Franklin Adjustable US Government Securities Fund (FISAX)

Franklin Adjustable US Government Securities Fund (FISAX) is a taxable bond fund. It focuses mainly in short duration government bonds or treasuries. It provides yield for investors.

Franklin Adjustable US Government Securities Fund (FISAX)

The investment aim of Franklin Adjustable US Government Securities Fund is to provide a high current income level, while providing lower volatility of principal. The fund utilizes its assets to purchase a portfolio of adjustable-rate U.S. government mortgage securities. This Adjustable-rate U.S. government mortgage securities include adjustable-rate mortgage securities (ARMS) and other mortgage-backed securities with interest rates that adjust periodically to reflect prevailing market interest rates.

Fund Details
Franklin Adjustable US Government Securities Fund
Franklin Templeton fund
  • Fund Inception Date: October 19, 1987
  • Ticker Symbol: FISAX
  • CUSIP: 353 612 302
  • Beta (3yr): 0.04
  • Rank in category (YTD): 13%
  • Category: Short Government
  • Yield: 1.54%
  • Capital Gains: 0%
  • Expense Ratio: 0.87%
  • Net Assets: $ 2.4 billion
  • Number of Years Up: 24 years
  • Number of Years Down: 1 year
  • Average Duration: 0.7 year
  • Annual Turnover Rate: 9.89%
Updated on March 17, 2013

Paul Varunok and Roger Bayston are the fund managers. This taxable bond fund has total net assets of $2.4 billion. It has a SEC Yield of 0.69%. Its expense ratio is 0.87% per year. The category’s average fee is 0.86%. The fund distributes 1.54% dividend yield. It is paid monthly on the last business day ($0.01 in February 2013). The annual holdings turnover as of March 17, 2013 is quite low, only 9.69%.

More: Best Performing Intermediate Term Bond Mutual Funds March 2013

Being 25 years in the market, the fund has returned with 24 years of positive return and only one year of negative return. The best 1-year total return was achieved in 2000 with 6.70%. It has 2-stars and Bronze rating from Morningstar. The YTD return of this fund as of April 12, 2013 is 0.21%.

The minimum initial investment is $1,000 for brokerage account and $250 for retirement (IRA) account. There is no minimum subsequent investment needed. There is a 0.25% 12b1 fee and 2.25% front-end sales load fee. This FISAX fund can be purchased from 122 brokerages, such as Edward Jones, Trade Station Securities, E Trade Financial, Scottrade Load, Merrill Lynch, Vanguard, Firstrade, Matrix Financial Solutions, etc.

The top holdings of this FISAX fund as of February 2013 are FNMA (71.44%), FHLMC (24.63%), GNMA (0.85%) and other (3.08%). The top index breakdown is LIBOR (82.99%) and Constant Maturity Treasury Index (12.17%).

According to the fund’s website, there are several principal risks for investing in this fund. They are interest rate, mortgage-backed securities, adjustable rate securities, credit risk, prepayment risk, extension risk, income risk, market risk and management risk.

Disclosure: No Position


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