Templeton Global Bond VIP Fund

  • Trading Symbol: FTMEC
  • Information
    Prior to May 1, 2014, the Templeton Global Bond VIP Fund was known as the Templeton Global Bond Securities Fund.Prior to May 1, 2014, the Templeton Global Bond VIP Fund was known as the Templeton Global Bond Securities Fund.

Morningstar® Snapshot*

Returns 5 out of 5, High Returns
Risk of this Category Category Risk Rating:4, where 1 is Lower and 10 is Higher

*Data provided by Morningstar.


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AS OF 9/30/2016
Average Annual Returns
YTD (Daily)* 1 Yr 3 Yr 5 Yr Life
FTMEC +0.33% -1.39% -1.33% -- +0.59%
*AS OF 10/21/2016; Value is cumulative

Hypothetical Growth of $10,000

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Shows growth of hypothetical $10,000 investment in Templeton Global Bond 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and the principal value of a variable annuity will fluctuate; therefore, you may have a gain or loss when money is withdrawn or received.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.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
This Fund -- -- -- -- -- -- -- 1.37% 1.58% -4.54% -3.20%
Benchmark 5.94% 10.81% 12.00% 1.90% 6.42% 7.22% 1.30% -4.50% 0.67% -2.61% 10.76%
Category 4.68% 7.03% 1.74% 10.65% 7.11% 2.00% 6.99% -3.56% 0.58% -5.00% 1.95%
+/- Benchmark -- -- -- -- -- -- -- 5.87% 0.91% -1.93% -13.96%
+/- Category -- -- -- -- -- -- -- 4.93% 1.00% 0.46% -5.15%

Fund Manager(s)

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Michael J. Hasenstab since 12/31/2001 Sonal Desai since 5/1/2011

Fund Overview


The investment seeks high current income consistent with preservation of capital; capital appreciation is a secondary objective.


Under normal market conditions, the fund invests at least 80% of its net assets in "bonds." Bonds include debt securities of any maturity, such as bonds, notes, bills and debentures. The fund invests predominantly in bonds issued by governments, government-related entities and government agencies located around the world. Under normal market conditions, the Advisor expects to invest at least 40% of its net assets in foreign securities, and may invest without limit in emerging or developing markets. It is non-diversified.


Foreign securities are subject to interest-rate, currency-exchange-rate, economic, and political risks, all of which may be magnified in emerging markets. The fund may invest in lower-quality debt securities that involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. 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.

Top 10 Holdings

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AS OF 9/30/2016
Top 10 Holdings
United Mexican States 8.5% 9.18%
Vereinigte Mexikanische 7.75% 5.30%
Secretaria Tesouro Nacl 10% 3.45%
Korea(Republic Of) 2% 03/10/2021 2.83%
Brazil Federative Rep 10% 2.10%
Korea Treasury Bond 1.71%
Korea Monetary Stab Bond 1.49%
Portugal(Rep Of) 3.875% 1.40%
Korea(Republic Of) 2% 12/10/2017 1.34%
India(Govt Of) 9.15% 1.22%
% of Total Portfolio 30.02%
Total # of holdings: 185 as of 9/30/2016

Quarter-End Average Annual Total Returns

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AS OF 9/30/2016; *SUBACCOUNT INCEPTION 4/30/2012 Glossary definition opens in new window.

0.77% AS OF 5/1/2016
1 Yr 3 Yr 5 Yr 10 Yr Life*
Templeton Global Bond VIP Fund -1.39% -1.33% -- -- 0.59%
JPM Global Govt Bond Idx 9.48% 2.35% 1.02% 4.42% --
World Bond 1.93% -0.73% 0.32% 2.98% --

© 2016 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.