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Franklin Strategic Mortgage Portfolio

Fund Category: Fixed IncomeGo to Prices & Performance page
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Symbol FSMIX
CUSIP 354 71H 108
Fund Number 157
Inception Date1 Feb 01, 1993
Distributions Monthly
Total Net Assets
(all share classes)
As of 10/31/2015

As of  11/27/2015

NAV2 $9.44  
NAV Change $0.01  
POP3 $9.86  
YTD Total Return at NAV 1.16%
Distribution Rate at NAV 2.15%
30-day Standardized Yield4 w/ Waiver w/o Waiver
As of 10/31/2015
(updated monthly)
1.92% 1.91%

Average Annual Total Returns
As of Quarter End 09/30/2015

w/ Sales Charge w/o Sales Charge
1 Yr -1.33% 3.06%
5 Yrs 3.93% 4.83%
10 Yrs 4.10% 4.55%
Life 5.42% 5.62%

Expense Ratio and Sales Charge As of 02/01/2015 (updated annually)

Gross Expense Ratio5 0.81%
Net Expense Ratio 0.81%
Max Initial Sales Charge 4.25%
CDSC 0.00%
12b-1 Fee 0.00%

Fund Description9

Strategy Statement
Portfolio Managers
Roger Bayston, CFA
"We strive to produce competitive total returns with reduced overall volatility, using our proprietary research and risk management models."

Strategy, Benefits, Results


  • 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.

i. Most of the securities owned by the fund, but not shares of the fund, are guaranteed by the U.S. government, its agencies or instrumentalities as to timely payment of principal and interest. The fund's yield and share price are not guaranteed and will fluctuate with market conditions.

ii. Most of the mortgage securities in which the fund invests are issued or guaranteed by the U.S. government, its agencies or instrumentalities. Government agency or instrumentality issues have different levels of credit support. Ginnie Mae pass-through mortgage certificates are backed by the full faith and credit of the U.S. government. U.S. government-sponsored entities, such as Fannie Mae and Freddie Mac, may be chartered by Acts of Congress, but their securities are neither issued nor guaranteed by the U.S. government. While the U.S. government has recently provided financial support to Fannie Mae and Freddie Mac, no assurance can be given that the U.S. government will always do so.


  • 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.


Hypothetical $10K Investment

Hypothetical $10K Investment

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


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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Important Legal Information


For US residents only.