to timely payment of principal and interest.

Strategy Statement

"We have a straightforward, conservative investment philosophy, investing substantially all of the fund's assets in Ginnie Mae (GNMA) securities for high, current income potential."

Paul Varunok

Strategy & Benefits

Strategy
  • We follow a straightforward, disciplined investment strategy seeking income.
  • Since 1983, the fund has invested substantially all of its assets in Ginnie Maes.
  • The team has a collateral-intensive research process, focusing on areas such as individual security selection, coupon allocation and trading strategies.
  • We do not invest in derivatives or make speculative trades in an effort to boost the fund's yield.
Benefits
  • High Credit Quality. GNMAs have historically offered higher yields than comparable U.S. Treasuries and are guaranteed by the U.S. government as to timely payment of principal and interest.*
  • Competitive Performance Track Record. Since inception, the fund's Class A shares posted competitive returns (without sales charge).
  • Experienced, Professional Management. Portfolio managers Roger Bayston and Paul Varunok have managed the fund since 1993 and 2006, respectively.

*Securities owned by the fund, but not shares of the fund, are guaranteed by the U.S. government, its agencies or instrumentalities as to timely payment of principal and interest. The fund's yield and share price are not guaranteed and will fluctuate with market conditions.

Investment Philosophy, Strategy and Approach

Investment Philosophy
  • The fund presently holds only GNMAs or cash
  • Our GNMA funds have been managed in this consistent manner (i.e., GNMAs and cash) for over 25 years and our fund shareholders have benefited from this low-risk profile
  • The fund does not hold any subprime securities, derivatives, FNMA/FHLMC MBS or Treasuries
Investment Process

The Mortgage Investment Process Consists of Three Steps:

  Mortgage Sector Allocation   Mortgage “Generics” Allocation   Security Selection
Decision Makers
  • FIRST (Fixed Income Research and Stategy Team) with input from portfolio managers, sector specialists and quantitative analysts
 
  • Mortgage sector team
 
  • Mortgage sector team
Analysis
  • Sector factors
    • Level of rates
    • Slope of yield curve
    • Expected volatility
    • Health of the housing market
    • Expected supply
    • Macroeconomic factors
  • Weigh relative risks/rewards of mortgage markets “generic” securities
  • Models used to evaluate the impact of volatility, spread sensitivity, prepayments and yield curve movements
  • Evaluate generics relative to specified pools:
    • ARM program type
    • Seasoning
    • Geographic distribution 
    • Loan to value (LTV)
    • SATO (Spread at Origination)
    • Servicer
    • FICO/credit score
    • Loan balance
Output
  • Relative sector weighting
 
  • Portfolio of mortgage generics (agency, product type, origination year, coupon)
 
  • Individual securities selected

 

Fund Information
Asset Class 
Fixed Income
Share Class Inception Date 
09/10/2018
Fund Inception Date 
05/31/1970
Benchmark 
Bloomberg US Government - Intermediate Index
Investment Style 
Government
Morningstar Category4 
Government Mortgage-Backed Bond
Lipper Classification 
GNMA Funds
Total Net Assets  As of 11/30/2025 (Updated Monthly)
$2.11 Billion
Dividends & Yields
Dividend Frequency, if any 
Monthly
Distribution Rate at NAV5  As of 12/12/2025 (Updated Daily)
3.38%
30-Day SEC Yield—With Waiver678  As of 11/30/2025 (Updated Monthly)
2.82%
30-Day SEC Yield—Without Waiver68  As of 11/30/2025 (Updated Monthly)
2.82%
Sales Charges, Expenses & Fees
As of 02/01/2025
Gross Expense Ratio9 
0.86%
Net Expense Ratio910 
0.85%
Maximum Initial Charge 
3.75%
CDSC11 
1.00%
12b-1 Fee 
0.25%
Identifiers
Ticker 
FKFSX
Fund Number 
1110
CUSIP Code 
353496482

