Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES Institutional Fiduciary Trust (the Trust) is a diversified, open-
end management investment company (mutual fund), registered under the Investment Company Act of 1940, as
amended. The Trust currently consists of eight separate and distinct Funds. These financial statements pertain to
the Franklin Institutional Adjustable U.S. Government Securities Fund (the Adjustable U.S. Government Fund)
and the Franklin Institutional Adjustable Rate Securities Fund (the Adjustable Rate Securities Fund). Each of the
Funds issues a separate series of the Trust's shares and maintains a totally separate and distinct investment
The Adjustable U.S. Government Fund and the Adjustable Rate Securities Fund (the Funds) invest substantially
all of their assets in the Adjustable Rate Securities Portfolios (the Portfolios), which is a no-load, open-end,
diversified management investment company that has two separate and distinct Portfolios consisting of: U.S.
Government Adjustable Rate Mortgage Portfolio (the ARM Portfolio) and Adjustable Rate Securities Portfolio.
The unaudited financial statements of the Portfolios, including the statements of investments, are included
elsewhere in this report and should be read in conjunction with the Funds' financial statements.
On June 20, 1995, the Board of Trustees eliminated the AEA Cash Management Fund, a series of the Trust.
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation
of its financial statements. The policies are in conformity with generally accepted accounting principles for
a. Security Valuation:
The values of the Adjustable U.S. Government Fund and the Adjustable Rate Securities Fund reflect the Funds'
proportionate interest in the net assets of the Portfolios. As of June 30, 1995, the Adjustable U.S. Government
Fund owns approximately 4% of the ARM Portfolio and the Adjustable Rate Securities Fund ow