Morningstar® Investment Profile™   Morningstar®
Disclosure
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Franklin Strategic Income VIP 1
Release date as of 2022-05-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Morningstar Report
Overall Morningstar
Rating™
What is this?
As of ---
Out of 280
Multisector Bond Funds
Morningstar®
Style Box™
What is this?
As of 2022-03-31
Total Fund Assets ($ Mil)
340.9
View Historical Morningstar Star Ratings and Definitions
  Investment Objective & Strategy  
The investment seeks a high level of current income; long-term capital appreciation is the secondary objective.
The fund invests its assets primarily to predominantly in U.S. and foreign debt securities, including those in emerging markets. It may invest up to 100% of its assets in high yield, lower-quality debt securities (also known as "junk bonds"). The fund may invest in many different securities issued or guaranteed by the U.S. government or by non-U.S. governments, or their respective agencies or instrumentalities, including mortgage-backed securities and inflation-indexed securities issued by the U.S. Treasury.
  Morningstar Category: Multisector Bond
Multisector-bond portfolios seek income by diversifying their assets among several fixed-income sectors, usually U.S. government obligations, U.S. corporate bonds, foreign bonds, and high-yield U.S. debt securities. These portfolios typically hold 35% to 65% of bond assets in securities that are not rated or are rated by a major agency such as Standard & Poor's or Moody's at the level of BB (considered speculative for taxable bonds) and below. 
  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
U.S. Stocks 0.4
Non-U.S. Stocks 0.0
Bonds 97.1
Cash 0.7
Other 1.7
Total 100.0
Asset Allocation Long/Short/Net Graph
Data through 2022-05-31
Morningstar Fixed-Income Sectors
% Fund
Government 24.44
Corporate 48.89
Securitized 14.32
Municipal 0.72
Cash & Equivalents 6.10
Other 5.52
Data through 2022-05-31
Credit Analysis
% Bonds
AAA 11.83
AA 4.21
A 6.74
BBB 17.54
BB 20.24
B 21.64
Below B 6.95
Not Rated 10.85
Data through 2022-03-31
Credit Analysis Graph
Holding Status
Total Number of Stock Holdings 10
Total Number of Bond Holdings 469
% of Net Assets in Top 10 Holdings 29.76
Turnover % (as of 2021-12-31) 58.28
30 Day SEC Yield % ---
Top Holdings
Maturity
Date
Shares
Value
$000
% of Net
Assets
Franklin Floating Rate A Usd Acc --- 4,048 32,104 9.42
Franklin IFT Money Market --- 12,934 12,934 3.79
5 Year Treasury Note Future Sept 22 2022-09-30 --- 10,598 3.11
2 Year Treasury Note Future Sept 22 2022-09-30 --- 10,586 3.11
United States Treasury Notes 2.875% 2.875% 2025-04-30 9,100 9,161 2.69
United States Treasury Notes 2.625% 2.625% 2025-03-31 7,000 7,018 2.06
UPSTART 4884 MARKETPLACE LOANS 2026-10-21 5,362 5,171 1.52
United States Treasury Notes 1.125% 1.125% 2027-02-28 5,500 5,101 1.50
10 Year Treasury Note Future Sept 22 2022-09-21 --- -4,426 1.30
United States Treasury Notes 2.375% 2.375% 2027-05-15 4,400 4,309 1.26
Data through 2022-05-31
  Principal Risks   
Lending, Credit and Counterparty, Inflation/Deflation, Currency, Emerging Markets, Foreign Securities, Loss of Money, Not FDIC Insured, Active Management, Income, Interest Rate, Market/Market Volatility, High-Yield Securities, Industry and Sector Investing, Mortgage-Backed and Asset-Backed Securities, Other, Restricted/Illiquid Securities, Derivatives, Sovereign Debt, Management, Structured Products, Variable-Rate Securities
Show Risk Definitions
  Other Information
Inception Date: 1999-07-01
Portfolio Manager(s)
Sonal Desai   (2018-12-31)
Sonal Desai, PhD, EVP, is Franklin Templeton Fixed Income Group’s Chief Investment Officer, a portfolio manager for several fixed income funds and a member of the firm's executive committee. Dr. Desai started her career in 1994 as a university academic, followed by six years at the International Monetary Fund after which she joined the private sector. She started working at Franklin Templeton in 2009. She holds a PhD(Econ) from Northwestern Univ. and a BA(Econ) from Delhi Univ.
William Chong   (2019-10-15)
David Yuen   (2019-10-15)
David Yuen joined Franklin Templeton Investments in 2000.He was appointed Chief Investment Officer of Global Long/Short Absolute Return Strategy in 2010. Previously, he was co-CIO of US Large Cap Value Equities and CIO of the Advanced Value Fund (since 2009), as well as director of research for US Large Cap Value (since early 2008). Yuen had been the director of research for Emerging Markets Value since August 2002. He joined Bernstein in 1998 as a research analyst, covering the global retailing industry, and became a senior research analyst in 1999, covering retail, textile & apparel, gaming & lodging, and consumer appliances. Prior to joining Bernstein, Yuen worked as a senior vice president of The Coleman Company from 1994 to 1998. From 1988 to 1994, he was a consultant, then partner, at WKI, a management-consulting firm specializing in emerging-market strategies. Prior to that, Yuen was a consultant with Bain & Company. He received a BS in operations research from Columbia University’s School of Engineering in 1986. Location: New York
Patricia O'Connor   (2016-02-01)
Patricia O'Connor, CFA, VP, is a vice president and portfolio manager for the Franklin Templeton Fixed Income Group. Prior to joining Franklin Templeton in 1997, Ms. O'Connor worked for Morgan Stanley Asset Management. She holds a B.S. (Accounting, Lehigh Univ.) and an MBA (Univ. of Chicago). Ms. O'Connor holds a B.S. in accounting from Lehigh University and an M.B.A. in finance and economics from the University of Chicago. She is a Chartered Financial Analyst (CFA) charterholder, as well as a member of the CFA Society of San Francisco and CFA Institute.
Investment Advisor(s)
Franklin Advisers, Inc.
Issuer
Franklin Templeton Investments
Subadvisor(s)
---
Show Data Definitions

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