About FLTFX
Fannie Mae Federal National Mortgage Association 9.5% 1989 LB110 Floating Rate Mortgage-Backed Security is a type of mortgage-backed security (MBS) issued by Fannie Mae, a leading government-sponsored enterprise in the U.S. mortgage market. This security represents beneficial ownership interests in a pool of residential mortgage loans, with the underlying mortgages typically backed by single-family or multifamily properties. The 9.5% refers to the coupon rate set upon issuance, although the floating rate feature means the interest payments adjust periodically based on a reference benchmark, helping manage interest rate risk for investors.
Fannie Mae MBSs play a crucial role in providing liquidity to the housing market, as Fannie Mae acquires mortgage loans from lenders, bundles them, and issues these securities to investors. This process frees up capital for lenders to issue more loans, facilitating home ownership and real estate development. The floating rate aspect enhances these securities' attractiveness during periods of rate volatility, while Fannie Mae's guarantee of timely principal and interest payments adds a layer of credit quality, although they are not explicitly backed by the U.S. government.
Overall, these securities serve as important fixed-income instruments in diversified portfolios, offering exposure to the real estate sector and aligning investor payments with prevailing interest rates.
Fund Family Franklin Templeton Investments
Category Target-Date 2055
Performance Rating Average
Risk Rating Below Average
Stock Exchange Nasdaq
Ticker Symbol FLTFX
Share Class Class A
Index MSCI AC World NR USD
FLTFX had a total return of 17.26% in the past year, including dividends. Since the fund's
inception, the average annual return has been 10.90%.
