PRICE AND YTD RETURN As of 07/25/2016

NAV down $-0.01 $6.36
POP $6.64
YTD Total return at Nav 1.73%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 06/30/2016

Sales Charge

1 YEAR RETURN -1.86%
10 YEAR RETURN 3.78%


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 06/30/2016 $6,569.9 (M)
Distribution Rate at NAV As of 07/25/2016 3.06%
30-Day Standardized yield As of 06/30/2016 (updated monthly)
w/ Waiver 2.03%
w/o Waiver 2.02%

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


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


  • 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.


  • 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


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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