Fund Description

The fund's investment goal is income. Since 1983, the fund has invested substantially in Government National Mortgage Association securities, or Ginnie Maes (GNMAs). These securities carry a guarantee backed by the full faith and credit of the U.S. government as to timely payment of principal and interest.

Strategy Statement

"We have a straightforward, conservative investment philosophy, investing substantially all of the fund's assets in Ginnie Mae (GNMA) securities for high, current income potential. "

Management

Roger Bayston, CFA

Roger Bayston, CFA®

  • Joined Franklin Templeton in 1991
  • Managed Fund Since 1993
Paul Varunok

Paul Varunok

  • Joined Franklin Templeton in 2001
  • Managed Fund Since 2006

Rating

Overall Morningstar Rating As of 04/30/2018

Rating Category: Intermediate Government

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 04/30/2018

Years Ratings Funds
in category
3
1 Stars
224
5
2 Stars
215
10
2 Stars
162

Morningstar Style Box As of03/31/2018

Strategy, Benefits, Results

Strategy

  • We follow a straightforward, disciplined investment strategy seeking income.
  • Since 1983, the fund has invested substantially all of its assets in Ginnie Maes.
  • The team has a collateral-intensive research process, focusing on areas such as individual security selection, coupon allocation and trading strategies.
  • We do not invest in derivatives or make speculative trades in an effort to boost the fund's yield.

Benefits

  • High Credit Quality. GNMAs have historically offered higher yields than comparable U.S. Treasuries and are guaranteed by the U.S. government as to timely payment of principal and interest.i
  • Competitive Performance Track Record. Since inception, the fund's Class A shares posted competitive returns (without sales charge).
  • Experienced, Professional Management. Portfolio managers Roger Bayston and Paul Varunok have managed the fund since 1993 and 2006, respectively.

Selling The Fund

  1. Specify that the securities held by the fund, not shares of the fund, are guaranteed by the U.S. government as to principal and interest payments.
  2. Highlight the fund's strong performance record over the past 25 years.
  3. Emphasize the fund's conservative investment strategy.

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