INVESTMENT INVOLVES RISKS. The value of the Fund can be volatile and investors may not get back the amount originally invested. Past performance is not indicative of future results.

• Franklin U.S. Government Fund invests primarily in debt securities issued or guaranteed by the U.S. government and its agencies.  The Fund will have an allocation to fixed income securities of at least 75% of its net assets.
• The Fund is subject to market risk, debt securities risk, credit risk, liquidity risk, valuation risk, concentration risk, foreign currency risk, class hedging risk, counterparty risk, securitisation risk, “to-be-announced” transaction risk, securities lending risk and derivative instruments risk.
• The Fund may at its discretion pay dividends out of the capital or out of gross income of the Fund while paying all or part of the Fund’s fees and expenses out of the capital of the Fund, which results in effectively paying dividends out of capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital or payment of dividends effectively out of the Fund’s capital (as the case may be) may result in an immediate reduction of the net asset value per share.
• “Plus” share classes that offer, under normal market conditions, dividend distribution at a fixed percentage of the net asset value per share that is not linked to income or capital gains, may either be paying out both income and capital in distribution payments, or not substantially distributing all the investment income which a share class has earned. Such share classes may continue to distribute in periods that the Fund has negative returns or is making losses, which further reduces the net asset values of such share classes. In extreme circumstances, investors may not be able to get back the original investment amount.
• Investors should not invest based on this marketing material alone. Offering documents should be read for further details, including the risk factors.  Before you decide to invest, you should make sure the intermediary has explained to you that the Fund is suitable to you.

To seek to maximise income while maintaining some degree of capital preservation. The Fund mainly invests in US government bonds, including mortgage-backed securities, issued or guaranteed by the US government or related agencies.