Portfolio Managers

Michael V Salm

Massachusetts, United States

Managed Fund Since 2024

Jatin Misra, CFA®

Massachusetts, United States

Managed Fund Since 2024

Paul Varunok

New York, United States

Managed Fund Since 2006

Neil Dhruv

New York, United States

Managed Fund Since 2019

Performance

Portfolio

Portfolio Holdings

Holdings

As of 10/31/2025 Updated Monthly
Security Name 
GOVT NATL MORTG ASSN 2.5% 08/20/2051 GNMA
Weight (%) 
7.14
Market Value ($) 
150,836,695
Quantity 
173,645,144
Security Name 
GOVT NATL MORTG ASSN 2% 08/20/2051 GNMA
Weight (%) 
5.32
Market Value ($) 
112,303,399
Quantity 
134,587,608
Security Name 
GOVT NATL MORTG ASSN 3.50% 09/20/2047 SF2 G2SF
Weight (%) 
4.63
Market Value ($) 
97,790,526
Quantity 
104,925,489
Security Name 
GOVT NATL MORTG ASSN 6% 07/20/2055 GNMA
Weight (%) 
4.43
Market Value ($) 
93,491,188
Quantity 
91,343,565
Security Name 
GOVT NATL MORTG ASSN 5.5% 08/20/2055 GNMA
Weight (%) 
4.36
Market Value ($) 
92,075,636
Quantity 
90,735,596
Security Name 
GOVT NATL MORTG ASSN 5% 09/15/2040 GNMA
Weight (%) 
4.34
Market Value ($) 
91,770,091
Quantity 
89,702,913
Security Name 
GOVT NATL MORTG ASSN 3% 08/20/2051 GNMA
Weight (%) 
3.54
Market Value ($) 
74,808,033
Quantity 
82,873,328
Security Name 
GOVT NATL MORTG ASSN 5.5% 10/20/2055 GNMA
Weight (%) 
3.38
Market Value ($) 
71,317,948
Quantity 
70,280,000
Security Name 
GOVT NATL MORTG ASSN 2.5% 12/20/2051 GNMA
Weight (%) 
2.90
Market Value ($) 
61,309,603
Quantity 
70,580,953
Security Name 
GOVT NATL MORTG ASSN 2.5% 09/20/2051 GNMA
Weight (%) 
2.89
Market Value ($) 
61,008,086
Quantity 
70,233,440

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

Distributions

Distribution Schedules

Dividend Frequency, if any This fund is an ex-Dividend fund
Monthly
Capital Gain Distributions 
December

Rates and Yields

Read important information about results and other investment disclosures
Distribution Rate & Breakpoints
As of 12/12/2025
Less than $100,000 
3.25%
$100,000 - $249,999 
3.27%
$250,000 - $499,999 
3.30%
Distribution Rate
As of 12/12/2025
At Net Asset Value (NAV) 
3.38%
30-Day SEC Yield
As of 11/30/2025
w/ Waiver 
2.82%
w/o Waiver 
2.82%

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

Current Year Distributions Per Share
Distributions with future dates are estimates and those figures are not final
Record Date  
12/24/2025
Ex-Dividend Date  
12/26/2025
Reinvestment Date  
12/26/2025
Payable Date  
12/26/2025
Reinvestment Amount  
Long-Term Capital Gains  
$0.0000-$0.0000 Estimates
Short-Term Capital Gains  
$0.0000-$0.0000 Estimates
Income  
Total Distribution Per Share  
Estimates
Record Date  
11/21/2025
Ex-Dividend Date  
11/24/2025
Reinvestment Date  
11/24/2025
Payable Date  
11/24/2025
Reinvestment Amount  
$5.17
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.0145
Total Distribution Per Share  
$0.0145
Record Date  
10/27/2025
Ex-Dividend Date  
10/28/2025
Reinvestment Date  
10/28/2025
Payable Date  
10/28/2025
Reinvestment Amount  
$5.20
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.014
Total Distribution Per Share  
$0.014
Record Date  
09/24/2025
Ex-Dividend Date  
09/25/2025
Reinvestment Date  
09/25/2025
Payable Date  
09/25/2025
Reinvestment Amount  
$5.14
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.0142
Total Distribution Per Share  
$0.0142
Record Date  
08/25/2025
Ex-Dividend Date  
08/26/2025
Reinvestment Date  
08/26/2025
Payable Date  
08/26/2025
Reinvestment Amount  
$5.10
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.014
Total Distribution Per Share  
$0.014
Record Date  
07/25/2025
Ex-Dividend Date  
07/28/2025
Reinvestment Date  
07/28/2025
Payable Date  
07/28/2025
Reinvestment Amount  
$5.03
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.0143
Total Distribution Per Share  
$0.0143
Record Date  
06/24/2025
Ex-Dividend Date  
06/25/2025
Reinvestment Date  
06/25/2025
Payable Date  
06/25/2025
Reinvestment Amount  
$5.06
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.0144
Total Distribution Per Share  
$0.0144
Record Date  
05/22/2025
Ex-Dividend Date  
05/23/2025
Reinvestment Date  
05/23/2025
Payable Date  
05/23/2025
Reinvestment Amount  
$4.98
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.014
Total Distribution Per Share  
$0.014
Record Date  
04/24/2025
Ex-Dividend Date  
04/25/2025
Reinvestment Date  
04/25/2025
Payable Date  
04/25/2025
Reinvestment Amount  
$5.06
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.014
Total Distribution Per Share  
$0.014
Record Date  
03/25/2025
Ex-Dividend Date  
03/26/2025
Reinvestment Date  
03/26/2025
Payable Date  
03/26/2025
Reinvestment Amount  
$5.05
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.0138
Total Distribution Per Share  
$0.0138
Record Date  
02/24/2025
Ex-Dividend Date  
02/25/2025
Reinvestment Date  
02/25/2025
Payable Date  
02/25/2025
Reinvestment Amount  
$5.07
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.0143
Total Distribution Per Share  
$0.0143
Record Date  
01/27/2025
Ex-Dividend Date  
01/28/2025
Reinvestment Date  
01/28/2025
Payable Date  
01/28/2025
Reinvestment Amount  
$5.00
Long-Term Capital Gains  
Short-Term Capital Gains  
Income  
$0.0141
Total Distribution Per Share  
$0.0141

