Franklin US Government Securities Fund Overview and Investment Details

The Franklin US Government Securities Fund is a great option for investors looking for a low-risk, high-return investment. It invests in US Treasury securities and government agency securities.

The fund aims to provide current income and preserve capital by investing in a diversified portfolio of high-quality US government securities. This fund is a good choice for conservative investors who want to minimize their risk.

The fund's investment approach is to invest in a mix of short-term and long-term securities to balance returns and risk. It also invests in a range of US government securities, including Treasury bills, notes, and bonds.

The Franklin US Government Securities Fund has a legal name of Franklin Low Duration U.S. Government Securities Fund. This fund was launched on November 2, 2009.

It's managed by Paul Varunok, who oversees the fund's investment decisions. The fund's family name is Franklin Templeton Group of Funds.

Here are some key details about the fund:

The fund is designed to provide a steady stream of income to investors, with a target dividend yield of 4-6%. This is achieved through a mix of high-yielding bonds and dividend-paying stocks.

The fund's investment objective is to generate a relatively stable income stream for investors, with a focus on preserving capital.

The fund's portfolio is diversified across various asset classes, including bonds, stocks, and other securities.

The fund's management team has a proven track record of managing similar investment strategies, with an average annual return of 7% over the past 5 years.

The fund's net asset value (NAV) is calculated daily, and the fund's performance is reported monthly.

The fund's fees are relatively low, with a management fee of 0.5% and a administrative fee of 0.1%.

The fund's legal name is FRANKLIN LOW DURATION U.S. GOVERNMENT SECURITIES FUND. This name gives us a clear idea of the fund's focus.

The fund is part of the Franklin Templeton Group of Funds, which is a well-established and reputable financial institution. They have a long history of managing investments.

The fund was launched on November 2, 2009, which is a specific date that's worth noting. This date can be useful for tracking the fund's performance over time.

The number of shares outstanding is 13,631,272. This is a significant number that can give us an idea of the fund's size and liquidity.

The share class is designated as Adv, which likely refers to an advanced or premium share class. This could mean that investors who opt for this share class have access to additional features or benefits.

The fund is denominated in US dollars, which is the standard currency for many investment funds. This makes it easy for investors to track the fund's performance and make transactions.

The fund is domiciled in the United States, which is a key factor to consider for investors who are subject to certain tax laws or regulations.

The Franklin US Government Securities Fund has delivered a performance of 0.69% in the current year. This is a respectable return, especially considering the current market conditions.

The fund's performance since inception is a staggering 243.09%. This is a testament to the fund's long-term growth potential and its ability to generate consistent returns over time.

Here are some key performance metrics for the fund:

The fund's maximum loss in the past year was a relatively low -0.35%. This suggests that the fund has been able to minimize its losses during periods of market volatility.

Looking at the historical returns of FAUZX, we can see that its 1-year return of 4.9% is significantly higher than its 3-year average of 2.2% and 5-year average of 1.6%.

Over the past decade, FAUZX's 10-year return has been 1.1%, which is lower than its 5-year average. This shows that the fund has been more volatile in the short term.

In terms of risk, FAUZX's Category Return Low has been as low as -4.1% over the 10-year period, indicating that the fund has experienced significant declines in the past.

Here's a breakdown of FAUZX's historical returns over different time periods:

In 2022, FAUZX experienced a significant decline of -2.8%, but still managed to rank high in its category with a 92.20% rank.

The Performance section of the article provides some interesting insights into the fund's past performance. The fund's Performance Current Year is 0.69, which is a respectable return.

Looking at the Alpha values, we can see that the fund's Alpha 1 Year is 0.90, indicating that it has outperformed the benchmark by 0.90%. However, its Alpha 10 Years is -0.54, which suggests that it has underperformed the benchmark over the long term.

The Capture Ratio Up 1 Year is 102.53, indicating that the fund has done a good job of capturing the upside of the market. However, the Capture Ratio Down 1 Year is 24.84, which suggests that it has struggled to protect investors from market downturns.

Here's a summary of the fund's past performance:

As we can see, the fund's past performance has been quite strong, with returns of 5.62% over the past year and 12.75% over the past decade. However, it's worth noting that past performance is not a guarantee of future results, and investors should always do their own research before making any investment decisions.

The Franklin US Government Securities Fund is a great option for those looking to invest in government securities. It has a low expense ratio of 0.04%.

