Franklin Total Return Fund

Franklin Investors Securities Trust · 5 share classes

Actively managed U.S. bond fund
One fund, 5 share classes:FKBAXFCTLXFBDAXFTRRXFRERX
$2.86B NAV
2,998 positions · as of 2026-04-30 · filed 2026-06-24

Fund classification

Classified from what the fund holds · as of 2026 Q2

Franklin Total Return Fund is an actively managed U.S. bond fund.

Asset class
Bonds
Region
United States
Management
Actively managed
Fund type
Open-end fund
Credit quality
Investment grade
Rate sensitivity
Intermediate duration

Fund profile

As filed in the prospectus · 2026 Q1

High current income, consistent with preservation of capital. As a secondary goal, capital appreciation over the long term.

Strategy · summarised

The fund invests primarily in investment-grade debt securities selected through top-down macroeconomic analysis and bottom-up fundamental assessment of sectors and issuers, with up to 20% of assets permitted in non-investment-grade securities and up to 25% in foreign securities. The manager employs derivatives including futures, options, swaps and currency forwards to gain exposure to interest rates, credit, duration and currencies, and may hold significant treasury futures exposure. Because security selection depends on the manager's assessment of economic and market conditions, fund returns will diverge from any benchmark.

Expenses
0.38% 1.13%across 5 share classes
Share classGrossNet
FKBAX0.93%0.73%
FCTLX1.33%1.13%
FBDAX0.67%0.48%
FTRRX1.18%0.98%
FRERX0.56%0.38%

Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.

Portfolio turnover 234.19% · as of 2026 Q1

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

121.60%
of net assets
Bonds62.74%
Securitized54.07%
Loans3.07%
Cash & short-term1.48%
2 smaller0.24%

These positions come to 121.60% of the fund's net assets. This counts only what the fund reported holding — the holdings disclosure covers assets, not liabilities such as borrowings — so it is not expected to reconcile to 100%.

Derivatives are shown at market value, not notional exposure.

Sector allocation

The same holdings as Allocation above, grouped by market sector instead of asset type · as of 2026 Q2

100%
of net assets
Securitized44.4%
Other12.0%
Government11.2%
Financials7.1%
12 smaller25.3%

Government, Securitized and Cash are non-corporate buckets; International is foreign holdings we don’t sector-classify, and Other is the residual (held funds, unresolved names).

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 189 new391 exited

Largest new: FNMA or FHLMC ×6, GNMA ×2

Largest exited: FNMA or FHLMC ×4, United States of America, FHLMC Pool, GNMA ×2

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+4.47%+10.82%-0.46%3.35%-6.29%
+4.10%+9.48%-2.30%3.39%-6.53%
+4.70%+11.57%+0.67%3.48%-6.14%
+4.24%+10.18%-1.56%3.42%-6.32%
+4.68%+11.92%+1.22%3.50%-6.08%

These classes hold the same portfolio, so the 3.52pp spread over 5 years is the cost difference between them — roughly 0.70pp a year — not a difference in what they own.

Cumulative return· May 2023 – Apr 2026

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30

Avg coupon
4.36%
Avg maturity
15.75 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

15%
floating
Fixed rate84.5%
Floating rate15.5%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y0.9%
1-3y5.5%
3-5y13.1%
5-10y30.8%
10y+49.7%
Flagged holdings
Defaulted: 0.00% · $0.07M · 697 positions
In arrears: 0.00% · $0.04M · 1 positions
Paid in kind: 0.02% · $0.81M · 5 positions

These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.

Risk profile

Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2

More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.

Interest-rate duration
4.79 yr
approx. move per 100bp
Credit-spread duration
5.24 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -10.0%
of value
Credit spreads52%
Interest rates48%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+5.24
yrs total
Investment grade+4.81 yr
High yield+0.43 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate4.79 yr total
3 mo30 yr
3 mo0.01 yr0%
1 yr0.30 yr6%
5 yr1.01 yr21%
10 yr1.58 yr33%
30 yr1.90 yr40%
Credit spread5.24 yr total
3 mo30 yr
3 mo0.01 yr0%
1 yr0.33 yr6%
5 yr1.24 yr24%
10 yr1.71 yr33%
30 yr1.94 yr37%

The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.

Show the numbers
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.01+0.01+0.00$3.2k$185
1 yr+0.30+0.18+0.15$50.6k$44.2k
5 yr+1.01+1.24+0.00$354.0k$1.1k
10 yr+1.58+1.59+0.12$452.7k$35.1k
30 yr+1.90+1.79+0.15$512.5k$42.5k

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Rate exposure by currency

Duration contribution in years, summing to the fund's 4.79 yr.

USD+4.79 yr
EUR-0.00 yr
ZAR+0.00 yr

This is where the fund's rate exposure sits, not its currency risk — most international bond funds hedge the currency back to dollars, and the size of those hedges is not in the filing. Tenors are also summed across curves, so a 5-year JPY point and a 5-year USD point are added together.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
FNMA or FHLMC6.00% · due 2056-05-252.50%$71.56M
FNMA or FHLMC2.00% · due 2056-05-252.37%$67.81M
FNMA or FHLMC6.50% · due 2056-05-251.96%$56.03M
FNMA or FHLMC5.00% · due 2056-05-251.90%$54.38M
FNMA or FHLMC2.50% · due 2056-05-251.90%$54.22M
FNMA or FHLMC4.50% · due 2056-05-251.87%$53.39M
FHLMC Pool3.00% · due 2052-02-011.64%$46.92M
United States of America1.88% · due 2051-11-151.58%$45.02M
United States of America2.25% · due 2049-08-151.57%$44.89M
Franklin Institutional U.S. Government Money Market FundINFXX1.48%$42.29M
Showing 10 of 2,998Sign in to see more

Top 10 positions are 18.78% of net assets, top 25 32.45%, across 491 issuers.

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