Morningstar® Investment Profile™   Morningstar®
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Franklin US Government Securities VIP 1
Release date as of 2024-10-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Morningstar Report
Overall Morningstar
Rating™
What is this?
As of 2024-10-31
Out of 228
Intermediate Government Funds
Morningstar®
Style Box™
What is this?
As of 2024-06-30
Total Fund Assets ($ Mil)
529.73
View Historical Morningstar Star Ratings and Definitions
  Investment Objective & Strategy  
The investment seeks income.
The fund normally invests at least 80% of its net assets in U.S. government securities. It invests primarily to predominantly in fixed rate and variable rate mortgage-backed securities, a significant to substantial amount of which is in securities issued by the Government National Mortgage Association. The fund may invest in U.S. Treasury STRIPS, bills, bonds, notes and Treasury inflation-protected securities.
  Morningstar Category: Intermediate Government
Intermediate-government portfolios have at least 90% of their bond holdings in bonds backed by the U.S. government or by government-linked agencies. This backing minimizes the credit risk of these portfolios, as the U.S. government is unlikely to default on its debt. These portfolios have durations typically between 3.5 and 6.0 years. Consequently, the group's performance--and its level of volatility--tends to fall between that of the short government and long government bond categories. Morningstar calculates monthly breakpoints using the effective duration of the Morningstar Core Bond Index in determining duration assignment. Intermediate is defined as 75% to 125% of the three-year average effective duration of the MCBI. 
  Investment Risks
There are no additional fund specific investment risks (e.g. liquidity risk, currency risk, foreign investment risk, etc.) associated with this fund beyond the normal risks generally associated with investing in a mutual fund.
  Portfolio Profile
Asset Allocation
% of Net Assets
Bullet U.S. Stocks U.S. Stocks 0.0
Bullet Non-U.S. Stocks Non-U.S. Stocks 0.0
Bullet Bonds Bonds 92.4
Bullet Cash Cash 7.6
Bullet Other Other 0.0
Asset Allocation Rescaled Graph
Data through 2024-10-31
Morningstar Fixed-Income Sectors
% Fund
Government 13.86
Corporate 0.78
Securitized 77.77
Municipal 0.00
Cash & Equivalents 7.60
Derivative 0.00
Data through 2024-10-31
Credit Analysis
% Bonds
AAA 0.00
AA 90.13
A 0.00
BBB 0.00
BB 0.00
B 0.00
Below B 0.00
Not Rated 9.87
Data through 2024-06-30
Credit Analysis Graph
Holding Status
Total Number of Stock Holdings 0
Total Number of Bond Holdings 684
% of Net Assets in Top 10 Holdings 33.19
Turnover % (as of 2023-06-30) 12.86
30 Day SEC Yield % 3.00
Top Holdings
Maturity
Date 		Shares
 Value
$000 		% of Net
Assets
United States Treasury Notes 2.25% 2027-08-15 34,040 32,526 6.13
United States Treasury Notes 4% 2029-07-31 24,000 24,086 4.54
Government National Mortgage Association 2.5% 2051-08-20 28,155 23,941 4.52
Federal National Mortgage Association 2.5% 2051-09-01 18,546 15,546 2.93
Government National Mortgage Association 3% 2051-11-20 17,077 15,034 2.84
Federal Home Loan Mortgage Corp. 4.5% 2052-10-01 13,764 13,139 2.48
Federal Home Loan Mortgage Corp. 5% 2052-12-01 13,351 13,055 2.46
Federal National Mortgage Association 4% 2052-09-01 13,937 12,940 2.44
Federal Home Loan Mortgage Corp. 5.5% 2053-01-01 12,918 12,872 2.43
Government National Mortgage Association 3% 2051-10-20 14,567 12,825 2.42
Data through 2024-10-31
  Principal Risks   
Credit and Counterparty, Extension, Prepayment (Call), Loss of Money, Not FDIC Insured, Active Management, Income, Interest Rate, Market/Market Volatility, Mortgage-Backed and Asset-Backed Securities, Other, U.S. Government Obligations
Show Risk Definitions
  Other Information
Inception Date: 1989-03-14
Portfolio Manager(s)
Michael V. Salm   (2024-09-30)
Mr. Salm is a Co-Head of Fixed Income, specializing in liquid markets and securitized strategies. In this role, he oversees investment strategies related to mortgage and securitized products, interest-rate and volatility derivatives, and money markets. In addition, he manages trading operations and Putnam's Fixed Income quantitative teams. He is a portfolio manager of core global, core plus, global government, fixed income global alpha, and dedicated mortgage strategies, as well as fixed income hedge funds. Mr. Salm joined Putnam in 1997 and has been in the investment industry since 1989. Previously at Putnam, he served as a Portfolio Manager responsible for mortgage strategies in fixed income portfolios. Prior to joining Putnam, Mr. Salm was a Mortgage Specialist at BlackRock Financal Management from 1996 to 1997, a Vice President and Trader at Nomura Securities from 1994 to 1996, a Vice President and Structurer at Nikko Securities from 1993 to 1994, and an Analyst at Fitch Investor Services from 1991 to 1992. Mr. Salm earned a B.S. from Cornell University.
Jatin Misra   (2024-09-30)
Jatin Misra is Portfolio Manager. Previously served as Analyst and Quantitative Analyst. Joined Putnam Management since 2004.
Neil Dhruv   (2019-10-24)
Portfolio Manager of FT Institutional and portfolio manager of FRANKLIN STRATEGIC MORTGAGE PORTFOLIO since October 2019.
Paul Varunok   (2004-12-31)
Mr. Varunok is portfolio manager of Franklin Advisers. He joined Franklin Templeton Investments in 2001. Previously, Varunok was a fixed-income analyst for Prudential Securities, Inc.
Investment Advisor(s)
Franklin Advisers, Inc.
Issuer
Franklin Templeton Investments
Subadvisor(s)
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Show Data Definitions

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