Franklin U.S. Government Securities VIP Fund

  • Trading Symbol: FFMEC
  • Information
    Prior to May 1, 2014, the Franklin U.S. Government Securities VIP Fund was known as the Franklin U.S. Government Fund.Prior to May 1, 2014, the Franklin U.S. Government Securities VIP Fund was known as the Franklin U.S. Government Fund.
Close
Close

Morningstar® Snapshot*

AS OF 11/30/2014; MORNINGSTAR CATEGORY: INTERMEDIATE GOVERNMENT
Returns 5 out of 5, High Returns
LOW AVG HIGH
Risk of this Category Category Risk Rating:3, where 1 is Lower and 10 is Higher
LOWER HIGHER

*Data provided by Morningstar. Please click on the indicator above to learn more about comparison groups and methodology.

Performance

 1, 2 More Information
AS OF 11/30/2014
Average Annual Returns
YTD (Daily)* 1 Yr 3 Yr 5 Yr Life
FFMEC +3.05% +2.64% -- -- +0.57%
*AS OF 12/19/2014; Value is cumulative
SUBACCOUNT INCEPTION 4/30/2012

Hypothetical Growth of $10,000

 3, 4 More Information
AS OF 11/30/2014; MORNINGSTAR CATEGORY: INTERMEDIATE GOVERNMENT
Shows growth of hypothetical $10,000 investment in Franklin U.S. Government Securities VIP Fund over the selected time period

The chart illustrates the performance of a hypothetical $10,000 investment made in the fund ten years ago or on commencement of operations (whichever is later). Figures include reinvestment of capital gains and dividends, and reflect the effects of the annual annuity charge and the underlying fund's expenses. Figures do not reflect the effects of any applicable redemption fees, maintenance charges, or surrender fees, which would lower these figures. This chart is not intended to imply any future performance of the fund.

The performance data featured represents past performance, which is no guarantee of future results. Investment returns and the principal value of a variable annuity will fluctuate; therefore, you may have a gain or loss when money is withdrawn or received. Fund performance fluctuates and currently may be significantly higher or lower than stated.

Fund Manager(s)

More Information
Patrick Klein since 5/1/2010 Paul Varunok since 12/31/2004

Fund Overview

Objective

The investment seeks income.

Strategy

The fund normally invests at least 80% of net assets in U.S. government securities. It invests primarily to predominantly in fixed income 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 also invest in mortgage-backed and other securities issued or guaranteed by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac). It may invest in U.S. Treasury STRIPS, bills, bonds and notes. The fund may also invest in other U.S. government securities.

Risk

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Additional risk information for this product may be found in the prospectus or other product materials, if available.

Details

More Information
Morningstar Category
Intermediate Government
Subaccount Inception
4/30/2012
Unit Value
$10.20
12/19/2014
Turnover Rate
67.8%
12/31/2013
Net Assets ($M)
$21.31
11/30/2014
12 Month Low-High
$9.88 - $10.21
11/30/2014

Top 10 Holdings

 5 More Information
AS OF 9/30/2014
Top 10 Holdings
GNMA 4% 08/20/2044 5.04%
GNMA 3.5% 09/20/2042 3.14%
FNMA FRN 2.71%
GNMA 3.5% 01/20/2043 2.38%
GNMA 3.5% 05/20/2043 1.99%
GNMA 3.5% 11/20/2042 1.92%
GNMA 4% 06/20/2044 1.85%
GNMA 3.5% 05/20/2044 1.76%
FNMA 4.5% 1.51%
GNMA 3.5% 12/20/2042 1.41%
% of Total Portfolio 23.71%
Total # of holdings: 1699 as of 9/30/2014

Quarter-End Average Annual Total Returns

 1, 2, 3 More Information
AS OF 9/30/2014; *SUBACCOUNT INCEPTION 4/30/2012 Glossary definition opens in new window.

EXPENSE RATIO (GROSS):
0.74% AS OF 5/1/2014
1 Yr 3 Yr 5 Yr 10 Yr Life*
Franklin U.S. Government Securities VIP Fund 1.75% -- -- -- 0.23%
Barclays Int Gov bond 1.14% 0.90% 2.50% 3.68% --
Intermediate Government 0.96% -0.27% 1.46% 2.49% --

© 2012 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for fund performance, you should check the fund's current prospectus or other product materials for the most up-to-date information concerning applicable loads, fees and expenses.