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Franklin Adjustable U.S. Government Securities Fund

Fund Category: Fixed IncomeGo to Prices & Performance page
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Symbol FAUGX
CUSIP 353 612 476
Fund Number 968
Inception Date1 Oct 20, 1987
Distributions Monthly
Total Net Assets
(all share classes)
As of 10/31/2015

As of  11/24/2015

NAV2 $8.53  
NAV Change $0.00  
POP3 $8.73  
YTD Total Return at NAV -0.32%
Distribution Rate at NAV 1.51%
30-day Standardized Yield4 w/ Waiver w/o Waiver
As of 10/31/2015
(updated monthly)
0.42% 0.42%

Average Annual Total Returns5
As of Quarter End 09/30/2015

w/ Sales Charge w/o Sales Charge
1 Yr -2.33% -0.08%
5 Yrs 0.22% 0.69%
10 Yrs 1.98% 2.22%
Life 3.91% 3.99%

Expense Ratio and Sales Charge As of 03/01/2015 (updated annually)

Gross Expense Ratio6 0.78%
Net Expense Ratio 0.78%
Max Initial Sales Charge 2.25%
CDSC 0.00%
12b-1 Fee 0.10%

Fund Description7

Strategy Statement
Portfolio Managers
Paul Varunok
"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
Joined Franklin Templeton in 2001
Managed Fund Since 2003

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.

i. 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 vary with market conditions.

ii. Although U.S. government-sponsored entities may be chartered or sponsored by Acts of Congress, their securities are neither issued nor guaranteed by the U.S. government. Please see the fund's prospectus for a detailed discussion regarding various levels of credit support for government agency or instrumentality 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.


Hypothetical $10K Investment

Hypothetical $10K Investment

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

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Important Legal Information


For US residents only.