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.

Tax Information

Tax Information

Federal ID Number 94-3025607
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 ($)
Record Date  
Jan 25
Ordinary Dividends  
0.0124
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Feb 23
Ordinary Dividends  
0.0133
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Mar 22
Ordinary Dividends  
0.0137
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Apr 24
Ordinary Dividends  
0.0133
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
May 24
Ordinary Dividends  
0.0138
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Jun 24
Ordinary Dividends  
0.0141
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Jul 25
Ordinary Dividends  
0.0139
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Aug 26
Ordinary Dividends  
0.0138
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Sep 24
Ordinary Dividends  
0.0139
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Oct 25
Ordinary Dividends  
0.0163
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Nov 22
Ordinary Dividends  
0.0123
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Dec 24
Ordinary Dividends  
0.014
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Record Date  
Ordinary Dividends  
0.1648
Qualified Dividends  
Capital Gain Distributions  
Unrecaptured Section 1250 Gain  
Non-Taxable Return Of Capital  
Section 199a Dividends  
Foreign Tax Paid  
Exempt Interest Dividends  
Interest on Tax Reclaim Refunds  
Supplemental Tax Information
Foreign Source Income 
Foreign Source Qualified Dividends 
Direct U.S. Government Obligations 
2.47%
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

Pricing History Chart

As of 12/12/2025 Updated Daily

Daily Fund Prices and Breakpoints

As of 12/12/2025

Share Prices

As of 12/12/2025
NAV1 (Net Asset Value)
$5.15
NAV Change1 
$-0.01
NAV Change (%)1 
-0.19%
POP2 (Public Offering Price)
$5.35

52-Week Range

Highest NAV  As on 10/27/2025
$5.21
Lowest NAV  As on 01/13/2025
$4.92
POP and Sales Charge at Breakpoints

Investment

Sales Charge

POP

Less than $100,000 3.75%$5.35
$100,000 - $249,999 3.25%$5.32
$250,000 - $499,999 2.25%$5.27
POP and Sales Charge at Breakpoints
Investment  
Less than $100,000
Sales Charge  
3.75%
POP  
$5.35
Investment  
$100,000 - $249,999
Sales Charge  
3.25%
POP  
$5.32
Investment  
$250,000 - $499,999
Sales Charge  
2.25%
POP  
$5.27

Documents

Product Literature

PDF Format

Factsheet - Franklin U.S. Government Securities Fund

Regulatory Documents

PDF Format

Semi-Annual Report - Franklin U.S. Government Securities Fund - Class A

PDF Format

Annual Report - Franklin U.S. Government Securities Fund - Class A

PDF Format

Prospectus - Franklin Custodian Funds

PDF Format

Summary Prospectus - Franklin U.S. Government Securities Fund

PDF Format

Statement of Additional Information - Franklin Custodian Funds

Mailed hardcopies unavailable.

PDF Format

Fiscal Q1 Holdings - Franklin Custodian Funds

Mailed hardcopies unavailable.

PDF Format

Fiscal Q3 Holdings - Franklin Custodian Funds

Mailed hardcopies unavailable.

Risks

What Are the 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.

This website is intended for Primerica.