PRICE AND YTD RETURN As of 02/09/2016

NAV down $-0.01 $6.38
POP $6.66
YTD Total return at Nav 0.74%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 12/31/2015

Sales Charge

1 YEAR RETURN -3.37%
5 YEAR RETURN 1.45%
10 YEAR RETURN 3.48%

KEY STATS

Investment Category Government
Distributions Monthly
CUSIP 353 496 607
Fund Number 110
Inception Date May 31, 1970
Total Net Assets (all share classes) As of 01/31/2016 $6,342.3 (M)
Distribution Rate at NAV As of 02/09/2016 3.14%
30-Day Standardized yield As of 01/31/2016 (updated monthly)
w/ Waiver 2.20%
w/o Waiver 2.20%

SALES CHARGE, EXPENSES, & FEES As of 02/01/2016 (updated annually)

Gross Expense Ratio 0.76%
Net Expense Ratio 0.76%
Max Initial Sales Charge 4.25%
CDSC 0.00%
12b-1 Fee 0.15%

Fund Description

The Fund invests at least 80% of its net assets in U.S. government securities. However, the fund presently invests substantially all of its assets in Government National Mortgage Association securities, Ginnie Maes, which 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. "

Roger Bayston, CFA®, MBA

Management

Roger Bayston, CFA, MBA

Roger Bayston, CFA®, MBA

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

Paul Varunok

  • Joined Franklin Templeton in 2001
  • Managed Fund Since 2006

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.
  • 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 financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

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