Franklin US Government Securities Fund (FKUSX)

Franklin US Government Securities Fund is a taxable bond mutual fund. It invests mainly in U.S. government securities, especially GNMA debts.

Franklin US Government Securities Fund (FKUSX)

The investment objective of Franklin US Government Securities Fund is to provide income to investors. The fund utilizes its assets to purchase U.S. government securities. It invests primarily in Government National Mortgage Association obligations, known as Ginnie Maes. The mortgage loans may have either fixed or adjustable interest rates. The current shares price is $6.75.

Fund Profile

• Fund Inception Date: May 29, 1970
• Ticker Symbol: FKUSX
• CUSIP: 353 496 607
• Beta (3yr): 0.60
• Rank in category (YTD): 32%
• Category: Intermediate Government
• Distribution: 3.59%
• Capital Gains: 0%
• Expense Ratio: 0.73%
• Net Assets: $ 10.9 billion
• Number of Years Up: 39 years
• Number of Years Down: 3 years
• Average Duration:  3.13 years
• Average Maturity:  4.39 years
• Annual Turnover Rate: 40%

Updated on 3/30/2013

This Franklin Templeton fund is ranked among the best mutual fund in Moderate Government category. It has $10.9 billion of total net assets. It shares a dividend yield of 3.59%. This dividend is distributed monthly. The most recent dividend distribution was in January 2013 with $0.02. The annual expense ratio is 0.73% which is lower compared to the average in the category (0.97%). Roger Bayston is the fund manager.

Best Franklin Templeton Mutual Funds for 2013

Morningstar analysts rank this FKUSX fund with 3-stars and Neutral rating. The fund has year-to-date return of -0.59%. The best 1-year total return was achieved in 2000 with 10.56%. Based on the load adjusted returns, the fund’s performance is as below:

• 1-year: -3.39%
• 3-year: 2.65%
• 5-year: 3.85%
• 10-year: 3.90%

As of February 4, 2013, the annual holdings turnover is 40.15%. The management fee is 0.15% and the front-end sales load is 4.25%. The initial investment is $1,000 for brokerage account and $250 for retirement account. This taxable bond fund can be purchased from 120 brokerages. They are JP Morgan, Vanguard, Merrill Lynch, Td Ameritrade Inc, Trade Station Securities, etc. The other classes are Advisor Class (FUSAX), B Class, C Class (FRUGX) and R Class (FUSRX).

Investing in this fund involves risks. According to the fund prospectus, the principal risks include Interest Rate risk, Prepayment risk, Income Risk, Credit Risk, Management risk, Market Risk, etc.

Disclosure: No Position