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 06/30/2019

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 06/30/2019

Years Ratings Funds
in category
3
2 Stars
205
5
1 Stars
190
10
2 Stars
149

Morningstar Style Box As of05/31/2019

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.

Investing In The Fund

What Are the Risks?

  • All investments involve risks, including possible loss of principal.
  • The fund’s share price and yield will be affected by interest rate movements and mortgage prepayments.
  • Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline.
  • Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value.
  • These and other risk considerations are discussed in the fund’s prospectus.

Minimum Investment

$1,000.00

How Financial Advisors Help You

Speak to your advisor about whether this fund is appropriate for you.

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