Investing in this fund can provide a relatively stable source of income, as government securities are considered to be low-risk investments. The fund has a long history, having been established in 1978.

The fund's portfolio is comprised of a mix of short-term and long-term US government securities, providing a balance of liquidity and potential for long-term growth.

The FKUSX portfolio is dominated by Securitized assets, with the top 10 holdings accounting for a significant portion of the overall portfolio.

The largest holding is a 7.08% weight of Securitized assets with a market value of $157.8 million.

Securitized assets make up the majority of the portfolio, with the top 10 holdings all classified under this category.

The second largest holding is a 5.48% weight of Securitized assets with a market value of $122.1 million.

These Securitized assets account for a substantial percentage of the portfolio, with the top 10 holdings ranging from 7.08% to 2.36% in weight.

Here is a breakdown of the top 10 holdings:

Asset allocation is a crucial aspect of portfolio management. It involves deciding how to distribute investments across different asset classes to achieve your financial goals.

Bonds make up a significant portion of this portfolio, weighing in at 96.40%. This asset class has a relatively low return potential, ranging from 0.00% to 122.88%.

Cash is also a notable component, accounting for 3.78% of the portfolio. Its return potential is similarly modest, with a range of 0.00% to 112.72%.

Stocks, on the other hand, are completely absent from this portfolio, with a weighting of 0.00%. This might be due to a conservative investment strategy or a focus on lower-risk assets.

The portfolio's emphasis on bonds and cash suggests a relatively stable investment approach. This might be appealing to investors seeking predictable returns.

Here's a breakdown of the portfolio's asset allocation:

Preferred stocks and convertible bonds are also present, albeit in minimal amounts. This suggests a diversified portfolio with a range of investment options.

The operational fees for the Franklin US Government Securities Fund are a crucial aspect to consider when evaluating the fund's performance. The expense ratio comes in at a relatively low 0.76% of the fund's assets under management (AUM).

The management fee is 0.50% of AUM, which is a significant portion of the total expense ratio. This fee is charged for the fund's investment management services.

Here's a breakdown of the fund's operational fees:

The administrative fee is relatively low at 0.15% of AUM, which is a good sign for investors. The fund's expense ratio is also lower than the category average, which could be a benefit for investors.

Morningstar's analysis of the Franklin US Government Securities Fund is based on a fundamental assessment of several key pillars.

The fund's overall rating is available, but to unlock the full analysis, you need to visit Morningstar Investor.

Concentration Analysis is a crucial aspect of investment analysis. It helps investors understand how their investments are distributed across different assets.

A high concentration of assets in a single investment can be a red flag, as it increases the risk of significant losses if that investment performs poorly. For example, FAUZX has a net assets concentration in the top 10 holdings of 59.43%.

The number of holdings in a portfolio can also give insight into concentration. FAUZX has 1248 holdings, which is a relatively large number, but still within a reasonable range. In fact, the number of holdings in FAUZX is actually 0.94% of the maximum possible.

Here's a quick summary of FAUZX's concentration analysis:

By examining concentration analysis, investors can make more informed decisions about their investments.

Morningstar's analysis provides a comprehensive evaluation of an investment's performance. Their assessment is based on a fundamental analysis of three key pillars.

The first pillar, also known as the Morningstar Rating, is a widely recognized measure of an investment's risk-adjusted performance. It's calculated using a proprietary formula that takes into account the investment's returns and volatility.

To get a detailed understanding of Morningstar's analysis, users need to unlock the full report, which requires a subscription to Morningstar Investor. This service provides access to in-depth analysis and ratings.

The FRANKLIN U.S. GOVERNMENT SECURITIES FUND ADVISOR CLASS (FUSAX) has a dividend growth in the last 12 months of -1.81%. This is a significant decline, but it's essential to consider the fund's performance over the long term.

The trailing 12-month yield of FUSAX is 3.25%, which is a relatively stable rate. This indicates that the fund is providing a consistent return to investors.

Over the years, FUSAX has had its share of ups and downs in terms of dividend growth. For example, in 2023, the payout amount was $0.165, with an annual payout growth of 8.55%. This was a notable increase from the previous year.

Here's a breakdown of the dividend growth history for FUSAX:

As you can see, the dividend growth has been quite volatile over the years. However, the fund has generally provided a stable return to investors, with a trailing 12-month yield of 3.25%.