FSMFX

Franklin Strategic Mortgage Portfolio

PRICE AND YTD RETURN As of 07/22/2016

NAV up $0.00 $9.56
POP $9.98
YTD Total return at Nav 2.81%

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

Sales Charge

1 YEAR RETURN -0.73%
5 YEAR RETURN 2.77%
10 YEAR RETURN 4.07%

KEY STATS

Investment Category Mortgage Backed Securities (MBS)
Distributions Monthly
CUSIP 354 71H 207
Fund Number 357
Inception Date Feb 01, 1993
Total Net Assets (all share classes) As of 06/30/2016 $113.3 (M)
Distribution Rate at NAV As of 07/22/2016 2.23%
30-Day Standardized yield As of 06/30/2016 (updated monthly)
w/ Waiver 1.58%
w/o Waiver 1.57%

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

Gross Expense Ratio 1.01%
Net Expense Ratio 1.01%
Max Initial Sales Charge 4.25%
CDSC 0.00%
12b-1 Fee 0.25%

Fund Description

The Fund will normally invest at least 80% of its net assets in mortgage securities.

Strategy Statement

"We strive to produce competitive total returns with reduced overall volatility, using our proprietary research and risk management models."

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 2001
David Yuen, CFA, MBA, FRM, CPA

David Yuen, CFA®, MBA, FRM, CPA

  • Joined Franklin Templeton in 1988
  • Managed Fund Since 2005

Overall Morningstar Rating As of 06/30/2016

Rating Category: Intermediate-Term Bond

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 06/30/2016

Years Ratings Funds
in category
3
2 Stars
953
5
Stars
10
Stars

Morningstar Style Box As of 03/31/2016

Strategy, Benefits, Results

Strategy

  • We focus on the most attractive investments across the broad mortgage-related markets.i.
  • Our investments may include securities issued by government-sponsored entities such as Fannie Mae and Freddie Mac, as well as other types of mortgage securities, including securities that are not issued or guaranteed by the U.S. government and/or its agencies.ii.
  • We utilize the entire opportunity set of mortgage-backed securities and mortgage-related, asset-backed securities to offer shareholders access to the U.S. mortgage finance market, one of the largest capital markets in the world.

Benefits

  • Investment Selection Flexibility. Ability to invest across the broad mortgage markets, focusing on the top investment ideas available within each sector.
  • Experienced, Professional Management. Portfolio manager Roger Bayston has managed the fund since inception, while Paul Varunok and David Yuen joined the team in 2001 and 2005, respectively.

Investing In The Fund

What Are the Risks?
  • All investments involve risks, including possible loss of principal.
  • The fund’s yield and share price will be affected by interest rate movements and mortgage prepayments.
  • Bond prices generally move in the opposite direction of interest rates, thus the fund’s share price may decline as the prices of bonds adjust to a rise in interest rates.
  • These and other risks 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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