Franklin U.S. Government Fund

Franklin Templeton Investment Funds

Summary of Fund Objective

The Fund aims to achieve income and safety of principal by investing primarily in debt obligations issued or guaranteed by the United States of America government and its agencies.

A unique focus on Ginnie Mae mortgage securities. The fund invests in debt obligations issued or guaranteed by the U.S. government or its agencies especially GNMAs.

A distinctive risk return profile. The combination of high income and low volatility from GNMAs translates into excellent risk-adjusted return characteristics. In addition to that, the fund's long-term assets are guaranteed by the full faith and credit of the U.S. government.

A robust investment process. Our process focuses on uncovering value within the GNMA markets and building portfolios with a careful emphasis on risk management. Our investment team integrates research, trading and portfolio management to achieve this.

A specialized experienced team. The fund is supported by a specialized team of mortgage research analysts, which are part of the broader Franklin Templeton Fixed Income team.

FUND MANAGERS

Paul Varunok

  • Years With Firm: 19
  • Years Of Experience: 28

Neil Dhruv

  • Years With Firm: 18
  • Years Of Experience: 18

What are the Key Risks?

The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments.

  • The Fund invests mainly in debt securities issued or guaranteed by the U.S. government and its agencies. Such securities have historically proven to present some stability over time and have benefitted from a limited exposure to interest rates or movements in the bond market. As a result, the performance of the Fund can fluctuate to a small degree over time.
  • Other significant risks include:
    Liquidity risk: the risk that arises when an asset cannot be sold on a timely basis due to security-specific factors or adverse market conditions, which may impact the Fund’s ability to meet redemption requests, particularly if they are increasing.
    Securitisation risk: investment in securities which generate return from various underlying groups of assets such as mortgages, loans or other assets may bear a greater risk of loss due to possible default of some of the underlying assets.
For full details of all of the risks applicable to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin Templeton Investment Funds.