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Managed Strategy Since 2020
Fixed Income
Franklin Intermediate Government Bond SMA
Popular Documents
Year to Date Returns (Net)
4.27%
As of 09/30/2025
Year to Date Returns (Pure Gross)
5.44%
Overview
Product Facts
Strategy description
The investment management team manages portfolios composed primarily of intermediate maturity U.S. Government securities. Using a risk-managed, top-down/bottom-up approach via active management of duration, yield curve, sector allocation and issue selection, we seek to provide capital appreciation along with current income.
- Benchmark
- Bloomberg US Government - Intermediate Index
- Inception Date
- 12/31/2003
- Asset Class
- Fixed Income
- Yield to Worst
As of 09/30/2025 (Updated Monthly) - 3.80%
- Effective Duration
As of 09/30/2025 (Updated Monthly) - 3.77 Years
Average Annual Total Returns As of 09/30/2025
- 2.15%1 Year
- 3.05%3 Years
- -0.58%5 Years
- 0.55%10 Years
- 1.57%Since Inception
12/31/2003
Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.
Top Sectors
As of 09/30/2025 % of Total (Updated Quarterly)
Manager and Commentary
About the Team
Franklin Templeton Fixed Income
Franklin Templeton Fixed Income is a fixed income specialist with a measured "no surprises" approach that is committed to the goal of delivering clients consistent, predictable fixed income results. We pursue dimensional sources of potential alpha across all global fixed income securities, sectors, and markets.
Commentary Highlights
June 30, 2025- Markets: There were large swings in financial market sentiment across the second quarter of 2025. During April, fixed income spreads generally widened amid US President Donald Trump’s “Liberation Day” tariff announcements due to fears that they could lead to a drop in growth and a new round of inflationary pressures. A subsequent 90-day pause for many of the increased levies helped calm market nerves. The passage of the “One Big Beautiful Bill” spending package after quarter-end further helped reduce fixed income market uncertainties. Over the period, US Treasury (UST) yield changes were mixed. Very short- and intermediate-dated yields witnessed declines, while longer-maturity UST yields increased. Yields declined by 16 basis points (bps) to 3.72% on the two-year UST note and by 15 bps to 3.80% on the fiveyear UST note. Ten-year UST yields moved two bps higher to 4.23%.
- Contributors: Security selection among USTs.
- Detractors: Overweight intermediate-duration USTs.
- Outlook: The US Federal Reserve’s (Fed’s) reaction function is complicated. Fears of increased inflation due to fiscal policy are likely to keep the Fed on hold, in our assessment. We are looking for at most one rate cut for the remainder of the year.
Franklin Templeton Fixed Income
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Managed Strategy Since 2025
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Managed Strategy Since 2024
Latest Insights
October 30, 2025
October 28, 2025
October 9, 2025
September 22, 2025
Composite Performance
Average Annual Total Returns
As of 09/30/2025
Selected Month September 2025
Franklin Intermediate Government Bond SMA - Net (%)
Quarter End
As of 09/30/2025
Franklin Intermediate Government Bond SMA - Pure Gross (%)
Quarter End
As of 09/30/2025
Bloomberg US Government - Intermediate Index (%)
Quarter End
As of 09/30/2025
Prior to January 1, 2020, net-of-fee returns were based on actual fee and non-fee paying accounts used a model wrap fee.
The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.
Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (1.5% is the maximum anticipated wrap fee for fixed income portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.
For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.
To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236.
Franklin Templeton claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Portfolio
Portfolio Statistics
As of 09/30/2025 (Updated Monthly)
Average Weighted Maturity
- Portfolio
- 4.23 Years
- Portfolio
- 98.13
- Portfolio
- 3.80%
- Portfolio
- 2.90%
- Portfolio
- 3.80%
- Portfolio
- 3.77 Years
The portfolio characteristics listed are based on the model portfolio, which is representative of the investment strategy. The model portfolio represents the expected allocation that would be used for new accounts. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, changes in the purchase and sell list during the course of a quarter, general market conditions, and factors specific to each existing account due to client considerations. The securities used in developing this model portfolio do not reflect actual purchases in an account and may not reflect the impact that material economic and market factors might have had on decision making if the portfolio manager was actually managing the account.
Source: FactSet.
Maturity Allocation 2
As of 09/30/2025 % of Total (Updated Monthly)
| Maturity | Portfolio | Benchmark |
|---|---|---|
| 0 to 2 Years | 29.78% | 24.43% |
| 2 to 4 Years | 22.85% | 33.05% |
| 4 to 6 Years | 18.92% | 22.40% |
| 6 to 8 Years | 19.96% | 11.96% |
| 8+ Years | 8.49% | 8.15% |
The portfolio characteristics listed are based on the model portfolio, which is representative of the investment strategy. The model portfolio represents the expected allocation that would be used for new accounts. The allocation of existing accounts may differ from the allocation used for new accounts due to differences in the timing of purchases and sales, changes in the purchase and sell list during the course of a quarter, general market conditions, and factors specific to each existing account due to client considerations. The securities used in developing this model portfolio do not reflect actual purchases in an account and may not reflect the impact that material economic and market factors might have had on decision making if the portfolio manager was actually managing the account.
Documents
Product Documents
| Name | Download | Add to Cart | |
|---|---|---|---|
| Factsheet - Franklin Intermediate Government Bond SMA | |||
| Product Commentary - Franklin Intermediate Government Bond SMA | |||
| FTPPG Regulatory Disclosures |
Risks
All investments involve risks, including possible loss of principal. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued. Active management does not ensure gains or protect against market declines. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the performance and result in greater fluctuation in value. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated.
Important Information
Separately Managed Accounts (SMAs) are investment services provided by Franklin Templeton Private Portfolio Group, LLC (FTPPG), a federally registered investment advisor. Client portfolios are managed based on investment instructions or advice provided by affiliated subadvisors of Franklin Templeton. Management is implemented by FTPPG, the designated subadvisor or, in the case of certain programs, the program sponsor or its designee.
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Franklin Templeton (FT) is not undertaking to provide impartial advice. Nothing herein is intended to provide fiduciary advice. FT has a financial interest.
Important data provider notices and terms available at www.franklintempletondatasources.com.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
The Bloomberg U.S. Government Intermediate Index is the intermediate component of the Bloomberg U.S. Government Index, which includes public obligations of the U.S. Treasury with at least one year to final maturity and publicly issued debt of U.S. government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. government.
Source: Bloomberg Indices.
All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.